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ICE Clear ECS User Guide


Version 8.5

04 June 2018

This material may not be reproduced or redistributed in whole or in part without the express,

prior written consent of IntercontinentalExchange, Inc.

Copyright IntercontinentalExchange, Inc. 2011. All Rights Reserved.

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Date Version Description 18 October 2012

1.0 Initial draft -

10 January 2013

6.4 Updated for Platform 6.4 release

13 August 2013 6.5 Updated for 6.5.1 Release – Added Download Reports sections (updates in red)

19 September 2013

7.0 Updated for the IC7 Platform release. (Updates in red)

10 September 2014

7.2 Updated ICEU Operations UCP Transition

07 November 2016

8.1 Updated for 8.1 release

18 April 2017 8.2 Updated for the 8.2 release

20 October 2017 8.3 Updated for the 8.3 release

04 June 2018 8.5 Updated for 8.5 release


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1 Introduction…………………………………………………………………………………………………………….. ............................................... 5

2 Accessing ECS ............................................................................................................................................................. 5

3 Position Tab ............................................................................................................................................................... 7

3.1 View Positions Operation ..................................................................................................................................................... 7

3.2 Submit Morning Adj ........................................................................................................................................................... 17

3.3 Position Adjustments ......................................................................................................................................................... 19

3.4 Submit PCS……………………………………………………………………………………………………………………………………………… ......................... 21

3.5 Option Exercise .................................................................................................................................................................. 22

3.6 View Delivery Positions ...................................................................................................................................................... 26

3.7 Delivery Notices ................................................................................................................................................................. 27

4 Reports ...................................................................................................................................................................... 28

4.1 Real Time Positions Reports ............................................................................................................................................... 29

4.2 PCS Submission Report ....................................................................................................................................................... 27

5 Banking ..................................................................................................................................................................... 32

5.1 Create a new deposit ......................................................................................................................................................... 32

5.2 Withdrawing an Asset ........................................................................................................................................................ 33

5.3 Preferences - ICEU only ...................................................................................................................................................... 35

6 Delivery Settlement .................................................................................................................................................. 37

6.1 Currency and Precious Metals Deliveries (ICUS only) .......................................................................................................... 37

6.2 Energy Deliveries (ICUE only) .............................................................................................................................................. 39

6.3 Securities ........................................................................................................................................................................... 46

7 Profile Management and Broadcast Messages ......................................................................................................... 50

7.1 Member Contact ................................................................................................................................................................ 50

7.2 Email Notifications ............................................................................................................................................................. 50

7.3 Broadcasts ......................................................................................................................................................................... 51

8 Appendix – Examples of ICEU Treasury instructions .................................................................................................. 53

8.1 Federal Reserve (US Treasuries) ......................................................................................................................................... 53

8.2 Euroclear France ................................................................................................................................................................ 54

8.3 Clearstream Banking Frankfurt ........................................................................................................................................... 55

8.4 Euroclear UK and Ireland .................................................................................................................................................... 56


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8.5 Euroclear Bank (EOC).......................................................................................................................................................... 57

8.6 Clearstream Banking Luxembourg (CEDEL) ......................................................................................................................... 58


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1 Introduction

The Extensible Clearing System (ECS) is used as the treasury management and position keeping system. It facilitates the following:

The generation and settlement of intraday and overnight margin calls The management of member and Clearinghouse collateral balances Position Change Submission (PCS; also known as ‘close-outs’) Position account summaries Option exercise and expiration processing Intraday contract expires Creation of banking and clearing reports Delivery Confirmations

Unless otherwise stated, the functionality in ECS is common across ICE Clear Europe (ICEU), ICE Clear US (ICUS), ICE Clear Netherlands (ICNL), ICE Clear Singapore (ICSG) and ICE Clear Canada (ICCA) and thus this document is suitable for users of any ICE Clearing House.

Please note for brevity, the term Member is used throughout this document to refer to both Clearing Members and Exchange Members that access the ICE Clearing Systems.

Each ECS user will use a unique user ID (SSO Global ID) and password. Access to the systems can be requested from the following - ICE Clear Europe - ICE Clearing Operations – [email protected] or +44 (0)20 065 7600. ICE Clear U.S. - ICE Clear U.S. Operations – [email protected] or (312) 836-6777. ICE Clear Netherlands - ICE Clear Netherlands Operations - [email protected] or +31 (0)20 305 5155. ICE Clear Canada - ICE Clearing Operations – [email protected] or (770) 738 2101. ICE Clear Singapore - ICE Clear Singapore Operations - [email protected] or 0065 6505 0469

2 Accessing ECS

ECS is a web based application and can be accessed via the following URL:

ICEU - https://ecs.euclearing.theice.com ICUS - https://usclearing.theice.com ICCA - https://ecs.caclearing.theice.com/trade/Login ICNL - https://ecs.nlclearing.theice.com/trade/Login ICSG - https://ecs.sgclearing.theice.com/trade/Login

Members will enter their ICE assigned user ID (SSO Global ID) and password in the below login page. Once the Username and Password has been authenticated, the Positions screen is displayed.


mailto:[email protected]





https://euclearing.theice.com/

https://usclearing.theice.com/

https://ecs.caclearing.theice.com/trade/Login

https://ecs.nlclearing.theice.com/trade/Login

https://ecs.sgclearing.theice.com/trade/Login

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The user can then navigate between the Positions, Banking, Deliveries Settlement, Broadcasts, Reports, and Profile tabs. To logout, the user can either select the Logout button in the top right had side of the page or simply close the internet session.

Please note that users of ICE Clear Europe CDS will have access to all screens except the Positions and Deliveries Settlement screens.


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3 Positions Tab

The Positions tab displays a position summary for a given set of accounts and products. Through this tab, various operational tasks can be performed, described as follows. All positions for ISOC accounts can be viewed under the Customer Positions tab, where the same various operational tasks can be performed as in the Position Management tab.

3.1 View Positions Operation

To view a position summary:

1. Select the Position Management Tab to manage/view positions for the different accounts, or the Customer Positions tab for individually segregated (ICEU) customers.

2. Select the desired Position Account by clicking on the account in the list box. Multiple accounts can be selected by checking the box next to them, and all position accounts can be selected by clicking the “All” button.

3. In the Operation section, click the View Positions radio button.

4. In the Products section, click the products in which you would like to see the positions for. Multiple products can be selected by checking the box next to them. A quick search can be made by entering a product code in the Enter keywords field.

5. Click Refresh after all your selections have been made to execute a real-time Position search.

Once the page has refreshed, gross real time positions are displayed for each contract expiry, where open interest is held. Also displayed is the Last Trade Date/Expiration Date1 for each contract expiry. From this view, the Member can also invoke the following operations:

PA-T PA-Y

1 The date reflected in the field is the Final Settlement Date of the contract, as output in the GSCD contract

reference data file. Depending on the contract specification, this may not be the actual Last Trade Date.


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MA PA PCS OEA DN

3.1.1 PA-T: Today’s Position Activity

In the column titled “Select Operation” the PA-T operation allows the user to view transactions from the current

business day activity for the given product.

After clicking on the PA-T, the Today’s Position Activity box will be displayed:


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To return to the main screen select Back.

3.1.2 PA-Y: Yesterday Position Activity

This operation allows the user to view the transactions from the previous business day for a given position. To invoke this view select the PA-Y link.

The Yesterday’s Position Activity box will be displayed:

To return to the main screen select Back.

3.1.3 MA: Morning Adjustment

Morning Adjustment refers to the PCS instructions submitted against the current day’s Start of Day long/short values, based on activity from the prior business day, that are maintained within ECS to adjust the start of day position used for Open Interest reporting. This operation allows the Member to submit morning PCS instructions for a given position. To perform the operation, select the MA link

The Morning Adjustment box will be displayed:


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To edit the quantity of a long position, enter the required Long position quantity in the Desired Long Quantity (positive

integer) field and select Save. A confirmation message will be displayed:

3.1.4 PA: Position Adjustment This operation allows a Member to submit PA submissions, using the delta PCS methodology, on top day positions. To perform the operation, select the PA link:


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The PA adjustment box will be displayed:

.

To close or open a position, enter the Quantity you wish to close/open and select Save. A confirmation message will be displayed. WARNING - Users are advised that, when closing top day business, the use of both PA (Position Adjustment, i.e. delta PCS) and PCS (Desired Long) on the same position is possible, but is not recommended. Such behavior could lead to conflicting submissions. Where conflicting submissions exist, the PCS (Desired Long) submission will take priority.

Top day Position Adjustments are processed immediately, so Current/Available position quantities will reduce accordingly. Top day Position Adjustments are only valid for intraday expiring contracts, or for Equity (Exchange Code = IFLO) contracts. Top day close outs for non-expiring or EOD expiring contracts should be handled via the use of Closing Indicators at the trade level (via PTMS/ACT), or via the Gross Customer Margin (GCM) file submission.


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3.1.5 PCS: Position Change Submission This operation allows a Member to submit PCS (Desired Long) submissions on top day positions. To perform the operation, select the PCS link:

The PCS adjustment box will be displayed:

To make a submission, enter the Desired Long Quantity and select Save. A confirmation message will be displayed


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Top day PCS (Desired Long) submissions are only valid for intraday expiring contracts, or for Equity (Exchange Code =

IFLO) contracts. Top day PCS for non-expiring or EOD expiring contracts should be handled via the use of Closing

Indicators at trade level (via PTMS/ACT), or via the Gross Customer Margin (GCM) file submission.

Top day PCS (Desired Long) submissions are NOT processed immediately, so Current/Available position quantities will NOT reduce accordingly. PCS (Desired Long) submissions are held for processing during the relevant intraday expiry (or EOD for equities) process. PCS instructions will be applied only if sufficient activity has passed through the relevant position account on that day (e.g. trading activity) to support the change in open interest. If insufficient activity has passed through the relevant position account on that day (e.g. trading activity) ECS will reduce the position as close as possible to the Desired Long quantity. WARNING – Users are advised that, when closing top day business, the use of both PA (Position Adjustment, i.e. delta

PCS) and PCS (Desired Long) on the same position is possible, but is not recommended. Such behavior could lead to

conflicting submissions. Where conflicting submissions exist, the PCS (Desired Long) submission will take priority.

3.1.6 OEA: Option Exercise/Abandon Request

This Operation allows a user to enter exercise and/or abandon requests for option positions. To exercise a position, in full or partially, or to abandon a position, in full or partially, enter the position quantity you wish to exercise/abandon, then press Save.


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Once saved, a confirmation message will be displayed.

To enter exercise or abandon instructions with a customer reference attached, press the “+” icon by “Customer Reference”. Enter the volume you wish to exercise/abandon for that particular customer and then enter a customer reference in the accompanying free text field. To add an instruction for a different customer on the same position, press “+” button again and add the new instruction. Exercise instructions can be entered on any business day for American style options, and only on the expiry date for European style options. Abandon instructions can only be entered on the expiry date of the contract. Instructions can only be entered until the imposition of the Option Exercise deadline, as dictated by the Exchange Contract Rules.


