Brokerage Version-1.0 9NT1438-ORACLE FCUBS V.UM 11.1.US
Contents
1. BRKRULE1 000 001 002 005 006 for BRKRULE1 001 005 BRKRULE2 006 for BRKRULE2 or 002 005 006 for BRKRULE3 BRKRULE3 2 3 1 1 Defining the brokerage rule application factors You can apply a brokerage rule on any contract irrespective of the currency of the contract the customer and the branch involved In the ICCF Rule Details screen rules to be applicable for contracts involving all branches transaction currencies customers and customer categories must be maintained at the head office branch Subsequently you can maintain the specific rules to be applicable for contracts involving for the following combinations A specific branch customer category customer and currency A specific branch customer category customer and all currencies A specific branch customer category currency and all customers A specific branch currency and all customer categories and customers A specific branch customer categories and all currencies and customers A specific branch and all customer categories customers and currencies A specific customer category customer currency and all branches A specific customer category customer and all currencies and branches A specific customer category currency and all customers and branches A specific currency and all customer categories customers and branches A specific customer category and all customers currencies and branches All branches customer categories customers and c2. Transaction Currency Description Branch Code Customer Group Customer Rate Details Tenor Details Rate Type Rate Type Flat Amount Q Fixed Rate Rounding Period in Months Interest Basis e Amount Rate Minimum Amount Minimum Rate Maximum Amount Enc iae TET ANTT TE ES Basis Amount Currency STANDARD Charge Currency Mid Q Buy C Sell Code Rate Rate Period Minimum Commission Period Fields Input By DOCS Date Time Modification Number Authorized By Date Time Tenor Basis Tiered Amount CI Tiered Tenor Duration Based Az per Contract Currency Charge Currency as Cascade Amount a Authorized Open If you are defining a brokerage type of component you need to specify the following details through the ICCF Rule Maintenance Screen 2 6 ORACLE Rule Type Specify whether the Rule type for calculating brokerage is Aggregation Type or Individual Type e Aggregation type indicates that brokerage is calculated on the total value of the deals e Individual Type indicates that brokerage is calculated on a deal by deal basis Rule Identification Enter the ID of the rule for which you are defining attributes Every brokerage rule is identified by a unique ten character code called a Rule ID You can link a valid Brokerage Rule ID to the appropriate broker and product When a deal is processed the brokerage attributes defined
3. a brief description for the account Defining a Brokerage Rule A brokerage rule identifies the basic nature of a brokerage component Each brokerage rule is defined by a ten character code called the Rule ID Attributes are defined for this Rule ID which is then associated with a broker and product When a deal is processed the brokerage attributes defined for the Rule ID that is associated with a broker and product will be applied on the deal A brokerage rule is created in the same way that any Interest Commission Charge and Fee ICCF rule is created as follows e The rule is created at the head office branch by giving it a unique identification and description in the ICCF Rule Availability Maintenance screen In this screen the rule is made available for use in the required branches by maintaining an allowed disallowed list of branches e Atthe required branch in the ICCF Rule Maintenance Screen the attributes for the rule are defined Maintaining the attributes in this screen is subject to whether maintenance of ICCF rules is allowed for the branch and also whether the rule for which attributes are being defined is allowed for the branch 2 4 ORACLE To recall at the head office of your branch you can create appropriate ICCF rules and make the rules available to the required branches In the ICCF Rule Availability Maintenance screen you can maintain ICCF rules which you can make available to desired branche
4. a group of customers with logically similar features or attributes Event This represents each of the different stages in the processing life cycle of a contract Floating Interest In a contract the interest that is applicable based on prevailing market rates unlike a fixed rate which is fixed at the time of initiation of the contract The interest could be applied each time the prevailing market rate changes or periodically A spread could be applied on a floating interest rate Grace days to penalty In case of repayment made by the drawee after the repayment date the grace period is the number of days after the repayment date for which no penal interest is charged 3 1 ORACLE ICCF Rule A rule that identifies the manner in which appropriate charges and fees as well as interest components and commissions can be applied on a transaction in a product in FLEXCUBE Main interest When more than one interest component is applicable on a contract involving a product one of the components may be designated as the main interest component for the contract It helps identify and differentiate the different interest components applicable for the component Interest Method This is the method to be used for the calculation of interest in transactions Product This is an identifier in Oracle FLEXCUBE for any type of service that a bank offers its customers A set of attributes and preferences are maintained for the product wh
5. for the Rule ID that is associated with a broker and product will be applied on the deal To recall the Rule ID for a brokerage rule is specified in the ICCF Rule Branch Availability maintenance Accordingly in the Rule ID field in this screen you must select the ID of the brokerage rule that you wish to build by maintaining the attributes The option list in the Rule ID field is populated based on the following conditions e Only those Rule IDs that are available for users at the current branch according to the ICCF Rule Branch Availability maintenance are displayed e maintenance of ICCF rules must be allowed for users at the current branch according to the restrictions maintained in the Common Branch Restrictions maintenance for the restriction type ICCFRULE If no Common Branch Restrictions have been maintained and the restriction type ICCF RULE has not been maintained in the SMS Branch Restriction Type maintenance the option list in the Rule ID field only displays those rules that are available for users in the current branch according to the ICCF Rule Branch Availability maintenance Description Enter a description for the brokerage rule This description will be associated with the brokerage rule for information retrieval purposes Transaction Currency If you wish to define the attributes for all currencies you can select the ALL option in the Currency Code field to indicate this If you are maintaining the attribute
6. maintain a list of allowed branches that is the rule will be available for use in the allowed list of branches or disallowed branches the rule will not be available for use in the branches in the disallowed list To recall the attributes for the rule are defined in the ICCF Rule Maintenance Screen Maintaining the attributes in this screen for a branch is subject to whether maintenance of ICCF rules is allowed for the branch and also whether the rule for which attributes are being defined is allowed for the branch 2 5 ORACLE For details about the Common Branch Restrictions refer the Security Management System user manual Example You have created the following Common Branch Restrictions Restriction Type Allowed Branches 000 001 002 005 ICCFRULE ICCFRULE 001 006 The administrator of branch 000 can create modify and delete ICCF rules in the branches 000 001 002 and 005 but not for 006 2 3 1 Building a brokerage rule After a brokerage rule has been created in the ICCF Rule Branch Availability Maintenance screen the attributes of the brokerage rule are defined in the ICCF Rule Maintenance screen You can invoke this screen by typing CFDRUMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button While indicating the rule type in this screen choose Brokerage from the option list ICCF Rule Maintenance Rule Identification
7. not been associated with a brokerage rule you will not see any values in this screen You can define brokerage for a specific contract even if it has not been defined for the other contracts involving the product When you invoke the Contract Brokerage Details screen you can change the values only if you have clicked the Modify option from the Action Menu You have to give the following inputs in the Brokerage Details screen to define the contract brokerage details Reference number This is a display field which displays the corresponding contract reference number Broker Code This displays the broker code selected in the contracts main screen 2 19 ORACLE Broker Name This displays the description of the broker code The broker code displays along with the broker s name in the screen You cannot change the broker through this screen for the contract that you are processing 2 5 1 1 Payable If the brokerage Payable Currency is the same as the brokerage Paid Currency then the same amounts brokerage paid and brokerage payable displays against the currencies You can change these currencies if you wish to While you cannot alter the brokerage payable amount which displays you can change the brokerage paid amount value e Currency This is the currency which books the brokerage amount specified in the Broker Master screen e Amount This displays the brokerage amount calculated for the transaction 2 5 1 2 Liquidat
8. selected and the total amount payable will display the consolidated amount If only a few contracts need to be liquidated then we can uncheck those contracts and recalculate the total amount field Transaction Details The contract details displays in the Transaction Details section of the screen e Contract Reference e Booking Account e Amount Payable e Value Date e Status 2 23 ORACLE 2 5 4 Tax You can invoke the Tax Details screen by clicking Tax button in the Brokerage Liquidation Input screen In this screen you will see the tax details applicable on the contract Settlements You can invoke the Settlement Details screen by clicking Settlement button in the Brokerage Liquidation Input screen Events You can invoke the Event Details screen by clicking Events button in the Brokerage Liquidation Input screen to view the events associated with brokerage liquidation Advices If any brokerage advices are present they can be viewed from the Contract Advices screen Click Advices button in the Brokerage Liquidation Input screen Accounting Entries The brokerage that is calculated on a contract is parked in a suspense account before it is paid to the broker This account would be an internal account of the bank It is specified at the time of defining the accounting roles and event wise accounting entries for the product which involves the contract
9. tenor combination For this combination the contract amount will be distributed amongst the various slabs and depending on the tenor the rate corresponding to the tenor will be used to calculate the brokerage Brokerage for the first 100 000 1st amount slab is calculated as follows The contract tenor is 250 days which falls in the 3rd tenor Therefore brokerage 100 000 0 17 USD 170 Brokerage on the remaining 700 000 700 000 0 3 USD 2100 The total brokerage 17042100 2270 Specifying a duration based brokerage At the time of defining a brokerage rule you can also specify whether the brokerage amount should be calculated based on the duration of the contract In effect you indicate whether the duration of the contract is a component in the formula for calculating the brokerage amount The formula used will be Rate 95 Contract Amount Duration of the contract The duration of the contract will be calculated based on the Interest basis that you specify You can either choose to apply the interest basis associated with the contract currency or opt for a different Interest basis from the drop down list Interest basis is defaulted from the Currency Definition table if you select the As per contract ccy option The following example illustrates how duration based brokerage is calculated The amount slabs and tenor slabs will be used to calculate the brokerage amount Example Let us consider the example discusse
10. where the bank is not very comfortable with the credit rating of the customer Unlike a letter of credit in which the bank has to pay on maturity the amount is payable only on invocation of guarantee by the creditor Amount Tag This is the amount entry that is passed into a general ledger sub ledger in the chart of accounts for each transaction Commission Calculation Type This is the basis upon which commission applicable on a letter of credit is to be computed It can be computed on a periodic or non periodic basis 3 3 ORACLE Commission Collection Type This is the manner in which commission applicable on a letter of credit can be collected Commission could be collected either in advance or as arrears Commission Collection This is the collection of commission applicable on a letter of credit Commission may be collected by the issuing bank or the advising bank for an LC or against amendments to an LC Commission Calculation This is the computation of commission applicable on a letter of credit Accrual Entries Level The level at which commission accrual entries for letters of credit must be passed by the automatic commission accrual process Two levels are possible product level indicating that a single entry for all the LCs for which commission was accrued automatically will be passed or contract level wherein accrual entries will be passed for each of the LCs for which commission was accrued Schedule Ty
11. Brokerage Version 1 0 9NT1438 ORACLE FCUBS V UM 11 1 US 1 0 0 0 March 2011 Oracle Part Number E51715 01 ORACLE FINANCIAL SERVICES ORACLE Document Control Author Documentation Team Group UBPG 3 Created on October 01 2008 Revision No Final Updated by Documentation Reviewed Development Approved by Software Quality Testing teams Assurance Team Updated on March 18 2011 Reviewed on March 18 2011 Approved on March 18 2011 Brokerage Table of Contents E MANE co ERE E 1 1 1 1 WODE ON a a eee 1 1 OR GIN TON reece cs see 1 1 1 3 CONVENTIONS LSE IN THIS MANUAL E e E E 1 1 OSS AIRY OR TCO e 1 1 Ps ADS eU Icur ctn 1 2 2 PROCESSING BROKERAGE IN TXE T0092 aana aaa DD Dad NO DAN eU 2 1 2 T 2 1 P MEE CAPTURING 8 8 92 9512017010 2 2 2 9 C RULE ase 2 4 2 3 1 OV ON IE CR FU PIRE IRAE onan eae 2 6 2 3 2 Calculating brokerage using a tenor based tier slab structure 2 15 2 3 3 The Sequence in which ICCF Rules are resolved sese 2 17 2 3 4 240 0910 000 077 E X 2 17 2 4 ASSOCIA
12. Brokerage Association screen For a Foreign Exchange deal you can make the brokerage applicable only when the contract involves a specific currency pair Invoke the Brokerage Association Maintenance screen by typing BRDASSOC in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Brokerage Association Maintenance Broker Code az Product Code Currency Single Rule Code C Pair Capitalize Currency Az Currencyz Input By DOC2 Date Time Modification Number authorized Authorized By Date Time E open Features of the screen You have to give the following inputs in the Broker Association screen to define an association e Broker Code or Broker ID Enter the broker code or select a Broker Code from the option list by clicking on the option list available e Product Code Select a Product Code from the option list e Currency If the rule you are defining is for MM contracts in a specific currency enter the S W I F T Code of the currency in this field If the rule being defined is for Foreign Exchange contracts you can make it applicable for contracts involving a specific currency pair by entering the pair at Currency1 and Currency2 SWIFT code here means the ISO code for currency as specified in SWIFT standards The attributes of the brokerage rule will be associated with contracts defined in this combination Rule Code Select a Rule Code from the optio
