Intermediation Fees Sample Clauses

Intermediation Fees. ‌ Intermediation fees refer to the M sent by intermediate agents into the SC and received from the SC. The fee structure in the RRC is designed to accomplish two objectives; (i) to ensure performance of the second-leg contracts between 1 and n and (ii) to ensure that each intermediate agent earns the same fee as it would have earned in its initial repo contract. At the second leg agent 1 sends TR to the SC and the SC sends TR to agent 1. The matching volume implies there is no need for intermediate agents to send any T into the SC to enable all obligations to be met. On the other hand, when p1→2 < pn−1→n, the SC must receive M from intermediate agents to enable it to send n its contracted payment. In order to ensure that objectives (i) and (ii) are met, the RRC implements the following fee structure. At step 7 (at the first-leg) the intermediaries, {2, ..., ρ, ..., n − 1} are required to send into the SC escrow the first and second leg net payments of M that would have been required at steps 7 and 7’ in the first and second-legs, respectively, if the RRC operated as the initial contract scaled to TR. The amount ρ is required to send into the SC st the first-leg is the sum; (p ρ+1→ρ − pρ→ρ−1 )+ + (p2 ρ−1→ρ − pρ→ρ+1 )+}TR = ρRRC participation fee (6) The SC retains the t1 RRC escrow until the second leg, so as to ensure that there is sufficient 1→2 M to send n the payment due in C2(R)n→1 (contingent on 1 sending its required p2 TR