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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)

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Presentation Transcript
slide1

WELCOME

eGAINS Participants

Transitioning to eGAINS

Information Sessions

slide2
Hosts: Futures Industry Association (FIA)

Clearing Corporation (CCorp)

Markit Group

Participants: eGAINS Users (London, New York, Chicago)

slide3
Presentation Schedule (via WebEx)

3:30 – 4:30 p.m. (London time)

Agreements: Transition EGUS to eGAINS (Thursday, April 3; Tuesday, April 8)

Trade Processing: Trade Flow, Layout, Reports (Thursday, April 10; Tuesday, April 15)

Banking: Billing Cycle and Money Flow (Thursday, April 17; Tuesday, April 22)

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

slide5
To-Dos Checklists

UPDATE: Third Party Relationship

Front-End (Participant Set Up)

Back-End FIA Tech

FEEDBACK: A Formal Checkpoint

Agreement, Statement of Intent, Banking Instructions

Trade Processing

Banking Users / Participating Firms

Testing

Systems

Launch

FUTURE: Industry Enhancements

FPS Launch (banking) (FIA)

Participant Wish List (Participants)

Procedure for adding (new) FX Settlements (FIA) FIA Tech and Users / Participating Firms

Other Exchange Participants (FIA)

Reducing the Credit Window (FIA)

Resource Links

Help Desk

Contacts

slide6
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?

slide7
Session 4. Next Iteration

Agenda

To Dos – Participant Checklist (FIA)

Third Party Relationship

Front-End (Participant Set Up)

Back-End

Feedback – A Formal Checkpoint (User Feedback)

Agreements

Trade Processing

Banking

Testing

Systems

Launch

slide8
Session 4. Next Iteration

Agenda Continued

Industry Updates

Reports (CCorp)

Systems Testing (CCorp)

Participating Firm Summary (Banking) To-Do List

Resource Links

Help Desk

Contacts

slide9
Processing Overview

EurexDebtor Bank

ICEMarkiteGAINSBank Correspondent

Liffe EGUSCreditor Bank

Member Firm

slide10
Firm Checklist

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

slide11
What Is On Our To-Do List?

FIA

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

slide12
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 banking correspondent

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

slide13
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

slide14
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).

slide15
UPDATE: Third-Party Relationship, Executing Firm to Customer (FIA) Continued

Executing Firm

Reports and MoniesSet-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

slide16
UPDATE: Third Party Relationship, Executing Firm to Customer (FIA) Continued

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

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

slide17
FEEDBACK: A Format Checkpoint (Participants)

Agreement, Statement of Intent, Banking Instructions

Please comment on the application interfaces and provide insights relative to your state of readiness

Participant Comments and Responses

What is the timeline for having the above items completed (eGAINS Processing Agreement, Statement of Intent, Banking Instructions, and related participant documents)?

Documents are in final review and should be distributed to participants in the upcoming weeks. Return deadlines shall be communicated at the time of distribution.

slide18
FEEDBACK: A Format Checkpoint (Participants) Continued

Trade Processing

Please comment on the application interfaces and provide insights relative to your state of readiness

Participant Comments and Responses

Identification of trade types and method of execution will have a big impact on firms.

To the extent that firms charge different rates for a client-execute relative to a trading desk-execute, we’ve asked the exchanges to provide a dedicated method of execution trade record field. Firms have participated in the conference call with the exchanges and their technology teams and discussions are ongoing.

Method of execution involves front end work for firms also.

In the event of record layout changes, we will promptly communicate with the firms in order to provide as much time a possible to manage the system change.

slide19
FEEDBACK: A Format Checkpoint (Participants) Continued

Trade Processing

Please comment on the application interfaces and provide insights relative to your state of readiness

Participant Comments and Responses

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

We will test exchange functionality relative to top day and T+1 reversals in June. Detailed procedures shall follow.

If Eurex sends an EFP, will eGAINS charge a rate for it?

Yes, to the extent a fully-executed agreement and rate schedule delineates the commodity and EFP rate.

slide20
FEEDBACK: A Format Checkpoint (Participants) Continued

Trade Processing

Please comment on the application interfaces and provide insights relative to your state of readiness

Participant Comments and Responses

What happens if an exchange sends a trade for which there is no agreement?

In the event of no agreement for the underlying trade, the trade will appear on a daily and monthly trade report as unlinked. Further the trade will appear in eGAINS on the Trade Inquiry Update query screen.

When will the exchanges send data so that firms could test with eGAINS and their internal systems?

We expect to receive exchange production trade data beginning May 15. Shortly thereafter, Markit will make the trade information available to all participants.

slide21
FEEDBACK: A Format Checkpoint (Participants) Continued

Trade Processing

Please comment on the application interfaces and provide insights relative to your state of readiness

Participant Comments and Responses

Duration of testing is a concern - may not have sufficient time to test all functionality for parties.