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3.1.7 DN: Delivery Notice input

This operation allows the user to enter a delivery notice/tender for a position in a tender/notice period. To perform this action, select DN.

Upon clicking the DN operation the below box will pop up. Enter the number of lots you wish to submit for delivery and

confirm by clicking Save.

The below Success pop up will appear. Press Back to complete and you will revert back to the View Positions screen.

To reverse your delivery notice entry, follow the same instruction above but input a zero quantity and this will reverse

the delivery notice entered and re-adjust your position.


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3.1.8 Export Positions

To export the positions displayed on the View Positions screen, select the ”Download” link in the top right hand corner.

Positions will be downloaded in a .csv format and will contain the following columns:

Column Description

Position Account Position Accounts (e.g. XXXH to represent Member XXX House position account)

Exchange Exchange Code (e.g. IFEU, IFED)

Exchange Product Code

The Exchange assigned physical commodity code for the futures or options

contract. Note this could be different to the “Product Code” (e.g. TOMD

Exchange product codes).

Product Code Product Code

Product Type Futures or Options

Product Name Long Name of the Commodity

Expiry The expiry date or month for the contract (YYYYMM or YYYYMMDD)

Put / Call For Options, the identifier as to whether the option is a call or a put. Valid

values are “P” and “C”

Strike Price For options, the price at which the option would be exercised.

EOD Long Last night’s Positions - Long

EOD Short Last night’s Positions - Short

Adj SOD Long Start of day Long positions + Morning PCS + Transfers received up until the OI

run

Adj SOD Short Start of day Short positions + Morning PCS + Transfers received up until the OI run

yAdjusted start of day short position Today Buy Total Buy Today

Today Sell Total Sell Today

Current Long Current Real-Time Long Position


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Current Short Current Real-Time Short Position

Available Long Available Long position which can be adjusted (i.e. Current Position less volume

held for exercise/abandon or closing trades)

Available Short Available Short position which can be adjusted (i.e. Current Position less volume

held for delivery or closing trades)

Held Exercise / Delivery Requests Current Option Exercise or Futures Delivery Requests in the system. A new

submission by member will replace the existing held quantity in the system

Held Abandon Requests Current Abandon Requests in the system. A new submission by member will

replace the existing held quantity in the system

Closing Trades Closing trades (the total volume from trades executed today, marked for closing at

individual trade level)

Last Trade Date/Expiration Date Last Trade date for Futures contract

Expiration Date for the Options Contract

Underlying Commodity Code Underlying commodity code

3.2 Submit Morning Adj

This refers to PCS instructions, using the Desired Long methodology, submitted against the prior End of Day/Start of Day

long position values that are maintained within ECS to update the adjusted start of day position used for Open Interest

reporting.

To perform such adjustments, select the Submit Morning Adj operation on the left hand side of the page and press Refresh:


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This will display the Submit Morning Adjustments screen, which will display all positions based the search criteria specified.

In the Submit Morning Adjustments screen enter the Desired Long position quantity in the respective field.

To submit the Desired Long position, enter the required long position quantity in the Desired Long field and select Save. A confirmation message will be displayed:

Morning Adjustments are processed immediately, so Adjusted SOD position quantities and Current/Available position quantities will reduce accordingly.


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3.3 Position Adjustments

The Position Adjustments operation allows a User to submit their delta methodology PCS instructions on top day positions. To perform such adjustments, select the Position Adjustments operation in the left hand side of the screen and press Refresh:

This will display the Position Adjustments screen, which will display all positions based on the search criteria specified. In the Position Adjustments screen a user can enter the quantity they want to open/close in the Open Quantity or Close Quantity field and press Save.

In the Position Adjustments screen enter the Close Quantity or Open Quantity in the respective field (i.e. the specific volume quantity to increase/decrease the position by).


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i. To close a position, enter the amount in the Close Quantity field and select Save. A confirmation message will be displayed:

ii. To open a position, enter the amount in the Open Quantity field and select Save. A confirmation message will be displayed:

WARNING – Members are advised that, when closing top day business, the use of both PA (Position Adjustment, i.e. delta PCS) and PCS (Desired Long) on the same position is possible, but is not recommended. Such behavior could lead to conflicting submissions. Where conflicting submissions exist, the PCS (Desired Long) submission will take priority.

Top day Position Adjustments are processed immediately, so Current/Available position quantities will reduce accordingly.

Top day Positions Adjustments are only valid for intraday expiring contracts, or for Equity (Exchange Code = IFLO) contracts. Top day close outs for non-expiring or EOD expiring contracts should be handled via the use of Closing Indicators at trade level, or via the Gross Customer Margin (GCM) file submission.


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3.4 Submit PCS

The Submit PCS operation allows a Member to submit PCS instructions (Desired Long methodology) on top day positions. To perform such adjustments, select the Submit PCS operation on the left hand side of the screen and press Refresh:

This will display the PCS Screen, which will display all positions based the search criteria specified. In the PCS screen the user can enter the required long position in the Desired Long Quantity field and press Enter:

i. To submit a PCS instruction, enter the amount in the Desired Long field and select Save. A confirmation message will be displayed:


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Top day PCS (Desired Long) submissions are only valid for intraday expiring contracts, or for Equity (Exchange Code =

IFLO) contracts. Top day PCS for non-expiring or EOD expiring contracts should be handled via the use of Closing

Indicators at trade level (via PTMS/ACT), or via the Gross Customer Margin (GCM) file submission.

