welcome egains participants transitioning to egains information sessions

WELCOME

eGAINS Participants

Transitioning to eGAINS

Information Sessions

Hosts: Futures Industry Association (FIA)

Clearing Corporation (CCorp)

Markit Group

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

Presentation Schedule (via WebEx)

3:30 – 4:30 p.m. (London time)

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

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

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

IV. Iterations: Implementation Feedback and Enhancements (Thursday, May 1)

On-Site Training Schedule – London

Tuesday, June 10: 10:00 a.m., 2:00 p.m. , Canary Wharf (TBD)

Wednesday, June 11: 2:00 p.m., 3:45 p.m., The Brewery, Chiswell Street

Thursday, June 12: 10:00 a.m., 2:00 p.m., JP Morgan, 125 London Wall

I. Agreements PurposeTransition and Validate EGUS Agreements and Rates to eGAINS Fundamental Issue/QuestionHow does EGUS talk to eGAINS?

Agenda

Thursday, April 3Tuesday, April 8

3:30 – 4:30 p.m. (London time) •EGUS/eGAINS Agreement and Rate Uploads (FIA)o Electronico Manualo Participant Set-upo Rate Verificationo One-to-One Link: Agreement/Account

#/Rate•eGAINS Overview (FIA, Markit)o Role of Systems Providerso Participating Exchangeso Settlement Currencyo System Accesso 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

II. Trade Processing PurposeExamine Exchange Trade Flow, Data Layout and Position Posting and Report Generation Fundamental Issue/QuestionHow can I validate my trade data?

Agenda


3:30 – 4:30 p.m. (London time) •Exchange Trade Flow and System Requirements (CCorp)o Overview: How does eGAINS worko Trade Mapping Exchange Codes Product Codes Platform Transaction Source Codeso Deadlines (Agreement Changes and

Maintenance)•Record Layout–Output Review (CCorp)o Detailed Character Layout

•Month-End Cycle (FIA)•Trade Processing (FIA)o Rateso Position Reconciliationo Pay/Collect Reconciliation

•Outputs: Reports, T+1 and Month-end (CCorp)o Confirmation / Change Processingo On-lineo Data Files and Downloads

•Resource Links•Contacts

III. BankingPurposeReview Billing Cycle, Money Flow, and Month-End Adjustments Fundamental Issue/QuestionHow are pay/collects managed?

Agenda


3:30 – 4:30 p.m. (London time) •Participant Banking Instructions and Maintenance (FIA)•JP Morgan Global ACH Overview and System Functionality (FIA)o What is ACH?o Confirmation of Banking Instructions

(mechanics, procedures, and deadlines)

•Month-End Processing Deadlines (FIA)•Third Party Billing (FIA and CCorp)•Managing Accruals (FIA)•Reports (CCorp)•Systems Testing (CCorp)•Participating Firm Summary (Banking) To-Do List•Resource Links•Contacts

IV. Next Iteration PurposeProvide Update(s) and Solicit Feedback Fundamental Issue/QuestionWhat is the next step?

Agenda

Thursday, May 1

3:30 – 4:30 p.m. (London time) •To-Dos Checklists•UPDATE: Third Party Relationshipo Front-End (Participant Set Up)o Back-End

•FEEDBACK: A Formal Checkpointo Agreement, Statement of Intent,

Banking Instructionso Trade Processingo Bankingo Testingo Systemso Launch

•FUTURE: Industry EnhancementsoFPS Launch (banking) (FIA)oParticipant Wish List (Participants)oProcedure for adding (new) FX Settlements (FIA)oOther Exchange Participants (FIA)oReducing the Credit Window (FIA)•Resource Links•Help Desk•Contacts

• To-Dos Checklists• UPDATE: Third Party Relationshipo Front-End (Participant Set Up)o Back-End FIA Tech

• FEEDBACK: A Formal Checkpointo Agreement, Statement of Intent, Banking Instructionso Trade Processingo Banking Users / Participating Firmso Testingo Systemso Launch

• FUTURE: Industry Enhancementso FPS Launch (banking) (FIA)o Participant Wish List (Participants)o Procedure for adding (new) FX Settlements (FIA) FIA Tech and Users / Participating Firmso Other Exchange Participants (FIA)o Reducing the Credit Window (FIA)

• Resource Links• Help Desk• Contacts

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?


