IGDL-2018-R-2 

IGDL SEF Discount 

Structure Appendix 

31 July 2018 

ACTIVE 232161307 
2

IGDL Discount Structure 

Brokerage Discounts for i-Swap 

Brokerage Discounts 

 

• Standard i-Swap rate is 70% of post 12pm London voice rate 

• Trader-entered and Broker-entered transactions are eligible to 

offset i-Swap minimum fees 

 

 Brokerage Discounts for Voice 

Brokerage Discounts 

(thresholds based off and 

discounts applied to gross 

voice execution 

brokerage in the current 

month)

Monthly Threshold Discount 

$75,000 to $149,999 5%

$150,000 to $249,999 10%

$250,000 or Greater 20%

 

 i-Swap Streaming Program 

Streaming Tiers and 

Discounts (applied to 

gross voice execution 

brokerage in following 

month)

 

 

Premium Tier 

Rank Discount 

 #1 15% 

 #2 13% 

 #3 12% 

 Rest 10% 

Base Tier 

5% for Base Tier Qualifying Participants 
3

Key Notes: IGDL Discount Structure 

For Brokerage Discounts on Voice: 

1. Discounts are determined by combining New York and London gross voice execution brokerage 

and applied to activity during both London and New York hours as a rebate at the end of the 

month. 

2. “Gross voice execution brokerage” means in respect of a Participant (i) brokerage accrued by 

the Participant for all transactions executed using Voice RFQ and (ii) all transaction fees 

accrued by the Participant for all transactions transacted using Broker-entered orders, including 

brokerage on Clearing House Basis Swaps transacted using Voice RFQ and transaction fees for 

Clearing House Basis Swaps transacted using Broker-entered orders. 

3. Thresholds that determine the amount of the discount are calculated based on, and discounts 

are applied to, the gross voice execution brokerage accrued by a Participant for the current 

month. 

For i-Swap fees (as described on the Trade Execution Fee Card tab of the IGDL SEF Fee Card): 

1. Calculation of “Total Monthly Electronic Fees” for i-Swap are the greater of the following: 

a. “Trader-entered” transaction fees plus “Broker-entered” transaction fees1; or 

b. Minimum TPH i-Swap Front End User Minimum Fee2

2. The i-Swap invoice will reflect the Total Monthly Electronic Fees (as defined above) less any 

Broker-entered transaction fees. 

 

 

1

 Trader-entered and Broker-entered are defined on the “Notes” tab of the ICAP Global Derivatives Limited Trade 

Execution Fee Card. This calculation includes fees for Clearing House Basis Swaps. 

2

 See Minimum Fees on the Fees tab of the IGDL SEF Fee Card 
4

i-Swap Streaming Program 

Summary 

IGDL offers additional discounts that will be applied towards a Participant’s gross voice execution 

brokerage for a particular month based on a Participant’s streaming activity on i-Swap for LCH-cleared

Medium Term Interest Rate Swap instruments. IGDL offers two streaming tiers: Premium Streaming Tier 

and Base Streaming Tier. Participants can obtain discounts in the Base Streaming Tier by meeting the 

streaming requirements for the covered instruments set out below in the relevant table (such Participants, 

“Base Tier Qualifying Participants”). Additionally, Participants are eligible to achieve greater discounts by 

meeting the requirements in the Premium Streaming Tier. Discount percentage for those that meet the 

Premium Streaming Tier requirements is based on the Participant’s final rank in the League Table. The

League Table rankings are computed by IGDL using the below defined League Table Methodology. 

Discount achieved in a given month in either the Premium Streaming Tier or Base Streaming Tier will be

applied to the following month’s gross voice execution brokerage. 

Streaming Tiers 

 
5

Discount Tier Hours 

Any discounts achieved will be applied to the rate in effect during the hours set forth in the following table. 

Base and Premium Streaming Tiers will be calculated independently in each location using the following

hours (i.e., IGDL will calculate rankings for the 7:30 am LDN to 7:00 am NY time period and rankings for 

the 7:00 am NY to 5:00 pm NY time period). 

Definitions 

League Table Methodology 

League Table rank in the Premium Streaming Tier is computed using Average Spread, % of Day Quoted 

and Average Size metrics on a per instrument basis during the Calculation Time. 

• The score per instrument is computed as follows: 

Instrument’s Score = 40% * (Average Spread) 

 + 35% * (% of Day Quoted) 

 + 25% * (Average Size) 

• The Participant’s final score is computed as the average of all Instruments Scores. Each Participant 

is ranked on their computed final score. 

