Author: Livia Tay, MY
Last Updated: April 23, 2025
In the world of trading operations, ensuring alignment between clients and their Introducing Brokers (IBs) is essential, especially when it comes to the A-Book model. A common situation arises when a client is already trading under A-Book, but their IB doesn’t yet have an A-Book fee structure (FS) assigned. Without the proper setup, this can lead to discrepancies in trade execution, fee application, and reporting.
This article provides a simple, step-by-step process to follow when handling such cases, ensuring a smooth and compliant transition for all parties involved.
Step-By-Step
- Identifying the Issue
The first step is to identify whether the client is already trading under an A-Book model. If they are, check whether their corresponding IB has an A-Book fee structure set up. In cases where the client is A-Book but the IB is not, further action is required. - Notify Sales
Once the mismatch is confirmed, the Sales team needs to be informed. It's important to communicate clearly that the client is A-Book while the IB is currently operating without an A-Book FS. This ensures the right teams are aware of the issue and can initiate the next steps without delay. - Escalation to Operations
After Sales is informed, they will escalate the case to the Operations team. It’s the Ops team’s responsibility to create and assign the correct A-Book fee structure for the IB. This step is crucial in ensuring the IB is properly configured to support A-Book trading activity. - Transition the Client
Once the appropriate A-Book FS has been set up for the IB, the client's old (non-A-Book) trading accounts should be suspended. This ensures that all trading activity is correctly routed through the new A-Book setup, eliminating potential conflicts or inconsistencies in fee calculations.
Aligning fee structures between clients and IBs is more than just a compliance checkbox, it’s essential for the integrity and efficiency of the trading process. By following these steps, teams can resolve discrepancies quickly and ensure that both clients and brokers are correctly positioned within the A-Book model. The result? Smooth operations, fewer errors, and a better experience for everyone involved.