Top day PCS (Desired Long) submissions are NOT processed immediately, so Current/Available position quantities will NOT reduce accordingly. PCS (Desired Long) submissions are held for processing during the relevant intraday expiry (or EOD for equities) process. PCS instructions will be applied only if sufficient activity has passed through the relevant position account on that day (e.g. trading activity) to support the change in open interest. If insufficient activity has passed through the relevant position account on that day (e.g. trading activity) ECS will reduce the position as close as possible to the Desired Long quantity. WARNING – Members are advised that, when closing top day business, the use of both PA (Position Adjustment, i.e. delta PCS) and PCS (Desired Long) on the same position is possible, but is not recommended. Such behaviour could lead to conflicting submissions. Where conflicting submissions exist, the PCS (Desired Long) submission will take priority.

3.5 Option Exercise

Option Exercise and Abandon requests can be executed via this screen. The data displayed will be according to the search criteria entered in the ‘Position Accounts’ and ‘Product’ menus.

3.5.1 Entering an Option exercise or abandon request

i. Select the position account by clicking on the account in the list box. Multiple position accounts can be selected if required. The All link can be used to select all available positions account in the list box.

ii. Check the Option Exercise Operation.

iii. Select the product by clicking on the product in the list box. Multiple products can be selected if required. The All link can be used to select all available products in the list box.

iv. Press Refresh


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The positions can be further filtered by selecting the magnifying glass icon.

Use the drop downs to filter positions as required. To add additional filters, select the + icon. Selecting the - icon will remove a filter. Once the filters have been created press the Filter button to execute the search.

To exercise a long position, either in full or partially at Position Account level, enter the number of lots in the No. of Options to Exercise field and select Save in the bottom right corner.


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To enter an abandon request (on expiry day only), either in full or partially, at the Position Account level, enter the number of lots in the No. of Options to Abandon field and select Save in the bottom right corner.

To enter multiple exercise or abandon requests in order to associate an optional (free text) customer reference to each instruction if required, press the + button under the required position account and contract. This will add an additional line(s) for details to be entered. Please note that multiple lines can be (optionally) added in this section, to request submissions for multiple clients.

To delete an exercise or abandon request, the user must replace the previously entered quantity with ‘zero’ in the correct field and select Save. This will update the exercise or abandon request to zero.

Exercise and abandon requests at the Position Account level are not cumulative. If an exercise or abandon request has been submitted, and an additional request is required on the balance of the position, the user must enter a request on the entire position level2. For example, if a 5 lot exercise instruction has been submitted, and an additional 5 lot exercise request is required, the user must enter an exercise request for 10 lots which will overwrite the original request of 5. Customer-level submissions however are cumulative, i.e. two distinct Customer Reference submissions of 5 lots each will exercise a total of 10 lots.

Exercise instructions will always take priority over an abandon instruction. For example, assume a 5 lot exercise request and a 5 lot abandon request is submitted against a 10 lot position. Thereafter, a 2 lot position transfer is processed so that the long position is now reduced to 8 lots. When the exercise and abandon requests are processed, the outcome will be an exercise of 5 lots and an abandonment of 3 lots.

2 Unless the + button is utilized to enter explicitly separate instructions for different clients


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3.5.2 Warning Messages

Upon entering an out-the-money option exercise or an in-the-money option abandon instruction, ECS will provide the user with a warning message providing the potential financial impact of the instruction. Where the expiry reference price is not available, the system will use the previous night’s underlying settlement price for this calculation. The warning message will stipulate which price has been used:

The user must acknowledge the warning before continuing with the request, either “OK” to accept and submit, or “Cancel” to cancel the submission.

3.5.3 Email Notifications

ECS will generate an automatic email notification to a pre-defined distribution list for all manual option exercise and abandon requests entered. The email will contain the following details:

The user ID that entered the instruction

The contract and position account

The number of lots of the manual instruction

The potential financial impact of the manual instruction, represented as a negative for a potential loss, otherwise “N/A”

The price used to calculate the potential PNL impact

The price type used to calculate the potential PNL impact, i.e. ‘Reference Price’ or ‘Prior Settlement Price’

The time the instructions was submitted

Subscription to this notification can only be managed via request to the Clearing House. Unlike other notifications, the Member is not able to manage the distribution list in the Profile tab of ECS. Instead, the Clearing Manager or Access Co-coordinator must provide the Clearing House with a list of recipients they wish to add or remove from the distribution list.


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3.5.4 Manual Exercise Abandon Audit Report (MAEAA)

In addition to the email notification, ECS also provides an audit report detailing all manual instructions that were entered for a given business day. In the ECS GUI, navigate to Positions > Real Time Reports > Manual Option Instructions. The report provides details of:

The user that entered the instruction, and the time entered,

The contract and position account,

The number of lots of the manual instruction

The real time report is available in the Reports tab and can be downloaded in a .CSV format:

The MAEAA report (created at end of day) is available in a PDF version via the Reports Tab and MFT.

3.6 View Delivery Positions

This screen provides information of any open positions that are pending physical delivery.


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3.7 Delivery Notice

All deliverable positions in a tender period can be viewed in this screen. The number of lots to go to delivery can also entered here.

To enter the number of futures required to go to delivery, populate the “No. of Lots to Deliver” field and select Save. The Delivery Requests column will update with the number of lots entered. This information will also appear on the Manual Delivery Notices report in the Real Time Positions section on the Reports tab.


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4 Reports

The Reports tab allows the user to download reports produced by the Clearing House in ECS.

Within this section users can download historical reports from the Banking, Clearing, Billing and CDS (ICEU CDS Clearing Members only) sections. Reports are available in various formats (CSV, PDF and TXT) (CDS reports only) and can be downloaded individually by clicking on the required format where indicated.

If a user is assigned to more than one Clearing Member they will be able to select the Clearing Member they wish to retrieve reports for via the Member dropdown box at the top of the screen.

The user can choose to download a ZIP file containing all formats of the reports within a section for a given business date. The system will default the date to the previous business date however the user will be able to select a different date by clicking on the date field. Once the correct date has been selected, click on the ‘ZIP’ button to begin the download.

4.0.1 Banking reports

This section is available to all users associated to a Clearing Member and contains a list of all Banking reports available via ECS.

4.0.2 Clearing Reports

This section is available to users associated to Clearing Members or Trading Members and contains the reports relating to Trades and Positions.


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4.0.3 Billing reports

This section is available to all users associated to a Clearing Member and contains a list of all Billing reports available via ECS. Users assigned to Clearing Members who have associated Trading/Non-Clearing Members (NCMs) can select the Trading Member from the dropdown list should they wish to download a report for the Trading Member.

Alternatively, they have the option to download a ZIP file containing all formats of clearing reports for the Clearing Member or including all associated Trading Members for the business dates specified:

4.0.4 CDS Reports

This section is only applicable to ICEU CDS Clearing Members and contains a list of clearing reports for the CDS asset class.

4.1 Real Time Positions Reports

Real Time Reports can now be found under both the Position s and Banking tabs

4.1.1 Positions>Real Time Reports>Manual Option Instructions

This report provides members with a real time view of the Manual Option Instructions (exercise or abandon) submitted

via ECS by any user associated with that Membership. The report will show manual instructions, also providing an audit

trail confirming who entered the instruction, Username and Timestamp.


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4.1.2 Positions>Real Time Reports>Manual Delivery Notices

This report provides users with a real time view of the Manual Delivery Notices submitted via ECS by any user associated

with that Membership. The report will show manual instructions, also providing an audit trail confirming who entered

the instruction, Username and Timestamp.

4.1.3 Positions>Real Time Reports> Option Exercise Abandon

This report provides members with a real time view of the option exercise and/or abandon requests submitted via ECS,

as well as a picture of what will automatically happen to positions when the expiry is processed, based on the Reference

Price held by the system at that time. The report will show manual instructions confirming account and position

information to the related position along with potential loss (if any).

4.1.4 Positions>Real Time Reports>PCS Submission Report

This screen provides Users with a real-time view of PCS Submissions submitted on that business day by any user

associated to that Membership. The report will show instructions that were submitted via GUI and file submission.


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4.1.5 Positions>Real Time Reports>Manual PCS Audit

This report provides members with a real time view of the PCS submitted in to ECS. The report will show only manual

instructions, also providing an audit trail confirming who entered the instruction, Username and Timestamp.


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5 Banking

The Banking tab allows for the management of assets on deposit with the Clearing House. On the Asset Management page Members are able to add new asset deposits, view collateral balances and withdraw or add to existing deposits for a given settlement account:

For the management of assets on deposit for ISOC accounts, the Collateral tab is used and the necessary account is selected for the Accounts drop down menu.

The banking tab has a Requests page which displays outstanding ADW requests and also provides a status:

5.1 Create a new deposit

To create a new asset deposit in a settlement account, select the New Deposit button at the bottom of the page:

In the Create Asset Deposit Request, select the Settlement Account, the asset to deposit and complete the relative deposit details. For detailed examples on completing collateral requests, please refer to Appendix 1

Once the request has been created, the instruction is in a Pending Approval state and must be approved by a second user before it is submitted to the Clearinghouse for acceptance.


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To approve the instruction, the second user must select the Tick icon. This will invoke the Approve asset request page.

Once the user has checked the instruction, the Save button is selected to send to the instruction to the Clearinghouse.

This will set the state of the instruction to Submitted. The instruction can be deleted in a Pending Approval or

Submitted state.

The state of the instruction is set to Pending once it has been accepted by the Clearinghouse. In this state, the

instruction has been sent to the settlement bank. Upon settlement, the status of the instruction is set to Completed. This

indicates that the asset is now on deposit with the Clearinghouse in the Member’s respective settlement account.

5.2 Withdrawing an Asset

To withdraw an asset on deposit, select the Collateral tab at the top of the screen and then the Subtraction icon next to

the asset balance. Complete the withdrawal amount and select the Submit button:

Enter the relevant information for either Cash or Bonds and then select the Save button.


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Once the request has been created it will appear in the Requests tab at the top of the screen. The instruction is in a

Pending Approval state and must be approved by a second user before it is submitted to the Clearing House for its

acceptance.

To approve the instruction, the second user must select the Tick icon.

Once the user has checked the instruction, the Save button is selected to send the instruction to the Clearing House. This

will set the status of the instruction to Submitted. The instruction can be edited or deleted while in a Pending Approval

or Submitted state.

The state of the instruction is set to Pending once it has been accepted by the Clearing House. In this state, the

instruction has been sent to the settlement bank. Upon settlement, the status of the instruction is set to Completed. This

indicates that the asset is now on deposit with the Clearing House in the Member’s respective settlement account.


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5.3 Preferences - ICEU only

5.3.1 Auto Release

Under the Preferences tab, this option allows the user to set the Auto Release setting per currency for a given settlement account. After the end of day cover calling process, ECS will automatically return any excess cash on the settlement account based upon the auto release settings.

An entry of zero (0) for a given currency implies that all excess cash on the settlement account will be automatically credited to the bank account of the settlement account.

If a threshold amount is entered, e.g. 10 million, ECS will return the entire cash excess on the account once the threshold is breached.

A blank entry in the Auto Release setting implies that the auto release is inactive and ECS will retain all cash excess on deposit for the settlement account.


