An omnibus account includes an FCM that is a clearing member of a specific exchange and another FCM that is not a clearing member of that exchange. Traders associated with the non-clearing FCM place orders using that FCM’s account, but the order is sent to the exchange using the omnibus account. This type is sometimes called a traditional omnibus account, as opposed to the virtual or internal omnibus account.
Omnibus accounts:
•are not shown in the account list.
•can share a single route with a regular account. You can specify which omnibus account route to use for the regular account on the Account Info page in Routing Options.
•cannot be selected as a master account or be part of a group account.
•cannot be migrated unless there are no working orders, if the account is not assigned to another account as an omnibus for some route, and if the account has no associated omnibus account for any enabled route.
•are not governed by Minimum FCM risk parameters.
•cannot have external orders and positions assigned to them.
You can view and modify an omnibus account as you would for any account.
A trader can be authorized for any type of omnibus account. A trader can modify and cancel working orders on an omnibus account but cannot place orders.
Virtual (internal) omnibus account
A virtual or internal omnibus account uses the non-clearing firm account number rather than the omnibus account number. You can take advantage of the omnibus functionality, using one account to manage risk for an entire group while sending individual accounts to the exchange.
To create a virtual omnibus account, select Gateway Internal as the Omnibus Account Style.
The Omnibus Account Style option can be found on both Accounts > New Omnibus Account page and Accounts > Account Info.
Passenger omnibus account
Consider this situation:
Firm A is a clearing firm for Exchange Y.
Firm B is a non-clearing firm for Exchange Y.
Firm C is Firm B’s customer.
Firm C wants to trade on Exchange Y, but Firm B is non-clearing.
In order to retain Firm C as a customer, Firm B can use its omnibus relationship with Firm A to pass orders to the exchange.
In order to do that, Firm C must first become an omnibus account of Firm B.
CQG refers to this omnibus-of-an-omnibus account as a passenger account. A passenger account is set up like any omnibus account, but the customer associated with the account is the other firm.
The traditional omnibus account is passed to the exchange. In our example, Firm B is the traditional omnibus account.
Omnibus account set up workflow
A Gateway administrator sets up the FCM account and identifies omnibus support as being prohibited, required, or allowed. The Omnibus account field displays accounts based on the support setting. The default account is the omnibus account with the highest relative priority, which is set by the administrator.
After a CAST administrator establishes the omnibus route for both FCMs, the clearing FCM sets up the omnibus account, making sure to set the correct location and risk server instance, and the non-clearing FCM sets up the regular accounts.
Once the account is created, the Omnibus Account Info page lists the routes that are available for the account’s FCM.
1. Go to Accounts > New Omnibus Account.
2. Follow the same steps as you would for creating a new individual account.
3. To create a virtual omnibus account, in the Account Settings section, select Gateway Internal for Omnibus Account Style.
Permissions associated with this page
CAST Users > CAST Permissions > Account Management > Account > Create Omnibus Account
and other account management permissions