The Entity Settings page is organized by tabs to let you further configure your entity. This configuration includes:
Selecting currencies that should be available to users accessing that entity
Creating cashflow subtypes
Creating documentation types
To access Entity Settings, click on System > Entity Settings in the navigation pane.
The Entity settings page opens on the overview tab (outlined in black below).
The General Card contains all of the information you entered in the New Entity page, but also lets you enter a Logo URL. A Logo URL is used to displays a logo in pdf files generated from Kooltra (ex. display a logo in the top right-hand corner of the FX Statements Report).
The Configuration card allows you to enter the compliance email, compliance phone number and disclaimer. It also allows you to select currencies/CFD's that users can use throughout the entity. To allow users to access specific currencies/CFD's:
Select the currency/CFD from Available: box
Click on the > button to move it to Selected: box
The Cashflows tab allows you to specify subtypes for cashflows. These subtypes show up on the adjustment page and allow you to classify your cashflows for reconciliation purposes. For each subtype, you can specify whether you'd like it to be the default for the Parent Type (ex. if you insert a Wire-in cashflow you'll always have the CASH subtype set), and whether you'd like it to show up on the Daily Reconciliation page.
Cashflow subtypes can be updated or deleted by clicking on the blue Update or Delete text on the right-hand side of the Cashflow Subtypes card.
The Apps tab allows you to enable Apps on an entity-level. As described in the Apps section, certain apps need to be enabled for an entity before they can be enabled for the accounts in that entity. See the video below to learn how to enable/disable an app. Depending on the app that you are enabling, you may need to enter values in additional fields. For further instructions on configuring specific Apps, please visit the App Documentation page.
Fee Groups Tab
How do you charge your clients for your service of booking a trade and exchanging money? You may decide to charge a spread/margin on the rate with a markup to your clients, charge a fee/commission on the trade, or charge both a spread and fee/commission.
A fee/commission is in addition to any spread/margin on the rate that you may have marked up your client. In Kooltra, you can manually type in the trade fee amount on the trade as you book the trade in the system or you may set up a fee group for the system to automatically calculate the fee/commission charge on all trades on a client by client basis.
To manually charge the fee/commission, type in the trade fee amount and select the fee currency on the trade ticket as shown in the screenshot below.
To configure the Fee Group with rules to automatically charge your clients a fee/commission on trades, follow the below steps:
1. Navigate to System > Entity Settings and click on Fee Groups tab
2. Click Create Fee Group
3. Configure the fee/commission i.e. how and when to charge clients?
In the sample screenshot below, the Standard Fee Group is the default fee structure to be used to charge all clients. Clients will be charged a fee/commission on each trade they book on the day that they book it (trade date) depending on the trade. The fee/commission amount will be either a fixed 15.00 if the trade amount is up to 100,000 or 2% of the trade amount if trade amount is over 100,000 in the currency that the client owes you.
For example, you book a SELL 100,000 USDCAD @ 1.3 trade with your client. The client will be charged a fee/commission of 2,600 CAD (130,000 x 2%) because you will be receiving 130,000 CAD (receipt amount and receipt currency) from the client in exchange for the 100,000 USD and the fee/commission calculation is based in the receipt currency.
Fee Group Details
FEE GROUP NAME *Mandatory field* - Provide a unique name to identify the fee group.
PRODUCTS *Non-editable field* - Kooltra currently supports same fee structure across all FX products (spot, forward, swaps and NDFs).
DEFAULT FEE GROUP *Optional* - By selecting a fee group as default, this fee group will be used to charge fees/commissions to all clients within the entity/business line. Only one fee group may be designated as the default.
General Fee Details
VOLUME BASED ON *Mandatory field* - Indicate whether the fee structure volume is based on the trade volume or monthly trade volume. For example, is that fee changed charged on a trade by trade basis? Or is it based all cumulative trade volume in the calendar month?
If you selected Trade, then 15.00 fee is charged if the trade amount is between 0 and 100,000 or 2% if trade amount is between over 100,000.
If you trade selected Monthly, then fee is charged base on the total trade amount across multiple trades booked during the month i.e. the client booked 5 25K USDCAD trades in November so the total monthly volume is 125K and the client will be charged 15.00 on each of the first 4 trades (100K) and 2% on the last trade.
VOLUME CALCULATION CURRENCY *Mandatory field* - In what currency are we evaluating the trade notional or trade volume in?
ABC Company's (your client) account base currency is CAD. The market rate for EURCAD is 1.3.
Let's say you book a BUY 100,000 EURUSD @ 1.2 trade with ABC Company. The client will be charged a fee/commission based on...
130,000 CAD (100,000 EUR x 1.3 EURCAD) if you selected Account Base Currency so a 2% fee on 130K
100,000 EUR if you selected Receipt Currency so a 15.00 fee
120,000 USD (100,000 EUR x 1.2 EURUSD) if you selected USD so a 2% fee on 120K
FEE CURRENCY *Mandatory field* - Select the currency that the fee should be charged in: Account Base Currency of the client account, Receipt Currency of the trade or USD.
ABC Company's (your client) account base currency is CAD.
Let's say you book a BUY 100 EURUSD @ 1.2 trade with ABC Company. The client will be charged a fee/commission in...
CAD if you selected Account Base Currency
EUR if you selected Receipt Currency
USD if you selected USD
FEE CHARGE DATE *Mandatory field* - When is this fee charge/commission charged? Is it charged on the Trade Date so the date that the client booked the trade? Or is it charged on the Value Date so the date that the client will send you payment to settle the transaction?
Let's say you book a forward on November 15th that settles on December 15th.
If you selected Trade Date, the client will owe you the fee/commission on Nov 15th.
If you selected Value Date, the client will owe you the fee/commission on Dec 15th.
CHARGE FREQUENCY *Mandatory field* - When does the client have to pay the fee/commission? The fees/commissions can be paid Daily based on Fee Charge Date and accrued to be paid at Month end.
Let's say you book a forward on November 15th that settles on December 15th.
If you selected Daily and the Fee Charge Date = Trade Date, the client will owe and pay you the fee/commission on Nov 15th. The system will deduct the fee amount from the client's vostro at end of day on Nov 15th.
If you selected Monthly and the Fee Charge Date = Value Date, the client will owe you the fee/commission on Dec 15th and pay it on Dec 31st. The system will deduct the fee amount from the client's vostro at end of day on Dec 31st.
VOLUME FROM ACCOUNT *Mandatory field* - Fees/commissions amounts will be configured based on trade volume or trade amounts. You may charge a fee across all trade volume or you may create volume tiers to charge a different fee based on volume. This is the start range of the tier.
VOLUME TO AMOUNT *Mandatory field* - Fees/commissions amounts will be configured based on trade volume or trade amounts. You may charge a fee across all trade volume or you may create volume tiers to charge a different fee based on volume. This is the end range of the tier.
CHARGE TYPE *Mandatory field* - Indicate whether the fee/commission is charged by a Fixed amount, Percent (%) of the trade notional amount or USD Per Million of trade notional in USD. Please note that you may only select USD per million as the charge type if the Volume Calculation Currency is USD.
Let's say you book a BUY 100,000 EURUSD @ 1.2 trade with ABC Company.
If you selected Fixed, then the client will be charged the Fee Charge amount.
If you selected Percent (%), then the client will be charged the Fee Charge percentage multiplied by 100,000 EUR (depending on the Volume Calculation Currency).
If you selected USD Per Million, then the client will be charged the Fee Charge multiplied by 120,000 (USD equivalent) divided by 1 million to pro-rate the USD per million fee charge since the trade amount is not the full 1mil USD.
FEE CHARGE *Mandatory field* - Indicate how much fee/commission to charge your client per volume bucket.
3. Click Save button at the top of the page to finalize your fee setup.
4. Find the client account that you'd like to charge based on the fee structure you configured by navigating to Counterparties > Counterparties.
5. Once you've found the account, click on the Fees tab and select the desired fee group. Click Save.
Note that if you had created a default fee group, then all client accounts within the entity (business line) will be charged based on the default fee group so it will be automatically selected as the fee group in this screen.
The documents tab is used to set the document types for Accounts, Beneficiaries and Contacts. To add a new document type, follow the video instructions below.
Document types can be deleted by clicking on the X under Action. Document types can also be updated by cicking on the green Update Button.
entity settings, enable app, cashflow subtype, active currencies