Transcript Slide 1

WELCOME
eGAINS Participants
Transitioning to eGAINS
Information Sessions
Hosts:
Futures Industry Association (FIA)
Clearing Corporation (CCorp)
Markit Group
Participants:
eGAINS Users (London, New York, Chicago)
Presentation Schedule (via WebEx)
3:30 – 4:30 p.m. (London time)
I.
Agreements: Transition EGUS to eGAINS (Thursday, April 3; Tuesday, April 8)
II.
Trade Processing: Trade Flow, Layout, Reports (Thursday, April 10; Tuesday, April 15)
III.
Banking: Billing Cycle and Money Flow (Thursday, April 17; Tuesday, April 22)
IV.
Iterations: Implementation Feedback and Enhancements (Thursday, May 1)
On-Site Training Schedule – London
Tuesday, June 10: 10:00 a.m., 2:00 p.m. , Canary Wharf (TBD)
Wednesday, June 11: 2:00 p.m., 3:45 p.m., The Brewery, Chiswell Street
Thursday, June 12: 10:00 a.m., 2:00 p.m., JP Morgan, 125 London Wall
I. Agreements
Purpose
Transition and Validate EGUS Agreements
and Rates to eGAINS
Fundamental Issue/Question
How does EGUS talk to eGAINS?
II. Trade Processing
Purpose
Examine Exchange Trade Flow, Data
Layout and Position Posting and Report
Generation
Fundamental Issue/Question
How can I validate my trade data?
III. Banking
Purpose
Review Billing Cycle, Money Flow, and
Month-End Adjustments
IV. Next Iteration
Purpose
Provide Update(s) and Solicit Feedback
Fundamental Issue/Question
How are pay/collects managed?
Fundamental Issue/Question
What is the next step?
Agenda
Agenda
Thursday, April 17
Tuesday, April 22
3:30 – 4:30 p.m. (London time)
Thursday, May 1
Agenda
Agenda
Thursday, April 3
Tuesday, April 8
3:30 – 4:30 p.m. (London time)
•EGUS/eGAINS Agreement and Rate
Uploads (FIA)
o Electronic
o Manual
o Participant Set-up
o Rate Verification
o One-to-One Link: Agreement/Account
#/Rate
•eGAINS Overview (FIA, Markit)
o Role of Systems Providers
o Participating Exchanges
o Settlement Currency
o System Access
o Exhibit Review
•Data Mapping (CCorp)
•Learning Environment Access (CCorp)
•Testing Module (CCorp)
o Trade Load
 Auto Upload
 Manual
o Individualized
•Testing: Phases 1-3 (CCorp)
•Resource Links
•Contacts
Thursday, April 10
Tuesday, April 15
3:30 – 4:30 p.m. (London time)
•Exchange Trade Flow and System
Requirements (CCorp)
o Overview: How does eGAINS work
o Trade Mapping
 Exchange Codes
 Product Codes
 Platform
 Transaction Source Codes
o Deadlines (Agreement Changes and
Maintenance)
•Record Layout–Output Review (CCorp)
o Detailed Character Layout
•Month-End Cycle (FIA)
•Trade Processing (FIA)
o Rates
o Position Reconciliation
o Pay/Collect Reconciliation
•Outputs: Reports, T+1 and Month-end
(CCorp)
o Confirmation / Change Processing
o On-line
o Data Files and Downloads
•Resource Links
•Contacts
•Participant Banking Instructions and
Maintenance (FIA)
•JP Morgan Global ACH Overview and
System Functionality (FIA)
o What is ACH?
o Confirmation of Banking Instructions
(mechanics, procedures, and
deadlines)
•Month-End Processing Deadlines (FIA)
•Third Party Billing (FIA and CCorp)
•Managing Accruals (FIA)
•Reports (CCorp)
•Systems Testing (CCorp)
•Participating Firm Summary (Banking) ToDo List
•Resource Links
•Contacts
3:30 – 4:30 p.m. (London time)
•To-Dos Checklists
•UPDATE: Third Party Relationship
o Front-End (Participant Set Up)
o Back-End
•FEEDBACK: A Formal Checkpoint
o Agreement, Statement of Intent,
Banking Instructions
o Trade Processing
o Banking
o Testing
o Systems
o Launch
•FUTURE: Industry Enhancements
oFPS Launch (banking) (FIA)
oParticipant Wish List (Participants)
oProcedure for adding (new) FX
Settlements (FIA)
oOther Exchange Participants (FIA)
oReducing the Credit Window (FIA)
•Resource Links
•Help Desk
•Contacts
• To-Dos Checklists
• UPDATE: Third Party Relationship
o Front-End (Participant Set Up)
o Back-End
• FEEDBACK: A Formal Checkpoint
o Agreement, Statement of Intent, Banking Instructions
o Trade Processing
o Banking
o Testing
o Systems
o Launch
• FUTURE: Industry Enhancements
o FPS Launch (banking) (FIA)
o Participant Wish List (Participants)
o Procedure for adding (new) FX Settlements (FIA)
o Other Exchange Participants (FIA)
o Reducing the Credit Window (FIA)
• Resource Links
• Help Desk
• Contacts
FIA Tech
Users / Participating Firms
FIA Tech and Users / Participating Firms
Session 4. Next Iteration
Purpose
Provide updates since last Session(s) and solicit participant feedback.
