Amending Fee, Rate and Agreement ID on Trades

Atlantis users now have the ability to amend the fee, the rate, and/or the agreement ID listed on their trades.  We’ve introduced this functionality to allow Receiving Participants to force trades to match, rate and have associated fees in cases where Docs agreements do not automatically calculate the accurate rate and fee in Atlantis.  By giving the Receiving Participant the ability to add an Adjusted Rate and an Adjusted Agreement ID in Atlantis, this allows Executing Brokers to provide more information to the Clearing Broker than if they’d only added an Adjusted Fee Amount.  These amendments can be made using the Excel Download spreadsheet and can then be uploaded back to Atlantis.  Follow the below guidelines to ensure amendments are made correctly.

Please note that firms should only amend the fee, rate and agreement ID AFTER executing Docs agreements, updating Docs agreements as able and amending trade facts such as execution method, Spread Code and Transaction Type.  These new “Adjusted” fields are meant to provide a solution to add and calculate fees amounts only when Docs to Atlantis fee calculation fails or fails to be accurate.

Amend Fee

How do I adjust the fee amount on a trade?

To amend the total fee amount on a trade, fill in the Adjusted Fee Amount and the Adjusted Fee Currency Code fields in the Excel Download.  This will override the Calculated Fee Amount and Currency Code fields.  Users also have the option to fill in the Adjusted Agreement ID field to reference which Docs Agreement they based the updated fees on. 

NOTE – Amending the fee will NOT result in the rate being updated automatically.

When should you amend a trade with a fee adjustment?

• Fee calculation is something other than Per Contract (Rate * Contract Quantity)
• Rate type is NOT supported by Docs and/or Atlantis
  • Fee calculation based on units of measure
  • Volume discounts
  • Banding
  • Zero fee / rate

Amend Rate

How do I adjust the rate on a trade?

To amend the rate on a trade, fill in the Adjusted Rate and the Adjusted Fee Currency Code fields in the Excel Download.  This will override the Calculated Rate and Currency Code fields.  Users also have the option to fill in Adjusted Agreement ID field to reference which Docs Agreement they based the updated rate on.  Once the Adjusted Rate and Adjusted Fee Currency Code amendments are uploaded via Excel, Atlantis will automatically calculate and populate an Adjusted Fee Amount by multiplying the Adjusted Rate by the contract quantity.

When should I amend a trade with a rate adjustment?

• Rate/fee calculation is:
  • Per Contract (Rate * Quantity)
  • NOT on the give-up agreement, i.e. a one-off discount
• Zero fee / rate

Assign an Agreement ID

How do I amend the Docs agreement ID on a trade, to cause a rate and fee to calculate?

To assign an Agreement ID to a trade, fill in the Adjusted Agreement ID field in the Excel Download.  This will force the trades to be calculated based on the given Docs Agreement ID, regardless of the effective dates (agreement or clearing account) or the Clearing Accounts on the Docs agreement. 

Do note the following:

• Atlantis will run validation on the parties listed on the assigned Adjusted Agreement ID. If the parties on the agreement are different than the parties associated to the Participants on the trades,  then the amendment will fail upon upload.
• Bill to Client Docs agreements can be assigned to trades, and will set trades to Payer Participant Missing. These trades can then be settled off platform by the Receiver Participant and client.
• If the Receiver adjusts the Agreement ID with an agreement that is in Draft/Composition/Execution phase, Atlantis WILL NOT allow the trades to settle until the agreement is fully executed. The trades can be Affirmed and Approved but will remain in “Complete” status with a Cannot Settle Reason of “Fee Amount from Unofficial Agreement” until the agreement is fully executed in Docs.

When should I amend a trade with an assigned agreement ID?

• Fix trades with Fee Amount Missing as Cannot Settle Reason due to incorrect effective dates within Docs
  • Trade date does not fall within Docs Agreement effective date
  • Trade date does not fall within Clearing Account effective date
• Fix trades with Multiple Agreements with Different Rates as Fee Calc Failure Reason. This feature allows firms to choose the correct Docs Agreement.
• Allow trades with omnibus/holding accounts to match and rate to a Docs agreement, without the Clearing Broker needing to incorrectly add them to the Docs agreement. This type of account cannot be added to Docs Agreements, as Docs validation prevents adding the same account to multiple agreements with the same parties.

Undo Fee Adjustment

How to Undo a Fee Adjustment?

If a Fee, Rate, or Agreement ID are Amended on a trade in error, users can undo the fee adjustment. Download the summary extract of the trade details that need to have Fee Adjustments Undone. In the first column under “Action” fill in “Undo Fee Adjustment” and keep the rest of trade details as they are. Upload details back to Atlantis and the trade fee will revert to the value prior to the Fee, Rate, or Agreement ID Adjustment was done.

When should Undo Fee Adjustment functionality be used?  

• If fees were amended incorrectly or erroneously