Auto Approving & Denying Trade Pre-Clearance Disclosures

You can set Hadrius to approve or deny employee trade pre-clearance requests automatically, based on your firm's trade monitoring rules. Once this is set up, a request that passes your restrictions can be approved the moment it is submitted. A request that breaks a restriction can be denied right away, so reviewers don't have to look at it. This article covers turning on rule checks for pre-clearance requests and choosing the auto-approve and auto-reject options.

How automated pre-clearance works

Employee pre-clearance requests show up under Disclosures, where approvers usually review them by hand. When automation is on, Hadrius checks each new request against your firm's trade restrictions as soon as it is submitted:

• Clean trades can be approved instantly.
• Trades that break a restriction can be denied automatically. The reasons are sent to the employee and to the approvers.
• Trades that can't be fully evaluated go to a reviewer for a manual decision.

Every decision is recorded in the disclosure audit trail, whether a reviewer made it or Hadrius made it automatically.

Set up auto-approval and auto-rejection

1. Open Disclosures, then go to the disclosure Settings. These settings control how the platform handles incoming pre-trade requests.

2. In the Trade-related disclosures section, turn on Check against trade monitoring rules. Hadrius then checks every pre-clearance request against each active trade monitoring rule that applies to the employee.

3. Click Manage auto-approval and auto-rejection. This opens the Manage tab of the trade monitoring configuration, where you choose what happens automatically after a request has been checked.

4. Under Pre-trade disclosures, choose an option from the Auto-Approve dropdown:
   • Disabled: no requests are approved automatically.
   • Non-restricted: a request is approved automatically only when it doesn't match any active trade restriction. Choose this if you want every request checked against your rules and approved only when nothing is flagged.
   • Unconditionally: every request is approved automatically, whatever your restrictions say.

5. Set Auto-reject restricted pre-trade disclosures to Enabled if requests that match an active trade restriction should be denied automatically. With this on, a flagged request is denied right away instead of going to manual review.
6. Click Submit in the top right corner of the page to save your changes. A confirmation message appears once the configuration has been updated.

Things to keep in mind

• You can't combine auto-reject with Unconditionally auto-approval. If both are selected, the page shows an error when you click Submit and nothing is saved. To approve clean trades and deny restricted ones automatically, use Non-restricted together with auto-reject set to Enabled.
• The Cost basis buffer field on the same page must contain a whole number from 0 to 99, or the page won't save.
• To change which restrictions requests are checked against, open the Flagging rules tab in trade monitoring.

After you save, these settings apply to new pre-clearance requests. Approved and denied requests appear in Disclosures with their status. You can review any automatic decision in the audit trail, and requests that couldn't be fully evaluated stay in the review queue for an approver.