Who can use iDealTrade?
Any UK Local Authority or Local Authority Pension Fund, can use iDealTrade, subject to our verification process.
Is there any software to download?
No, there is no software required to use the platform. iDealTrade is web based, you just need access to iDealTrade.
Is the platform secure?
Yes. The site is fully encrypted, password protected, certified and accredited and subject to routine penetration testing. Users are all vetted and approved prior to access being granted. No trade or settlement instructions are passed outside of the platform, activity take places by logging in securely, within the confines of our firewalls.
Standard Settlement Instructions are subject to a rigorous authorisation process and subject to dual authorisation before they are approved on iDealTrade.net. Of course, users should still follow their own internal treasury processes and controls when settling trades.
Is iDealTrade regulated?
iDealTrade is owned and operated by Arlingclose Ltd, authorised and regulated by the Financial Conduct Authority. iDealTrade is compliant with the Bank of England’s Money Market Code.
What are the MiFID requirements?
Inter local authority deposits are not regulated by MiFID and therefore there are no MiFID requirements. iDealTrade can be used by all local authorities, regardless of whether they have opted up or not.
How much does it cost?
iDealTrade is free for investors. Our current standard transaction fee for borrowers is 3 basis points (0.03%). Introductory discounts may be available for early adopters. Invoices will be sent at the end of each quarter.
Does Arlingclose have a Conflict of Interest Policy?
Yes. Arlingclose provides advice to local authorities on treasury management issues, including debt and investment options. A robust policy is in place to help avoid conflicts of interest and to ensure these are treated appropriately if they do occur.
Is it possible to pay for a trading advantage on the platform?
No, all orders are prioritised equally and are matched automatically. Where identical orders are received these are matched in chronological order.
Is there a helpline?
Yes, there is a helpline during normal UK business hours. Please call 08448 808 200 if you need any assistance.
Can you explain the market terminology used on the platform please?
If a counterparty places a bid it means they want to borrow money
If a counterparty places an offer it means they want to invest money
Unmatched Open Order
An instruction to borrow money (bid) or deposit money (offer), waiting to be matched
This shows all Unmatched Open Orders
A trade occurs when a compatible bid and offer are matched and the counterparty is approved by the lender (offer side)
A bid must always be matched with an offer and vice versa. If you are looking to borrow, you need to match their offer with your bid. If you are looking to invest, you need to match their bid with your offer.
Are orders on iDealTrade quoted as “firm”?
Yes. Once you submit an “offer” order (investing) this is a firm rate, you are committed to deal at that rate, provided the borrowing counterparty is acceptable for credit limit purposes. All bid orders are also firm.
Can I cancel an order?
Yes, it is very easy to cancel an order. On the dashboard, there is a section called ‘Open Unmatched Orders’, which displays the details of all orders your authority currently has on the order book. Use the dustbin icon on the right of each order to cancel the order. The website will ask you to confirm your selection before the order is permanently deleted.
Can I make a counter bid / offer on the platform?
Yes. If you see a bid or offer on the platform that is good but not quite right, and you want to suggest slightly different terms, just submit a new order including your preferred details. This will be visible to the other counterparty and indeed all market participants. The original counterparty can then decide whether to cancel their original order and accept your terms, or wait for you to do the same! Or perhaps a third counterparty will enter proceedings. In this way iDealTrade allows you to interact with the whole market in a transparent and efficent way.
Are trades anonymous? When are counterparty names revealed?
All orders appear on the order book anonymously. This is compliant with the guidance in the UK Money Markets Code.
Once a bid and offer have been matched, the borrower’s name is revealed to the investor, who then has a limited amount of time, currently set at 15 minutes, to either accept or reject the counterparty. If either rejected or a time-out occurs, both orders are placed back on the order book.
The borrower will only see the counterparty name once the trade has been confirmed and the investor has approved their name.
Can I turn down a borrower?
iDealTrade incorporates a unique counterparty filter, which allows authorities to select counterparties they do not want to deal with or are “full” with. However, the investor can still reject a counterparty name once it is revealed, although this should rarely be necessary if the counterparty filter has been applied.
Please note, once matched, any user consistently rejecting counterparties will prevent an orderly market and inconvenience borrowers; this will be in breach of the Bank of England’s Money Markets Code. iDealTrade will monitor this activity and persistent offenders will have their trading authorisation suspended.
Please note, once you have rejected a counterparty they will then be included on your list of “restricted counterparties”, to prevent the system repeatedly re-matching you. Restricted counterparties can be viewed and amended in the “account management” page.
Can I cancel a matched order?
No, once a match is confirmed you cannot cancel it on the system, although the lender can reject the counterparty name as explained above.
Can I cancel a completed trade?
No, trades agreed on iDealTrade.net are binding, as per the Bank of England’s Money Markets Code. However, if an error has been made, Arlingclose may be able to assist in unwinding trades, subject to the agreement of both parties. This may incur an administration fee.
Can I see all bids and offers on iDealTrade?
If an investor has included you on their restricted list you will not be able to see offers from them, as you will not be able to fill them. Similarly, if you have included authorities on your counterparty lending restrictions list, you will not see bids from them as you will not be able to match these. In this way iDealTrade prevents you finding an incompatible partner, saving you time.
How are orders in the ‘order book’ sorted?
Orders are ranked based upon the lowest offered rate in each maturity bucket (offers, offering to lend to you) and the highest bid rate in each maturity bucket (bids, bidding to borrow from you). You can re-sort the order book by clicking each column heading (e.g. “Max Principal £m” to sort by amount available).
How is interest paid and calculated?
For loans of less than one year, interest is calculated based on the actual number of days and paid upon maturity. For loans of over one year, interest is paid annually on each anniversary and at maturity. Please see our Trader Terms and Conditions for more details.
How long do orders stay on the website for?
Any unfilled orders will be deleted after 7 calendar days.
Can I link iDealTrade to my Treasury Management Systems?
No, iDealTrade does not currently include an interface with any Treasury Management Systems. However, this will be kept under review and is one of many further developments being considered.
Where can I view my Trade History?
iDealTrade has a ‘Trade History’ page which will record every deal. Each record will have the trade confirmation slip attached to it, which can be saved as a PDF file and printed.
How does the trade settlement process work?
Settlement takes place offline and it is the council’s responsibility to ensure timely settlement takes place.
Can I have more than one user signed up per council?
Yes, you can have as many people signed up to the system as is required.