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Explanation

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LUSID allows you to apply fees, commissions and market charges as your allocations are booked as transactions, which are subsequently factored into valuation calculations.

You must create a special type of transaction property and attach it to a fee and commission rule. As transactions are booked, LUSID listens and applies fees, commissions or market charges as properties if the transaction meets the conditions specified in a rule.

For example, a Trader might want to place an order with Broker A who charges a fee of 0.02%. You can use the LUSID web app to ensure this fee is applied to all transactions executed by Broker A from a specified effective date:

  1. The first step is to create a new transaction property as usual via the Data Management > Properties dashboard. You can then choose whether you want to create a Fee, Commission or Market Charge property type. For this example, you might create the property Transaction/fee/BrokerA for the fee charged when an order is executed by Broker A.
  2. You can then create a fee and commission rule to add the property to via Data management > Fee & Commission rules dashboard. In your rule, you can specify:
    • The conditions which a transaction must meet for the rule to be applied.
    • What should happen when the rule is applied.
    For this example, you might create a rule to apply a 0.02% fee to any USD buy transactions executed by Broker A: