Units (fee ID 2481)

Units is a tiered fee that decreases as unit volume increases.

Rate Tier (items)
$0.021593 0 to 35,000
$0.001197 35,001 to 42,000,000
$0.000628 More than 42,000,001

Units is the gross number of transactions for which a broker is buyer or seller. Before passing the amounts to billing UTC deducts non-DTCC settling trades (“Z” trades), non-CNS municipal bond transactions, foreign security trades (fee ID 2166) and flip trades (fee ID 2370).

The following are excluded from fee ID 2481:

o Flip trades (fee ID 2370)
o Foreign security trades (fee ID 2166)
o Non-CNS municipal bonds
o Non-DTCC settling (“Z” trades)

 

Into the net value (fee ID 2482)

Into the net value is a fee of $0.33194043 per million dollars, calculated as the gross cleared value prior to netting.

Into the Net Value is the value of transactions for which a broker is buyer or seller. Before passing the amounts to billing UTC deducts non-DTCC settling trades (“Z” trades), non-CNS municipal bond transactions, foreign security trades (fee ID 2166) and flip trades (fee ID 2370).

The following are excluded from fee ID 2482:

o Flip trades (fee ID 2370)
o Foreign security trades (fee ID 2166)
o Non-CNS municipal bonds
o Non-DTCC settling (“Z” trades)

The into the net value fee also includes fails re-entered into CNS. The into the net value is the aggregate of each opening CNS security position multiplied by the current market price for each security.

 

Flip trade (fee ID 2370)

The flip trade fee is $0.0006 for each side of a flip trade processed by NSCC.

The Universal Flip Process is a service provided to the participants that allows them to accept settlement responsibility for transactions submitted by an exchange where the executing broker is not a settling member of NSCC. Universal flip records are automatically generated by Universal Trade Capture if a subscribing broker is buyer or seller on any covered transaction.

 

Foreign security trade (fee ID 2166)

The foreign security trade fee is $0.75 for each side of a foreign security trade submitted to Universal Trade Capture.

 

Out of net value (fee ID 2483) 

Out of the net value is a fee of $2.36844405 per million dollars, calculated as the net value after netting.

The fee is based on the daily aggregate market value of all settling CNS positions after netting. For example, see the following 5 trades in IBM for a given settlement date:

• Buy 100 Shares
• Sell 500 shares
• Buy 800 shares
• Sell 300 shares
• Buy 400 shares
• Also have a failing position in IBM from yesterday – Long 100 shares

These 5 trades go “Into the Net”. As a result of netting, a net long (or buy) of 600 shares comes out of the net. Since the price on that stock is $10 per share, the market value for that security $6,000. The system determines the daily market value for each settling position regardless of security type.

A daily market value of all settling CNS positions after the net can be calculated using the CNS Accounting Summary (for Sub Account A):

• From the CNS Accounting Summary issued end of day -Net the Opening Position (Column 1) to the Settling Trades (Column 2) for Sub-Account A only. 

• Take the net of Column 1 and 2 and multiply by the Current Market Price (Column 6).

• For each issue, convert the calculated market value (which can be either a credit if net buyer or debit if net seller) to the absolute value.

• Add the absolute value for all positions (both fixed income and equities) for Sub Account A

(Note: Miscellaneous activity is excluded from the calculation as it is not considered trading activity)

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