To help manage the testing function, CCorp is providing a comprehensive test schedule. We ask all users to review the CCorp plan, add specific trades to test unique scenarios to the firm, and communicate with FIA Tech in the event of issues or concerns.

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?

The June 10 and 12 training sessions are designed for eGAINS users. Issues discussed include: front-end set-ups, EGUS to eGAINS mapping, systems access, trade processing, report review, test plans, billing, and money flows. June 11 is a high-level overview of eGAINS functionality.

slide22
FEEDBACK: A Format Checkpoint (Participants) Continued

Banking

Please comment on the application interfaces and provide insights relative to your state of readiness

Participant Comments and Responses

Need to ensure all pertinent currencies are included in launch (Swiss Franc, Yen, etc.) reference list formerly provided to Mary Ann.

Need update with getting these currencies in eGAINS for launch.

At launch, settlement currency include: CHF, EUR, GBP, ISK, JPY, NOK, PLN, SEK, TRY, USD,

and ZAR

slide23
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.

slide24
Test Schedule (CCorp) Continued

Pdf

Manual input (deadline June 27).

Steps to add eRate schedules to an executed agreement w/pdf already attached:

1)      Create the eRate and save to eRate Library

2)      Go to executed agreement and click on agreement ID#

3)      Click on the EDIT button in the accounts and rates box on the View and Manage screen

4)      Scroll down to the “Attach Rate Schedules” box and select the eRate from you library

5)      Click attach

6)      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. 

slide25
Test Schedule (CCorp) Continued

CCorp Test Scenarios

EGUS Agreements EGUS Account Permutations EGUS Rate eGAINS Agreement

(Customer and Trader)Executing / Clearing AccountsTable PermutationsPermutations

Customer One / One One One

Many

One / Many One One

Many

Many / One One Many

Many

Many / Many One Many

Many

slide26
Test Schedule (CCorp) Continued

Firm Questions

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.

To what extent do you have multiple execution accounts on one agreement?

To what extent do you have multiple clearing accounts on one agreement?

To what extent do you have multiple rate tables to one agreement?

In the event you use multiple rate tables for one agreement, are there product overlaps between rate tables?

To what extent will you participate in 3rd party billing (your customer pays the executing firm through the eGAINS banking module)?

Other permutations for consideration?

Firms should assess their conditions and respond via email to the above questions.

slide27
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

slide28
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

slide29
FEEDBACK: A Format Checkpoint (Participants) Continued

Testing

Please comment on the application interfaces and provide insights relative to your state of readiness

slide30
FEEDBACK: A Format Checkpoint (Participants) Continued

Systems

Please comment on the application interfaces and provide insights relative to your state of readiness

slide31
FEEDBACK: A Format Checkpoint (Participants) Continued

Launch

Please comment on the application interfaces and provide insights relative to your state of readiness

Participant’s Comments

FIA and CCorp requested the firms review end-of-day and end-of-cycle reports and data files to ensure layout and content meets expectations.

slide32
FUTURE: Industry Enhancements (Participants)

Participant Wish List

Participant Comments and Responses

Add flag to indicate bill to party within EGUS.

Markit is assessing the programming changes necessary to accommodate the change and shall advise.

Comment to participants: PLEASE review reports/communicate enhancements to end of day reports, data files, or web pages

slide33
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.

slide34
Resource Links

http://www.futuresindustry.org/

General

Timeline

Frequently Asked Questions (FAQs)

On-Boarding

eGAINS Processing Agreement

Statement of Intent

CCorp

Data Layout Specifications

Report Library

Learning Environment

Test Trades Submission Spreadsheet

Test Plan: Phases 1-3

slide35
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: support@markit.comFrom 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

slide36
Contacts

FIA Tech

Robert Drew, Consultant, 07812991191, rdrew@futuresindustry.org

David Adam, Consultant, 312.786.3821, dadam@futuresindustry.org

Ron Metcoff, Treasury Consultant, 215.272.6593, rmetcoff@futuresindustry.org

Krystal Atha, Relations Manager, 202.466.5460, katha@futuresindustry.org

David Wilson, Technology Project Manager, 202.466.5460, dwilson@futuresindustry.org

Mary Ann Burns, Executive Vice President Industry Relations, 202.466.5460, maburns@futuresindustry.org

CCorp

Marc MacQuarrie, Client Services and Support, 312.786.5732, marc.macquarrie@clearingcorp.com

James Woods, Vice President, Production Management Group, 312.786.5715, james.woods@clearingcorp.com

Markit

Tony Murljacic, Director, Head of Trade Processing Connectivity, 914.872.2905, tony.murljacic@markit.com