13. TING A BROKER AND PRODUCT WITH A RULE essssssececeeeesesessceeeeeeeessssaaeeeeeeeesessaaeeeeeeeeeessaaaees 2 17 25 PROCESSING BROKERAGE ON A 2 2 0085980 BI 2 19 2 9 4 Brokerage Details Maintenance iioc oi iiia roe der AL EAE 2 19 Brokerage Discount maintenance 2 21 2 5 3 Liquidating Brokerage MAnud lLy cccccccccccccccc cece cece cece cece e ee kee kkk ELLE LEE E enne e eene e enne nene EE EEE ELLE EEE EEE 2 22 2 5 4 Accounting 2 24 20 BROKERAGE ASSOCIATION REPORT UR 2 25 2 6 1 NITORE TT E EE 2 25 2 6 2 Contents of the Report hehe hehehe nene ener nene eren rennen nennen nnn 2 26 S AGLOSSARY wsssisscsvatesssscssisstasstenszarcicsscawatensasdiaanetacessesexesceveitnesessacasseveiencsedexanssuveitucsestaenesoncesskanausscacasdanatinssetens 3 1 3 1 LISTORJIMPORTANI E 3 1 ORACLE 1 1 1 2 1 3 1 4 1 About this Manual Introduction This manual is intended as a guide to help you maintain and process brokerages that are applicable to a contract involving a product in Oracle FLEXCUBE You can further
14. You will see the following in the Accounting Entries screen e Value date e Branch e Account no e Ccy e Dr Cr e Transaction code e FCY amount e Exchange rate for FCY e LCY amount 2 6 Brokerage Association Report This report gives details of all associated brokers It is printed daily as part of the batch process 2 6 1 Selected Options You can configure this report to display details of brokerage contract You can generate the report based on the following criteria e The From and the To record which includes broker and product code currencies involved in transactions You can invoke this screen by typing BRRASSOC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 2 25 ORACLE Brokerage Association Report From Record Broker Code Product Code Currency 1 Currency 2 To Record Broker Code Product Code Currency 1 Currency 2 2 6 2 Contents of the Report The contents of the Brokerage Association Report are discussed under the following heads Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the report The details of the borrower that would be displayed in the report are as follows Cs Rec No This is the CS record number Currency 1 This is
15. an be maintained Chart of Accounts This is the structure or framework in which the different GLs are maintained in the bank Rate Code This is an identifier for a floating interest rate maintained for a specific currency and account type in the Rates Maintenance Slab Structure This is the pattern in which interest can be applied on a balance type account In this pattern interest is calculated according to the rate applied for the slab in which the entire amount falls Tier Structure This is the pattern in which interest can be applied on a balance type account In this pattern the entire amount is split into tiers and interest is calculated according to the rate applied for each tier User Data Element This is the component that is used to build an interest rule for the application of interest on a balance type account in Oracle FLEXCUBE Unlike a system data element a user data element is not updated in the database by the system but is specified by the user and can take different values as specified An example of a user data element would be the rate at which interest must be calculated Import LC This is the incoming Letter of Credit that involves an applicant who is a customer of the processing bank Export LC This is the outgoing Letter of Credit that involves the beneficiary who is a customer of the processing bank Guarantees Guarantee is a form of comfort issued by the bank to its client in cases
16. ansaction amount is USD 10000 it falls in the first tier The brokerage amount will be calculated in the following manner Transaction Amount USD 10 000 Brokerage 0 05 of USD 10 000 5 If the transaction amount is USD 15000 it falls in the second tier Brokerage will be calculated in the following manner Transaction Amount USD 15 000 Floor Charge X 5 Amount to be charged at 0 06 USD 5000 Transaction Amount the Floor Basis amount of the second tier Brokerage USD 3 X 5 USD 8 If the transaction amount is USD 30000 it falls in the third slab The charge amount will be calculated in the following manner Total Transaction Amount USD 30 000 Amount in the first slab 10 000 Charge on the amount in this slab X 10 000 0 05 5 Amount in the second slab to be charged at 0 06 10 000 Charge on the amount in this slab 6 10 000 0 06 2 14 ORACLE Balance amount in the third slab 10 000 Floor charge applicable from earlier 2 slabs Y 5 6 11 Charge on the amount in this slab 10 000 0 08 8 Total charge applicable Y 8 11 8 19 2 3 1 6 Tenor Based Rates 2 3 2 Tenor From and Tenor To You can define a tenor based tier or slab structure for every amount slab that you have built The Tenor From refers to the start of the tenor period and the Tenor To refers to the end of the period The rate or flat amount will be specified subsequently Please note that the Tenor Fr
17. current branch The following example illustrates how the option lists in the Rule ID and Branch Code fields are populated Example You have created the following Common Branch Restrictions for the restriction type ICCFRULE Allowed Branches 000 001 002 005 001 006 002 005 006 002 005 006 You have maintained the following brokerage rules in the ICCF Rule Branch Availability Maintenance RULE ID Allowed Branches BRKRULE1 000 001 002 005 006 BRKRULE2 001 005 006 BRKRULE3 002 005 006 In the ICCF Rule Details screen the following options would result if the maintenance were as mentioned above Branch Rule ID field option list Branch Code option list ru BRKRULE1 000 001 002 005 001 BRKRULE1 BRKRULE2 001 006 002 BRKRULE1 BRKRULE3 002 005 006 005 BRKRULE1 BRKRULE2 002 005 006 for BRKRULE1 005 006 for BRKRULE3 BRKRULE2 or 002 005 006 for BRKRULE3 2 8 ORACLE If no Common Branch Restrictions were maintained and the restriction type ICCFRULE was not maintained in the SMS Branch Restriction Type maintenance the options in the ICCF Rule Details screen would be as follows Rule ID field Branch Code option list option list BRKRULE1 000 001 002 005 006 001 002 005 006 BRKRULE1 000 001 002 005 006 BRKRULE71 001 005 BRKRULE2 006 for BRKRULE2 BRKRULE1 000 001 002 005 006 for BRKRULE1 or 002 005 BRKRULE3 006 for
18. d earlier Contract amount USD 800 000 Tenor 250 days Interest Basis Actual 365 days Duration based brokerage for an amount slab non cumulative and tiered tenor combination will be calculated as follows The contract amount falls under the second slab Therefore the tenor slabs corresponding to this amount slab will be used to compute brokerage Brokerage for the period O to 100 days 800 000 0 2 100 365 438 35 Brokerage for the period 101 to 200 days 800 000 0 25 100 365 547 94 Brokerage for the period 201to 250 days 800 000 0 3 50 365 328 76 Total brokerage 438 35 547 94 328 76 USD 1315 05 Duration based brokerage for a non cumulative amount and non tiered tenor structure The contract amount of USD 800 000 falls under the second amount slab The contract duration is 250 days which falls under the third tenor defined for this amount slab Therefore brokerage 800 000 0 3 250 365 USD 1643 83 Duration based brokerage for a tiered amount and tiered tenor combination can be worked out as follows Contract amount USD 800 000 Tenor 75 days Interest Basis Actual 365 days Brokerage for the first USD 100 000 100 000 0 1 75 365 USD 20 54 2 16 ORACLE 2 3 3 2 3 4 2 4 Brokerage for the balance USD 700 000 700 000 0 2 75 365 287 67 Total brokerage 20 54 287 67 USD 308 21 The Sequence in which ICCF Rules are resolved ICCF Rules
