Custody fees

Custody fee is the fee for holding securities. The following types of investments have custody fees:

1. Debts Securities and Structured Notes
2. Exchange Listed Securities

The Min month custody fee amount field allows you to specify the minimum custody fee amount. If the amount of custody fee in an already executed monthly transaction is less than the specified amount, the system will use the specified amount. The Min month custody fee currency field specifies the currency of the minimum custody fee amount.

Custody fee starts to be calculated from the moment the asset is placed in custody. Calculation is also stopped at the actual completion of the custody period. I.e. the value date of the instrument is used instead of the trade date.

Click ADD NEW CUSTODY FEE to set up a new custody fee. Click SAVE to save your сustody fee settings.

Custody fees are set up per group of instruments. Asset is a currency in which volumes are specified in the customization. By default, volumes are calculated in USD. The percentage of the custody fee is adjusted from the portfolio value. The Volume field specifies the upper trading volume of assets in the portfolio. Custody fee charge (Custody fee %) is specified as an annual percentage.

Settings example: In the example, for a portfolio with a volume up to 10,000 - 3% is charged, from 10,000 to 100,000 - 2%, for higher volume - 1%.

For correct calculation of custody fee, it is recommended to leave an empty volume for the last setting in the list. Thus, all volumes above the set volume will be charged the commission percentage specified in the last setting. If the commission percentage for such a setting is not set, then no commissions will be charged for the volumes over the specified ones.

Please note! If several volumes that correspond to the client's portfolio volume are specified in the setting, the system uses the first suitable one in the list for charging. In this regard, if an empty volume is specified for the first setting of the list, commissions will not be charged for the group of instruments, because the system will use the first setting as a suitable one for any volume.

If the percentage in the setup is specified and the volume is not, the portfolio value will not affect the charge percentage:

Please note! For equities, the commission is charged daily based on the market value of the portfolio at the end of the day. If the price of the portfolio at the end of the day has changed, the level of accruals for it may also change.

Example: Two volumes are specified in the setup - 100,000 with 10% commission and 200,000 with 5% commission. If a client has a portfolio price of 99,000 today and 102,000 the next day, the commission percentage will be 10% today (according to the first volume in the setup) and 5% tomorrow (according to the second one).

For equities, the market value of equities in the portfolio at the end of yesterday's day (yesterday's closing price in Daily operations ➝ Summary ➝ EOD rates) is used to calculate the total portfolio volume to be charged.

For bonds, the total nominal volume is used (i.e. Amount, not the market value indicated in Portfolio value).

Custody fee calculations

Calculation of the equity custody fee is as follows:

Percentage specified in the tariff (Custody fee %) * Days of holding / 365 After calculating the fee, it is rounded to the sixth digit.

The resulting fee is rounded to the absolute value, multiplied by the closing price of the day, then multiplied by the Price Multiplier specified in the Instruments ➝ Assets section.

Calculation example:

Custody fee set in the tariff for the volume up to 1000 = 15%

Trading volume of equity in portfolio (Portfolio value) = 535

Difference in days between open and closed = 1

Rounded commission percentage = 15 * 1 / 365 = 0.041096%

Commission value in Quote amount = 0.0410959% / 100 * 535 * 1 ~ 0.22 (In the table the number is displayed with a minus sign, because this is a debit operation)

Calculation of bond custody fees:

Percentage specified in the tariff (Custody fee %) * Days of holding / 365 After calculating the fee, it is rounded to the sixth digit.

The resulting fee value is rounded to the absolute value and multiplied by Revaluation Multiplier' (nominal value of the bond, specified in Instruments ➝ Assets` section).

Assets in the account

It is possible to see the existing assets in the account and determine whether a payment will be made on a particular day in the Assets ➝ Value section of a particular account in the Current balance column.

Please note: The amount of assets on which the commission will be charged in the current day can be seen in the Current balance column of the previous closed day.