Fundamental Issue/Question
Now what?
From a participating firm’s perspective, what do I need to do for the eGAINS launch?
Session 4. Next Iteration
Agenda
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To Dos – Participant Checklist (FIA)
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Third Party Relationship
o Front-End (Participant Set Up)
o Back-End
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Feedback – A Formal Checkpoint (User Feedback)
o Agreements
o Trade Processing
o Banking
o Testing
o Systems
o Launch
Session 4. Next Iteration
Agenda Continued
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Industry Updates
o Faster Payments Services (FPS)
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Reports (CCorp)
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Systems Testing (CCorp)
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Participating Firm Summary (Banking) To-Do List
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Resource Links
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Help Desk
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Contacts
Processing Overview
Eurex
ICE
Liffe
Debtor Bank
Markit
eGAINS
EGUS
Member Firm
JPMorgan Chase
Creditor Bank
Firm Checklist
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File e-GAINS Processing Agreement with FIA Tech
Complete Statement of Intent
Provide FIA Tech with the eGAINS test coordinator
Provide detailed banking instructions to FIA Tech
Add to EGUS Admin (Search Institution and Parties, Maintain Parties) Exchange and Firm Codes
Enable EGUS for auto rate load (EGUS: Maintain Party Permissions, Enable Rate Data Feed)
File 3rd Party Debit Authorization Form with bank(s)
Forward completed copies of 3rd Party Debit Authorization Forms to FIA Tech
Request Learning Environment user ID and password
Add rates, formerly maintained via pdf, into EGUS
If you require an automated trade reconciliation tool, obtain CCorp’s layout specifications doc
Script special test scenarios
Test rates and sign-off on reports
Test trades and sign-off on reports
Test monies (direct and third party) and sign-off on reports
What Is On Our To-Do List?
FIA
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Finalize service provider negotiations and agreements
Finalize web page links and resource docs (www.futuresindustry.org)
Receive firm training liaison contact name, telephone number and email address
Receive 3rd Party Debit Authorization Form from all participants
Obtain participant banking instructions and input detailed instructions into database
Create eGAINS participant IDs and grant access to eGAINS QA and production systems
Determine currency settlement offerings for launch
Co-coordinate method–of-execution designator on trade record
Test banking module
Compile user guidelines, procedures, manuals, and related documents
Facilitate user training in London (June 10-12)
Establish DR procedures
What Is On Our To-Do List? Continued
CCorp
 Link exchange and EGUS commodity/product and group codes
 Review Exchange test and production (starting May 15) trade files
 Co-coordinate method–of-execution designator on trade record
 Establish protocol for receipt of daily exchange trade data
 Complete software implementation and train Markit staff on daily operations
 Ensure EGUS and eGAINS rate and agreement mapping and posting
 Redesign daily, monthly, and end-of-cycle reports to accommodate gross reporting and 3rd party
relationships
 Create Learning Environment (LE) IDs, passwords, and administer LE testing (upon request)
 Test month-end banking transmission to FIA and JPMC
 Create training plan and test scenarios (Phases 1-3)
 Facilitate user training in London (June 10-12)
 Compile user guideline, procedures, manuals, and related documents
 Establish DR procedures
What Is On Our To-Do List? Continued
Markit
 Train w/CCorp to assume daily operations
 Create user log on page and system interface
 Test receipt of exchange trade data
 Compile user guideline, procedures, manuals, and related documents (system procedures)
 Manage eGAINS help desk post launch
 Establish DR procedures
UPDATE: Third-Party Relationship, Executing Firm to Customer (FIA)
EGUS allows participants to list the Executing Broker, Clearing Broker, Customer, and Trader in the
give-up agreement. Additionally, participants provide FIA Tech with detailed banking instructions for
automated month-end pay and collect processing.
Executing Broker – the party executing customer orders on a futures exchange.
Clearing Broker – the party maintaining accounts to which the executing broker gives-up trades.
Customer – the party to whose account the given-up trades belong and shall reside.
Trader – the party authorized to place orders with the executing broker on behalf of the customer.
