Transaction Cost Calculation (TCC)
Determination of transaction costs according to PRIIP using the arrival price method and according to MiFID or MiFID Full (estimation method).
With the TCC service, Anevis offers modular service components for different target screens within the PRIIP transaction cost calculation – from the calculation of a validated arrival price, to the calculation of transaction costs according to PRIIP or MiFID, to the full service offer, which includes the entire calculation of the transaction cost figure.
Module 1: Arrival price determination
In a cascading process, TCC determines an arrival price that is as close as possible to the trading date. In a fully automated process, all customer-specific available sources are determined for each instrument via a central set of rules and a qualified arrival price is determined from this in a subsequent process.
For quality assurance purposes, it is also possible to validate the determined arrival price against the trade price.
Module 2: Calculation of transaction costs per trade
The transaction costs in Module 2 are calculated per trade. Up to three different costs can be determined for each transaction:
Determination of PRIIP transaction costs
The transaction costs per trade are calculated on the basis of the arrival price determined in Module 1.
Determination of MiFID transaction costs
Based on the estimation method, the transaction costs are calculated by adding half the spread of the corresponding PRIIP asset group to the transaction price. In addition to the allocation of fixed spreads for selected PRIIP asset groups according to client specifications, it is also possible to calculate them using AFG spread tables.
Determination of MiFID Full transaction costs
MiFID Full differs from the estimation method by an additional cost block, the consideration of explicit costs such as commissions, expenses and stock exchange fees.
Module 3: Calculation of aggregated transaction costs per fund
All individual transactions of a month are aggregated in Module 3 to a transaction cost figure per fund for each month. The TCC Service provides the PRIIP transaction cost figure for 36 months and all funds (36-month average).
Module 4: TCC Web Interface
The TCC web interface provides direct access to the calculated costs and the individual cost components. In addition, the transaction data and costs are shown over time for validation purposes. Comprehensive audit reports show all process steps for determining the arrival price with the underlying time series as well as all derivation steps for the transaction cost calculation. In addition, all TCC configurations can be displayed and edited at any time via the web interface.
Additional module “Derivative identification”
This module is an upstream mapping process that can be used to determine a unique derivative instrument for an underlying ID (e.g. ISIN), taking into account predefined search parameters. If the search was able to deliver a unique result, this is taken into account in further processing for the arrival price calculation.
Additional module “OTC derivatives”
As it is not possible to determine an arrival price for OTC derivatives, a reference price for the time of the respective trade is determined for OTC transactions by an external valuation specialist using mathematical models. This reference price is then processed automatically as part of the transaction cost calculation via the TCC service. FX spots, FX forwards, interest rate swaps and cross currency swaps are covered.
- Modular service offering: Supports various target screens, from the arrival price calculation to the determination of transaction costs to the full service offer including PRIIP transaction cost indicator
- Project consulting in the setup phase regarding data provision and licensing via partner network
- Support for special issues relating to trade transmission via broker
- No in-house development of business logic
- Short project duration and budget security
- Attractive set-up and operating costs
- Adaptation to regulatory changes and process optimizations
- Support during ongoing operations through optional provision of consulting services
- e.g. correction of incorrect or incomplete data, support with fund mergers, new tranches, fund mergers, etc.
Since January 2023, PRIIP KIDs have replaced UCITS KIIDs in the EU. Another significant change is forthcoming: transaction costs will be calculated
Anevis Solutions GmbH will take over Frankfurt-based gd inside GmbH on January 1, 2024. With this merger, the provider of IT solutions for
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