EMIR Fees Disclosure

Transcription

1 EMIR Fees Disclsure Merrill Lynch Internatinal Merrill Lynch, Pierce, Fenner & Smith Incrprated August 2014 Versin 5.0/August 2014 #

2 Versin 5.0/August 2014 # Merrill Lynch Internatinal Fees Disclsure fr Listed Derivatives and OTC Derivatives Client Services Intrductin The Eurpean Market Infrastructure Regulatin (EMIR) came int frce n 16 August As a prvider f clearing services at certain CCPs, Merrill Lynch Internatinal ( MLI r us ), is bliged t prvide yu with certain infrmatin under EMIR. We must, amngst ther things: publicly disclse the csts assciated with the different types f segregated accunt available t yu fr client clearing with us, including infrmatin n any discunts r rebates that may be available t yu, alng with any applicable cnditins (under EMIR Article 38.1 and 38.5); prvide yu with a separate disclsure cvering the levels f prtectin ffered by and the main legal implicatins assciated with each type f segregated accunt (under EMIR Article 39.7). Our General Disclsure can be fund at: This Fees Disclsure shuld be read tgether with the General Disclsure referred t abve. Pricing Cnsideratins This Fees Disclsure sets ut the csts t yu f client clearing and indicates the highest charge applied t the stand alne prvisin f clearing services by us. Any applicable client accunt fees charged by a CCP will be passed n t yu in additin t the csts set ut in this Fees Disclsure. As such, the ttal charge t yu f client clearing will be the sum f (i) CCP accunt fees and (ii) ur clearing csts. There may be separate charges fr ther (ptinal) services which are incidental t client clearing, as set ut belw. The csts set ut in this Fees Disclsure d nt include any discunts r rebates. MLI may apply a discunt r rebate based n a number f key factrs including, amngst thers: Overall client relatinship with MLI Client credit rating Applicatin f MLI financial resurces Structure and cmplexity f clearing services required, per CCP and prduct MLI may be in a psitin t ffer yu ther services that may attract additinal charges, including single currency margining, client mney prtectin, taking securities as cllateral and cllateral transfrmatin. Individual Segregated Accunts Yu may chse an mnibus r individual segregated accunt type at each CCP, ffered by MLI. Supprting individual segregated accunts generally requires increased peratinal supprt, and will mst likely attract additinal charges in relatin t mnibus accunts. Accunt structures at different CCPs may result in varying csts due t peratinal supprt requirements and funding impact. 2

3 MLI Client Fee Structure This sectin sets ut the maximum client clearing cmmissin which culd be charged t yu by MLI fr client clearing at each f the CCPs listed in the table, alng with an explanatin f the fees that make up the client clearing cmmissin. Applicable client clearing cmmissins F&O (Per lt) OTC (Per Ticket) Mnthly ISA Service Charge F&O Mnthly ISA Service Charge OTC Eurex AG LCH Clearnet SA LCH Clearnet Ltd LME Clear Ltd ICE Clear Eurpe Ltd Nasdaq OMX AB Cassa di Cmpensa zine Garanzia S.p.A BME S.A. $6 $6 $6 $6 $6 $6 $6 $6 $6 $1,200 NA $1,200 NA $1,200 NA NA NA NA Eurpean Cmmdity AG $5,000 $10,000 $5,000 $10,000 $10,000 $5,000 $10,000 $10,000 $10,000 $5,000 $10,000 $5,000 $10,000 $10,000 $5,000 $10,000 $10,000 $10,000 Prtfli ISA Charge 75bps n IM 75bps n IM 75bps n IM 75bps n IM 75bps n IM 75bps n IM 75bps n IM 75bps n IM 75bps n IM Cash mvement $100 $150 $50 $150 $100 $50 $150 $150 $100 Nn-Cash mvement $100 $250 $50 $250 $100 $50 $250 $250 $100 fee: maximum charge per lt r per ticket applied t each cleared transactins, applicable t bth mnibus and individual segregated accunt types at each CCP Prtfli charge: maximum additinal spread applied t Initial Margin n depsit (cash r nn-cash cllateral) held in an individual segregated accunt type at each CCP Mnthly service charge: maximum flat fee fr servicing an individual segregated accunt at each CCP Cash/ nn-cash mvements: maximum charge per cash r nn-cash cllateral mvement, applicable t individual segregated accunt types at each CCP Please nte that the csts f client clearing set ut in this Fees Disclsure are indicative and fr infrmatin nly. This Fees Disclsure is nt intended t cnstitute and nr shuld it be cnstrued as advice f any kind, whether in relatin t Legal, Cmpliance, Accunting, Regulatry, Tax r ther matters. The actual cst t yu f client clearing, and any additinal services r discunts/rebates available t yu, is subject t negtiatin between us and yu and cnfirmatin frm us in writing, but is in all cases subject t the maximum cst per CCP and prduct highlighted. We recmmend that yu speak t yur usual prfessinal adviser shuld yu have any cncerns relating t the ptential impact f this Fees Disclsure n yu. Please nte that pricing and charges are subject t change and may be amended frm time t time by ntice t yu. 3