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5.3.2 Cover Calling

Under the Preferences tab, this option allows the user to see the currency order for the selected called currency. Users are unable to change these preferences and these can only be changes by contacting the Clearing House Treasury team.

5.3.3 Externalize Cash

As of 4th June 2018 this functionality is not yet available. For any queries please contact [email protected]



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6 Deliveries Settlement

6.1 Currency and Precious Metal Deliveries (ICUS only)

In the Deliveries Settlement tab, select the “FX” dropdown and “CLS” and “CDA” selection will appear. This screen allows

Members to enter delivery intentions on last trading and review positions on pre last trading day. Through this screen

the user can also amend standing instructions.

In the Deliveries Settlement tab, select the “Daily Metals” and Precious Metal (Gold/Silver) delivery intentions will

appear. This screen allows Members to enter delivery intentions on last trading and review positions on pre last trading

day. Through this screen the user can also amend standing delivery instructions.

To enter a full delivery intention for the full quantity displayed in the quantity box simply select the SSI id from the

relevant instruction you wish to deliver to or from and that amount and instruction will be your delivery intention

complete. You can now save this entry by clicking the save box at the bottom left of the screen. The status should now

change to complete with a green light.

If you wish to split your intention across multiple settlement instructions then click the + button next to the pending

status for the number of splits you wish to make. This will give you a splits of the instruction and will default the starting

quantity to an amount of 1 lot. Keep add lines and quantities until the remaining quantity on the top line is zero. You will

now need to select the relevant SSI for all the splits before hitting save again. The status should now change to complete

with a green light.


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You can also add multiple settlement instructions in order for you to select in your drop down in the above process. If

you select Standing Instructions from the top tab it will show all current instructions added.

Click the below add settlement instruction button from the right hand side of the screen to create a new line of

instruction.

You can populate this ssi with your own personal choice of id and name relevant to yourselves or the underlying

counterparty. The depository and bene BIC will need to be selected form the drop downs available. Once you are happy

with the populated instructions click the save button at the bottom left in order for this to be added.


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6.2 Energy Deliveries (ICEU Only)

Clearing Members participating in the physical delivery of Power, Gas, EU Emissions and U.S. Environmental products need to

confirm their final positions to ICE Clear Europe (ICEU) using delivery screens available in ECS.

EU Emissions Confirmations (Daily/Monthly/Auction)

Once logged into ECS, Select “Deliveries Settlement” followed by “Energy”. You will now be presented with 4 Product group

options, Select “EU Emissions”.

You will now see “Intentions Today”, “Upcoming Expiries” and “Audit”

“Intentions Due Today” will need to entered today

“Upcoming Expiries” shows contracts that have an entry deadline of the following business day, but can be entered

today if desired. Functionality of this screen is identical to the “Intentions Due Today” screen.

“Audit” shows a list of actions made in the screens by user and time of change/submission.

Confirming Positions

Once the “Intentions Due Today” tab has been selected, “Products” requiring Confirmation will show under the “Products”

section.

To select the product you wish to work on simply tick the box next to it.


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If you want to work on more than product at once then simply tick as many boxes as required.

For all EU Emission expiries (Daily/Monthly/Auction) you must confirm your position by selecting the relevant EU Registry

account number from the drop down list next to the position. As you confirm a position the status of that position will change

from “Pending” (Red) to “Valid” (Green). If an account you wish to select is not available from the drop-down list, contact ICEU

Operations to request the addition (or removal where applicable).

Continue selecting registry accounts until you have confirmed all positions.

Then Click the “Save” Icon at the bottom of the page.

You will now be presented with the below pop-up box:

Click “Yes” to save the changes which will give the following pop-up which can then be closed.


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You have now confirmed your positions, although you can amend the details you have entered until the submission deadline

presented on the right hand side of the screen.

Natural Gas/Electricity Confirmations


options, Select “Natural Gas” or “Electricity”, as required.





“Audit” shows a list of actions made in the screens by user and time of change.


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section.


If you want to work on more than one product at once then simply tick as many boxes as required.

For all Natural Gas/Electricity expiries (Daily/Monthly) you must confirm your position by selecting the relevant shipper code

from the drop down list next to the position. As you confirm a position the status of that position will change from “Pending”

(Red) to “Valid” (Green). If a shipper code/client you wish to select is not available from the drop-down list, contact ICEU

Operations to request the addition (or removal where applicable).

If you have more than one underlying client, you can simply split the position in question by clicking the “+” Icon under the

contract name.


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You can add as many splits as required, just enter the relevant quantities and select the correct shipper code/client from the

drop down menu.

Once a position has been split the “Remaining Quantity” field will decrease until the full position has been allocated a shipper

code.

The trash can icon can be used to delete splits made in error.

Once happy with your input just click Then Click the “Save” Icon at the bottom of the page.



You have now confirmed your positions although you can amend the details you have entered until the submission deadline


U.S Environmental Confirmations


options, Select “US Environmental”


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“Audit” shows a list of actions made in the screens y user and time of change.



section.



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For all US Environmental expiries you must simply confirm your position by either clicking the individual “Confirm Position” box

or the “Confirm Position” box in the header row which automatically ticks all boxes for all positions. As you confirm a position

the status of that position will change from “Pending” (Red) to “Valid” (Green).

Then Click the “Save” Icon at the bottom of the page.



You have now confirmed your positions although you can amend the details you have entered until the submission deadline


6.3 Securities


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Clearing Members are required to input, for each position account, Standard Settlement Instructions (SSIs) for any equity or bond settlements (“securities”) arising from ICE delivery obligations.

