Rebalancing functionalities

The following article explains the rebalancing functionalities that we available within the platform. 

Rebalancing Types

Rebalancing of account(s) can be of the following types: 

Scheduled rebalancing: This will trigger automatically on all accounts linked to a model based on rebalancing frequency defined on the model itself (Section 3, point 6). For example, if a model is on ‘Monthly’/’Day 1’ frequency, every 1st day of a month rebalancing will automatically trigger on all accounts linked to this model.

However, when a model is assigned ‘Manual’ frequency, no automated scheduled rebalancing will trigger on linked accounts. To rebalance accounts linked to these models (assigned ‘Manual’ frequency), you need to trigger ad-hoc rebalancing.

Cash breach rebalancing: You can also opt for an additional weekly automated rebalancing that will impact accounts linked to all models. If you are enabled for weekly Cash breach rebalancing (partner can specify which day of the week it should run) then on specific day of the week, rebalancing engine will pick all accounts (only model linked accounts) that are breaching on cash compared to linked model and will rebalance those accounts.

• Please note: As of now scheduled rebalancing and cash breach rebalancing calculations get triggered at 09:00 and 08:30 GMT respectively and orders are placed in the market on the same business day. The timing of this run is subject to change in future.
• No rebalancing (both scheduled and cash breach) will be triggered on account(s) with open orders.

Rebalancing Orders

1. During all rebalancing events, algorithms will calculate order size for both ‘Buy’ and ‘Sell’ orders. 
2. ‘Buy’ orders will be created for instruments where position weight in accounts breaches the ‘Minimum allocation %’ specified in the linked model. Rebalancing engine will create ‘Buy’ orders for amount/units so that post-rebalancing position weight of these instruments are close to ‘Target allocation %’ and as a minimum above the Minimum allocation.
3. Similarly, ‘Sell’ orders will be created for instruments where position weight in accounts breaches the ‘Maximum allocation %’ specified in the linked model. The rebalancing engine will create ‘Sell’ orders so that post-rebalancing position weight of these instruments are close to ‘Target allocation %’ and as a minimum below the Maximum allocation.
4. Cash breaches (when cash weight in accounts is below ‘Minimum allocation %’ or above ‘Maximum allocation %’) will also result in rebalancing orders getting created. 
5. Once orders are created, they will get automatically routed as ‘Market Orders’. Currently, there is no possibility of amending any order parameter on orders created by the rebalancing engine.
6. All orders created by rebalancing engine are block orders. Even when a single account is participating in rebalancing exercise, the order will get created and routed using block trading account. 
7. The way rebalancing order routing works is -> ‘Sell’ orders will go to the market first and if account(s) has sufficient buying power then ‘Buy’ orders will get routed as well. If one or more account(s) participating in a ‘Buy’ order do not have sufficient buying power, then ‘Buy’ order will be held back till the time ‘Sells’ get executed and all participating accounts have sufficient buying power.
8. For monitoring client rebalancing orders, please see Models and model manager 

Rebalancing orders preview 

Simulate the orders a single‑portfolio rebalance would generate based on current drift and model targets allowing you to review the trade list, costs, and expected outcomes before you submit.

What you will see:

• Instrument-level order sizes in the account currency.
• Estimated transaction costs.
• Pre- and post-rebalance weights for each instrument.
• Additional decision‑support metrics.

How it helps:

• Decide whether to rebalance now or wait for further drift by comparing expected costs and weight changes.
• Identify small or low-impact trades that may not be cost-effective.
• Validate that proposed orders align with your model, policy, and tolerance bands.

The rebalancing orders preview gives partners clear, actionable insight into the consequences of a rebalance, supporting better cost control and more precise implementation.

Authorization Roles

Access to Model manager is controlled via authorization roles. Separating the role accesses will allow for increased compliance and control. Please read which roles are applicable for Model manager here.