1. Secondary Loan Trading
  2. Processing Fee Details
  3. Introduction
  4. Specifying Amendment Fee Details

5.1.4 Specifying Amendment Fee Details

Amendment fee is the fee that needs to be paid for any changes in the agency between the trade date and the settlement of the trade. This fee is paid by the seller to the buyer.

You can capture the details of the amendment fee in the Amendment Fee Input screen.

To capture details of amendment fee input screen

Specify the User ID and Password, and login to Homepage.

  1. On the homepage, type TLDAMFEE and click next arrow.
    The Amendment Fee Input screen is displayed.

    Note:

    The fields which are marked in asterisk red are mandatory fields.

    Figure 5-1 Amendment Fee Input


    Description of Figure 5-1 follows
    Description of "Figure 5-1 Amendment Fee Input"

  2. You can enter the following details in Amendment Fee Input screen. For information on fields, refer to the field description table.
    • CUSIP/ISIN

      Select the CUSIP number of the facility associated with the trade you wish to amend, from the option list provided.

    • Amendment Date

      Specify the date on which the amendments on the trade should become effective.

    Click Populate to display the details of all open trades under the CUSIP with trade date less than or equal to the amendment date.

    You can also provide the following additional search values to select the trade for amendment.
    • Position Identifier

      Select the position identifier associated with the trade you wish to amend, from the option list provided.

    • Position Qualifier

      Select the position qualifier associated with the trade you wish to amend, from the option list provided.

    • Branch

      Select the branch associated with the trade you wish to amend, from the option list provided.

    • Desk

      Select the desk where trade you want to amend originated, from the option list provided.

    • Expense Code

      Select the branch expense code with the trade you want to amend, from the option list provided.

    • Amendment Rate

      Specify the amendment fee rate to be applied to all open trades under the CUSIP. Fee amount gets calculated automatically for all open trades listed.

      Note:

      You can modify the auto calculated fee amount, if required.
    • Waive All

      If Waive All check box is selected then amendment fee is waived for all the trades for an amendment date. You are allowed to clear Waive check box for a specific trade after selecting Waive All check box.

    • Waive

      By default, the Waive check box for each trade is not selected. If Waive check box is selected for a trade, then the amendment fee is waived for the current amendment date.

      Example
      • Amendment Fee for Trade 1 - 100.00
      • Trade Date - 1-Apr-2015
      Amendment fee is captured multiple times for trade1 in amendment fee input screen as below table.
      Amendment Date Fee Amount Waive
      1-May-2015 50.00 No
      1-Jun-2015 30.00 No
      1-Jul-2015 20.00 No

      Another amendment fee input is processed for the amendment date 1-Aug-2015 for the fee amount of 25. If Waive check box is cleared for 1-Aug-2015 then amendment fee for trade 1 is 125. If the Waive check box is selected then trade continues to have the prior fee amount of 100 as the fee amount of 25 is waived for the amendment date 1-Aug-2015.

    • Fee Amount

      Specify the amendment fee amount for each open trade listed for the CUSIP. You can also specify the fee rate, based on which the amount is calculated automatically.

      After the details specified are authorized, the amendment fee gets updated for all open trades, correspondingly. If any amendment fee already exists for the trade, the new amount gets added to the existing amount to arrive at a consolidated amendment fee amount.

      For a trade, if amendment fee needs to be applied for various days between the trade date and settlement date, the fee amount for each gets summed up and defaulted to the trade for its settlement.

      The accounting entries posted for amendment fee is specified below.
      Bank is Buyer Bank is Seller
      Dr Trade Counterparty A/c

      Cr Income a/c

      		 Dr Expense a/c

      Cr Trade Counterparty A/c
    This topic contains following sub-topics:

Parent topic: Introduction