Trade Venue Fee Forecaster

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TVFF is an artificial intelligence (AI)-based forecasting tool designed to predict the optimal (minimum) cost of trading fees across multiple trading pathways. The tool leverages a continuous learning algorithm to enhance forecast accuracy. TVFF applies statistical modeling (machine learning) to predict the optimal pre-trade trading outcome using the following factors:

Execution Costs

Expected execution costs are calculated pre-trade for all potential trading pathways. The following components influence trade pathways and execution costs:

  • Venue
  • Product Traded
  • Execution Quantity
  • Execution Price
  • Trade Liquidity
  • Market-Based Rebates/Discounts

Clearing and Settlement Costs

Expected clearing and settlement costs are calculated pre-trade for all potential trading pathways. The following components influence trade pathways and clearing/settlement costs:

  • Clearing and Settlement Venues
  • Settlement Types (based on historical data)
  • Netting of Trades (based on historical data)

Commission

Expected commission costs are calculated pre-trade for all trading pathways. The following components influence trade pathways and commission costs:

  • Commission Rates Applicable to Clients
  • Customer-Based Rebates/Discounts

Taxes

Expected taxes are calculated pre-trade for all trading pathways. The following components influence trade pathways and taxes:

  • U.K. – Stamp Duty Reserve Tax (SDRT)
  • Hong Kong Stamp Duty
  • India Stamp Duty

Regulatory Fees

Expected regulatory fees are calculated pre-trade for all trading pathways. The combination of the following components will lead to varying trade pathways and affect regulatory fees:

  • FINRA Transaction Activity Fee (TAF)
  • SEC Fees
  • NFA Fees