Assigning Tax Sensitivity Settings

Quickly assign tax sensitivity settings in the Administration Preferences tab under the firm, team, model, and portfolio levels. The most specific setting overrides the more general setting - i.e. a tax sensitivity set at the portfolio level overrides the firm level tax sensitivity setting. Review the Orion Trading Platform (Eclipse) – General Preferences article to learn more about the administration preferences,

 

Tax Sensitivity Settings

Tax sensitivity settings control how sensitive the trade tools are to tax implications. They also alter sell-side logic for the Rebalancer and Model Node.

There are four potential settings: Off, Low, and High. Each setting changes the steps the sell-side logic uses to create trades. The separate steps are explained below:

 

Off	Low	High
1) Most out of tolerance 2) Consider equivalences 3) Sell Priority 4) Allow short term gain 5) Location optimization 6) Transaction fees 7) Largest value assets	1) Most out of tolerance 2) Consider equivalences 3) Sell Priority 4) Allow short term gain 5) Calculate gain/loss as a percentage of the amount actually being sold. Then applying that calculation to the lots 6) Location optimization 7) Transaction fees	1) Out of tolerance not considered first, instead lists all overweight securities under the heavier node 2) Sell priority 3) Allow short term gains 4) Aggregate all gains and losses, then sort on depletion method 5) Most out of tolerance 6) Location Optimization 7) Transaction Fee

To learn more about the full logic the Rebalancer uses to create trades, review the article Orion Trading (Eclipse) - Rebalance Types Guide.