Agenda

• To Dos – Participant Checklist (FIA)

• Third Party Relationshipo Front-End (Participant Set Up)o Back-End

• Feedback – A Formal Checkpoint (User Feedback)o Agreementso Trade Processingo Bankingo Testingo Systemso Launch


Agenda Continued

• Industry Updateso Faster Payments Services (FPS)

• Reports (CCorp)

• Systems Testing (CCorp)

• Participating Firm Summary (Banking) To-Do List

• Resource Links

• Help Desk

• Contacts

Processing Overview

Eurex Debtor Bank

ICE Markit eGAINS JPMorgan Chase

Liffe EGUS Creditor Bank

Member Firm

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

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

http://www.futuresindustry.org/

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 3 rd party

relationships Create Learning Environment (LE) IDs, passwords, and administer LE testing (upon request) Test month-end banking transmission to FIA and JPMC Create training plan and test scenarios (Phases 1-3) Facilitate user training in London (June 10-12) Compile user guideline, procedures, manuals, and related documents Establish DR procedures

What Is On Our To-Do List? Continued

Markit Train w/CCorp to assume daily operations Create user log on page and system interface Test receipt of exchange trade data Compile user guideline, procedures, manuals, and related documents (system procedures) Manage eGAINS help desk post launch Establish DR procedures

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

EGUS allows participants to list the Executing Broker, Clearing Broker, Customer, and Trader in the give-up agreement. Additionally, participants provide FIA Tech with detailed banking instructions for automated month-end pay and collect processing.

Executing Broker – the party executing customer orders on a futures exchange.

Clearing Broker – the party maintaining accounts to which the executing broker gives-up trades.

Customer – the party to whose account the given-up trades belong and shall reside.

Trader – the party authorized to place orders with the executing broker on behalf of the customer.

Working through their Clearing or Execution Firm, the third-party or customer (in order to facilitate payment to the executing firm through eGAINS), must become an eGAINS participant by completing the eGAINS Processing Agreement and submitting their banking instructions to FIA Tech. Within the EGUS / eGAINS third-party relationship, the executing broker has the ability to bill the customer and receive the execution fees through the system as opposed to invoicing the customer for payment outside of the eGAINS system. Since rates and give-up fee information is proprietary, the executing brokers may hide the rate schedule from the clearing broker (since, in third-party relationships, the clearing broker is not part of the billing process).

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

Executing Firm

Reports and Monies Set-Up and Flow

EGUS: Bill To Customer; Hide Rates

eGAINS: Bill to Third Party; Ex Code

- Customer completes Agreement

- Suppresses fees and rate schedule

from clearing firm view

- Reports are distributed to

customer not clearing firm

Clearing Firm Customer

Positions

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

1. 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

2. Bill the customer and process the payment outside of eGAINS:• Executing Firm completes the eGAINS Processing Agreement• EGUS: Bill To, Customer• EGUS: Direct Bill = Y

FEEDBACK: A Format Checkpoint (Participants)

Agreement, Statement of Intent, Banking Instructions

● What is the timeline for having the above items completed?

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FEEDBACK: A Format Checkpoint (Participants) Continued

Trade Processing

• General statement or request for feedback (CCorp to the firms) relative to the end of day reports, data files…

Participant Comments• Identification of trade types and method of execution will have a big impact on firms (response: work in

process with exchanges, scheduling conference call with exchange technology contact).• Method of execution involves front end work for firms also.• How will reversals (trade date and T+1 reversing transactions) be handled in eGAINS?• Create test scenarios to test same day and T+1 reversals• If Eurex sends an EFP, will eGAINS charge a rate for it?• What happens if an exchange sends a trade for which there is no agreement?• When will the exchanges send data so that firms could test with eGAINS and their internal systems?• Duration of testing is a concern - may not have sufficient time to test all functionality for parties.• Training Sessions (June 10-12): What will be reviewed in the 3 hour sessions? Will there be a training

manual? Can it be distributed now?


Banking

Participant Comments

• Need to ensure all pertinent currencies are included for launch (Swiss Franc, Yen, etc.). Need update with getting these currencies in eGAINS for launch.

Test Schedule (CCorp)

On-Site Training - London: June 10-12

Due to the complexities of the EGUS to eGAINS integration, firm testing will proceed in three phases (rates, trade processing, monies).

