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Agreement Business Logic

Define non-tier rate sets within agreements

  • Rate sets are defined within agreements.
  • An agreement with no rate sets will not price a trade, but can serve as a master pass thru agreement to other agreements that have rate sets.
  • Each rate set has an effective date.
  • A rate set’s effective date cannot precede an agreement’s effective start date.
  • An agreement with a non-tier rate set cannot be converted to a tiered rate set; a new agreement must be created to support a tiered rate set.

 

Define tiered rate sets within agreements

  • All tiered trades will be priced with a base rate (appears as the “default” rate; default rate applies when trades match accounts, but not the rate criteria).
  • A maximum of 5 rate tiers will be allowed per agreement.
  • All tiers will have the same rate criteria.
  • Tiered rate sets will be effective the first day of the month and expire on the last day of the month selected.
  • Editing rates can only be done when the rate set effective date is in the current or a future month; to change a rate set that was effective in a prior month, you must first expire the current rate set, and then create a new one.
  • Tiered rates will be calculated at the base (default) rate, and GPS will automatically generate cash adjustments in the amount of the discount during nightly processing.

 

Define accounts within agreements

  • Accounts may or may not be defined within an agreement .
  • An account must have a carry account value. The carry account must be unique within an agreement. 
  • You cannot add accounts to an Inter-FCM agreement. You can add accounts to other non-Inter-FCM agreements containing the Inter-FCM executing/carry firm combination. The Inter-FCM agreement only acts as a default when there is no exact match on other agreements.
  • Entering data into the profit center field is optional, but if populated, both on an agreement and account level, the account level will take precedence.
  • The executing account can also remain blank (i.e., any executing account will match as a default).
  • Executing Account, if populated, will be utilized as a pricing criterion.
  • The combination of executing and carrying account, along with the two firm numbers, must be unique amongst all agreements. An error message is received if entering a duplicate combination is attempted via the online application.

 

Carrying Firm – Lock Period

  • A carry firm can reject an account at any time. Having an account rejected does not stop pricing, but it does affect that trade’s associated payment row (as the nightly batch processing will set the payment records to reject status). However, during the lock-period, trades already priced will not be affected, unless the trades for the payment month are specifically rejected.
  • A carry firm can re-accept a previously rejected account at any time. During the lock-period, if rejected trades (that are related to the account in question) are re-accepted prior to the end of the lock period, then those transactions will be re-priced and be removed from the detail disputed column in the payment file.
  • A carry firm can also reject a rate set (not an individual rate). This rejection will flag all associated trades. These trades will be labeled as errors during nightly batch processing noting that the rate set cannot be found.
  • A carry firm can also re-accept a previously rejected rate set. This re-acceptance will flag all associated trades to be reprocessed for re-pricing during the nightly batch processing. Note that during the lock-period, if rejected trades are re-accepted prior to the end of the lock period, then those transactions will be re-priced.

Executing Firm – Lock Period

  • An executing firm is not allowed to change an account’s carry/executing account combination during the lock period.
  • An executing firm is prevented from deleting an account during the lock period.
  • An executing firm cannot change anything on an agreement’s account or an agreement’s profit center field during the lock period but they can change an agreement’s contact name or other indicative fields.
  • If an executing firm maintains a rate or a rate set during the lock period then the trades for payment month are not re-priced. Only trades for the non-payment month will be affected.
  • If an executing firm adds an account during the lock period then the trades for payment month are not re-priced. Only trades for the non-payment month will be affected.
  • An executing firm can delete/undelete trades during the lock-out period.

Other Miscellaneous Logic

  • If an executing firm deletes an account, any trade associated with that account is disconnected from that agreement and reconnected to the appropriate agreement in batch processing (or left in an error state) on a nightly basis when outside the lock period.
  • Every night, even during the lock period, the payment rows are recalculated.
  • Once the month is closed, that month’s approved (final priced) trades are locked from subsequent maintenance.
  • Trades associated with rejected accounts and/or rate sets are carried over to the next month. This means that if they are corrected after the month is closed, their impact will be reflected in the new month’s payment file (as the old month is closed).