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 (April 3, April 8)
II.
Trade Processing: Trade Flow, Layout, Reports (April 10, April 15)
III.
Banking: Billing Cycle and Money Flow (April 17, April 22)
IV.
Iterations: Implementation Feedback and Enhancements (May 1)
I. Agreements
II. Trade Processing
III. Banking
IV. Next Iteration
Purpose
Transition and Validate EGUS Agreements
and Rates to eGAINS
Purpose
Examine Exchange Trade Flow, Data
Layout and Position Posting
Purpose
Review Month-End Adjustments, Billing
Cycle, and Money Flow
Purpose
Review Implementation Feedback and
Systems Enhancements
Fundamental Issue/Question
How does EGUS talk to eGAINS?
Fundamental Issue/Question
How can I validate my trade data?
Fundamental Issue/Question
How are pay/collects managed?
Fundamental Issue/Question
What is the next step?
Agenda
Agenda
Agenda
Agenda
Thursday, April 3
Tuesday, April 8
3:30 – 4:30 p.m. (London time)
Thursday, April 10
Tuesday, April 15
3:30 – 4:30 p.m. (London time)
Thursday, April 17
Tuesday, April 22
3:30 – 4:30 p.m. (London time)
Thursday, May 1
• 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
• Exchange Trade Flow and System
Requirements (CCorp)
o Overview
o Exchange Codes
o Product Groups and Codes
o Exchanges and Multiple Platforms
(Trans Codes)
o Deadlines (Agreement Changes and
Maintenance)
• Record Layout–Output Review (CCorp)
o Detailed Character Layout
• Trade Management (FIA)
o Execution Indicators
o Rates
o Position Reconciliation
o Pay/Collect Reconciliation
• Outputs: Reports (T+1, Month-end)
(CCorp)
o Confirmation / Change Processing
o On-line
o Data Files
o Download
• Resource Links
• Contacts
• Participant Banking Instructions and
Maintenance (FIA)
• Banking Overview and System
Functionality (FIA)
o Confirmation of Banking Instructions
(mechanics and deadlines)
o Changing Banking Instructions
• Month-End Processing Deadlines (FIA)
• Reports (CCorp)
• Managing Accruals (FIA)
• Systems Testing (CCorp)
• Resource Links
• Help Desk
• Contacts
3:30 – 4:30 p.m. (London time)
• Feedback – A Formal Checkpoint
o Testing
o Systems
o Launch
• Review Participant Wish List
• Procedure for adding (new) FX
Settlements (FIA)
• Other Exchange Participants (FIA)
• Reducing the Credit Window (FIA)
• Resource Links
• Help Desk
• Contacts
Session I. Agreements: Transition EGUS to eGAINS
Purpose
Transition and Validate EGUS Agreements and Rates to eGAINS.
Fundamental Issue/Question
How does EGUS talk to eGAINS?
Session I. Agreements: Transition EGUS to eGAINS
Agenda
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EGUS/eGAINS Agreement and Rate Uploads (FIA, Markit)
– Electronic
– Manual
– Participant Set-up
– Rate Verification
– One-to-One Link: Agreement/Account Number/Rate
eGAINS Overview (FIA)
– Roles of System Providers
– Participating Exchanges
– Settlement Currency
– System Access
Session I. Agreements: Transition EGUS to eGAINS
Agenda Continued
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Data Mapping (CCorp)
Learning Environment Access (CCorp)
Testing Module (CCorp)
– Trade Load
• Auto Upload
• Manual
– Individualized
Testing: Phases 1-3 (CCorp)
Resource Links
Contacts
EGUS/eGAINS Agreement and Rate Uploads (FIA, Markit)
Data contained in the EGUS agreement is the foundation for and is compatible
with the eGAINS system. Mission-critical fields include:
Agreement Number
Executing Broker
Clearing Broker
Trader
Rate and Effective Date
Executing Account ID
Clearing Account ID
Customer
EGUS/eGAINS Agreement and Rate Uploads (FIA, Markit) Continued
Electronic Transfer from EGUS to eGAINS
Electronic EGUS created agreements are auto-converted to eGAINS. The
conversion is expected to be seamless and should require minimal intervention
[if at all] from the EGUS or eGAINS user (the system administrator however
must Enable Rate Data Feed via the Party Permissions page). To ensure
proper data mapping, users should thoroughly test the system.
Manual Addition to eGAINS
Agreements in EGUS using PDF file for rate schedule will NOT convert to
eGAINS. However with EGUS V2.2 you can now create an electronic rate
schedule and attach to existing fully executed agreement (that currently has
only a PDF rate schedule). The electronic rate schedule would then pass to
eGAINS automatically.
EGUS/eGAINS Agreement and Rate Uploads (FIA, Markit) Continued
Participant IDs and Set-up
FIA Tech is reviewing system parameters and documenting set-up
considerations regarding multiple IDs based on region or exchange.
EGUS/eGAINS Agreement and Rate Uploads (FIA, Markit) Continued
Rate Verification
CCorp has appointed key people to manage data conversion and posting from
EGUS to eGAINS. Managing the conversion requires testing in advance of the
launch – ensuring the data set-ups link to the exchange trade data and result in
accurate calculations and report generation. Systems testing and verification
processes shall be distributed to users.
