Introduction:
With the introduction of Docs, all rate schedules must be created using the eModule, which allows for the set up of basic rate schedules, as well as more advanced rate schedules. These advanced rate features, which are not required, support the following:
- Min and Max values to specify minimum and maximum brokerage fees, which can be defined as Amount, %Premium, or %Notional, and can be established on a per trade or per contract basis.
- Add On Amount to specify additional brokerage fees, which can be established on a per trade or per contract basis.
- Volume Discounting to specify different brokerage fees based on a tiered rate structure according to trade volume over a period of time.
- Banding to set up a schedule where the rate varies depending on attributes of the trade.
These advanced eRate features are accessible in the far right columns (N-AF) of the eModule.
Min Max:
Additional rate data is defined using the following criteria:
- Min - defines the minimum brokerage to be paid.
- Max - defines the maximum brokerage to be paid.
** Docs requires that you enter a maximum fee value in the Max field, even if the desired rate itself does not have a ceiling. In such a case, you may enter 99,999.99999, which is the largest value that the Max field will allow.**
- MM Define - indicates if the values entered in the Min and Max fields are amounts, percentages of the premium value of a future, or percentages of the notional value of an option.
- MM Apply - indicates whether the values supplied in the Min and Max fields apply on a Per Contract or Per Trade basis.
Volume Discount:
Volume Discount is used to specify different brokerage fees based on trade volume over a period of time. Rate Type is defined using the following criteria:
- Based On - Daily or Monthly volume.
- Apply To - specifies how the tiers will be applied. If "Use Only One" is chosen, the rate in the top tier reached will be applied to all contracts or trades made in the specified trade period. If "Use All That Apply" is specified, the rate specified for each tier will be applied to the volume of trades or contracts that fall into that tier.
- Tier Value Type - specifies Number of Contracts or Number of Trades.
- Tier # - identifies the Tier.
- Tier Start Value - represents the number of Contracts or Trades within the selected time frame.
- Rate - specifies the rate to be charged.
Banding:
Banding is used to specify a brokerage rate that varies depending on the attribute of a single trade. Rate Type is defined using the following criteria:
- Apply - specifies how the bands will be applied to a trade. For all Band Value Types apart from "Number of Contracts", "Use Only One" should be selected. This indicates that the rate in the last band reached will be applied to all contracts. When "Use All That Apply" is selected, several bands may apply to the trade.
- Band Value Type - determines on what aspect of the trade the bands are based. The currently available Band Value Types are:
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BPS
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Notional
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Number of Contracts
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Premium
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Trade Price
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- Band # - identifies the Band.
- Start - defines the Start value.
- End - defines the End value.
- Rate Type - specifies how the brokerage rate will be charged.
- Rate - specifies the rate to be charged.
** When clicked, Band #, Start, and End values auto-populate based on previous selections. In cases where additional Bands are being defined, the End values can be overwritten to allow for this**
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