FIA Tech has recently developed a workflow in Docs that will allow any party who pays for storage to update their rate schedules with rate lines form a specified exchange as a bulk action request. This development materialized after Borsa Italiana (IDEM) announced its planned migration to Euronext, and several firms reached out for a solution to allow bulk rate schedule amendments associated with this change. This functionality is scheduled to be available in Production by June 16, 2025.
Background
Prior to IDEM becoming part of Euronext, their exchange trading fees were always assessed to the Executing Broker. Many Executing Brokers included these trading fees in with their brokerage rates. To align with all other Euronext exchanges, beginning on June 30, 2025, IDEM will look to collect the trading fees directly from the Clearing Broker. As a result, this may cause discrepancies with brokerage rates on existing executed GUAs, so FIA Tech developed a bulk action where firms can update rates for a specific exchange only, without affecting the rate lines for products on other exchanges.
Updates of this nature will initiate a following agreement (an Amendment) which will require the Rate Schedule Workstream to be approved by all counterparties on the GUA, as well as the Amendment to be fully Executed by all counterparties on the GUA. These actions can be done in the Bulk Actions Center in Docs. Additionally, these actions are classified as Transitions for purposes of billing.
Eligible Agreements
The use of the partial rate schedule update feature is limited to agreements that fulfill the below criteria:
- Any fully Executed GUA with no following version
- An agreement must have existing Electronic Rates (eRates) for the specified exchange on the rate schedule Note: Rates on the IDEM exchange are the ONLY exchange that may be changed upon first release of this functionality.
- A GUA cannot be in a notice period for a Protocol transition (GUA Transfer Protocol, or Regulatory Protocol)
Two Types of Updates
When performing the update, users have to select one of two update types to determine what change will occur on the rate schedule:
- Replace only existing brokerage rates – On the eRate schedule, only the brokerage amount will be updated. If a rate line in the uploaded rate schedule is not already present on the Executed agreement's rate schedule, it will be ignored.
- Remove and replace rate lines – All rate lines for the specified exchange currently on the rate schedule will be removed (deleted) and rate lines on the uploaded rate schedule will be added in place of the removed rate lines.
Identify Rate Schedules to Update
The Bulk Actions page contains tools that enable the identification of agreements that can be updated based on the party and role in which the user is acting, along with who the Customer/Trader party is, as well as the agreement type. Users can also use the agreement search page to review agreements to target for update.
Several reports are available from the Agreement Search page to help identify agreements containing IDEM rate lines, and also the rate schedule content of these agreements.
- To Identify all GUAs containing rates from the specified exchange, use the Docs Search page with the filters of:
- Agreement State - Executed
- Rate Schedule Type - Electronic
- Rate Schedule Exchange - IDEM
- Please see Rate Schedule Reports for more detail
- An Agreement Report is available to download from the Agreement Search page and can be used as the upload list to the Bulk Action
Create the Bulk Action
The Bulk Action process can be done by any user with Rates Composer permission. The bulk action cannot be exited and saved and must be completed in a single sitting. It is therefore helpful to collect all the information, including the agreements to update and the new rates to be attached prior to starting a bulk rate schedule update.
- Under Docs > Documents, select the Transition & Bulk Update Center
- Under Bulk Update, select Partial Rate Schedule Update. This will open the page where details for the bulk action can be set.
- Select the Party and Role for your firm
- Multiple parties can be selected here, as long as they all operate in the same role
- The "Select Exchange to Update" will only be IDEM at this time, as only rates for that exchange can be updated.
- To Select Information to Update, you can either upload a specific list of GUAs with IDEM rates, or you can select a specific Customer and/or Trader Party and/or agreement type.
- The dropdowns currently default to 'All'
- Multiple parties and agreement types may be selected in the same bulk request
- Once the information is selected, the 'Total Agreements' and 'Affected Parties' counters will be updated to reflect these counts.
- This list can be downloaded
- Add the newly created rate schedule by selecting either 'Choose File' to upload rates saved on your desktop or internally, or 'Search From Library' to upload an eRate from the Rate Schedule Library.
Note: The updated eRate schedule can only list products that currently exist on any identified GUA for the specified exchange.
- Select the Type of Update you wish to use from the two types available (for more information see the Two Types of Updates section)
- Set an Effective Date If necessary. (This step is optional and if left blank, the effective date will take on the date the Amendment is fully executed.)
- Select the green 'Send for approval' button in the bottom right corner.
- A pop-up screen will indicate if GUAs on this transition are Eligible or In-Eligible. Any In-Eligible GUAs will be skipped.
- You can select the option of approving the Rate Schedule Workstream on this screen if you would like.
- Select the blue Send for Approval button to create the bulk action
- You will be redirected to the Bulk Actions Notice Center, were details about the transition can be found, including Transition ID, Description, Status, Notice Type, etc.
- Selecting the Bulk action ID will take you to the detail page for your action and will list all the agreements created in this bulk action
Note: All bulk actions process as a background job. Depending on the volume of agreements selected during your bulk actions and concurrent updates by other users, it may take several minutes for the agreements to populate
- From the Bulk Action Details page you can both view all impacted agreements and the rate schedule of the updated rates on the selected agreements.
- All counterparties to the GUAs selected for bulk action will receive a notification and can navigate to the Bulk Actions section under Documents in Docs. Each user will only see agreements in the Bulk Actions they are entitled to view.
- If the Approve Rat Schedule Workstream was not selected when the bulk action was created, you will have to ability to 'Approve' or 'Reject' the transition on this page.
- All parties to the bulk action can Approve or Reject the transition for individual GUAs, and can also bulk Approve or Reject agreements. More details on Bulk Approval/Rejection can be found under the Bulk Approvals heading in this article: Bulk-Action-Center-Overview
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