See also:

ESG v18.1 implementation

ESG v18 timeline

ESG v19 timeline

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A new feature of the ESG v18 Helpfile is to expand error correction functionality to allow dealers to place error correction trades on intermediary accounts.

Currently, dealers can place trades on intermediary accounts, but not on error correction transactions. If dealers want to correct a trade on intermediary accounts, they must submit letters of indemnity to intermediaries, who then place the adjustments electronically on the dealer's behalf. This is a manual process and the processing time is longer than allowing dealers to place the adjustments electronically.

By allowing dealers to place error corrections on intermediary accounts electronically, it will not only help dealers monitor the status of their orders from end to end, but will also reduce the paper work and alleviate the intermediaries' processing workload.

Since the source of the correction was a distributor, fund companies will bill dilutions directly to the distributor for this type of error correction trades.

There are some exceptions, however. In the following cases, dealers cannot correct trades on intermediary accounts:

• A dealer cannot place reversals of sells on intermediary accounts.
  
  
• After an RSP deadline, a dealer is not allowed to backdate a dealer settled AOT purchase on an intermediary account in the first 60 day RSP contribution period.
  
  
• After an RSP deadline, a dealer is not allowed to reverse any purchase on an intermediary account, where the original order was placed and settled by a dealer, and the trade date of the original order fell in the first 60 day RSP contribution period.

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