Execution Fields: Notification and Settlement – including and after version 1.29

This white paper addresses the following openfunds fields:

Subscription related fields

OFST410060 Cut-off Date Offset for Subscription
OFST410070 Calculation Date Offset for Subscription
OFST410100 Cut-off Time for Subscription
OFST410600 Pre-payment Days for Subscription
OFST410700 Settlement Period for Subscription

Redemption related fields

OFST410065 Cut-off Date Offset for Redemption
OFST410075 Calculation Date Offset for Redemption
OFST430100 Cut-off Time for Redemption
OFST430150 Settlement Period for Redemption

Subscription and Redemption

Normally the subscription (or redemption) of a fund is an easy task. You or your financial advisor will transfer your order to the execution desk of your bank. If it arrives there before “OFST410100 Cut-off Time for Subscription” (“OFST430100 Cut-off Time for Redemption”) the order will be executed the same day and the fund will be entered into (taken off) your custody account with a value date of “OFST410700 Settlement Period for Subscription” (“OFST430150 Settlement Period for Redemption”).

The price you have to pay (or receive) will be defined some hours after the order is executed. This so called forward pricing was introduced to hinder speculation against the fund and is common for mutual funds.

Sometimes the redeeming of a fund must be announced “OFST410065 Cut-off Date Offset for Redemption” days in advance. The same is true for subscribing to a fund, when signing documents must be presented “OFST410060 Cut-off Date Offset for Subscription” days before the Trade Date and an advance payment must be made “OFST410600 Pre-payment Days for Subscription”. While mutual funds generally have a daily liquidity, hedge funds usually do not. Quite often they can be subscribed once a month or even only quarterly. Additionally, redemptions might be restricted to only some specific days throughout the year.

Additionally, there can be a difference in days between the closing/valuation date for the trade and the date on which the valuation is calculated. openfunds refers to this as a “calculation date offset” and the fields “OFST410070 Calculation Date Offset for Subscription” and “OFST410075 Calculation Date Offset for Redemption” can be used to indicate if a share class has such a difference.

The following charts show the subscription and the redemption process as well as the appropriate openfunds fields.

Document Information

Title:Notification and Settlement

Revision History

Version    DateStatusNotice
1.32022-09-16FinalChanged settlement cycle fields as part of v1.29
1.22022-03-08FinalAdded versioning details and updated text to match online version
1.12017-10-04FinalUpdated charts. Added templates.
1.02017-09-14DraftFirst version.


If you have any questions about the new data type or difficulties with implementation, please contact us at businessoffice@openfunds.org.

Joining openfunds

If your firm has a need to reliably send or receive fund data, you are more than welcome to use the openfunds fields and definitions free-of-charge. Interested parties can contact the openfunds association by sending an email to: businessoffice@openfunds.org

c/o Balmer-Etienne AG
Bederstrasse 66
CH-8002 Zurich
Tel.: +41 44 286 80 20
Email: businessoffice@openfunds.org

If you wish to read or download this white paper as PDF, please click here.