ICE Clear Europe settle locally in Frankfurt, France, Netherlands, Switzerland, Turkey and UK and Ireland. ICE Clear Netherlands settle locally in France, Netherlands and Belgium. All other settlements take place via Euroclear Bank. The list below provides the CSDs through which ICE trade settlements will be conducted:

Clearstream Banking Frankfurt (via T2S)

Euroclear Bank

Euroclear France (via T2S)

Euroclear Nederland (via T2S)

Euroclear UK and Ireland

Six Sis Ag

Takasbank

The SSI screen is accessed via the Deliveries Settlement > Securities menu on the left. Through the SSI screen you will be

able to choose the relevant position account from the drop down box titled Position Account, set to DEFAULT in the

below screenshot. This will be available in both the bond and equity tabs found underneath “Member” name:

Members are required to input SSIs for ALL position accounts that they intend to deliver/receive physical bonds/equities.

This includes the default position account and the accounts of their Non Clearing Members (NCMs if applicable) that

intend to deliver/take delivery of bonds/equities.

However, entries under the “DEFAULT” Position Account are valid to cover ALL position accounts. Meaning that those

“DEFAULT” SSIs will be used by ICE to settle transactions generated from any of that Member’s Position Accounts.

6.3.1 Entering Default SSIs

The Default SSI entry allows the Member to define a default set of SSIs that are applicable to all underlying position accounts, including that of their Trading Members. So in effect, if a member has only one SSI for the relevant CSD that you will be used for all of their business, than the member can populate the DEFAULT position account field and this will be used for ALL position accounts and NCM positions that go to delivery.

Once a set of DEFAULT SSIs are entered the Member is still able to define a different set of SSIs for individual position accounts without compromising the DEFAULT instruction. The system will only use the DEFAULT instructions for position accounts where SSIs have not been defined. Subsequent updates to the DEFAULT SSIs do not overwrite SSIs that have been defined for individual position accounts. Should you wish to use the DEFAULT SSIs for a position account that has different SSIs you are required to delete those different SSIs.

6.3.1.1 Example


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Clearer YIM has two NCMs, XXX and ZZZ, which results in 7 position accounts that require SSIs:

YIMH

YIMC

YIMD

XXXH

XXXD

YYYH

YYYD

Of the 7 position accounts, XXXH and XXXD require different SSIs to the rest of the accounts. To achieve

this set up, YIM uses the “DEFAULT” setting to define a set of SSIs that will apply to all 7 position

accounts. However, since XXX require different SSIs, a YIM user will enter these in the XXXH and XXXD

position account entry screen.

Thereafter, if the Member wishes to use the default SSIs for XXX business instead, a YIM user must delete the entries made for the XXX position accounts. Updating the default SSIs will not overwrite the unique entries for the XXH and XXD position accounts.

The above approach is the preferred set up for Clearing Members who use one set of SSIs for all or majority of settlements.

6.3.2 Entering SSIs for individual position accounts In addition to the “DEFAULT” setting, Members may choose to enter individual SSIs for each position account. This is done by navigating to the respective position account (in the example below this is displayed YIMH) and entering the relevant details for each CSD. Note, that SSIs must be entered for each position account through which an equity or bond settlement may be processed, unless it is satisfied by the submitted DEFAULT SSIs.

Please note that the required information on the screen differs for each CSD. This is displayed in the table below:


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CSD CSD Account Beneficiary BIC Beneficiary

Safekeeping Account

Clearstream Banking Frankfurt Required Required Optional

Euroclear Bank Required Not required Not required

Euroclear Bank U.S. Required Not required Not required

Euroclear France Required Required Optional

Euroclear Nederland Required Required Required

Euroclear Belgium Required Required Optional

Euroclear UK and Ireland Required Not required Not required

Six Sis Ag Required Required Optional

Takasbank Required Required Optional

6.3.3 Entering SSIs for a Member using a settlement agent:

CSD Account: Account at the CSD through which the delivery of bonds or equities will occur.

Beneficiary BIC: Member BIC - not the settlement agent.

Beneficiary Safekeeping Account: Member safekeeping account at CSD

6.3.4 Entering SSIs for a Member who wants to use a Euroclear account to settle in one of the local

markets that ICE Clear Europe settles at:

CSD Account Number: Euroclear account number at Local CSD

Beneficiary BIC: Member BIC

Beneficiary Safekeeping Account: Member safekeeping account at Euroclear Bank

6.3.5 Entering SSIs for a Member who wants to settle via a bridge from Euroclear Bank to

Clearstream Luxembourg:

CSD Account Number: Clearstream Luxembourg account number, which must be preceded by the

letters CEDE followed by a forward slash e.g. CEDE/*****

Beneficiary BIC: This should be the Clearstream Luxembourg BIC code CEDELULL

Beneficiary Safekeeping Account: Member safekeeping account at Clearstream Luxembourg, but this is

optional

6.3.6 SSI Deadline


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Settlement instructions can only be entered before 10:00 London time. ECS will prevent the entry of SSIs after this time

and the below notice will be displayed:

If entries or updates are required after this time, please contact ICE Clearing Operations.

7 Profile Management and Broadcast Messages


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This tab allows the User to manage the following profile settings: 7.1 Member Contact This view displays the Clearing House’s key contact information for the Member. The Member should contact the Clearing House should any information require updating.

7.2 Email Notifications

The Clearing House will send out automatic email notifications notifying the recipients of a specific clearing event. The User is able to specify the recipients of these notifications via the Email Notifications screen. Users who are assigned to more than one Member mnemonic are able to specify the Member for which they wish to set up a notification subscription, via the “Member” drop-down list at the top of the screen.

