The Multi Account Manager (MAM) Approach

For Lexium Capital to effectively trade multiple clients accounts simultaneously and without compromise, it is necessary to have a highly efficient system to distribute the trade allocations accurately, efficiently and transparently. The system necessary to handle such a task is commonly referred to in the industry as a Multi Account Manager or MAM. Lexium Capital has embarked on a significant project with Invast Financial Services (AFSL No. 438283) to design and build a powerful and versatile MAM system with the intention of providing our clients with the most transparent and informative experience possible. Please note, the MAM system is a software based infrastructure provided by Invast Financial Services to facilitate multiple client accounts being traded simultaneously. It is not to be confused with the MDA service that Lexium Capital provides for its clients under our own separate licensed offering. Invast Financial Services does not offer an MDA service.

Lexium Capital will trade a single master account which represents the amalgamation of all current invested client funds.This powerful MAM system affords our clients the ability to login into their online account 24 hours a day and check their live balance and any open trade positions at that time. Any trades which are currently live in the market will be visible with the full details of that trade being made in its entirely through the system. Clients individual accounts will represent their portion of all funds under management by Lexium Capital, allowing our clients to know their net position at all times.
*The MDA service is provided by Lexium Capital, not Invast Financial Services

Invast Financial Services technical information regarding MAM (FTA)

Account Set-Up:

Lexium Capital will receive view only access to all sub accounts under the control of the Flex Trade Allocator (FTA). New client sub accounts will only be funded upon receipt of a bank guarantee from an approved Authorized Department Taking Institutions (ADI). Lexium Capital will notify Invast Financial Services of new client sub accounts which it would like to be added to the FTA at least 2 business days before the end of the calendar month. Lexium Capital will notify Invast Financial Services of the % of the trades executed in the master account which are to be allocated to the client sub accounts at least 2 business days before the end of the calendar month. Any changes to client allocation % that are required mid-month (client redemptions etc.) will be executed by Invast Financial Services at the earliest possible convenience but may require a full close-out of all positions within the MAM. Invast Financial Services will assist in enforcing the AUD 1m minimum deposit requirement for new client sub accounts.

Trade & Order Management / Margining:

Trading: Trades executed in the ‘master’ account will be allocated to sub accounts via a predetermined percentage allocation method only. The master account will represent the net positions across all the sub accounts. Importantly the total % allocation to the sub accounts must add up to 100% exactly.
Margining: The master account will contain a notional reflection of the total collateral available in the sub accounts. All margining, leverage, Net Open Positions (NOP) and auto cut will be based on this master account. If a sub account has insufficient collateral to support the margin requirement, the trade will be manually allocated (booked) by Invast Financial Services to the sub account daily. The trade price will be used to the exposure and will remain with the sub account even if this forces the sub into a margin call position.
Working Orders: If a working order in the master account is only partially filled, the allocation to sub accounts will not occur until either the master order is fully filled, or it is cancelled / expired. Importantly, in circumstances where a partially filled order remains working at End of Day (EOD), the sub accounts will not receive the allocation until either of the above situations occurs. Therefore it is essential that any working or partially filled orders are cancelled prior to EOD.

Trade Allocations:

Allocation Methods: FTA is a percentage based allocation system only. Trades executed in the master account are allocated out to the sub accounts on a fixed percentage basis whilst the notional net position is maintained within the master account.
Allocation Mismatch: Under certain circumstances, residual allocations could cause a mismatch of positions in sub accounts. Following a mismatch, closing of positions may result in some sub accounts having a residual position of one or two (“orphans”). Dealing Operations and Dealing Services will monitor allocations to the sub residual account and deal with orphans accordingly. Daily checks will be performed to ensure that the sub accounts are in line with the master account in both positions and cash.
Rounding & Residuals: Allocations are rounded down to a whole number (e.g. one currency unit), which may result in a residual amount after all subs have been allocated their proportion. The residual amount will then be allocated to the sub residual account. With allocation to two decimal places, residuals will not occur for orders which are divisible by 10,000. With allocation to one decimal place, residuals will not occur for orders which are divisible by 1,000.