This is a credit control function added on to SB-1 system to monitor abnormal transactions particularly for cash type accounts.
Why monitor the cash type client?
Although cash type client are supposed to settle their purchase on settlement date, it is often be delied on purpose. Client often sell out what they purchase for settlement when they make profit and do nothing when they are suffering from loss. Impose penalty interest is one measure to push them to make settlement. However, too many outstanding receivable will be come financial burden of a broker firm.
It is therefore, a trade limited is imposed for each client. This trade limit will ensure that the client will not be over-traded which may go beyond the settlement capacity of the broker firm.
If the net trading amount exceeds the trade limit, the system will demand an authorization or the trade will be rejected.
Although some broker firm enter ticket after end of market session, reject before execution is not possible. Broker firm still use this module for reporting these problems. This provides a good reference for follow up the settlements.
A daily profit/loss report is available for use by broker firm in order to see who gain money and who loss money. For those who loss money, failure to make settlement will be highly possible.