BSETT - Broker Side Settlements
What is
There are many ITAS modes for settling futures/options trades. BSETT is a very explicit method where filter selections of instrument, prompt month, account, trade dates, department etc allow the user to restrict the trades to be processed; it is only applicable/available when the F&O operation is configured to be Dual Entry.
There are several styles of closure, FIFO, LIFO, pick the trades, mark-to-market etc with the resulting settlement accounting documents reflecting any settlement commissions and the grossed up buy and sell values. The FIFO and LIFO modes will automate their picking of suitable trades for settlement i.e. all Day trading will be processed as a first pass and the final settlement will handle any residue trades, so there can be more than 1 SA reference assigned in the FIFO/LIFO settlement procedures.
Because there can be timing differences or different settlement methods between client and broker handling, the accounting documents handle the differences in value by using a series of nominal/general accounts named as TIME SUSPENSE. When the prompt month is full liquidated, these accounts will be net zero, as will the open positions. Prior to off-the-board the differences in open position values will be reflected in the timing suspense accounts and are therefore reconcilable using BRKIMPORT.
If any settlement needs to be busted, use SBUST. The result is to return trades to open position and reverse the accounting.