Trade Processing. The Fund will send to both HNB and Unified Fund Services a listing of all Portfolio Managers, both internal and external, authorized by the Fund to execute trades on its behalf. This list will be updated for the termination of a Manager, or for the addition of a Manager prior to the effective date of the addition. In addition, the Fund will send to HNB and Unified Fund Services a list of all persons approved by the Fund to authorize the purchase or sale of investments. This list will be updated when there is any change in authorization. Trade Execution Trade Date ---------- Fund Portfolio Managers write up a trade ticket and give to their brokers who, in turn, execute the trade. Trade Date + 1 -------------- Fund Portfolio Managers affirm trades confirmed by their chosen brokers through the DTC ID System. Unified Fund Services downloads affirmed trades automatically into their accounting system by specific fund. Portfolio Managers, who do not affirm trades, will forward copies of trade tickets to the Fund and/or Unified Fund Services who will manually verify trades against DTC Confirmations entered by the brokers. Upon trade verification the Fund and/or Unified Fund Services will instruct HNB to affirm the DTC ID Confirm using electronic file from advisors, designated by Fund. In this latter case, if a trade discrepancy is found, the Fund and/or Unified Fund Services will contact the trader to get a corrected trade ticket or await a cancel and rebill. A report from the Fund and/or Unified Fund Services accounting system is compared to the DTC affirmed trades listing or the trade tickets by 9:00 a.m. to ensure no importing or data entry errors have occurred. An authorized person for the Fund will send HNB a listing of all approved transactions via e-mail. The e-mail will contain the following language: "The attached listing contains transactions authorized by the `Fund'." Any necessary files will be attached. HNB will provide an electronic receipt of the transmission. HNB will also provide a method of storing these communications for not less than seven years. Trade Communication: HNB and Fund will adhere to NYSE Rule 387, which states in part that "That client or its agent shall utilize the facilities of securities depository for confirmation, acknowledgment, and book entry settlement of all depository eligible transactions." >> All eligible trades that are affirmed by the industry deadlines will automatically load into the Custodial Bank's system and settle through the appropriate depository as required by NYSE Rule 387. >> NYSE Rule 387 dictates that custodial Banks not accept physical delivery of depository eligible issues presented by member brokers. >> When a clearing broker/agent is used to settle a trade, all brokers must ensure that a trade confirmation is coded to indicate the originating broker. This represents current NYSE operating procedure. The Fund will work with its investment managers to have all transactions placed through member brokers on the DTC confirmation system (or other industry-accepted confirmation methods) by no later than the industry standard of noon on trade date plus one (T+1). Additionally, the Fund will facilitate the affirmation of depository eligible and non-eligible transactions by no later than noon on the later of settlement minus one (S-1) or trade date plus two (T+2). The Fund will notify HNB of all T+1 transactions as soon as possible after trade notification is received from the investment manager. HNB will not be responsible for compensation interest due if notification is received after noon on S-1. HNB will accept DTC affirmed confirmation as authorized instruction to settle trades. HNB will accept electronic or hard copy resolutions from the Fund for non-standard trade settlement.
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Sources: Custody Agreement (Wallace Funds)
Trade Processing. The Fund will send to both HNB and Unified Fund Services a listing of all Portfolio Managers, both internal and external, authorized by the Fund to execute trades on its behalf. This list will be updated for the termination of a Manager, or for the addition of a Manager prior to the effective date of the addition. In addition, the Fund will send to HNB and Unified Fund Services a list of all persons approved by the Fund to authorize the purchase or sale of investments. This list will be updated when there is any change in authorization. Trade Execution Trade Date ---------- Fund Portfolio Managers write up a trade ticket and give to their brokers who, in turn, execute the trade. Trade Date + 1 -------------- Fund Portfolio Managers affirm trades confirmed by their chosen brokers through the DTC ID System. Unified Fund Services downloads affirmed trades automatically into their accounting system by specific fund. Portfolio Managers, who do not affirm trades, will forward copies of trade tickets to the Fund and/or Unified Fund Services who will manually verify trades against DTC Confirmations entered by the brokers. Upon trade verification the Fund and/or Unified Fund Services will instruct HNB to affirm the DTC ID Confirm using electronic file from advisors, designated by Fund. In this latter case, if a trade discrepancy is found, the Fund and/or Unified Fund Services will contact the trader to get a corrected trade ticket or await a cancel and rebill. A report from the Fund and/or Unified Fund Services accounting system is compared to the DTC affirmed trades listing or the trade tickets by 9:00 a.m. to ensure no importing or data entry errors have occurred. An authorized person for the Fund will send HNB a listing of all approved transactions via e-mail. The e-mail will contain the following language: "The attached listing contains transactions authorized by the `Fund'." Any necessary files will be attached. HNB will provide an electronic receipt of the transmission. HNB will also provide a method of storing these communications for not less than seven years. Trade Communication: HNB and Fund will adhere to NYSE Rule 387, which states in part that "That client or its agent shall utilize the facilities of securities depository for confirmation, acknowledgment, and book entry settlement of all depository eligible transactions." >> All eligible trades that are affirmed by the industry deadlines will automatically load into the Custodial Bank's system and settle through the appropriate depository as required by NYSE Rule 387. >> NYSE Rule 387 dictates that custodial Banks not accept physical delivery of depository eligible issues presented by member brokers. >> When a clearing broker/agent is used to settle a trade, all brokers must ensure that a trade confirmation is coded to indicate the originating broker. This represents current NYSE operating procedure. The Fund will work with its investment managers to have all transactions placed through member brokers on the DTC confirmation system (or other industry-accepted confirmation methods) by no later than the industry standard of noon on trade date plus one (T+1). Additionally, the Fund will facilitate the affirmation of depository eligible and non-eligible transactions by no later than noon on the later of settlement minus one (S-1) or trade date plus two (T+2). The Fund will notify HNB of all T+1 transactions as soon as possible after trade notification is received from the investment manager. HNB will not be responsible for compensation interest due if notification is received after noon on S-1. HNB will accept DTC affirmed confirmation as authorized instruction to settle trades. HNB will accept electronic or hard copy resolutions from the Fund for non-standard trade settlement.
Appears in 1 contract