Omnibus with Virtual Account
Business Introduction
What is Omnibus with Virtual Account Model?
Omnibus with Virtual Account Model is a new technology solution that Webull provides to our broker clients, utilizing the structure of an omnibus account & its underlying virtual accounts to enable internal sub-accounting capability. The omnibus account will be the legally opened brokerage account by broker clients on Webull platform. In addition, broker clients will be able to set up virtual accounts under omnibus account to track end-customers' positions, balances, and enable further features provided by Webull. The virtual accounts are sub-ledger units created within omnibus account and serve as a technology solution for operational & reporting purposes.
| Module | OMNI Model | OMNI with VA Model |
|---|---|---|
| Trading Products | • Equity (US Stock, HK Stock) • Only single-leg option (Coming Soon) | • Equity (US Stock, HK Stock, CN Stock) • Single-leg & Multi-leg options (Coming Soon) (both stock hedge & option hedge) |
| Account Setup | Need separate accounts for Long/Short positions respectively | A single account can trade both Long & Short positions |
| Trading Permission | Only Omni account level | Separate control of Virtual account & Omni account level |
| Buying Power Control | Only Omni account level | Support Virtual account level real-time BP / Available to withdraw control (if funding transaction is provided by clients) |
| Corporate Events Processing | Only Omni account level | Process on Virtual account level |
| NQI Tax Withholding | Not Supported | Support based on W8 information collected on Virtual account level |
| Customized Commission (VA Level) | Not Supported | Support customized commission setup on Virtual account level |
| System Requirement | Client needs to have CA / Option lottery module in their own system | • Virtual account level SOD file • Virtual account level trade execution • Virtual account level EE / DNE request |
| Remark | ** Related features are not available to clients yet. Will be coming soon. | ** Related features are not available to clients yet. Will be coming soon. |
What is the account structure & relationship in the Omnibus with Virtual Account Model?
-
Omnibus Account: Omnibus account is treated as legal brokerage account opened by broker clients in Webull platform. All virtual accounts' activities will roll up to omnibus account.
-
Virtual Account: Virtual account is sub-ledger unit created within omnibus account, which helps broker clients to track end-customers' positions & balances. Virtual account is technology solution to enhance service provides to broker clients, instead of legal brokerage account opened by broker clients. Each Omnibus account will have its own unique default virtual account (S0) for booking adjustment purposes.
Account Onboarding & Setup
What is the account opening process for Omnibus with Virtual Account Model?
Broker clients need to open omnibus account in Webull Institution Portal first and contact our client relationship manager to select the clearing model as Omnibus with Virtual Account Model. Webull system will automatically initiate a default virtual account (S0) when the omnibus account is opened successfully. Clients will be able to set up virtual accounts under the omnibus account (with clearing model: Omnibus with Virtual Account Model) via the Open API service going forward.
When setting up virtual account via API, clients can configure virtual accounts' trading permission, customized commission rate, and W8 tax information per request, which can enable additional features provided by Webull.
**Due to compliance requirements of China Connect, our broker clients will be required to pass through additional information to enable trading permission of Chinese stocks for virtual accounts.
How does account restriction work under Omnibus with Virtual Account Model?
Webull primarily enforces account restrictions at the omnibus account level based on internal compliance and risk rules. All associated virtual accounts automatically inherit these omnibus-level restrictions.
In addition, broker clients can configure trading permissions at the virtual account level for different trading products (like: US stock, CN stock, HK stock, etc.) when creating virtual accounts via Webull’s Open API service. Webull applies virtual account–level permission checks on top of omnibus-level validation, providing an additional layer of control over end-customer trading access.
Broker clients can also modify and update virtual account trading permissions at any time through the Open API, enabling flexible, real-time management of end-customer access across products.
Funding & Currency Exchange
How does funding work under Omnibus with Virtual Account Model?