19. e fee interest commission or brokerage component applicable on a contract Interest Class A specific type of interest component in Oracle FLEXCUBE with specifically defined attributes that could be applied on a contract MM Money Market This is the market for issuing and trading of short term investment instruments typically debt instruments such as bills commercial paper etc Securities General term used to refer to all tradable instruments such as equities bonds zero coupon bonds warrants rights etc Securities Deal This is the transaction in which a security is bought sold Coupon This is the annual rate of interest payable to the holder of a bond on the face value of the bond The coupon also refers to the certificate representing the bond which is proof of the interest due on it Cascade Amount The commission will be calculated on the amended amount of an LC BG if Cascade Amount is chosen in the Commission Rule Rounding Period If you indicate the rounding period as O the commission will be calculated for the actual number of days of the LC Contract Otherwise the commission will be rounded up to the nearest rounding period Rate Period The rate period is used to define the period for which the fixed commission rate is applicable Instead of expressing the commission rate on a per annum basis you should specify it on a rate period basis which is expressed in months Brokerage Discount Ma
20. e FX 2 22 ORACLE e LD e MM e OT e SD e ID e MC Liquidation Reference Number Each broker code associates a Liquidation reference number The Liquidation Ref No is automatically generated by the system This number is based on the event code not on the product code and is used to generate the transaction reference number for the liquidation The particular broker code you have specified displays this number in this screen Tax Scheme The tax scheme you have defined for the broker displays in this field The tax scheme applicable on the brokerage would be the scheme specified in the Broker Master Detail screen Total Amount Payable Select the check box against each Contract Reference number to populate the Total Amount Payable field in the screen As and when you select a contract the brokerage amount applicable to the contract gets added to the amount displayed in the Total Amount Payable field Brokerage Discount This displays the discount amount if any discounting is attached at the broker level Remarks You can enter some information about the broker confirmation which is internal to the bank This is not printed on any correspondence with the counterparty Query Click Query button to see all the contracts for which brokerage is yet to be paid after the required inputs are given Recalculate On clicking Query button the system will fetch all contracts and by default the Select check box will be
21. eld at the top right corner of the Application tool bar and clicking the adjoining arrow button In this screen you can opt to liquidate the consolidated brokerage due from more than one contract that is due to a broker Brokerage Liquidation Input Liquidation Reference Number 0007BLO073320001 Broker Code Module BC Total amp mount Payable C DV Currency Tax Scheme C Lo Remarks C Value Date 2007 11 28 C OT Brokerage Discount 50 CB O e All Transaction Details Contract Reference Booking Account Amount Payable Value Date Status rj Open Input By Date Time Authorized By Date Time Contract Status 2007 11 28 11 28 53 Reversal Broker Code Select the broker code for which brokerage is liquidated from the option list To manually pay brokerage for various contracts involving a specific broker you have to specify the Broker Code of the individual concerned Value Date Contracts whose value date is same as that is mentioned here will be queried Currency Select from the option list the currency in which the brokerage has to be paid to the broker Module Choose the module for which the brokerage is being calculated If you wish to calculate brokerage for all the modules choose the ALL option The date on which the brokerage is booked will also be displayed in this screen Brokerage is calculated for the following modules e BC e DV
22. for the Basis Amount To depending on whether you have defined the application basis as a slab or a tier Floor Basis amount You should specify this only if the amount basis is a Tier This will be the upper limit of the previous tier limit By default the amount specified as the Basis Amount To for the previous tier limit will be displayed For the first limit in the tier do not specify this 2 13 ORACLE This amount is used to calculate the brokerage along with the Floor CCF Amount that is to be specified next Floor CCF amount You should specify this only if the Rule Type is a Commission This amount need not be the same as the amount calculated using the Basis Amount and rate for the previous slab An example for the calculation of brokerage based on a tier structure Your bank decides to pay brokerage based on the following tier structure gt 0 lt 10 000 5 of the transaction amount gt 10 000 lt 20 000 6 of the transaction amount gt 20 000 8 The following will be the specifications in the ICCF Rule Details screen Basis Amount i Floor Basis Floor CCF Amount Amount 10000 upper limit of the first tier 10000 upper X charge amount that will be limit of the considered for the first tier first tier 999999999 a big amount 20000 upper Y charge amount that will be since there is no upper limit limit of the considered for the earlier for the third slab second tier slabs If the tr
23. ich a particular rate or amount should be applied as brokerage Example You have defined a brokerage rule which you like to apply on a FX product with the following amount basis structure the example assumes that brokerages are charged on the basis of deal amount Amount to 250 thousand 0 05 gt 250 thousand lt 1 Million 0 06 gt 1 Million lt million 0 07 gt 3 Million 0 08 2 11 ORACLE When this rule is applied on a deal of USD 1 5 million the rate of brokerage will be calculated depending on whether the Amount Basis has been defined as Slab or Tier in the following fashion Tier basis The first 250 000 will be charged at 0 05 Amount from 250 001 to 1 000 000 at 0 06 Amount from 1 000 001 to 1 500 000 at 0 07 The total amount charged as brokerage will be USD 925 Slab basis The entire USD 1 5 Million will be charged at 0 07 The amount charges as brokerage will be USD 1 050 As per Contract Currency This specifies whether the brokerage is paid in the charge currency or in the currency of the contract Tiered Tenor Tiered tenor is applicable only for duration based explained later brokerage You can indicate that brokerage is to be calculated on the basis of a tiered tenor structure by choosing the Tiered Tenor option 2 3 1 4 Rate Code For a contract you can calculate brokerage in a currency other than the contract currency The rate code specified here will be used to com
