5 Critical Functions of BOSS’s Rules Engine

5 Critical Functions of BOSS’s Rules Engine

In today’s world of 24/7 electronic trading, the ability to manage your post-trade processes more efficiently can give your company a competitive advantage. Incito Technologies’ Back Office Support Solution (BOSS) platform provides Broker-Dealers with a unified platform to capture, track, control and manage all their trading agreements.

Unlike other post-trade management solutions like spreadsheets (which require hours of labor and are prone to error) or other software solutions (which are one size fits all), the BOSS platform is streamlined, automated and customizable for broker dealer back office operations. One of the most valuable features of our platform is the Rules Engine, which not only allows for the most flexibility in calculating fees, charges, Soft$ (CSA) and Broker Commissions but also helps track and identify any commission exceptions reported by the custodians.

To give you an idea of how valuable the Rules Engine can be in for back office support, here we detail the 5 critical functions of BOSS’s Rules Engine:

  1. Ease of defining rules
  2. Ease of categorization
  3. Out of the box formulas
  4. Ability to customize with tiered payout structures
  5. Multi step formulas

The first function of the rules engine is making it easy to define different payout structures. To get started, you go to the payout rules definition where you can add new payout rules. The first step is naming the rule and selecting the type (which could be an account payout, broker payout, clearance charge, CMTA payout, execution charges or soft$ payouts). Next comes defining the rule; at the core of our engine, you can add different conditions from RPS to adding the asset type to quantity conditions and finally, amount. Once the rule is saved, you can add additional payout criteria as shown below (i.e. transaction so you are not paying for away trades).

Our rules engine allows you to categorize and manage all of your existing payouts from one screen, which is important for efficiency. You can categorize all of your payouts from broker payouts through CMTA and soft$ payouts with the added ability to create exceptions for specific accounts where you have slightly modified relationships. Being able to access everything from one screen makes it easy to access and sort rules within different categories.

Then, within categories, we make it easy to get started in producing results because you have multiple out of the box rules that are then easy to customize. You can chose from have quantity multipliers, percentage of gross, net and quantity, which all fall into different categories including contract exception rules, which are critical for revenue results.

One of the more dynamic features of our engine is the ability to quickly build and customize tiered payout structures, which you can do by RPS, by specific branch, by specific currency, quantity and gross vs. net. Then, you can move on to one of our more flexible customization features, which is the ability to move to multi step payouts to manage what are arguably the most complex rules.

The multi step payout rules provide you with the most flexibility at the account or broker level. You have the option to check a box to designate a multi step payout rule, and you are then able to set up multiple components. For example, if the condition is met that it is a US dollar equity trade, then you can pay .1 per quantity traded with a minimum of $8. However, if it is not a regular trade, you can easily set the condition that pays $15. Then, the amounts can be added or subtracted as necessary. This level of flexibility is critical to capturing both bottom line cost savings and ensuring you protect your top line revenue.

If you would like to know more about how  BOSS’s Rules Engine works, you can view our short video demo here. If you have any questions, please feel free to contact us.