The actual funding settlement (applies to currency exchange service as well) will be processed at the omnibus account level instead of virtual account level, and Webull system supports two different funding methods:
- The actual funding settlement (applies to currency exchange service as well) will be processed at the omnibus account level instead of virtual account level, and Webull system supports two different funding methods:
- Post-Trade Settlement: Broker clients can trade up to a pre-configured credit limit without pre-funding. At the end-of-day, broker clients will be required to settle with Webull based on final debit balance of omnibus accounts.
**Please contact our client relationship manager for credit limit setup & further details.
At the same time, we provide "Instant Funding" feature of virtual accounts to manage virtual account level's cash balance. Broker clients will be able to initiate "Instant Funding" via our Open API service to mimic the funding activities and capture the latest cash balance of end-customer in Webull system.
What is the workflow for currency exchange?
Our platform supports two different methods of currency exchange, which work for Omnibus account level and Virtual account level respectively:
-
Currency Exchange of Omnibus Account: Webull will provide standard currency exchange service to our broker clients to fulfill needs to exchange funds between different currencies. Broker clients will need to provide base currency along with the base amount they would like to exchange and target currency. Our currency exchange service will be based on real-time exchange rates to process fund exchange & settle in Omnibus account.
-
Currency Exchange of Virtual Account: Broker clients can utilize the service "Instant Currency Exchange" we provided to process currency exchange for end-users. This feature is not based on real-time exchange rates and is not the standard currency exchange service. Broker clients will be required to provide virtual account number of end-customers, base currency along with base currency amount that will be processed, target currency along with target currency amount that will be received. Webull platform will process cash journal between default virtual account (S0) and virtual account of end-user based on the inquiry received by broker clients.
Trading Workflow
How does trade workflow looks like?
Broker clients will be able to place orders via our Open API services or FIX message. Clients will be required to send a virtual account number when submitting an order to Webull system. Otherwise, the order will be rejected.
During the trade workflow, Webull system will validate buying power of omnibus account which takes holding assets and balance into consideration along with pre-configured credit limit. In addition to buying power control of omnibus account, Webull system can offer virtual account buying power control service if broker clients sync funding activities of end-customers with Webull system (via "Instant Funding" feature provided). If this feature is enabled, Webull will help broker clients to calculate end-customer's buying power, and orders will need to pass both of omnibus account & virtual account's buying power control in order to get execution.
** Please contact our client relationship manager to enable virtual account level's buying power control feature.
Clearing & Custody
How does corporate action work?
For mandatory corporate actions events (includes: Stock Splits, Dividends, CUSIP/Symbol Change, etc.), Webull system will automatically handle those at both of omnibus account level & virtual account level simultaneously to keep consistency.
For voluntary corporate action events (includes: Tender Offer, Right Offer, Warrant Exercise, etc.), Webull system currently does not support fully-automate process and needs to be processed manually based on demand. Please contact our client relationship manager for further details if you have any questions or concerns.
Who should handle end-customers' tax reporting?
Broker clients need to handle end-customers' tax reporting and Webull only generates tax reporting for omnibus account level.
Who should handle end-customers' trade confirmation & monthly statement?
Broker clients are responsible for providing official trade confirmation/monthly statement to end-customers. In contrast, Webull is responsible for generating official trade confirmation/monthly statement for omnibus account level.
Key Daily Tasks Timeline
| Task | Market | Timeline (Based on HKT) | Notes |
|---|---|---|---|
| SOD Files (Start-of-day) | US | Around T+1 14:00 PM | WB_001 will be provided around 14:00 PM for one day after settlement day. |
| HK | Around T+1 2:00 AM | WB_3001 & WB_3008 will be provided around 11:00 PM for each calendar day. | |
| CN | Around T+1 2:00 AM | ||
| Corporate Action Processing | US | 14:00 PM – 18:00 PM | Corporate action event processing relies on reconciliation tasks within Webull HK system. |
| HK | 09:00 AM – 12:00 PM | ||
| CN | 09:00 AM – 12:00 PM | ||
| Trade Confirmation | All | 14:00 PM – 16:00 PM | Daily Trade Confirmation will capture all markets’ positions & balance together and be generated based on Hong Kong local time. |