24. ich will apply to the processing of any contracts transactions or deals involving the product service Rule Type This indicates the basic nature of an ICCF interest commission charge or fee rule Tenor Basis This is the basis upon which a charge or interest rule is defined if applied based on the tenor of a contract Transaction Codes Unique identifiers can be maintained in Oracle FLEXCUBE for different types of cash transfers transactions within the branch A transaction code is also an identifier for each accounting entry that describes the nature i e debit or credit of the entry Brokerage Rule This is a rule that identifies the calculation of a specific brokerage component applicable on a contract Brokerage Booking Method This is the manner in which the brokerage payable to a broker must be booked It could be either at the time of initiation of the contract in advance or at liquidation of the contract as arrears GL This is the module that forms the single repository in FLEXCUBE for financial information and accounting for all types of accounts held by the bank Balances turnovers and so on for any account or type of account can be maintained and consolidated LCY This is a local currency in which profit and loss entries can be posted to a GL Reporting will obtain details in this currency 32 ORACLE FCY This is a foreign currency in which record of the profit and loss entries posted to a GL c
25. intenance A stockbroker who carries out buy and sell orders at a reduced commission compared to a full service broker but provides no investment advice is called as a Discount Broker 3 5 ORACLE ORACLE Brokerage March 2011 Version 1 0 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial services Copyright 2010 Oracle Financial Services Software Limited All rights reserved No part of this work may be reproduced stored in a retrieval system adopted or transmitted in any form or by any means electronic mechanical photographic graphic optic recording or otherwise translated in any language or computer language without the prior written permission of Oracle Financial Services Software Limited Due care has been taken to make this document and accompanying software package as accurate as possible However Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the accompanying Software System Furthermore Oracle Financial Services Software Limited reserves the right to alter modify or otherwise change in any manner the content hereof without obligation of Oracle Financial Services Software Limited to no
26. ion This designates the status of the brokerage whether the brokerage is liquidated or is still outstanding for the contract If it is liquidated it displays the liquidation reference number e Status This represents the status of the brokerage amount whether it is Outstanding Liquidated e Reference number If the brokerage Amount pertaining to that contract is liquidated then the liquidation reference no that is generated for brokerage wil be displayed here 2 5 1 3 Rule This indicates the brokerage rule code and description on the basis of which brokerage is calculated e Code e Description 2 5 1 4 Brokerage e Currency This indicates the currency in which brokerage is paid Select a currency code from the option list e Amount This field displays the amount payable to the broker You cannot change this amount Booking This indicates when the brokerage applicable to the transaction is booked The preference that you specify for the broker becomes default You have the option to change the default that is from advance to arrears or from arrears to advance To waive brokerage for the transaction choose the No Booking option The options available are as follows e No Booking e Advance e Arrears 2 20 ORACLE Consider for Discount This option is defaulted from the deal product level However checkbox is unchecked if the booking method is other than Advance 2 5 2 Brokerage Discount maintenance A stockb
27. n function e Associate a broker with a brokerage rule and a product so that the brokerage is applicable to all the deals involving the product e Make deal specific changes e Generate reports on the brokerage payable and the brokerage that has been already paid You process brokerage in Oracle FLEXCUBE in the following manner e Maintain broker details e Maintain brokerage rules e Associate a broker and product with a brokerage rule Associating a broker and a product with a rule is explained in the Products Manual e Process brokerage on a contract 2 1 ORACLE 2 2 Capturing Broker details You can capture the basic details of brokers with whom your bank deals with in the Broker Master Maintenance screen In this screen you can specify the following e broker s code e The name and address of the broker e The booking currency e transaction code under which the system should track accounting entries involving the liquidation e Whether it is to be paid in advance or as arrears e The tax scheme applicable e The tax paid and the tax payable accounts You can invoke the Broker Master Maintenance screen by typing BRDMAST in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Broker Master Maintenance Broker Identification Booking Advance Name 7 Arrears Category Broker Q Exchange PNE O Clearing Member Liq
28. n list This rule associates with the Broker Product and currency or currency pair combination o While processing security deals you can choose to add the brokerage computed at the deal level to the cost of the asset instead of being expensed while processing the SE deal 2 18 ORACLE 2 5 2 5 1 Processing Brokerage on a Contract Details about Brokerage Processing on a Contract are explained below Brokerage Details Maintenance When capturing the details of a contract you will have to specify the brokerage details applicable to the contract By default the brokerage details specified for the product apply to the contract as well However if you want to change some details like the booking of brokerage whether the brokerage should be booked in advance in arrears or waived altogether or the currency of the contract you will have to invoke the Brokerage Details screen You can invoke this screen through the Contract Details screen by clicking Brokerage button in the screen Brokerage Contract Reference Broker Broker Name d Rule Rule Payable Brokerage T currency i Liquidation Booking Status 5 No Booking Reference Number Q Advance Arrears Consider For Discount In case of a new contract if brokerage already exists for the product to which the contract is associated the system will pick up the values and display them in this screen However if the product has
29. obtain information specific to a particular field by placing the cursor on the relevant field and striking lt F1 gt on the keyboard Organization This manual is organized as follows Chapter 1 About this Manual gives information on the intended audience It also lists the various chapters covered in this User Manual Chapter 2 Processing Brokerage explains how brokerage can be set up and processed It details the procedure involved in defining brokerage rules and associating a broker with a brokerage rule and product so that the brokerage is applicable to all deals involving the product It also explains how to make contract specific changes Conventions Used in this Manual Important information is preceded with the symbol Glossary of Icons This User Manual may refer to all or some of the following icons 1 1 ORACLE fe pion Delete row FE Option List Enter Query Fal Execute Query Refer the Procedures User Manual for further details about the icons 1 5 Related Documents For further information on procedures discussed in the manual refer to the Oracle FLEXCUBE manuals on e Common Procedures e Products 1 2 ORACLE 2 1 2 Processing Brokerage Introduction A Broker is a party who mediates between a buyer and a seller The Brokerage paid to a broker is a fee for acting as intermediary between buyer and seller There are many types of brokerages added in areas such as Money Ma
