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International Capital Market Association TRAX2 – Matches, Reports & Complies Brian Eyles – Head of Business Liaison. Agenda. Overview & Benefits TRAX2 Matching TRAX2 Reports & Complies Future Developments ICMA Securities Database Questions & Answers. Agenda. Overview & Benefits
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International Capital Market AssociationTRAX2 – Matches, Reports & CompliesBrian Eyles – Head of Business Liaison
Agenda • Overview & Benefits • TRAX2 Matching • TRAX2 Reports & Complies • Future Developments • ICMA Securities Database • Questions & Answers
Agenda • Overview & Benefits • TRAX2 Matching • TRAX2 Reports & Complies • Future Developments • ICMA Securities Database • Questions & Answers
TRAX2 Phase II TRAX2 Overview & Benefits • Operated by ICMA since 1989, TRAX is a real-time post-trade/pre-settlement operational risk managment tool for transactions traded in the OTC market space.
TRAX2 Overview & Benefits • TRAX2 went live on 26 June 2006. • All existing TRAX1 users were seamously switched over to the new TRAX2 central system and database with minimal distruption. • All TRAX1 users will be required to implement TRAX2 by end of Q3 2007 • TRAX2 Repo went live in August 2006 with five major investment banks (JP Morgan, Goldman Sachs, Nomura, Credit Suisse Securities & HSBC). A number of additional firms including buy-side firms will becoming on-stream shortly. • TRAX1 and TRAX2 is now processing ~5 Million trades per month.
TRAX2 Overview & Benefits • TRAX2 supports the 15022 and 20022 (XML) messaging standards to enable rapid and easy integration with front, back or middle-office systems. • It also utilises ISO standards where available including, ISO 6166 (ISIN), ISO 10383 (MIC Place of Trade) ISO 9362 (BICs), etc. • Internet connectivity using SSL encryption • Highly competitive reporting/matching transaction costs • Central TRAX2 transaction data is on-line for 1 year
TRAX2 Overview & Benefits • TRAX2 is supported by its own dedicated web site – www.trax2.org
Agenda • Overview & Benefits • TRAX2 Matching • TRAX2 Reports & Complies • Future Developments • ICMA Securities Database • Questions & Answers
TRAX2 Matching • Enables any asset class including cash (FI & equities), repo, and on or off-exchange derivative instruments (Options, Futures, CFDs, etc. ) to be bi-laterally agreed and matched through the system. • New settlement matching model with real time exchange of standard settlement instructions (SSI) enabling firms to agree settlement details prior to the start of the settlement cycle. • Real time graphic display of unresolved transactions with dynamic real time query monitor. • Flexible matching model to meet specific firms’ business requirements.
TRAX2 Matching • TRAX2 Repo is the first confirmation system to be specifically developed for firms trading in the OTC repo space. The system enables: • Fixed or variable rate terms, BSBs or open terms entered as a single transaction incorporating both the start and end legs; both legs are matched and allocated an individual status. • Provision to add end date and closing amount post trade actions (PTAs) for open, FRN and variable rate terms; and rate, spread or price change PTAs (rate rolls) for open repos throughout its maturity. • Provision of roll-back or roll-forward facility for amending end leg details. • Support for overnight repos or any other duration including maturities >12 months. • Available for both buy and sell side firms
Agenda • Overview & Benefits • TRAX2 Matching • TRAX2 Reports & Complies • Future Developments • ICMA Securities Database • Questions & Answers
TRAX2 Reports & Complies • ICMA is applying to be an Approved Reporting Mechanism (ARM) to the FSA in the UK - TRAX is presently recognised as a Permitted Reporting System (PRS) • TRAX2 is currently compliant with Article 12 (Articles 25(3) and (5) of Directive 2004/39/EC) of the Level II Implementing Directive of MiFID (the 23 fields). • ICMA will ensure TRAX2 will continue to be compliant with any ‘super-equivalence’ that may be imposed by Competent Authorities (CAs) such as the FSA (CDSs, Proprietary Trading…)
TRAX2 Reports & Complies • Options for receipt of transaction data from firms include: • TRAX2 PC Gateway using ISO based messaging; or • TRAX2 FTP Batch (excluding ICMA reportable securities) • Options for delivery mechanism of transaction data to CAs include: • End of day batch; or • Real time via a TRAX2 CA Gateway • This will enable any asset class as denoted in the directive to be reported to any respective CA throughout the EEA – The Central European Hub.
TRAX2 Participants TRAX2 Reports & Complies
Future Developments • Phase two enhancements will include: • Partial Repo Repayment Post Trade Action (PTAs) • Queries/Reports for Repo netting opportunities and report of due coupon payments. • STP links to CSDs, ICSDs and Custodians with external settlement instruction matching status available within the TRAX2 client application and/or TRAX2 host messaging.
Agenda • Overview & Benefits • TRAX2 Matching • TRAX2 Reports & Complies • Future Developments • ICMA Securities Database • Questions & Answers
ICMA Securities Database • To support the TRAX2 system and ICMA’s end of day pricing and data products, ICMA’s securities database contains over 360,000 securities comprising: Bills; Convertibles; Equities; FRNs; GDRs; Straights and Warrants. • Source information from: Lead Managers, Clearing Houses & Data vendors • Pricing information in over 11,000 bonds is provided by TRAX and quotations received by ICMA’s Council of Reporting Dealers (CRD). • Sub-set is currently available via TRAX2 screens and downloadable for ICMA reportable instruments. • Full database is available through www.icma-info.org or data feeds.
