Custody fees

This section is intended for configuring fees charged for holding client assets.

Such fees are accrued daily on client assets for which the corresponding rate is configured.

Accrued amounts are accumulated and charged at the end of the selected billing period.

Custody fees may apply to bonds, equities, ETFs, GDRs, ADRs, and funds.

The calculation is based on the account state as of the previous closed business day.

Click ADD NEW CUSTODY FEE to configure a new custody fee.

Click SAVE to save the tariff settings.

General settings

The billing period and minimum fee settings are available at the top of the section.

Name	Description
Billing period	Period during which daily accruals are accumulated before they are charged
Min month custody fee amount	Minimum custody fee amount for the selected billing period
Min month custody fee currency	Currency in which the minimum custody fee is calculated and charged

Billing period

The Billing period field determines the duration of the billing period.

The following values are available:

Value	Description
Monthly	Calendar month. This value is used by default
Quarterly	Calendar quarter
Semi-annual	Calendar half-year
Annual	Calendar year

The fee is accrued daily from the moment the assets are credited to the account, regardless of the selected period. The selected value determines the accrual accumulation period and the charge date.

Note! Custody fees are not accrued for short positions or assets with a zero balance in the account.

The accrued fee is charged in a single transaction at the end of the billing period. The system determines the transaction value date based on the selected billing period, the broker's operating calendar, and the calculated future charge date.

Minimum fee

The Min custody fee amount field allows you to specify the minimum amount to be charged for the selected billing period.

At the end of the billing period, the system compares the total daily accruals for the period with the minimum fee. The greater of the two amounts is charged to the client's account.

Example:

Billing period - quarter. Configured minimum fee - 150 USD.

If the total daily accruals for the quarter amount to 120 USD, the system charges 150 USD.

If the total daily accruals amount to 200 USD, the system charges 200 USD. {.is-info}

If the minimum fee is set to 0 or is not specified, the minimum fee does not apply. In this case, only the actually accrued amount is charged.

All minimum fee calculations are performed in the currency specified in the Min custody fee currency field. If necessary, the system uses EOD rates for currency conversion.

Fee settings

Fee settings are configured separately for each instrument group by clicking ADD NEW CUSTODY FEE for a new setting or the pencil icon for an existing setting.

The following fields are available when adding a setting:

Name	Description
Instruments group	Instrument group for which the fee is accrued
Asset	Currency in which the setting volumes are specified. By default, volumes are calculated in USD
Bond base mode	Basis used to calculate custody fees for bonds: Market value or Nominal value. The field is required for instrument groups containing bonds. If it is not specified, the calculation in Daily operations is not performed and a BAD QUOTE AMOUNT error occurs
Include accrued interest	Determines whether accrued interest is included in the bond calculation base in Market value mode
Volume	Upper portfolio value limit for applying the rate. If the field is filled in incorrectly, the system will display a corresponding warning.
Custody fee %	Annual custody fee rate. The system calculates the daily portion of the rate based on the actual number of accrual days

The custody fee rate that is actually applied is determined based on the portfolio value.

The system uses the first setting in the list whose Volume value is greater than the client's portfolio value. If the portfolio value is equal to the configured threshold, the next setting in the list applies.

An empty Volume value is treated as an unlimited upper boundary. This means that the configured fee applies to any position volume above the preceding configured limit. If no row with an empty volume is specified, the fee is not accrued on volumes exceeding the highest configured limit.

Note!

For correct calculation, it is recommended to leave the Volume field empty only in the last setting in the list.

If an empty volume is specified in the first row, that setting applies to any portfolio value, and the subsequent settings are not used. {.is-warning}

If a percentage is specified in a setting but the volume is left empty, the portfolio value does not affect the applicable rate.

Setting example:

A 3% fee is accrued for a portfolio value up to 10,000.

A 2% fee is accrued for a portfolio value from 10,001 to 100,000.

A 1% fee is accrued for a portfolio value of 100,001 or more. {.is-info}

Daily accrual

Custody fees are always calculated based on the account state as of the previous closed business day.

Note! The custody period is determined by the value dates of asset transactions rather than their trade dates. The fee starts accruing after the asset is actually credited to the account and stops accruing after it is actually debited.

The calculation uses:

• the asset's Current balance as of the previous closed day;
• the annual rate specified in the tariff;
• the number of calendar accrual days;
• the end-of-day rate (see EOD rates in the Daily operations section);
• instrument parameters;
• the price multiplier;
• custody fees for bonds may be calculated based on the position's Nominal value or Market value as of the end of the day.

If daily operations are not performed on weekends because Trading without weekends is not enabled in the Broker settings, the accrual created on the next business day also covers the days elapsed since the previous business day.

For example, an accrual created on Monday may include the fee for Friday, Saturday, and Sunday.

Accrual specifics

If daily operations are performed without excluding weekends, the fee is accrued separately for each calendar day.

If the calculated accrual amount is less than 0.01, an amount of 0.01 is used when the transaction is processed.

After the calculation, the fee value is rounded to six decimal places. Charged fees are converted into the configured Min custody fee currency.

