FCR Rate Sync functionality allows users to sync Brokerage rate schedules to underlying Give-Up Agreements (GUAs) that exist between the Broker and Client on a given FCR Document. Additionally, Parties subscribed to either Rate Sync or Full Service levels have the option to sync the Rate Approval from FCR to the underlying GUA workstream as well.
Underlying Give-up Agreement Workstream
The Underlying Give-Up Agreement workstream will display associated Give-Up Agreements between the Broker and Client represented on the FCR Document, which are eligible to have schedules updated via Rate Sync. The party responsible for creating the FCR Document is able to initiate the Rate Sync, and may do so once the Document is in a Published state. Agreements with the following criteria are included in the list of Underlying GUAs.
GUA Types: STDT, STDC, STDTO, or STDCO
GUA States: Composition, Execution or Executed state.
The Brokerage Rate Schedule
A brokerage rate schedule is automatically created for Fees & Commissions Rate Schedules containing Execution Commission rates - Execution Only and Full Service type schedules - once the Document transitions from Composition to Internal Review.
When created, the brokerage schedule takes the same name as the rate schedule attached to the FCR document with “-Brokerage” appended to the end. The brokerage rate schedule is available for review in the Rate Schedule workstream, and may be viewed by selecting the rate schedule name or downloaded by selecting the download icon.
Brokerage Rate Creation
The Brokerage amount in the schedule is calculated by adding the Execution Commission and any Exchange Fees charged to the Executing Broker.
Any unsupported products defined by the Broker within Docs will be removed from the Rate Schedule within the GUA, after rates have been published down to agreements.
Applying Rate Sync
Documents become eligible for Rate Sync once in a Published state. The creating party of the FCR Document is responsible for syncing rates to agreements, and may choose either to apply to all GUAs, or may select specific GUAs to sync.
To initiate Rate Sync, first select Lock & Edit (pencil icon) on the Underlying Give-Up Agreements workstream.
Rate Sync is applied by checking the box on the far left of an individual GUA row, or by checking the box at the top of the column to apply updates to all eligible GUAs. Once the boxes are checked, select the Rate Sync button.
Rate Sync can also be applied by clicking on the sync icon on the far right to push rates down to individual agreements.
The Rate Approval from the FCR Document is only synced to Underlying GUAs if the FCR Document approver selects the option to "Approve Rate Schedule Workstream" during Internal Review and Counterparty Review phases.
The Brokerage rate schedule is applied to GUAs in the following way based on the state of the underlying GUA:
- Executed GUAs – A following agreement will be created with the specified brokerage schedule attached from the FCR document. Legal and Clearing Account workstream approvals are carried over from the preceding agreement (in the same manner as agreement amendments resulting from standard Rate Schedule workstream updates). Rate Schedule Workstream Approval is applied for FCR parties who selected the "Approve Rate Schedule Workstream" option during approval of the FCR Document. Outstanding workstream and final execution approvals are required on the GUA in Docs.
- Execution GUAs – When an Execution GUA is synced, the agreement is moved back to Composition state. The Brokerage Rate Schedule will replace any existing rate schedule on the GUA. The Rate Approval is synced for FCR parties who selected the "Approve Rate Schedule Workstream" option during FCR Document Approval. Outstanding workstream and final execution approvals are required on the GUA in Docs.
- Composition GUAs – When a Composition GUA is synced, the brokerage schedule is attached to the Composition GUA. Any existing rate schedule on this GUA will be replaced. Pre-existing Approvals for Legal and Clearing Account workstreams remain. The Rate Approval is synced for FCR parties who selected the "Approve Rate Schedule Workstream" option during FCR Document Approval. Outstanding workstream and final execution approvals are required on the GUA in Docs.
The new or updated GUA status will be visible in the Underlying GUA workstream. The GUA IDs are hyperlinked to the GUA agreement page in Docs.