IGDL-2018-R-2 

CONFIDENTIAL TREATMENT REQUESTED 

BY ICAP GLOBAL DERIVATIVES LIMITED 

I201616 Exhibit C 

GDL SEF Discount Structure 

Appendix 

1 January 201731 July 2018

ACTIVE 232161307 
2

IGDL Discount Structure 

Brokerage Discounts for i-Swap 

Brokerage Discounts 

 

• Standard i-Swap rate is 70% of post 12pm London voice rate 

• Trader-entered and Broker-entered transactions are eligible to 

offset i-Swap minimum fees 

 

 Brokerage Discounts for Voice 

Brokerage Discounts 

(thresholds based off and 

discounts applied to voice 

gross voice execution

brokerage 1in the current 

month)

Monthly Threshold Discount 

$75,000 to $149,999 5%

$150,000 to $249,999 10%

$250,000 or Greater 20%

 

 i-Swap Streaming Program 

Streaming Tiers and 

Discounts (applied to 

voice gross voice 

execution brokerage in 

following month)

 

 

Premium Tier 

Rank Discount 

 #1 15% 

 #2 13% 

 #3 12% 

 Rest 10% 

Base Tier 

5% for Base Tier Qualifying Participants will receive 5% Discount

 

1

 Voice brokerage includes all USD Medium Term Fixed Floating Interest Rate Swaps
3

Key Notes: IGDL Discount Structure 

For Brokerage Discounts on Voice2: 

1. Discounts are determined by combining New York and London gross voice execution brokerage 

and applied to activity during both London and New York hours as a rebate at the end of the 

month. 

2. “Gross voice execution brokerage” means in respect of a Participant (i) brokerage accrued by 

the Participant for all transactions executed using Voice RFQ and (ii) all transaction fees 

accrued by the Participant for all transactions transacted using Broker-entered orders, including 

brokerage on Clearing House Basis Swaps transacted using Voice RFQ and transaction fees for 

Clearing House Basis Swaps transacted using Broker-entered orders. 

3. 2. Thresholds that determine the amount of the discount to be applied are calculated based on, 

and discounts are applied to, the gross voice execution brokerage paid by theaccrued by a

Participant fromfor the current month including brokerage paid on Clearing House Basis Swaps 

transacted using Voice or Broker-entered orders. 

3. Discounts will apply to transaction fees for Broker-entered orders. 

For i-Swap fees (as described on the Trade Execution Fee Card tab of the IGDL SEF Fee Card): 

1. Calculation of “Total Monthly Electronic Fees” for i-Swap are the greater of the following: 

a. “Trader-entered” transaction fees plus “Broker-entered” transaction fees31

; or 

b. Minimum TPH i-Swap Front End User Minimum Fee42

2. The i-Swap invoice will reflect the Total Monthly Electronic Fees (as defined above) less any 

Broker-entered transaction fees. 

 

 

2

 Discounts apply to USD Medium Term Fixed Floating Interest Rate Swaps

31 Trader-entered and Broker-entered are each defined on the “Notes” tab of the IGDL SEFICAP Global Derivatives 

Limited Trade Execution Fee Card. This calculation is includes fees for Clearing House Basis Swaps. 

42

See Minimum Fees on the Fees tab of the IGDL SEF Fee Card
4

i-Swap Streaming Program 

Summary 

IGDL offers additional discounts that will be applied towards a Participant’s overallgross voice execution

brokerage for a particular month based on a Participant’s streaming activity on i-Swap for LCH 

clearedLCH-cleared Medium Term Interest Rate Swap instruments. IGDL offers two streaming tiers: 

Premium Streaming Tier and Base Streaming Tier. Participants can obtain discounts in the Base 

Streaming Tier by meeting the streaming requirements for the covered instruments set out below in the 

relevant table (such Participants, “Base Tier Qualifying Participants”). Additionally, Participants are 

eligible to achieve greater discounts by meeting the requirements in the Premium Streaming Tier. 

Discount percentage for those that meet the Premium Streaming Tier requirements is based on the 

Participant’s final rank in the League Table. The League Table rankings are computed by IGDL using the 

below defined League Table Methodology. 

Discount achieved in a given month in either the Premium Streaming Tier or Base Streaming Tier will be

applied to the following month’s gross voice execution brokerage rate. 

Streaming Tiers 

 
5

Discount Tier Hours 

Any discounts achieved will be applied to the rate in effect during the hours set forth in the following table. 

Base and Premium Streaming Tiers will be calculated independently in each location using the following

hours (i.e., IGDL will calculate rankings for the 7:30 am LDN to 7:00 am NY time period and rankings for 

the 7:00 am NY to 5:00 pm NY time period). 

Definitions 

League Table Methodology 

League Table rank in the Premium Streaming Tier is computed using Average Spread, % of Day Quoted 

and Average Size metrics on a per instrument basis during the Calculation Time. 

• The score per instrument is computed as follows: 

Instrument’s Score = 40% * (Average Spread) 

 + 35% * (% of Day Quoted) 

 + 25% * (Average Size) 
6

• The Participant’s final score is computed as the average of all Instruments Scores. Each Participant 

is ranked on their computed final score. 

• 

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