Minimum fee calculation for an incomplete period

If the fee was not accrued throughout the entire billing period, the minimum fee is reduced proportionally to the number of active days.

The adjusted minimum fee is calculated using the following formula:

Adjusted minimum fee = Min custody fee amount / Number of days in the period x Number of active days

Where:

• Number of days in the period is the actual number of calendar days in the corresponding month, quarter, half-year, or year;
• Number of active days is the number of calendar days for which custody fee accruals were created.

Note! For an instrument group containing bonds, the Bond base mode must be specified. If no mode is selected, the custody fee for bonds cannot be calculated, which may prevent the operating day from being closed.

Example:

The billing period is a 90-day quarter.

The minimum fee is 300 USD.

The fee was accrued for 30 calendar days.

Adjusted minimum fee:

300 / 90 x 30 = 100 USD

If the total daily accruals amount to 75 USD, the system charges 100 USD.

If the total accruals amount to 180 USD, the system charges 180 USD. {.is-info}

If the number of active days exceeds the number of days in the current period after the billing period is changed, the system progressively uses a longer period:

Monthly → Quarterly → Semi-annual → Annual.

This prevents the adjusted minimum fee from being increased incorrectly.

Early charge

If the client fully closes all positions in instruments for which a custody fee is configured, the accrued fee for the current incomplete billing period may be charged early.

For an early charge, the system:

1. Sums the accruals for the actual custody days;
2. Calculates the adjusted minimum fee, if configured;
3. Charges the greater of the calculated amounts.

After the charge, the accumulated accruals are reset.

If the client purchases the relevant assets again during the same calendar period, the calculation starts again based on the actual custody days.

Calculation for equities and similar instruments

The market value of the portfolio as of the end of the previous closed business day is used to determine the applicable rate.

The market value is calculated based on the asset amount, EOD rate, and price multiplier.

The daily rate is calculated using the following formula:

Daily rate = Custody fee % x Number of accrual days / 365

The position value is calculated using the following formula:

Position value = Asset amount x EOD rate x Price multiplier

The fee is calculated using the following formula:

Fee = Position value x Daily fee rate / 100

Note! If the portfolio market value changes, a different rate from the tariff settings may apply to the next accrual.

Example: The following tiers are configured:

• up to 100,000 - 10%;
• up to 200,000 - 5%.

If the portfolio value is 99,000 on the first day, the 10% rate applies.

If the portfolio value is 102,000 on the following day, the 5% rate applies.

Calculation for bonds

For an instrument group containing bonds, select the calculation base in the Bond base mode field:

• Market value - the fee is calculated based on the bonds' market value as of the end of the day;
• Nominal value - the fee is calculated based on the total nominal value of the bonds.

The annual fee rate is selected from the Custody fee % settings based on the portfolio value and is applied to the bond calculation base.

Market value

In Market value mode, the calculation base is determined using the market value of the bonds as of the end of the day.

• If the instrument's price unit is Percent per unit, the bond value is calculated using the following formula: Market value per bond = EOD rate x Nominal value / 100

• If the instrument's price unit is Currency per unit, the EOD rate is used as the market value per bond.

The calculation base is determined using the following formula:

Calculation base = Number of bonds x (Market value per bond + Accrued interest per bond)

If the bond's nominal currency differs from the calculation currency, the resulting base is converted using the EOD rate for the day for which the fee is accrued.

Including accrued interest

If Include accrued interest is enabled, the current accrued interest for the relevant day is added to the market value of each bond.

Accrued interest per bond = Accrued interest rate on the calculation date x Lot size

If the setting is disabled, accrued interest is not included in the calculation base.

Note! The Include accrued interest setting applies only in Market value mode.

Coupon payments

On a coupon payment date, the accrued interest for the previous coupon period is reset. Accrued interest for the next coupon period starts accumulating on the same date.

The current accrued interest value for the new coupon period is used to calculate the fee for the payment date. The coupon payment amount is not included in the calculation base.

Nominal value

In Nominal value mode, the calculation base is determined using the position's total nominal value:

Calculation base = Number of bonds x Nominal value per bond

In this mode, the bond's end-of-day rate, coupon rate, and accrued interest do not affect the calculation base. The Include accrued interest setting is ignored.

The instrument's EOD rate is not required for calculation in Nominal value mode. If the nominal currency differs from the calculation currency, the corresponding FX EOD rate is required to convert the resulting base.

Fee calculation

The daily fee for both modes is calculated using the following formula:

Daily fee = Calculation base x Custody fee % / 365 / 100

If one accrual covers several calendar days, the fee is calculated separately for each day, after which the daily amounts are summed.

In Market value mode with accrued interest included, the current accrued interest value for each calendar date is used. Therefore, when accruing fees for weekends, the system does not multiply one accrued interest value by the number of days. Instead, it performs a separate calculation for each day.

Account assets

You can view the account assets used in the fee calculation in the Assets section of the relevant account.

The value in the Current balance column as of the previous closed business day is used to calculate the fee for the current day.

Note! If the account state for the previous closed business day is unavailable, the custody fee is not calculated.