30. om and Tenor is defined in days Fixed rate If the brokerage is to be calculated as a percentage you should specify the applicable rate against each tenor This rate will be applied on the transaction amount based on the amount slab and on whether the application basis defined for the tenor based structure is a slab or a tier Flat Amount To levy a flat charge specify the flat amount This amount will be applied on the Basis Amount depending on whether you have defined the application basis as a slab or a tier Calculating brokerage using a tenor based tier slab structure The following example illustrates how brokerage is calculated using a tenor based structure Example Let us assume that you have defined a brokerage rule to be associated with contracts based on the following tenor basis Slab 0 100 days 101 200 days 201 250 days 0 100 000 0 15 0 17 Let us see how the brokerage is calculated for the following contract Contract Amount USD 800 000 Tenor 250 days assuming that the difference between the maturity date and value date is 250 days Brokerage for non cumulative amount and tenor structure The contract amount is USD 800 000 which falls under the second amount slab The contract duration is 250 days which falls under the third tenor defined for this amount slab Therefore brokerage 800 000 0 3 2400 2 15 ORACLE 2 3 2 1 Brokerage for a tiered amount and non tiered
31. on which brokerage is to be calculated Accounting entries for brokerage liquidation are defined at the time of product definition both for booking or initiation and liquidation The brokerage payable account the broker s account into which the actual brokerage for a particular deal is to be paid is defined in the brokerage liquidation screen in the Settlements module Although a broker may have to be paid brokerage on several deals the manual liquidation function of the system consolidates these into a single settlement amount to be passed to the settlement account The brokerage payment advice specified at the time of defining advices for a product will be triggered If you click Accounting Entries button on the Events screen invoked from the contract main screen you will see the accounting entries screen for the particular Liquidation reference number The event is Liquidation and the transaction date is today s date 2 24 ORACLE view Details Web Page Dialog Reference Number FXLZBL 00187000P Event Accounting Entries Branch Account Amount Tag Currency Foreign Currency 003 ROO1HLLCORCULUSDGA C BROK LIGD USD 003 433501101 D BROK LIGD USD 000 13501043 BROK LIGD USD 000 433501054 D BROK LIGD USD 3501098 C BROK USD V See Position Entries Overrides Overrides Authorization Status Auth By Auth Date Stamp
32. ount To for the first slab or tier should be indicated as 250 000 that for the second slab or tier as 1 000 000 and so on If you are to calculate cumulative brokerage on say a principal of USD 300 000 on 250 000 you would calculate brokerage at 5 which comes to USD 12 500 Then on the remaining 50 000 you apply brokerage at 6 which works out to USD 3 000 The total brokerage applicable on USD 300 000 is 15 500 In a non cumulative or slab structure of brokerage application you will apply 6 on USD 300 000 which works out to USD 18 000 Fixed Rate If the brokerage is in the form of a percentage of the contract amount you should specify the applicable rate This rate will be applied for the Basis Amount To depending on whether you have defined the application basis as a slab or a tier Charge Unit The Charge Unit specifies the unit for rounding up a brokerage basis amount to the nearest amount The brokerage will be calculated on the rounded basis amount Example If the Charge Unit has been specified as 10 and the brokerage is to be calculated for USD 85 then the brokerage will be calculated for the rounded up figure of USD 90 Similarly if the Charge Unit has been specified as 100 and the brokerage is to be calculated for USD 750 the brokerage will be calculated for the rounded up figure of USD 800 Flat amount If the brokerage is in the form of a flat amount the amount should be specified This amount will be applied
33. pe The kind of repayment schedule defined for a MM contract It could be amortized normal or capitalized Schedule Frequency The frequency at which the repayment of the MM amount will be amortized in equated installments over the tenor of the contract Accrual Frequency This is the frequency at which components of a contract such as interest charges or commissions must be accrued over the tenor of the contract Tenor This is the default period during which a contract is effective The default Maturity Date of a contract is calculated from tenor Pre Payment Repayment of principal whole or part of a MM contract before the repayment schedule falls due Prepayment involves a re computation of subsequent interest schedule amounts Interest Application Method This is the basis upon which interest on a contract is applied Interest on a contract could be applied as an amount or a fixed rate or floating rate Interest Collection Method This is the manner in which the main interest payable on a MM contract is collected or liquidated The methods could be Bearing Discounted or True Discounted 3 4 ORACLE ICCF Interest Commission Charge and Fee The different charges and fees including commissions and brokerage and the interest components that are applicable on a contract are set up from the same ICCF Rule Details screen in Oracle FLEXCUBE ICCF Rule An ICCF Rule identifies the calculation of a specific charg
34. pute exchange rates between the currency pair involved in the contract Specify whether the currency rate for deal or slab currency from the following e Mid e Buy e Sell Booking Currency You should indicate the currency in which the brokerage amount is to be calculated e Charge Ccy If you specify the brokerage currency as charge currency brokerage will be calculated in the currency selected in the Charge Currency field For a contract in foreign currency the contract amount is converted into the charge currency equivalent before brokerage is applied e Contract Ccy If you specify the brokerage currency as the contract currency brokerage will be calculated in the currency of the contract 2 3 1 5 Bracket Tenor You can create a Brokerage Rule which calculates brokerage charges on the basis of an amount structure In this table you define the different attributes of amount structure based on which the brokerage charges would be calculated 2 12 ORACLE Basis Amount To You should specify the upper limit of the slab or tier to which a particular rate or amount should be applied as brokerage The brokerage rate or amount depending on the rate type is to be specified in the subsequent field Example Suppose the following is the slab or tier structure you want to specify Amount Rate to 250 thousand gt 250 thousand lt 1 Million 6 gt 1 Million lt million T gt 3 Million 8 The Basis Am
35. rket ForEx Securities etc Brokerage will usually be based on either a percentage of the transaction or a flat fee They can also be a combination of the two Oracle FLEXCUBE supports Trade Finance activities Securities Derivatives ForEx Deals etc where Brokerage is involved This manual explains the processing of brokerage in Oracle FLEXCUBE Using the Brokerage service that Oracle FLEXCUBE provides you can e Capture and maintain the details of brokers assign a broker code and record the name and address of the broker e Specify brokerage discounts for a broker e Specify the currency of booking e Specify whether brokerage is to be paid on the deal in advance or in arrears e Define a brokerage rule with amount slabs for specifying a flat amount a percentage of the deal or the deal amount within certain limits e Specify whether the brokerage amount should be in the deal currency or converted to the LCY e Book brokerage to an internal account by debiting the expense and crediting the brokerage payable account brokerage is booked on initiation of the deal e Opt to liquidate brokerage either automatically or manually at deal initiation or liquidation You can manually liquidate the consolidated brokerage payable to a broker involved in many deals That is a broker may be entitled to brokerage from more than one deal You can liquidate the brokerage payable for all these deals once and for all using the manual liquidatio
