This is part 2 of 2 of a summary from a panel discussion at the Tools and Technology Today (T3) Conference, which took place February 11-13, 2013 in Miami, FL. You can read part 1 here.
Moderator: Tess Downing, Financial Advisor, Fox, Joss & Yankee, LLC
Does your product update portfolios using real time prices before rebalancing?
iRebal retrieves the latest pricing as soon as a rebalance is run, Fava stated. All of the recommended trades are created using dollar amounts instead of number of shares, since they believe this provides a better picture of how the trades will impact cash levels. They convert this to the number of shares when trades are approved and also refresh the pricing, she noted.
Tamarac also offers real-time pricing as part of their rebalance and also real-time execution reports for equities and ETFs, Rembe said. Also, when you tell the system to update the cash positions, it evaluates T1 and T3 settlement to ensure that the accounts won’t be short cash. If they are, then it provides an option to put those trades on hold and execute them on a later date, he said.
TradeWarrior receives real-time pricing from an external feed that can be used to update positions before running a rebalance, Evans said.
Rowling pointed out that TRX was designed to focus on trading of Dimensional Fund Advisors (DFA) funds, so they haven’t previously had a need for real-time pricing. However, in response to recent requests from clients, they plan to support real-time pricing in a release sometime in the second quarter of 2013, she said.