How to track and manage Trade Away trades

How to track and manage Trade Away trades

The Middle Office Trade Away Services desk allows you to execute trades in individual accounts at another broker-dealer using a delivery versus payment Tooltip (DVP) account. There is no minimum net equity requirement or Prime Broker paperwork requirement. However, the advisor must sign a Trade Away letter of agreement. Trade Away transactions can be tracked and managed on the Status Hub when Trade Away functionality is activated on Schwab Advisor Center®.

For information on Schwab's Trade Away policies, see Introduction to Trade Away service.

  • A DVP Tooltip account at another broker-dealer, opened with Schwab as the custodian in the client's name, with the client's taxpayer identification number, and the client's address, for each client for whom you will place Trade Away trades
  • Alert preferences set to receive Trade Away alerts

To track and manage Trade Away trades, you must activate the Trade Away functionality on Schwab Advisor Center.

  1. From the Client & Account Servicing link on Schwab Advisor Center, click Activity.
  2. Click the Trade Away tab.
  3. If the Trade Away Tab is missing, contact the Middle Office Trade Away Services team at 800-404-6996 so your firm can be granted access.

After activating Trade Away functionality and placing your Trade Away trades at the executing broker-dealer, track the trades on Schwab Advisor Center.

  1. Go to the Activity page of the Schwab Advisor Center Status Hub.
  2. A count of the trades appear in one of the following Submitted Tasks columns in the TradeAways row:
    • Action Required—Schwab received the trade and requires action. Review the trade and either accept or correct it. The Alerts tab contains a Trade Away alert with additional information about any errors.
    • Processing—The Middle Office Trade Away Services desk is reviewing the trade for balance, positions, and account information. If no errors are found, the transaction proceeds, posting the trade to the client account but pending settlement. If an error is found, the trade is marked "Action Required."
    • Completed—The trade is accepted, booked, and settled to the client's account.

After a Trade Away trade shows up on the Schwab Advisor Center Status Hub, you can accept, cancel, or correct it.

  1. On the Status Hub of the Activity page, select All Actions Required Only. The screen displays details for each trade requiring action.
  2. Check the box to the right of each trade to accept. You can accept multiple trades at once.
  3. Select Accept TradeAway Actions from the Check boxes and select one drop-down menu.
  4. Click OK. The trade status changes to Processing, and the trade is added to the Processing count on the Summary page.

If you have made an error in your Trade Away trade, you can correct or cancel it. The process you use will depend on whether the trade has posted to your client's account.

  1. On the Status Hub of the Summary page, select All Actions Required Only.
  2. Check the box to the right of each trade to correct. You can mark multiple trades at once.
  3. Select Correct TradeAways from the Check boxes and select one drop-down menu.
  4. Click OK. The trade status changes to Action Required—Needs Correction until the executing broker-dealer corrects or cancels the Depository Trust Company (DTC) confirmation for the trade. No further action can be taken online.
  5. Contact the executing broker-dealer to correct or cancel the DTC trade confirmation.
  6. Contact the Middle Office Trade Away Services desk at 800-404-6996 with the trade correction or cancellation.
  1. Notify the executing broker-dealer of a cancellation or any corrections, including reallocations. The executing broker-dealer must issue a corrected confirmation with the updated trade details. Notify Schwab of the correction.
  2. Select Cancel Rebill Request to open the Account Management page on Schwab Advisor Center. Click Select, and then click Open PDF. Complete the form.
  3. For cancellations and corrections occurring more than 10 days after posting and requiring an account holder's signature, you may also need to complete the Addendum to Cancel Rebill Request. The Middle Office Trade Away Services desk can confirm if this form is necessary.
  4. Print the form(s) and, if required, obtain signatures from the account holder(s).
  5. Send the form(s) to the Middle Office Trade Away Services desk via a Schwab Advisor Center service request.
Form: Addendum to Cancel Rebill Request
Form: Cancel Rebill Request
Resource: Extended-hours trading

 

After the Trade Away trade has been accepted, settled, and posted to the client's account:

  • The trade drops off the Completed list and appears on the Account History page one to two business days after the settlement.
  • If you have questions about your Trade Away trades, contact the Middle Office Trade Away Services desk at 800-404-6996.

Can I place block trades as Trade Aways?
No. Trade Away transactions are executed at the individual account level only. If you want to execute block trades at another broker-dealer and settle the trades at Schwab, you must be approved for Prime Broker transactions.

How do I open a DVP account at another firm?
Contact the broker-dealer who will be executing the trades to set up the account with the client's name, client's taxpayer identification number, and client's address.

How do I place Trade Away trades?
Place your Trade Away trades at the executing broker-dealer in a DVP account with the same registration as the Schwab account with the client's name, client's taxpayer identification number, and client's address.

After I place a Trade Away trade, how long before it appears on the Status Hub?
As soon as the DTC confirmation generates, you will see the trade on the Status Hub. Ask the executing broker when the trade confirm generates.

Why can't I see any Trade Away tasks?
Trade Away tasks appear on the Account Open & TOA page of the Status Hub. To see them, activate the Trade Away functionality. See How to activate Trade Away functionality in this article.

How to work with alerts
Introduction to Prime Broker transactions
Introduction to Trade Away service
Introduction to the Balances, Positions, and Transactions tabs
Introduction to the Status Hub