Pre-trade compliance check

A pre-trade check asks: if this order executes, will the portfolio still comply? The order is projected onto current holdings, and each relevant rule is evaluated on the result. It prevents active breaches rather than detecting them afterwards.

Some limits are written as acquisition tests, which only a pre-trade check enforces directly. SEC Rule 22e-4 bars a US fund from acquiring an illiquid investment if more than 15% of its net assets would then be illiquid. Pre-trade results depend on assumptions about price, currency and settlement, which should be recorded with each result.

In Acclimetry, Trade Impact checks proposed trades before execution against the same rules used for monitoring (pre-trade vs post-trade compliance). It is a what-if check, and batch results are advisory. An order that cannot be projected, for example one with no price basis, is not evaluated rather than passed.