Bonds & Fixed Income Partners & introducers

Introducer fees computed on what was allocated, not ordered

How a bond distributor calculated introducer fees from the allocation actually received rather than the order placed.

The starting point

A client has introducers bringing clients into new issues. Fees were calculated from the order placed, then corrected after the book was scrubbed and the allocation scaled, so introducers were paid twice-adjusted numbers late.

What they needed

  • Compute the concession on the allocation actually received
  • Accrue trailer fees on holdings through the period
  • Handle different terms per introducer
  • Show the working when a number is queried

What FYNXT delivered

FYNXT computes the concession from the confirmed allocation rather than the order, accrues trailer fees on holdings through the period, and attaches the calculation to every payable.

Solutions used

What changed

  • Fees follow the allocation, not the order
  • Corrections stop being the norm
  • A queried payable shows its working
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Next step

See how FYNXT would run this for your firm.

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