1. Secondary Loan Trading
  2. Processing Fee Details
  3. Amending Fee Details

5.2 Amending Fee Details

You can amend the fee details for the various components in the SLT Fee Amendment screen.

To capture details of TL fee amendment screen

Specify the User ID and Password, and login to Homepage.

  1. On the homepage, type TLDFEAMD and click next arrow.
    The TL Fee Amendment screen is displayed.

    Figure 5-5 TL Fee Amendment


    Description of Figure 5-5 follows
    Description of "Figure 5-5 TL Fee Amendment"

  2. You can enter the following details in TL Fee Amendment screen. For information on fields, refer to the field description table.

    Table 5-6 TL Fee Amendment

    Field Description
    Fee Amount The fee amount associated with each fee component is listed here. You can modify the fee amount specified.

    You can modify the amounts specified for Assignment Fee, Amendment Fee, Broker Fee, Waiver Fee, and Adhoc Fee. For DCF and Break-fund fee you can only modify the Fee Calc Basis and Fee Basis, but not the fee amount.
    Waiver Select this check box to indicate that you wish to waive off a fee component during fee amendment.

    Note:

    You cannot waive off DCF during amendment. DCF can be waived only at Trade level.
    Fee Calc Basis The fee calculation basis associated with the contract is defaulted here. You can modify this, if required. Select the fee calculation basis from the following options:
    • Agency - Fee Basis is arrived from LB Module for the respective component.
    • SLT – Fee Basis needs to be manually specified at the SLT product or contract level
    This is enabled only for fee types DCF and Break-fund Fee.
    Fee Basis The fee basis associated with the contract is defaulted here. You can modify this, if required. Select the fee basis from the following options:
    • 30(Euro)/360
    • 30(US)/360
    • Actual/360
    • 30(Euro)/365
    • 30(US)/365
    • Actual/365
    • 30(Euro)/Actual
    • 30(US)/Actual
    • Actual/Actual
    • 30(Euro)/365.25
    • 30(US)/365.25
    • Actual/365.25
    • Working Days/360
    This gets enabled only if you have selected the fee calculation basis as SLT.

    For more information on fee basis, refer to Charges and Fees User Manual.

    Assignment Fee Details The assignment fee details associated with the contract are displayed here. You can modify the following details, if required.
    Buyer’s Split Amount Specify the assignment fee amount that has to be booked against the buyer associated with the trade deal.
    Seller’s Split Amount Specify the assignment fee amount that has to be booked against the seller associated with the trade deal.
    You can amend the fee details before it gets liquidated. But for Amendment Fee and Broker Fee, amendment can be performed even after liquidation, though they are settled as part of trade settlement. In this case, the difference in the fee is posted as fee adjustment.

    Broker fee payable booking happens during trade booking/trade amendment where in the brokerage fee is moved from expense to payable GL. Broker fee payable booking is zerobased on every amendment, thereby reversing the earlier payable booking and rebooking with the revised broker fees as part of the trade amendment. Broker fee payable liquidation happens only after the trade/ticket is settled successfully.

    For more details on brokerage liquidation, refer topic Liquidating Brokerage Manually in the Brokerage User Manual.

    Example

    The following example explains the payable booking accounting entries during trade booking/ amendment:

    Table 5-7 Payable booking Accounting Entries

    - Action OBCL Process OBCL Event
    Case 1 Trade booking with Broker amount of $50,000. Debit expense GL for $ 50,000.

    Credit payable GL for $ 50,000.

    		 TBOK
    Case 2 Trade booked without Broker amount and then Trade amendment with broker amount of $50,000. Debit expense GL for $ 50,000.

    Credit payable GL for $ 50,000.

    		 TAMD
    Case 3 Trade booking with Broker amount of $40,000. Debit expense GL for $ 40,000.

    Credit payable GL for $ 40,000.

    		 TBOK
    Trade amendment with Broker amount of $50,000 Reverse the existing entries.

    Credit expense GL for $40,000.

    Debit payable GL for $40,000.

    Rebooking with the latest amount.

    Debit expense GL for $ 50,000.

    Credit payable GL for $ 50,000.

    		 TAMD
    Case 4 Trade booking with Broker amount of $50,000 Debit expense GL for $ 50,000.

    Credit payable GL for $ 50,000.

    		 TBOK
    Trade amendment with Broker amount of $50,000 No entries TAMD
    In all the above cases, the final amount of $50,000 in payable is used for final payable liquidation for the trade. If any trade is reversed and rebooked systematically due to trade amendment, then the payable booking is cancelled on the old trade and re-applied on the new trade.

    If funding memo was generated in advance and the fee components are amended before trade settlement, the funding memo gets regenerated.

    This topic contains following sub-topics:

Parent topic: Processing Fee Details