Introduction to Fees Optimisation

The Fees Optimisation module manages the calculation and posting of fees for securities or derivatives orders, based upon the gross amount sum total of the corresponding trade executions. Non execution and minimum maximum fees can be applied.

The Non-Execution and Minimum Fee functionality allows the user to charge the minimum or the maximum fee for the sum of all partial executions and the non-execution order fee or cancellation.

If there is no execution for a particular day, then no minimum fee is charged. However, if by the orders expiry date there were no executions at all, then the non-execution fee will be applied.

The minimum fee is lower between the flat fee and 25% of the daily executed order, for any given order. The fee is charged on a daily basis once a day for each partially executed order up until the order is fully executed or order expires.

The non-execution fee applies to any order that the branch or trading room or investment center (channel) was involved in the input or amend. If the order was captured from the internet or mobile app channel, there is no non execution fee (unless the branch or trading room modified it).

The rate of non-execution fee is the same as the minimum fee, i.e. the same FT.COMMISSION.TYPE application is used for both fees, so that if the bank decides to increase the amount of the minimum fee, the same increase applies to the non-execution fee.

The ILFEES.FEE.PARAMETER application allows the user to define the appropriate stock exchange, fee type, security domicile etc. When the service runs after the stock exchange cut off time, the fee type defined here will be read and the appropriate fee will be calculated and the entries raised after the reading are added to the FT.COMISSION.TYPE application.

Non execution fees will be applied only for orders inputted through specific channels like branch and this will be applied:

• To unexecuted orders (no execution taken place throughout the order life cycle).
• When an order is cancelled by the customer (in case of an order inputted through branch and no execution has taken place). Entries are raised as appropriate.

This functionality allows the user to calculate the minimum, maximum and non-execution fees. The fees will be fairly calculated, so the customer won’t be overcharged, and the bank won’t be undercharged.