On a Client Managed Rates type FCR Document, the Client party will initiate the Document as well as attach a Fee Schedule for the relationship between themselves and the Broker party on the Document.
Once the Client has completed the initiation and approval process, the FCR Document will move to Counterparty Review. In Counterparty Review, the Broker party has visibility to the FCR Document to begin their Approval workflow.
Document Details for Review -
There is no detail in the MEMO Workstream for a Client Managed Document.
The Client will attach a Fees Schedule which is available in the RATE SCHEDULES Workstream.
The Client will attach Execution Commissions, Clearing Commissions or Full Service Commissions. This is defined in the Service type.
Exchange Fees and Clearing Fees charged specific to a rate line will populate systematically by FIA Tech sourced data.
Commissions, Exchange Fees and Clearing Fees will be split into separate fee columns within the schedule. The schedule can be viewed by selecting the Rate Schedule file name linked in the Rate Schedule Workstream.
FCR will automatically create a Brokerage Rate Schedule for Fee Schedules containing Execution Commission rates - Execution Only and Full Service type schedules.
The Brokerage Rate Schedule takes the same formatting as GUA Rate Schedules. The Brokerage amount in the schedule is calculated by adding the Execution Commission and any Exchange Fees charged to the Executing Broker.
The UNDERLYING GIVE-UP AGREEMENTS Workstream will display associated Give-Up Agreements between the Client and Broker on the FCR Document. The GUAs are eligible to have the brokerage schedule updated via Rate Sync within FCR.
GUAs 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.
Once the Document reaches it's final state, Published, the Client is able to sync the Brokerage schedule to all or specific GUAs listed in this workstream.
Approval Process -
After reviewing necessary information on the FCR Document the Broker will choose to Approve or Reject the Document.
When Approving and the Broker is a RateSync or Full Service subscriber, an option to Approve GUA Rate Schedule Workstream when brokerage rates are applied to underlying GUAs is also available in this approval step.
If the Broker decides to Reject the Document, they will have the option to add a comment and the Document will return to the Client in Composition state.
Once approved the Document moves to Published state. This is the final state for a FCR Document.
Article is closed for comments.