5.1.5 Specifying Line/Accommodation Fee Details

Line or accommodation fee is involved for trades executed by a desk on behalf of some other desk. Line or accommodation fee is calculated based on the commission rate received from the external system, Loans QT.

Following steps are involved in capturing and processing the line/accommodation fee associated with a trade contract:

1. The line/accommodation fee component gets linked to the SLT product in the SLT Product Fee Details screen.
2. The commission rate for the trade contract is captured as the Fee Rate in the Fee Components screen associated with the contract.
3. The line/accommodation fee is calculated as per the formula given below.

   Fee = Trade Nominal Amount * Commission Rate

   The account entries posted for line/accommodation fee posted for the trade booking event (TBOK) for the SLT trade products (Origination Line (OL) and Par Line (PL) trade) is given below.

   For Origination buy/sell from Par (OL)	For Par Desk in the Line trade
   Dr Line Fee GL Cr SLT Bridge Account	Cr Line Fee GL Dr SLT Bridge Account

   Note:

   • After the Par desk Line Trade is booked using the department code, all accounting entries, including the line/accommodation fees that are posted for the line trade of par desk is posted using the defaulted department code.
   • Line/Accommodation Fee GL should be maintained as part of the Accounting Role to Head mapping in the SLT Trade Product.
   • SLT Bridge Account is derived while posting the entries from the SLT Branch Parameters setup for the trade branch and trade currency.
   • Line or accommodation fee is not supported when ORIG desk to External Counterparty check box is selected for Origination desk.