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L1 Pairing FAQs

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L1 pairing is the comparison by CTM of mandatory minimum set of critical data fields on two sides of a trade. All L1 components must pair before proceeding to L2 matching.

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The below table lists the L1 pairing fields on blocks and allocations and whether these fields are mandatory or optional.

Field Name Mandatory/Optional? Further Information
TradeLevel (Block)  
Block UTI Optional  
Buy/Sell Indicator  Mandatory  
DealPrice Optional  Available as an optional L1 pairing field. Otherwise CTM uses this field as a tie-breaker.
ExecutingBroker Mandatory CTM supports broker matching groups (BRMGs), a mechanism that automatically selects an executing broker from a preconfigured group.
Instructing Party Mandatory  
QuantityOfTheBlockTrade Mandatory  
SecurityCode Mandatory SecurityCode is a normalized value. CTM cross-references and pairs it with the preferred identifier of your counterparty. Even if the identifiers are different, CTM pairs and matches on values you and your counterparty supply.
TradeDateTime Mandatory CTM pairs on the date component of TradeDateTime only.
TradeDetail (Allocation)
Account ID Mandatory  
AllocationIsSteppedOut Depends For stepouts, AllocationIsSteppedOut is a required L1 pairing field.
QuantityAllocated Depends  CTM uses this field as a tie-breaker. For stepouts, however, QuantityAllocated is a required L1 pairing field.
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When setting your matching profile criteria, you can optionally set Deal Price as an L1 pairing field however if applied, this means that only trades with the exact same price can pair. This usually results in NOT MATCHED (NMAT) blocks.

 

We recommend that you configure Deal Price as an L2 matching field. That way, if there is a difference in the price field between you and your counterparty the CTM service will set the status of your trade to MISMATCHED (MISM), which gives you the following options:

1. Accept the broker/dealer's values

2. Reject the trade to the broker/dealer

3. Request that the broker/dealer cancel the trade so you can match with a rebooked trade

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If during the matching process, the CTM service finds more than one counterparty component with all L1 pairing fields equivalent to your component, it evaluates an L1 tie-breaker field to choose among the pairing candidates as follows:

  • The value of your counterparty's L1 tie-breaker field must match yours exactly for the trade components to pair.
  • If the L1 tie-breaker field for more than one pairing candidate matches yours, the CTM service pairs with the first pairing candidate that matches

The status of both trades is then set to MATCHED (MACH).

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 Yes. At the allocation level (TradeDetail), CTM requires L1 pairing on the following fields:

  • QuantityAllocated
  • AllocationIsSteppedOut