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Omnibus broker dealer
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Getting Started

Omnibus broker dealer

This implementation is supported by Airwallex Global Accounts, Foreign Exchange, and Payouts.

With a single API integration, Airwallex takes care of the end-to-end settlement from collecting local currency using local rails, FX conversion and paying out using local rails. You can integrate once with Airwallex rather than choosing different financial partners in various countries.

You reap the most benefits if:

  • Your users and trading partners are geographically dispersed
  • You want to solve the complexity of funding your wallet, conversion and payout across geographies and currencies
  • You have built your own KYC process and multi-currency wallet or have partnered with other financial institutions to achieve this. If you require support in these areas, see Fully Disclosed Broker Dealer.

Funding order flow

The following diagram depicts the overall flow if the customer wishes to buy shares and move funds into their clearing broker account.

Overall Funding Flow

The funding order flow can be broken down into the following sub-flows:

  • Collect funds from the customer in their local currency
  • Convert funds collected from the customer into the desired currency (e.g. converting to USD to buy US equities)
  • Pay out funds to a clearing broker’s account to fund the purchase instruction

You can find explanation on each of these three components next including how they can be used at different points in the funding and withdrawal processes.

Withdrawal order flow

A withdrawal order flow involves the same components as the funding order flow but in the reverse order. You can create Global Accounts to collect USD from the sale of US equities, the funds can then be converted into the customer’s local currency and paid out to the customer’s local bank account, all using Airwallex APIs.

The following diagram depicts the overall flow if the user wishes to sell their shares and move funds into their bank account. Withdrawal Flow

The withdrawal order flow can be broken down into the following sub-flows:

  • Collect funds by creating a Global Account in USD and have the clearing broker deposit proceeds into the Global Account
  • Convert funds using LockFX and MarketFX in the same manner as deposits though the rate is used to convert funds from USD into the customer’s local currency
  • Pay out funds to the customer account once equivalent funds are available in the customer’s local currency. Use the Payout API to pay out the withdrawal directly into the customer’s local bank account. This means customers can receive funds via a cheaper and local payout method in comparison to expensive wired transfer. Airwallex can use local payouts in over 60 countries.

Collect funds

To collect customer funds in their local currency or from the clearing broker for a withdrawal, you must first create Airwallex Global Accounts. Similar to a regular bank account, a Global Account can receive funds using a unique bank account number, plus they can be set up instantly via APIs. You can create a unique Global Account for each customer to ensure only deposits from that customer are made into the account. This helps with reconciliation of deposits coming into your Airwallex wallet. Once the Global Account is set up, you can share the account details with your customers to initiate a funds transfer from their bank account to the Global Account.

Depending on the jurisdiction in which you operate, you may be able to choose a pre-funding workflow or post-funding workflow as your settlement model:

  • In a pre-funding workflow, you must first top-up your Airwallex wallet prior to booking any conversion
  • In a post-funding workflow, you are permitted to book conversions and payouts without sufficient funds available in your wallet (subject to a pre-assigned limit). When the wallet becomes sufficiently funded, the conversion date will default to same-day, immediate settlement.

Airwallex also supports Direct Debits from Linked Accounts in some regions. Direct debits allow you to programmatically pull funds from an external bank account once the account owner authorizes your application and links their external bank account.

See also

Convert funds

Airwallex Transactional Foreign Exchange (FX) APIs offer a range of features that best meet the customer’s needs when converting currencies.

  • Airwallex’s Market FX product allows you to create conversions from one currency to another at the prevailing market rate
  • Airwallex’s Lock FX product allows you to lock in FX rates for a period of time. With Lock FX, your customers can have a guaranteed FX rate before they make a transaction thereby improving customer experience and price predictability. Funds are settled immediately after conversion and are available immediately for local currency payout.

See also

Pay out funds

Once equivalent funds are available in USD, you can send them to the clearing broker to complete the user buy order or the customer for a withdrawal. You can use Airwallex’s Payout APIs to send a local payment via ACH or Fedwire for instant deposit or within a day to the clearing broker’s account or into the customer’s local bank account. You can send the payments instantly as orders arrive. Each payment also has metadata fields to ensure easy reconciliation.

See also

On this page
  • Funding order flow
  • Withdrawal order flow
  • Collect funds
  • Convert funds
  • Pay out funds