36. roker who carries out buy and sell orders at a reduced commission compared to a full service broker but provides no investment advice is called as a Discount Broker It used to be that only the wealthy could afford a broker and access to the stock market The internet has brought an explosion of discount brokers which let you trade at a smaller brokerage However it is important to remember that discount brokers don t provide personalized advice Because of discount brokers nearly anybody can afford to invest in the market We can maintain discount for a Broker through the Brokerage Discount Maintenance screen You can invoke this screen by typing BRDDISCO in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Amount Slabs can be maintained in this screen where a discount will be done on the brokerage amount that is due for the broker Brokerage Discount Maintenance Broker Discount Broker Code Currency Discount Transaction Code kel Discount Reverzal GL Discount Type Flat Amount Q Fixed Rate Broker Discount F Amount From AmountTo Amount Fields Input By DOC2 Date Time Modification Number authorized Authorized By Date Time E open 2 21 ORACLE 2 5 3 Liquidating Brokerage Manually You can liquidate brokerage payable on a contract through the Brokerage Liquidation Input screen You can invoke this screen by typing BRDLIQD in the fi
37. s You can do this by maintaining a list of branches for which the use of the rule is allowed or disallowed You can invoke this screen by typing CFDICCFR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button ICCF Rule Availability Maintenance Rule Identification Description Branch Restrictions Allow Disallow Branch specific rules Branch Code Description Input By Date Time Modification Number Authorized Authorized By Date Time open In this screen you must specify the following information Rule Identification and Description You must specify a unique identification for the ICCF rule you are creating If you are creating a brokerage rule specify a unique identification for the brokerage rule This is the identification that will be used as to identify for the rule in all subsequent references to it You must also specify a unique description for the rule Every brokerage rule is identified by a unique ten character code called a Rule ID You can link a valid Brokerage Rule ID to the appropriate broker and product When a deal is processed the brokerage attributes defined for the Rule ID that is associated with a broker and product will be applied on the deal o After the rule has been created in the ICCF Rule Availability Maintenance screen the attributes for the rule must be defined in the ICCF Rule Maintenance Screen Branch Restrictions You can
38. s for the selected ICCF rule in specific currency other than the ALL select the Transaction Currency on which the rule mapping maintenance is to be made applicable Customer Group Select the customer group on which the rule mapping maintenance is to be made applicable You can create a generalized brokerage rule mapping record by selecting the ALL option in the Customer Group field This specification is defaulted to the Customer and Customer Account fields You are forbid to change the specification Customer Specify the Customer ID of the customer for whom you are maintaining the rule mapping 2 7 ORACLE Branch Code If you are maintaining the attributes for the selected ICCF rule from the head office branch you can select the branch for which the attributes are being defined If you wish to define the attributes for all branches you can select the ALL option in the Branch Code field to indicate this If you are maintaining the attributes for the selected ICCF rule from a branch other than the head office you can only select those branches that are found in the allowed list of branches for e the ICCF rule definition Restriction Type ICCFRULE in the Common Branch Restrictions maintenance for the current branch e the selected rule being built according to the ICCF Rule Availability maintenance In other words the option list in the Branch Code field would display only those branches that are allowed both for the rule and the
39. t as the Rule Type then you need not specify the minimum and maximum amount rate limits Tenor basis You should specify whether the Rule ID you are defining is to be applied based on the tenor of the contract The tenor of the contract is calculated as the difference between the Maturity Date and the Value Date of the contract After the tenor is calculated brokerage will be computed based on the tenor slabs defined in the Tenor Based Rates section of the screen The following sections will explain how brokerage is calculated using a tenor based structure 2 3 1 3 Interest Basis This specifies the calculation basis for the brokerage based on the Contract Currency or Rule Currency Check this box if you wish to calculate the brokerage based on the contract currency If you wish to calculate the brokerage based on the rule currency then you have to choose the brokerage calculation value from dropdown list next to this field Tiered Amount You can define the brokerage to be applied on contracts in any one of the following ways e Ina tier structure cumulative e Ina slab structure non cumulative You should first indicate whether the Basis Amount that you specify subsequently should be considered as a Slab or a Tier Check the Tiered Amount option if you wish to maintain the Basis Amount structure as Tiers Leave it blank if you are maintaining a slab structure The Basis Amount is the upper limit of the slab or tier to wh
40. t the broker defined is available for the Exchange trade derivative module 2 2 1 2 Tax Paid 2 3 If any tax is to be paid on the brokerage you have to specify the following details e Account The account from which the broker s tax component debits e Transaction code You have to specify the transaction code for the tax payable account by selecting one from the list so that the system passes accounting entries for this transaction The transaction code identifies the nature of the entry which passes e f any tax is payable on the brokerage you have to specify the following details e Account The account to which the broker s tax component credits e Transaction code You have to specify the transaction code for the tax payable account so that the system passes accounting entries for this transaction Under the Broker Account table you can specify the following Account opecify the account of the broker The adjoining option list gives you a list of accounts Choose the appropriate one You cannot specify the same account number for another broker Each broker should have account numbers unique to him o It is mandatory for you to specify at least one account number for the broker If the broker is dealing with Exchange Traded Derivatives his external accounts have to be maintained here You cannot specify the same account numbers for different brokers Each broker should have unique account numbers Description Enter
41. that you maintain are resolved in the following sequence Currency Specific Specific Specific Specific Specific Specific Specific Specific Specific Specific Specific Specific Specific ALL Specific Specific ALL Specific ALL ALL ALL ALL ALL Specific ALL Specific ALL Specific Specific ALL Specific Specific ALL ALL Specific ALL ALL Copying an ICCF Rule In order to make the definition of ICCF rules easier you can copy an existing rule and modify its attributes Associating a broker and product with a rule Brokerage association enables you to link a product a rule a currency or a currency pair in the case of foreign exchange products and a broker Example You have created the following Broker Alexander Brokerage Rule BRRL1 Foreign Exchange Product BuyUSD You would like Alexander to broker all deals involving the product BuyUSD The brokerage in these deals is defined as Brokrule1 2 17 To make BRRL 1 as the brokerage for all deals involving Alexander and BuyUSD you should associate the combination of Alexander and BuyUSD with BRRL1 through the Broker Association table Further you can make a Brokerage Rule applicable for a broker product and currency combination Continuing the example Example You want to apply BRRL1 for all deals involving the product BuyUSD in USD only You can do so by associating Alexander BuyUSD BRRL 1 and USD through the
