Swap settings

The Profile swap rates selector allows to select a provider profile, then the swap rates set in the Interest rates section for that profile will be applied to accounts with that tariff setting.

Important! Positions on a client account with a setting in which a liquidity provider profile is specified will be swapped at the rates specified for this provider, regardless of the instruments available on the client account.

When the Take provider swaps checkbox is enabled, swap rates associated with the liquidity provider profile set as the provider for the account specified as the source in the aggregator settings are used for the instrument. If none are present, the interest rates set for the broker profile are used.

Duplicate external swaps is an option to duplicate external swaps that the external provider provides to the client. If this option is enabled, the swap passes through the real accounts first and then the system applies rates to client accounts with a markup. Even if you select this option, it is still recommended to fill in the interest rates.

There may be a situation when your overall external position at the provider is long, and inside the provider some clients also have long positions and some short. So the long swap will apply to those positions which are long, and the short swap will be free if the interest rates are not filled because the system can only duplicate existing positions. If the total position is long, and some of the clients have shorts, then there is nothing to duplicate, and it will take the rates in Interest rates.

Invert swap rates - there are different swap rates for long and for short in the system. This function allows to take long and vice versa for short.

Zero swaps - when enabled will be held at the current day's zero swap rate.

The Markup percent on swap price option allows the markup to be applied to the swap rate instead of the swap cost. For example, if the provider's swap rate is 10 points, and a 20% markup is specified, the client's swap cost will be 12 points.

Important! If swap rates are not set in Interest rates, this setting will not function.

Please note! When the option is enabled, the unit of change Percent per year is replaced by Percent.

To set markup for a swap, enter Edit mode, click the Add new markup button, and in the sidepage select an instrument group and choose the way it is calculated: percent/pips/point/absolute value.

If a negative value is entered in the Markup field, the markup will be calculated in favor of the client (i.e. deducted from the broker's income).

For swaps, the option to set Negative markup is also available. If set, the value is applied for negative swap rates. If not, the value set in the Markup field is applied for negative swap rates.

The Days in year field allows to override the number of days for the base assets of the instruments in the group, based on which the swap cost at a given rate and the percentage markup are calculated. The following override options are available:

• D360 - 360 days;
• D365 - 365 days;
• D366 - 366 days;
• Actual - the actual number of days in the period and the actual number of days in the year (365 or 366 in a leap year). This is used to calculate interest as accurately as possible;
• Actual ISMA - this method divides the year into equal coupon periods. The actual number of days in the period is divided by the number of days in the coupon period multiplied by the number of coupons per year. This is used primarily for bonds with a fixed coupon.
• D30360 - this method considers each month to be 30 days long, and a year to be 360 days long. The end date of the period, which falls on the 31st, is moved to the 30th.

Swap cost calculations

The calculation is carried out according to the formulas described in a separate article Swap calculation.