EGUS/eGAINS Agreement and Rate Uploads (FIA, Markit) Continued
One-to-One Link: Agreement/Account Number/Rate
EGUS rate tables allow participants to differentiate rate types. For example, a
customer entering a trade electronically is typically charged less for the
execution as compared to the firm entering the order on the customer’s behalf.
EGUS rates include:
Client Electronic
Desk Electronic
Client Pit
Desk Pit
Even though EGUS differentiates rate, exchanges may not distinguish between
methods of execution or rates within account number. Therefore, discussions
are on-going relative to capturing different rates for the same account.
eGAINS Overview (FIA)
Roles of System Providers
• FIA Technology Services
• The Clearing Corporation
• Markit Group
FIA Tech is the administrator of eGAINS. That said, the process is a
combination of effort between the participating exchanges, FIA Tech and
Markit. Operationally, the exchanges electronically send daily trade data at the
end of the trading day. Periodically the eGAINS application through the EGUS
interface obtains and loads agreement/rates. The eGAINS application cross
references the trades against EGUS agreements resulting in daily and monthend trade summaries and billing reports. At the end of the monthly billing cycle,
FIA Tech facilitates pay/collects to participant banking accounts.
eGAINS Overview (FIA) Continued
Participating Exchanges
• Eurex
• ICE Europe
• NYSE Euronext (including Liffe Amsterdam, Brussels, Lisbon, London,
Paris)
At launch, eGAINS shall support cleared futures and options give-up transactions
executed on Eurex, ICE, and Liffe.
Settlement Currency
CHF
EUR
JPY
NOK
TYR
USD
GBP
PLN
ZAR
ISK
SEK
eGAINS Overview (FIA) Continued
System Access
eGAINS Processing Agreement covers:
• Description of pay and collects
• Consequences for debit failures
• Float payment system
• Exchange permission
• Banking information
• Administrator details
System User Agreement
• Terms and conditions of using the system
eGAINS Overview (FIA) Continued
Exhibit Review
Exhibit A – Payment Schedule
Exhibit B – Form of Customer Consent
Exhibit C – Account Information
Data Mapping (CCorp)
CCorp in conjunction with the FIA linked critical fields from EGUS to eGAINS.
The fields and layout characteristics include:
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Agreement Number
Exchange
Product
Rate
Currency Type
Executing Broker
Executing Broker Account Number
Clearing Broker
Clearing Broker Account Number
Learning Environment Access (CCorp)
The Learning Environment is CCorp’s proprietary testing system. It allows
users to establish executing and clearing broker account numbers, products,
rates, currency type(s), and input test trade data.
The Learning Environment attempts to mirror the eGAINS production
environment and gives user’s the ability to peruse the system and test it’s
functionality.
Testing Module (CCorp)
Trade Load – Auto and Manual
Within the Learning Environment, CCorp allows users to manually enter test
trade data or input data into an Excel spreadsheet for system upload. The
spreadsheet file is available upon request. Please contact Marc MacQuarrie or
James Woods.
Individualized
In preparation for eGAINS launch, CCorp has dedicated resources to
coordinate user testing. Since requirements often differ between users and
firms, one-on-one attention shall be given to assist firms with using the
Learning Environment (i.e. obtaining system access, loading agreements,
verifying rates, entering test trade data). Please coordinate your testing needs
and requirements through CCorp’s Marc MacQuarrie and James Woods.
Testing Phases 1-3 (CCorp)
Due to the complexities of back office requirements and the integration of
EGUS and eGAINS, firm testing will proceed in three phases. Separating the
testing effort into distinct phases allows for a structured validation of function
and process:
Phase I, Rate Confirmation
• Firms identify the rates they will enter into EGUS
• Firms identify the rates they must enter into eGAINS direct
• Firms enter rate into EGUS and eGAINS
• Firms confirm rates in eGAINS via web pages and reports (define report
types; security access – view only and full capability; error notification)
Testing Phases 1-3 (CCorp) Continued
Phase II, Give-Up Processing
• Firms specify give-up trades to be processed according to rates in Phase I
• Firms enter trades into eGAINS
• Firms supply trade files to CCorp for loading into eGAINS
• Exchanges submit trade files to CCorp for processing
• Firms verify rate match/calculations through web pages, reports, end-of-day
data files
Phase III, Monthly Adjustments
• Firms enter adjustments through eGAINS pages
• Firms confirm adjustments through eGAINS batch cycles
• Firms confirm debit/credits through reports
Resource Links
Information, agreements, links and resources will be distributed when
complete. These include:
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Legal Agreement links
Timelines
Frequently Asked Questions (FAQs)
Learning Environment link
Spreadsheet for test trade submissions
Contacts
FIA Tech
Robert Drew, Consultant, 07812991191, [email protected]
David Adam, Consultant, 312.786.3821, [email protected]
Ron Metcoff, Treasury Consultant, 215.272.6593, [email protected]
Krystal Atha, Relations Manager, 202.466.5460, [email protected]
David Wilson, Technology Project Manager, 202.466.5460, [email protected]
Mary Ann Burns, Executive Vice President Industry Relations, 202.466.5460, [email protected]
CCorp
Marc MacQuarrie, Client Services and Support, 312.786.5732, [email protected]
James Woods, Vice President, Production Management Group, 312.786.5715, [email protected]
Markit
Tony Murljacic, Director, Head of Trade Processing Connectivity, 917.441.6349, [email protected]
Thank You for Attending