Working through their Clearing or Execution Firm, the third-party or customer (in order to facilitate
payment to the executing firm through eGAINS), must become an eGAINS participant by completing
the eGAINS Processing Agreement and submitting their banking instructions to FIA Tech. Within the
EGUS / eGAINS third-party relationship, the executing broker has the ability to bill the customer and
receive the execution fees through the system as opposed to invoicing the customer for payment
outside of the eGAINS system. Since rates and give-up fee information is proprietary, the executing
brokers may hide the rate schedule from the clearing broker (since, in third-party relationships, the
clearing broker is not part of the billing process).
UPDATE: Third-Party Relationship, Executing Firm to Customer (FIA) Continued
Executing Firm
Reports and Monies
Set-Up and Flow
EGUS: Bill To Customer; Hide Rates
eGAINS: Bill to Third Party; Ex Code
- Customer completes Agreement
- Suppresses fees and rate schedule
from clearing firm view
- Reports are distributed to
customer not clearing firm
Clearing Firm
Customer
Positions
UPDATE: Third Party Relationship, Executing Firm to Customer (FIA) Continued
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Bill the customer and process the payment through eGAINS:
Customer completes the eGAINS Processing Agreement
Customer provides FIA Tech with detailed banking instructions
EGUS: Bill To, Customer
EGUS: Hide Rates
eGAINS: Designate the agreement as a Third Party Agreement (allows eGAINS to facilitate
payment from customer to Executing Firm)
eGAINS: Bill To Third Party
eGAINS: Add the Third Party’s carrying participant Exchange/Firm code
or
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Bill the customer and process the payment outside of eGAINS:
Executing Firm completes the eGAINS Processing Agreement
EGUS: Bill To, Customer
EGUS: Direct Bill = Y
FEEDBACK: A Format Checkpoint (Participants)
Agreement, Statement of Intent, Banking Instructions
● What is the timeline for having the above items completed?
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FEEDBACK: A Format Checkpoint (Participants) Continued
Trade Processing
• General statement or request for feedback (CCorp to the firms) relative to the end of day reports,
data files…
Participant Comments
• Identification of trade types and method of execution will have a big impact on firms (response:
work in process with exchanges, scheduling conference call with exchange technology contact).
• Method of execution involves front end work for firms also.
• How will reversals (trade date and T+1 reversing transactions) be handled in eGAINS?
• Create test scenarios to test same day and T+1 reversals
• If Eurex sends an EFP, will eGAINS charge a rate for it?
• What happens if an exchange sends a trade for which there is no agreement?
• When will the exchanges send data so that firms could test with eGAINS and their internal
systems?
• Duration of testing is a concern - may not have sufficient time to test all functionality for parties.
• Training Sessions (June 10-12): What will be reviewed in the 3 hour sessions? Will there be a
training manual? Can it be distributed now?
FEEDBACK: A Format Checkpoint (Participants) Continued
Banking
Participant Comments
• Need to ensure all pertinent currencies are included for launch (Swiss Franc, Yen, etc.). Need
update with getting these currencies in eGAINS for launch.
Test Schedule (CCorp)
On-Site Training - London: June 10-12
Due to the complexities of the EGUS to eGAINS integration, firm testing will proceed in three phases
(rates, trade processing, monies).
Phase 1 (June 10 – 27) - Rates
EGUS rates are electronic, pdf, or both
Electronic
Automatic upload.
Once the firm’s EGUS Systems Administrator enables the EGUS to eGAINS rate feed (EGUS:
Maintain Party Permissions, Enable Rate Data Feed), electronically stored rates in EGUS will post to
eGAINS without firm intervention. Firms will be able to view the EGUS rate upload to eGAINS online
(through eGAINS systems access), hard-copy (GNS reports), or through an ASCII text file download.
Firms should review the eGAINS and advise FIA of errors by June 2.
Test Schedule (CCorp) Continued
Pdf
Manual input (deadline June 27).
Steps to add eRate schedules to an executed agreement w/pdf already attached:
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Create the eRate and save to eRate Library
Go to executed agreement and click on agreement ID#
Click on the EDIT button in the accounts and rates box on the View and Manage screen
Scroll down to the “Attach Rate Schedules” box and select the eRate from you library
Click attach
Click “Save & Next” and you will see it was added to the agreement
NOTE: The aforementioned has no impact on the EGUS agreement nor will it require counterparty
review or acknowledgement.
Test Schedule (CCorp) Continued
CCorp Test Scenarios
EGUS Agreements
EGUS Account Permutations
(Customer and Trader) Executing / Clearing Accounts
EGUS Rate
Table Permutations
eGAINS Agreement
Permutations
Customer
One / One
One
Many
One
One / Many
One
Many
One
Many / One
One
Many
Many
Many / Many
One
Many
Many
Test Schedule (CCorp) Continued
Firm Questions
1. What is the Customer and Trader agreement type ratio (50/50)? One firm—majority of
agreements were Standard Trader with Clearing Broker being billed 98% of the time.