42. the currency of booking Currency 2 This is the currency of booking Broker Code This is the broker code Product Code This is the product code This rule is made available for use in the required branches by maintaining an allowed disallowed list of branches 2 26 ORACLE 3 1 3 Glossary List of Important Terms Important terms used in this manual have been listed here Beginning of Day This is the automatic processes initiated in the system at the beginning of each business day as part of the AEOD The system date change is executed and the change authorized and the system is in readiness to accept transaction input for the day End of Cycle This is the stage of Automated End of Day AEOD processing wherein automatic functions that are marked EOC after the End of Financial Input EOFI and before the EOD End of Day process will be executed End of Day This is the last stage of AEOD processing in the system at the end of each business day which indicates that all activities are complete for the business day Any further activities in the system can only begin after the Beginning of Day stage when the system date is changed to the next working day Basis Amount To This is the higher limit of the slab or tier to which a charge is to be applied either as a fixed rate or flat amount Charge Rule The nature of application of a charge can be defined uniquely as a charge rule Customer Category This is
43. tify any person of such revision or changes All company and product names are trademarks of the respective companies with which they are associated
44. tion through the brokerage liquidation function You should specify a liquidation transaction code from the codes maintained in the Core Entities module of Oracle FLEXCUBE The system passes accounting entries under the selected transaction code Tax scheme A tax scheme holds the tax rules for the tax applicable on the brokerage paid Payable Currency The brokerage is booked into the Broker Account defined in this screen If this account is either not specified or is not available when brokerage is being booked the brokerage will be booked in any one of the broker s savings or current accounts in the currency specified here For every broker you can specify the currency in which you would like to pay brokerage If the currency that you specify is not the broker s account currency the standard exchange rate for the day will be used to convert the brokerage into the currency of the broker s account Booking You can opt to book the brokerage payable to a broker either in e Advance e Arrears If you select e Advance brokerage will be booked when the deal is initiated e Arrears brokerage will be booked when the deal is liquidated Category This defines the category of the entity whether a broker an Exchange member or a Clearing member e Broker e Exchange e Clearing Member 2 3 ORACLE Applicable For Check or uncheck the box Exchange Trade Derivatives accordingly If the flag is checked then it means tha
45. uidation Transaction Code Tax Scheme Applicable For Payable Currency Exchange Traded Derivaties Tax Paid Tax Payable Account Account Transaction Code Tranzaction Code Broker Account F Account Description Input DOCS Date Time Modification Number authorizes Authorized By Date Time open Broker Identification In the Broker Master Maintenance screen you should specify a unique Broker Identification for every broker with whom you deal The Broker Identification has to be the same as the broker s Customer Identification Number since a broker will have an account with you that is will be a customer of your bank The Customer Identification Number can be selected from a list that is displayed This Broker ID will be used to identify the broker For example when processing a deal on which you have to pay brokerage or when generating reports for a broker you need to enter the code of the broker involved 2 2 ORACLE 2 2 1 1 Broker s Address When you select a Customer Identification Number to identify a broker the system maps and displays the name and address of the broker You cannot change the name which displays in this screen but according to the defined details you can enter the changed address of the broker The fields to be entered are as follows e Name e Street e City e Country Liquidation transaction code A broker gets the brokerage amount only after liquida
46. urrencies As mentioned earlier the rules applicable for combinations involving all branches the ALL option in the Branch Code field can be maintained only from the head office branch Once an ICCF Rule has been defined you should associate it with a broker and product through the Brokerage Association screen Depending on the broker and product involved in a contract the appropriate rule will be made applicable 2 9 ORACLE Rate Type The Rate Type indicates whether the Brokerage to be applied for the Rule ID is a flat amount or a percentage of the basis amount Select the rate type from the following e Flat amount You can specify a fixed amount as brokerage This will be the brokerage amount for all contracts involving the brokerage rule you are defining e Fixed rate You can specify a percentage as brokerage The rate that you specify will be applied on the contract amount to calculate the brokerage amount The specific rates and amounts applicable have to be specified subsequently through this screen 2 3 1 2 Rounding When rule type is brokerage no need to give value in this field Amount Limits for a Brokerage Calculation If you indicated that brokerage should be calculated as a flat amount you can specify the amount range minimum and maximum amounts within which the amount calculated using the brokerage rate should fall Example For the brokerage rule BRO1 you have maintained the following details Brokerage C
47. urrency Contract CCY Amount Type Percentage Rate Min Amount Max Amount This brokerage rule is linked to a contract The contract currency is USD and the local currency is DEM The exchange rate between the two currencies is 1 4 where 1 4 units of USD is equal to 1 DEM The contract amount is 40 000 USD and brokerage has to be paid in USD Before brokerage is applied on the contract the minimum and maximum amounts are converted into the contract currency as follows Min Amount 1400 1000 1 4 Max Amount 14000 10000 1 4 The brokerage amount for this contract is calculated as follows 40000 3 100 1200 brokerage amount As this amount is less than the Min Amount specified for this brokerage rule a brokerage of 1400 USD will be levied on the contract On the other hand if the brokerage calculated were more than 14000 USD 14000 would be applied as brokerage 2 40 ORACLE Rate Limits for a Brokerage for Brokerage Calculation If you have chosen not to maintain the minimum and maximum amounts you can specify the minimum and maximum rates for brokerage calculations If the brokerage calculated using this Rule ID exceeds the amount calculated using the maximum rate specified here the maximum rate amount will be applied as brokerage Similarly if the brokerage amount falls below the amount calculated using the minimum rate the minimum rate amount will be considered as brokerage o If you have specified a flat amoun
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