This topic provides systematic instructions to build a brokerage rule.

1. On the Homepage, type 'CFDTFRLM’ in the text box, and click the next arrow.
   While indicating the rule type in this screen, choose Brokerage from the option list.
   The ‘Trade Finance ICCB Rule Maintenance’ screen is displayed:
   

   
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2. On ‘Trade Finance ICCB Rule Maintenance’ screen, specify the fields.
   For more information on fields, refer to Table 2-3:

   Table 2-3 Trade Finance ICCB Rule Maintenance - Field Description

   Field	Description
   Rule Type	Specify whether the Rule type for calculating brokerage is Aggregation Type or Individual Type: Aggregation type indicates that brokerage is calculated on the total value of the deals Individual Type indicates that brokerage is calculated on a deal-by-deal basis
   Rule Identification	Enter the ID of the rule for which you are defining attributes. Every brokerage rule is identified by a unique ten-character code, called a Rule ID. You can link a valid Brokerage Rule ID to the appropriate broker and product. When a deal is processed, the brokerage attributes defined for the Rule ID that is associated with a broker and product will be applied on the deal. To recall, the Rule ID for a brokerage rule is specified in the ICCB Rule Branch Availability maintenance. Accordingly, in the Rule ID field in this screen, you must select the ID of the brokerage rule that you wish to build by maintaining the attributes. The option list in the Rule ID field is populated based on the following conditions: Only those Rule IDs that are available for users at the current branch according to the ICCB Rule Branch Availability maintenance are displayed The maintenance of ICCB rules must be allowed for users at the current branch, according to the restrictions maintained in the Common Branch Restrictions maintenance for the restriction type ICCBRULE. If no Common Branch Restrictions have been maintained, and the restriction type ICCB RULE has not been maintained in the SMS Branch Restriction Type maintenance, the option list in the Rule ID field only displays those rules that are available for users in the current branch, according to the ICCB Rule Branch Availability maintenance.
   Description	Enter a description for the brokerage rule. This description will be associated with the brokerage rule for information retrieval purposes.
   Transaction Currency	If you wish to define the attributes for all currencies, you can select the ALL option in the Currency Code field to indicate this. If you are maintaining the attributes for the selected ICCB rule in specific currency other than the ALL, select the Transaction Currency on which the rule mapping maintenance is to be made applicable.
   Customer Group	Select the customer group on which the rule mapping maintenance is to be made applicable. You can create a generalized brokerage rule mapping record by selecting the ALL option in the Customer Group field. This specification is defaulted to the Customer and Customer Account fields. You are forbid to change the specification.
   Customer	Specify the Customer ID of the customer for whom you are maintaining the rule mapping.
   Branch Code	If you are maintaining the attributes for the selected ICCB rule from the head office branch, you can select the branch for which the attributes are being defined. If you wish to define the attributes for all branches, you can select the ALL option in the Branch Code field to indicate this. If you are maintaining the attributes for the selected ICCB rule from a branch other than the head office, you can only select those branches that are found in the allowed list of branches for: The ICCB rule definition Restriction Type (ICCBRULE), in the Common Branch Restrictions maintenance for the current branch The selected rule being built, according to the ICCB Rule Availability maintenance. In other words, the option list in the Branch Code field would display only those branches that are allowed both for the rule and the current branch.
   Defining the brokerage rule application factors You can apply a brokerage rule on any contract, irrespective of the currency of the contract, the customer and the branch involved. In the 'Trade Finance ICCB Rule Details' screen, rules to be applicable for contracts involving all branches, transaction currencies, customers and customer categories must be maintained at the head office branch. Subsequently, you can maintain the specific rules to be applicable for contracts involving for the following combinations: A specific branch, customer category, customer and currency A specific branch, customer category, customer and all currencies A specific branch, customer category, currency and all customers A specific branch, currency and all customer categories and customers A specific branch, customer categories and all currencies and customers A specific branch and all customer categories, customers and currencies A specific customer category, customer, currency, and all branches A specific customer category, customer and all currencies and branches A specific customer category, currency and all customers and branches A specific currency and all customer categories, customers and branches A specific customer category and all customers, currencies and branches All branches, customer categories, customers and currencies. Note: As mentioned earlier, the rules applicable for combinations involving all branches (the ALL option in the Branch Code field) can be maintained only from the head office branch. Once an ICCB Rule has been defined, you should associate it with a broker and product through the Brokerage Association screen. Depending on the broker and product involved in a contract, the appropriate rule will be made applicable.
   Rate Type	The Rate Type indicates whether the Brokerage to be applied for the Rule ID is a flat amount or a percentage of the basis amount. Select the rate type from the following: Flat amount – You can specify a fixed amount as brokerage. This will be the brokerage amount for all contracts involving the brokerage rule you are defining. Fixed rate - You can specify a percentage as brokerage. The rate that you specify will be applied on the contract amount to calculate the brokerage amount. The specific rates and amounts applicable have to be specified subsequently through this screen.
   Rounding When rule type is brokerage no need to give value in this field.
   Amount Limits for a Brokerage Calculation	If you indicated that brokerage should be calculated as a flat amount, you can specify the amount range (minimum and maximum amounts) within which the amount calculated using the brokerage rate should fall.
   Rate Limits for a Brokerage for Brokerage Calculation	If you have chosen not to maintain the minimum and maximum amounts, you can specify the minimum and maximum rates for brokerage calculations. If the brokerage calculated using this Rule ID exceeds the amount calculated using the maximum rate specified here, the maximum rate amount will be applied as brokerage. Similarly, if the brokerage amount falls below the amount calculated using the minimum rate, the minimum rate amount will be considered as brokerage. Note: If you have specified a flat amount as the Rule Type, then you need not specify the minimum and maximum amount/rate limits.
   Tenor basis	You should specify whether the Rule ID you are defining is to be applied based on the tenor of the contract. The tenor of the contract is calculated as the difference between the Maturity Date and the Value Date of the contract. After the tenor is calculated, brokerage will be computed based on the tenor slabs defined in the ‘Tenor Based Rates’ section of the screen. The following sections will explain how brokerage is calculated using a tenor based structure.
   Interest Basis This specifies the calculation basis for the brokerage based on the Contract Currency or Rule Currency. Check this box if you wish to calculate the brokerage based on the contract currency. If you wish to calculate the brokerage based on the rule currency, then you have to choose the brokerage calculation value from drop-down list next to this field.
   Tiered Amount	You can define the brokerage to be applied on contracts in any one of the following ways: In a tier structure (cumulative) In a slab structure (non-cumulative) You should first indicate whether the Basis Amount that you specify subsequently should be considered as a Slab or a Tier. Check the ‘Tiered Amount’ option if you wish to maintain the Basis Amount structure as Tiers. Leave it blank if you are maintaining a slab structure. The Basis Amount is the upper limit of the slab or tier to which a particular rate or amount should be applied as brokerage.
   As per Contract Currency	This specifies whether the brokerage is paid in the charge currency or in the currency of the contract.
   Tiered Tenor	Tiered tenor is applicable only for duration based (explained later) brokerage. You can indicate that brokerage is to be calculated on the basis of a tiered tenor structure, by choosing the Tiered Tenor option.
   Rate
   Code	For a contract, you can calculate brokerage in a currency other than the contract currency. The rate code specified here will be used to compute exchange rates between the currency pair involved in the contract. Specify whether the currency rate for deal or slab currency from the following: Mid Buy Sell
   Booking Currency	You should indicate the currency in which the brokerage amount is to be calculated: Charge Ccy - If you specify the brokerage currency as charge currency, brokerage will be calculated in the currency selected in the ‘Charge Currency’ field. For a contract in foreign currency, the contract amount is converted into the charge currency equivalent before brokerage is applied. Contract Ccy - If you specify the brokerage currency as the contract currency, brokerage will be calculated in the currency of the contract
   Bracket Tenor You can create a Brokerage Rule which calculates brokerage charges on the basis of an amount structure. In this table you define the different attributes of amount structure based on which the brokerage charges would be calculated.
   Basis Amount To	You should specify the upper limit of the slab or tier to which a particular rate or amount should be applied as brokerage. The brokerage rate or amount (depending on the rate type) is to be specified in the subsequent field.
   Fixed Rate	If the brokerage is in the form of a percentage of the contract amount, you should specify the applicable rate. This rate will be applied for the Basis Amount To, depending on whether you have defined the application basis as a slab or a tier.
   Charge Unit	The Charge Unit specifies the unit for rounding up a brokerage basis amount to the nearest amount. The brokerage will be calculated on the rounded basis amount.
   Flat Amount	If the brokerage is in the form of a flat amount, the amount should be specified. This amount will be applied for the Basis Amount To, depending on whether you have defined the application basis as a slab or a tier.
   Floor Basis Amount	You should specify this only if the amount basis is a Tier. This will be the upper limit of the previous tier limit. By default, the amount specified as the Basis Amount To for the previous tier limit will be displayed. For the first limit in the tier do not specify this. This amount is used to calculate the brokerage, along with the Floor CCF Amount that is to be specified next.
   Floor CCF Amount	You should specify this only if the Rule Type is a Commission. This amount need not be the same as the amount calculated using the Basis Amount and rate for the previous slab.
   Tenor Based Rates
   Tenor From and Tenor To	You can define a tenor-based tier or slab structure for every amount slab that you have built. The Tenor From refers to the start of the tenor period and the Tenor To refers to the end of the period. The rate or flat amount will be specified subsequently. Note: Note that the Tenor From and Tenor To is defined in days.
   Fixed rate	If the brokerage is to be calculated as a percentage, you should specify the applicable rate against each tenor. This rate will be applied on the transaction amount, based on the amount slab and on whether the application basis defined for the tenor based structure is a slab or a tier.
   Flat Amount	To levy a flat charge, specify the flat amount. This amount will be applied on the Basis Amount, depending on whether you have defined the application basis as a slab or a tier.