4 Merrill Lynch, Pierce, Fenner & Smith Incrprated Fees Disclsure fr Listed Derivatives and OTC Derivatives Client Services Intrductin Merrill Lynch, Pierce, Fenner & Smith Incrprated ( MLPFS r us ) is prviding this fees disclsure (Fees Disclsure) t yu because yu have elected t enter int derivatives transactins that may be cleared by a clearing rganizatin that is authrized as a central cunterparty (CCP) by an EU natinal cmpetent authrity in accrdance with the Eurpean Market Infrastructure Regulatin (EMIR). Article 39 f EMIR prvides that we must, amngst ther things: publicly disclse the levels f prtectin and the csts assciated with the different levels f segregated accunt available t yu fr client clearing; and prvide yu with a separate disclsure cvering the levels f prtectin ffered by and the main legal implicatins f the respective levels f segregatin ffered including infrmatin n the applicable inslvency law. Our Member Disclsure Statement can be fund at: This Fees Disclsure shuld be read tgether with the Member Disclsure Statement. As set ut in ur Member Disclsure Statement, we are a clearing member f ne r mre CCPs lcated in the Eurpean Unin (EU) that are bth (i) authrized by EMIR, and (ii) registered with the Cmmdity Futures Trading Cmmissin (Cmmissin) as a derivatives clearing rganizatin (DCO) in rder t prvide clearing services t US persns in cnnectin with swaps. Because we are registered with the Cmmissin as a futures cmmissin merchant (FCM), we must cmply with the prvisins f the US Cmmdity Exchange Act (CEA) and the Cmmissin s rules gverning the prtectin f custmer assets and psitins, as well as EMIR. Under the Cmmissin s regulatry regime, FCM clearing members may prvide nly mnibus client segregatin fr futures and LSOC segregatin ( Legally Separate Operatinally Cmmingled ) fr OTC derivatives. This Fees Disclsure sets ut the csts assciated with prviding bth mnibus client segregatin and LSOC client segregatin t yu fr the EU CCPs n which we clear client business directly. Alternatively, yu are entitled t elect t have yur assets and psitins held in accrdance with a client segregatin regime under EMIR and, if yu elect t d s, we will facilitate the transfer f the assets and psitins that we currently hld n yur behalf t ur EU affiliate r anther clearing member licensed in an EU jurisdictin that is willing t accept yur accunt. Please refer t ur Member Disclsure Statement fr further infrmatin n this. MLPFS Client Fee Structure We set ut belw the maximum client clearing cmmissin which culd be charged t yu by MLPFS fr client clearing under an mnibus r LSOC client segregated accunt at the EU CCPs listed belw. Please nte that there may be separate charges fr futures and ptins executin as well as fr ther (ptinal) services which are incidental t client clearing, including single currency margining, client mney prtectin, taking securities as cllateral and cllateral transfrmatin. 4

5 The csts set ut in this Fees Disclsure d nt include any discunts r rebates. MLPFS may apply a discunt r rebate based n a number f key factrs including, amngst thers: Overall client relatinship with MLI Client credit rating Applicatin f MLI financial resurces Structure and cmplexity f clearing services required, per CCP and prduct Applicable client clearing cmmissins LCH.Clearnet Limited (SwapClear OTC rates prducts): cmmissin charge - $1,500.00/ticket; accunt maintenance fee - $10,000.00/mnth; and prtfli charge 75 basis pints n client s initial margin ICE Clear Eurpe Limited (futures and ptins prducts): cmmissin charge - $15.00/lt; accunt maintenance fee - $10,000/mnth; and prtfli charge 75 basis pints n client s initial margin Please nte that the csts f client clearing set ut in this Fees Disclsure nly relate t client clearing thrugh MLPFS n EU CCPs and are indicative, fr infrmatin nly. This Fees Disclsure is nt intended t cnstitute and nr shuld it be cnstrued as advice f any kind, whether in relatin t Legal, Cmpliance, Accunting, Regulatry, Tax r ther matters. The actual cst t yu f client clearing, and any additinal services r discunts/rebates available t yu, is subject t negtiatin between us and yu and cnfirmatin frm us in writing, but is in all cases subject t the maximum cst per CCP and prduct highlighted. We recmmend that yu speak t yur usual prfessinal adviser shuld yu have any cncerns relating t the ptential impact f this Fees Disclsure n yu. Please nte that pricing and charges are subject t change and may be amended frm time t time by ntice t yu. 5