Unlike the rest of the notifications, subscriptions to the Manual Option Instruction(s) or Manual Delivery Instruction(s) notification cannot be edited/maintained by the User, due to the perceived importance and sensitivity of those notifications, but they can be viewed. To edit, recipients of these notifications, they can be added or removed by contacting the Clearing House Operations team.


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For those that can be edited, to add a recipient, enter the email address in the Addresses box and press Save. More than one address should be separated by a semi-colon (“;”) and a following space. Below is a brief description of the email notifications available:

Auto Release Settings - This notifies the member if there is any change to the member’s auto release settings

CVR File Submission Status - This relates to LSOC accounts

Customer Account Reference File Submission Status - This relates to ISOC accounts. Members can upload a file to create ISOC accounts

End of Day Cash Call - If the member has an overnight margin requirement this notification will advise of the currency, amount and which margin account it refers to

End of Day Cash Withdrawal rejected - This will notify the member if they have had a cash withdrawal rejected

End of Day Processing Completed - This will notify the member once our end of day process has completed

Expiring Collateral - Notifies the Member of deposited non-cash collateral which is approaching maturity..

Externalized Cash Postings - This notifies the member if there is any change to the member’s externalized cash postings

GCM File Submission Status - Once the member has submitted a GCM file, this will notify the member as to if it is accepted, rejected or has errors

Incomplete FX Delivery Intentions Reminder - Provides a reminder to Members that intentions are incomplete or outstanding.

Intra Day Cash Call - This notifies the member if there is an intra-day margin call requirement

Manual Delivery Instruction(s) - If a member enters a delivery instruction within ECS this will send a notification detailing the submission and the user who submitted. For security purposes, the addresses can only be entered by contacting the Clearing House Operations team.

Manual Option Instruction(s) - If a member enters a manual exercise/abandon instruction within ECS this will send a notification detailing the submission and the user who submitted, including a potential Loss (PNL) indicator, based on the price held within the system at the time of submission. For security purposes, the addresses can only be entered by contacting the Clearing House Operations team.

PCS File Submission Status - Once the member has submitted a PCS file, this will notify the member as to if it is accepted, rejected or has errors.

7.3 Broadcasts

Throughout the day the Clearing House will broadcast messages relating to clearing events. A user is alerted of any broadcast messages via a ‘Notification Bell’ in the top right hand corner of the screen.

When a user hovers their mouse pointer over the Notification Bell the messages will be displayed. of These broadcasts are displayed on the top of the screen in ECS:


mailto:Operations

mailto:Operations

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The user can view all broadcasts for the current clearing day by selecting the Broadcast Messages menu. There is a Refresh button at the bottom-right hand side of the screen, to update with the latest broadcasts.

Prior day’s messages can also be selected by selecting the necessary date from the drop-down menu.


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8 Appendix - Examples of ICEU Treasury instructions

8.1 Federal Reserve (US Treasuries)

CSD Account: FED mnemonic counterparty

CSD Sub account: client account at FED participant

Examples: BANK OF NEW YORK/PARIBAS CITIBANK NYC/CUST

ICE Clear settlement details:

JPMorgan Chase US ABA 021000021

For House and all other non-FCM accounts

- FED mnemonic: JPMCHASE/IECLRCLEAR

- Account: G68702

FCM Client segregated accounts (W and Z):

- FED mnemonic: JPMCHASE/IEDCLEARUS

- Account: G68713

Instruction Deadline: 17:00 (UK time)

Maximum amount per instruction is 50 Mn


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8.2 Euroclear France

ICE Clear does not support domestic settlement at Euroclear France. Deliveries can be made from your account at

Euroclear France to ICE Clear account 14800 at Euroclear Bank (Cross Border)

CSD Account: EX [Euclid Equivalent of EGSP]

Examples: EX98912 BNP PARIBAS (EGSP/30)

EX98648 CITI BANK PARIS (EGSP/186)

ICE Clear settlement details (Euroclear Bank):

ICE Clear Europe

EOC participant: 14800



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8.3 Clearstream Banking Frankfurt

ICE Clear does not support domestic settlement at Clearstream Frankfurt. Deliveries can be made from your account at

Clearstream Banking Frankfurt to ICE Clear account 14800 at Euroclear Bank (Cross Border)

CSD ACCOUNT: EX[Euclid Equivalent of DAKV]

Examples: EX69447 CITI BANK FRANKFURT (DAKV 7372)

EX54390 BNP PARIBAS FRANKFURT (DAKV 7259)


ICE Clear Europe




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8.4 Euroclear UK and Ireland

CSD Account: [participant number counterparty at EOC UK (CREST)]

Examples: 5DOAD CITI BANK UK

303 GOLDMAN SACHS


ICE Clear Europe CREST: 6NUAA



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8.5 Euroclear Bank (EOC)

CSD Account: [participant number EOC BANK]

Examples: 94589 Goldman Sachs


ICE Clear Europe



ATTENTION: All ICE instructions contain the daylight indicator. Settlement can be made in the overnight settlement

window however, should Clearing Members prefer to settle after this window “daylight” should be quoted on the

counterparty instruction.


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8.6 Clearstream Banking Luxembourg (CEDEL)

ICE Clear does not support domestic settlement at Clearstream Luxembourg. Deliveries can be made from your account

at Clearstream Banking Luxembourg to ICE Clear account 14800 at Euroclear Bank (Bridge).

CSD Account: CEDE/[participant number CBL]

Examples: CEDE/30180 KAS BANK


ICE Clear Europe



ATTENTION: All ICE instructions contain the daylight indicator. Settlement can be made in the overnight settlement

window however, should Clearing Members prefer to settle after this window “daylight” should be quoted on the

counterparty instruction.

END


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