Global Commission and Fee Management

More Solutions

BTS’s Global Commission and Fee Management solution spans over 250 markets and trading venues, covering Cash Equities, Futures, OTC/Packaged products, and Exchange- Traded Derivatives. The solution efficiently manages revenue and costs associated with exchange processing, clearing, settlements, taxes, and regulatory compliance fees.

Global Fee Rate Data from the Market 3rd Parties

  • Fee Schedules
  • Product Slates
  • Drop Copy of Trades/Settlements/Clearing Data
  • Exchange rate changes: The application polls exchange websites/services daily to identify any changes to fee rates. Upon detecting changes, it downloads updated fee schedules and extracts the new rates. For complex changes (e.g., modifications to the fee schedule structure), adjustments are processed accordingly.

Sampling of Business and Market Rule Categories Include:

  • Proprietary algorithmic matching of fills to executions
  • Order type processing (over 30 different order types)
  • Membership programs
  • Order routing (on exchange execution vs. executed away)
  • Liquidity of executed orders
  • Systematically internalized trades
  • Block trades
  • Program trades
  • Cash trades
  • Business service (i.e., Execution Only, Clearing Only / Give-In / Give-Out etc.)
  • Security price
  • Credits and Rebates
  • Tiered volume discounts
  • Intercompany trades/bookings
  • Trade cancellations, amendments, fails, and As-Of trades

Complete Fee Accounting Process

All fee-related details, including trades, transactions, and fee adjustment journal entries, are securely stored in BTS proprietary ledgers.

  • Trade Ledger
  • Transaction Ledger
  • Proforma Ledger

Fee Rate Schedules

All fee-related details (trades, transactions, and fee adjustment journal postings) are preserved in the BTS proprietary ledgers:

  • Public Market fee rates are sourced by BTS from the market venues
  • Private Trading Venue fee rates are sourced by BTS from internal sources
  • Custom or negotiated rate schedules are created based on supervisory approval, ensuring accurate fee calculations and validations.
  • Fee calculations are validated by comparing application-generated fees with actual fees charged by markets or trading venues.
  • Daily and month-end pseudo invoices provide complete fee processing reconciliation.
  • Provides a complete view into all trades, transactions, and adjustment journal postings impacting the invoice over a selected period (daily, weekly, monthly)