Phase 1 (June 10 – 27) - Rates

EGUS rates are electronic, pdf, or both

Electronic

Automatic upload.

Once the firm’s EGUS Systems Administrator enables the EGUS to eGAINS rate feed (EGUS: Maintain Party Permissions, Enable Rate Data Feed), electronically stored rates in EGUS will post to eGAINS without firm intervention. Firms will be able to view the EGUS rate upload to eGAINS online (through eGAINS systems access), hard-copy (GNS reports), or through an ASCII text file download. Firms should review the eGAINS and advise FIA of errors by June 2.

Test Schedule (CCorp) Continued

Pdf

Manual input (deadline June 27).

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

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.


CCorp Test Scenarios

EGUS Agreements EGUS Account Permutations EGUS Rate eGAINS Agreement

(Customer and Trader) Executing / Clearing Accounts Table Permutations Permutations

Customer One / One One One

Many

One / Many One One

Many

Many / One One Many

Many

Many / Many One Many

Many


Firm Questions

1. What is the Customer and Trader agreement type ratio (50/50)? One firm—majority of agreements were Standard Trader with Clearing Broker being billed 98% of the time.

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

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

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

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

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

7. Other permutations for consideration?

Firms should assess their conditions and respond to above questions.


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


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


Testing

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Systems

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Launch

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FUTURE: Industry Enhancements (FIA)

Association for Payment Clearing Services (APACS) and Faster Payments Service (FPS)

APACS is the UK’s payments association. FPS is a banking initiative (UK only) to improve the speed of low value payments to near real-time (essentially as if two accounts were in the same bank). FPS shall support one-time payments, standing orders, corporate bulk payments, and return payments. The system, designed by APACS is comprised of a network of member institutions (banks) surrounding the core central system. The central system will handle the actual message switching in near real-time, as well as manage the settlement of accounts at the Bank of England.

FPS shall be launched on 27th May 2008 at which point the banks shall begin to roll out the service to their customers.

FUTURE: Industry Enhancements (Participants) Continued

Participant Wish List

Participant Comments

• Add flag to indicate bill to party within EGUS.

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

FUTURE: Industry Enhancements (FIA) Continued

Procedure for Adding (new) FX Settlements (FIA)

New settlement currency requests should be directed to Mary Ann Burns at FIA Tech.

Other Exchange Participants (FIA)

Discussions are ongoing.

Reducing the Credit Window (FIA)

In the opening days of eGAINS, funds will be held by FIA Tech for 60 business days. The number of days will drop as more users are added to the system. We anticipate dropping the float period to 20 days once the amount of money flowing through the system reaches projected levels.

Resource Links

http://www.futuresindustry.org/

• 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

Help Desk

FIA Tech

Joint effort between FIA Tech London and Washington. Details pending.

CCorp

Post launch, primary support provided by FIA Tech and Markit. CCorp will provide 2nd level support to FIA Tech and Markit.

Markit

FIA EGUS and eGAINS Support:

Email: [email protected]

From 8 am to 6 pm CET: +31 20 502 5888 From 8 am to 6 pm GMT: +44 (0) 20 7260 2111 From 8 am to 6 pm Eastern Time: +1 (877) 7-MARKIT

If you cannot dial 877 number above, call +1 (914) 872-2772 and ask for EGUS support

mailto:[email protected]?subject=EGUS%20support

Contacts

FIA Tech

Robert Drew, Consultant, (b) 07812991191, [email protected]

David Adam, Consultant, (b) 312.786.3821, [email protected]

Ron Metcoff, Treasury Consultant, (b) 215.272.6593, [email protected]

Krystal Atha, Relations Manager, (b) 202.466.5460, [email protected]

David Wilson, Technology Project Manager, (b) 202.466.5460, [email protected]

Mary Ann Burns, Executive Vice President Industry Relations, (b) 202.466.5460, [email protected]

CCorp

Marc MacQuarrie, Client Services and Support, (b) 312.786.5732, [email protected]

James Woods, Vice President, Production Management Group, (b) 312.786.5715, [email protected]

Markit

Tony Murljacic, Director, Head of Trade Processing Connectivity, (b) 914.872.2905, [email protected]

mailto:[email protected]

mailto:[email protected]

Thank You for Attending

welcome egains participants transitioning to egains information sessions

Documents

london timeexchange

egains users london

london wall

trade data

london timeagreements

money flow

data layout

egus agreements