In an effort to promote system efficiencies, FIA Tech implemented a Non-STP (Straight Through Processing) upcharge beginning in Q32019, to agreements with certain characteristics. The upcharge is assessed on any executed agreement that has at least one of the below characteristics:
- A non-conformed broker party,
- Contains a PDF rate schedule absent an eRate,
- Is an uploaded agreement other than a CLSA,
- Contains any legal language changes to agreement text (with the exception to paragraph 10).
Identifying Non-STP Agreements
In order to assist firms in remediating these Non-STP agreements, FIA Tech has outlined the steps involved in identifying those agreements, and amending them to support Straight Through Processing.
- Go to Documents > Search Agreements
- Leave all filters blank to run a full agreement report for your firm
- Click “Search” and all agreements will display in the Search Results section
- Download Search Results to Excel
- Review the following columns within the report to identify the Non-STP agreements:
- Legal Language changes (with the exception to paragraph 10) – “Agmt Text Changed from Std(Y/N)” (Column I)
- Non-conformed broker party – Each broker role (XB, CB, OPB, etc.) in the downloaded report includes a corresponding “Is Conf” column. The value of “N” indicates that the broker party in that role is “non-conformed”.
- PDF Rate Schedule absent an eRate – eRate Count is zero (0) and PDF RS Count is one (1) or greater (Columns AY & BB)
Amending Non-STP agreements
To amend a Docs agreement, update the workstream by clicking the “Lock and Edit” button. This will allow the user to edit the workstream, update the Non-STP characteristics, and then Send for Approval. When the agreement is Sent for Approval, a new agreement ID will be generated, and all of the counterparties would need to approve, first within the Composition stage, and then in the Execution stage.
If the fully Executed Amendment contains no Non-STP characteristics, the Agreement Execution Fee will be waived, as detailed below.
New FIA Tech programs to support Non-STP Remediation
To address the issue of Non-STP agreements in Docs, FIA Tech launched the Execution Amnesty Program as of Q42019. This program will waive the per Agreement Execution fee (assessed to the conformed Executing Broker, or Clearing Broker if no conformed Executing Broker is present on an agreement) for newly executed, fully STP agreements, created as amendments of Non-STP Agreements. In order to qualify, agreements must be created as amendments of previous Non-STP Agreements, and have no Non-STP characteristics.
Additionally, FIA Tech will be offering a Credit Program in order to support the re-papering of Order Passing Broker agreements executed with custom legal language, prior to the introduction of Standard Order Passing Broker templates (STDCO, STDTO). The credit will be for the value of the per-agreement execution fee of new agreements created to replace historical non-STP agreements, that cannot be updated by the standard Amendment workflow.
For more information on the Execution Amnesty Program and the Credit Program for Order Passing Broker agreements, including how to request an STP Agreement Credit, please visit the Pricing page below: