Fee Tracker
Fee Tracker identifies lost fee revenue
Canterbury’s proprietary “Fee Tracker” service offers customers a unique solution that identifies lost fee revenue. Many firms do not reconcile fees charged by Exchanges with fees they pass along to their customers. Clearing firms are often unaware that they may be losing revenue as a result of undercharges to customers or overpayments to Exchanges. Fee Tracker identifies these discrepancies. It also assists in identifying incorrect static data, as it discovers areas where you may be calculating and incorrectly charging fees. Fee Tracker can also identify situations where firms are incorrectly overcharge their customers. This can result in fee rebates which can unintentionally damage the relationship a firm has with its customers. Fee Tracker can assist you in recapturing lost revenue while your business process becomes more competitive.
More efficient analysis and reconciliation of fee data can result in significant improvements in operations.
Fee Tracker provides enhanced analysis of your trade flow
- Identifies “lost” revenue
- Improves operational efficiency
- Offers more expedient and reliable fee reconciliation
- Ensures customers are being charged and billed correctly
- Produces better visibility of customer profitability
- Lowers trade processing costs per transaction
- Allows firms the ability to make more accurate fee payments to exchanges
- Improves accuracy of books and records
How Fee Tracker Works
- Your IT/Operations representative sends us your data.
- We do the analysis and provide you with daily reconciliations.
- We work together to correct issues and reclaim fees.
An industry solution to a legacy problem
Industry innovation has developed hundreds of new products to manage financial risk, while simultaneously introducing new customers to the listed derivatives business. This evolution has produced a complex maze of fee structures based on exchange, product, execution method and customer membership status. These expenses make up a significant portion of the cost of clearing trades and are likely to be the second largest business expense a firm incurs.
Until now, there has not been an automated way to identify fee discrepancies between firms, customers and clearing organizations.
Exchanges calculate fees based on product and account membership information stored and processed in their systems. Firms calculate their fees based on information carried in their bookkeeping systems. Reconciling expenses between these systems is extremely difficult due to the large volumes of trades, the complexity of fee calculations and the intricacies of processing a listed derivative trade.
This fee expense often goes unreconciled and can result in firms paying incorrect sums to Exchanges. In addition, without reconciling this expense there is no way to identify if the correct fee has been passed along to customers. This can result in significant losses to the firm due to overpayments and not passing along the correct cost to customers.