2. To what extent do you have multiple execution accounts on one agreement?
3. To what extent do you have multiple clearing accounts on one agreement?
4. To what extent do you have multiple rate tables to one agreement?
5. In the event you use multiple rate tables for one agreement, are there product overlaps between
rate tables?
6. To what extent will you participate in 3rd party billing (your customer pays the executing firm
through the eGAINS banking module)?
7. Other permutations for consideration?
Firms should assess their conditions and respond to above questions.
Test Schedule (CCorp) Continued
Phase 2 (July 1 – August 21)
Trade Processing and Monthly Trade Adjustments
Production
• Production trade files will be received daily beginning May 15
• We will provide test scripts for high-level testing (general scenarios)
Firm Specific
• Firm specific trades, rates, and relationship nuances should be tested
• Firms enter trades into eGAINS and/or supply trade files to CCorp for loading into eGAINS
• Firms should verify trade postings, system functionality (corrections, deletes, rejects), rates,
calculations through eGAINS online, hard-copy (GNS reports), or through an ASCII test file
download
Test Schedule (CCorp) Continued
Phase 3 (August 5 – August 25)
Monthly Cash Adjustments and Banking
• We will provide test scripts for high-level testing (general scenarios)
• Enter month-end adjustments
• Confirm debit and credit (gross) posting through eGAINS online, hard-copy (GNS reports), or
through an ASCII test file download
FEEDBACK: A Format Checkpoint (Participants) Continued
Testing
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FEEDBACK: A Format Checkpoint (Participants) Continued
Systems
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FEEDBACK: A Format Checkpoint (Participants) Continued
Launch
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FUTURE: Industry Enhancements (FIA)
Association for Payment Clearing Services (APACS) and Faster Payments Service (FPS)
APACS is the UK’s payments association. FPS is a banking initiative (UK only) to improve the speed
of low value payments to near real-time (essentially as if two accounts were in the same bank). FPS
shall support one-time payments, standing orders, corporate bulk payments, and return payments.
The system, designed by APACS is comprised of a network of member institutions (banks)
surrounding the core central system. The central system will handle the actual message switching in
near real-time, as well as manage the settlement of accounts at the Bank of England.
FPS shall be launched on 27th May 2008 at which point the banks shall begin to roll out the service to
their customers.
FUTURE: Industry Enhancements (Participants) Continued
Participant Wish List
Participant Comments
• Add flag to indicate bill to party within EGUS.
• Comment to participants: PLEASE review reports/communicate enhancements to end of day
reports, data files, or web pages
FUTURE: Industry Enhancements (FIA) Continued
Procedure for Adding (new) FX Settlements (FIA)
New settlement currency requests should be directed to Mary Ann Burns at FIA Tech.
Other Exchange Participants (FIA)
Discussions are ongoing.
Reducing the Credit Window (FIA)
In the opening days of eGAINS, funds will be held by FIA Tech for 60 business days. The number of
days will drop as more users are added to the system. We anticipate dropping the float period to 20
days once the amount of money flowing through the system reaches projected levels.
Resource Links
http://www.futuresindustry.org/
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General
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Timeline
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Frequently Asked Questions (FAQs)
On-Boarding
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eGAINS Processing Agreement
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Statement of Intent
CCorp
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Data Layout Specifications
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Report Library
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Learning Environment
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Test Trades Submission Spreadsheet
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Test Plan: Phases 1-3
Help Desk
FIA Tech
Joint effort between FIA Tech London and Washington. Details pending.
CCorp
Post launch, primary support provided by FIA Tech and Markit. CCorp will provide 2nd level support to
FIA Tech and Markit.
Markit
FIA EGUS and eGAINS Support:
Email: [email protected]
From 8 am to 6 pm CET: +31 20 502 5888
From 8 am to 6 pm GMT: +44 (0) 20 7260 2111
From 8 am to 6 pm Eastern Time: +1 (877) 7-MARKIT
If you cannot dial 877 number above, call +1 (914) 872-2772 and ask for EGUS support
Contacts
FIA Tech
Robert Drew, Consultant, (b) 07812991191, [email protected]
David Adam, Consultant, (b) 312.786.3821, [email protected]
Ron Metcoff, Treasury Consultant, (b) 215.272.6593, [email protected]
Krystal Atha, Relations Manager, (b) 202.466.5460, [email protected]
David Wilson, Technology Project Manager, (b) 202.466.5460, [email protected]
Mary Ann Burns, Executive Vice President Industry Relations, (b) 202.466.5460, [email protected]
CCorp
Marc MacQuarrie, Client Services and Support, (b) 312.786.5732, [email protected]
James Woods, Vice President, Production Management Group, (b) 312.786.5715, [email protected]
Markit
Tony Murljacic, Director, Head of Trade Processing Connectivity, (b) 914.872.2905, [email protected]
Thank You for Attending