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

User training sessions shall be conducted in London June 9-13

Details regarding time and location to follow

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. Banking

PurposeReview 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)•Banking Overview and System Functionality (FIA)o What is SWIFT?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 - Firm Checklist•UPDATE: Third Party Relationshipo Front-End (Participant Set Up)o Back-End

Reports Banking

•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

Session 3. Banking: Billing Cycle, Money Flows and Month-End Adjustments

Purpose

Review the end-of-month billing cycle and procedures for managing position changes and money flows .

Fundamental Issue/Question

How are pays/collects managed?

Session 3. Banking: Banking: Billing Cycle, Money Flows and Month-End Adjustments

Agenda

• Participant Banking Instructions and Maintenance (FIA)

• Banking Overview and System Functionality (FIA)o What is SWIFT?o Confirmation of Banking Instructions (mechanics, procedures, and deadlines)

• Month-End Processing Deadlines (FIA)

• Third Party Billing (FIA and CCorp)

• Managing Accruals (FIA)

Session 3. Banking: Banking: Billing Cycle, Money Flows and Month-End Adjustments

Agenda Continued

• Reports (CCorp)

• Systems Testing (CCorp)

• Participating Firm Summary (Banking) To-Do List

• Resource Links

• Help Desk

• Contacts

Participant Banking Instruction and Maintenance (FIA)

The process of automating give-up pays and collects via eGAINS begins with the up-front documentation – eGAINS Processing Agreement. Further, in order to systemically synchronize pay and collect transmissions with the banking correspondent , FIA Tech obtained the firms’ Statement of Intent as well as detailed banking instructions.

To facilitate systems testing, FIA Tech is working closely with the banking correspondent ensuring firm-provided banking instructions and electronic payment advices generated by the correspondent flows properly to all banking constituents in advance of the launch.

Banking Overview and System Functionality (FIA)

What is SWIFT?

Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a non-profit organization comprised of member financial institutions. It is a highly reliable, efficient , and secure system for inter bank communications and transfer of funds and securities. With respect to the eGAINS banking relationship, FIA Tech’s banking correspondent acts as an intermediary for transmitting and receiving SWIFT entries.

SWIFT bridges the gap of global complexities (i.e. diverse clearing systems, banking practices, and regulations) by standardizing international pays and collects securely and cost effectively.

Banking Overview and System Functionality (FIA) Continued

Confirmation of Banking Instructions (mechanics, procedures, and deadlines)

As previously indicated, FIA Tech provides monthly pay/collect instructions to the banking correspondent and in turn facilitates fund movements through SWIFT.

Even the correspondent facilitates month-end pays and collects, it is not necessary to establish a bank account with the institution. However, as a SWIFT facilitator processing pays and collects, the correspondent must recognize the pay/collect bank and ensure money transfers to and from the organization. Therefore please provide detailed banking instructions to FIA Tech as soon as possible – no later than 30 days prior to effective date.

Please be advise of the following processing parameters:

• SWIFT payments will be facilitated through the correspondent – Financial Institution.

Banking ACH Overview and System Functionality (FIA) Continued

• Firms must instruct their bank(s) to release funds to the Financial Institution by completing a 3 rd Party Debit Authorization Form (typically supplied by your bank and filed by you, the account holder, with your bank); also known as a Direct Debit Mandate. This is a one-time set-up authorizing the release of funds.

• Give-up pays and collects are gross not net per participant.

• eGAINS recognizes London bank holidays. FIA Tech will adjust debit and credit dates to the degree the payment date(s) coincide with a London bank holiday.


Q. As an executing and clearing participant, will eGAINS net my pays and collects?

A. No. All payments are gross and viewed as unique and distinct transactions. Further, even though rates within the give-up agreement may be denominated in the same currency at multiple exchanges, clearing participants are debited on the 17 th business day and executing participants are credited on the 60th business day following the clearing firm debit. Hence the timing of pay/collects precludes netting.


Q. In the event I’m debited in error, how do I get the problem resolved?

A. If an erroneous debit (or credit for value other than what was expected) is applied to your bank account by the banking correspondent (assuming you’ve verified the pay/collect totals against the eGAINS end-of-month banking reports), please notify your bank and contact FIA Tech to research and advise.

B.

Q. What is the process for adding additional currencies into the banking model?

A. Submit a written request to Mary Ann Burns at FIA Tech indicating the currency.


Q. Will eGAINS observe holiday schedules?

A. eGAINS London bank holidays. FIA Tech shall adjust debit and credit dates to the degree the payment date(s) coincide with a London bank holiday. The dates shall be provided in advance of the settlement period. This is subject to change as exchanges and currencies are added to eGAINS.

Month-End Processing Deadlines (FIA)

Month-end processing deadlines include:

Business Day Activity/Deadline

1st Bus. Day Complete prior month processing

7th Bus. Day (8 p.m., EST) Deadline for executing firm to correct/adjust trades

15th Bus. Day (8 p.m., EST) Deadline for clearing firm to re-accept or reject trades

16th Bus. Day FIA Tech enters debits into banking systemsubject to change based on local clearing cycle requirements

17th Bus. Day Clearing firms’ accounts are debited; credit float beginssubject to change based on local clearing cycle requirements

Last Bus. Day Deadline for firms to submit bank changes (names, locations, accounts)

60 Bus. Day from debitEnd of float period (variable)

Third Party Billing (FIA and CCorp)

Third Party Character Layout Map (EGUS to eGAINS)

EGUS and eGAINS provide functionality unique to the give-up process. FIA, CCorp and Markit are working closely to link processes and map respective characters so as to effectuate third party billing. Update and specific test scenarios shall be developed to monitor report generation, trade flow, and notification.

EGUS, Maintain Rate Schedule, Direct Bill

Allows firms to settle give-up payments outside of eGAINS.

EGUS, Initiate Agreement, Bill to Party (Customer, Trader, Clearing Broker)

Customer and Trader results in settlement outside of eGAINS.

EGAINS, Bill to Third Party

Allows firms to settle within eGAINS direct with customer; suppresses fees and rate schedule from clearing firm view.

Managing Accruals (FIA)

Pay/collect match-off between the participant’s internal ledger (books) to eGAINS is the responsibility of the participant. eGAINS provides no position or rate reconciliation tool to facilitate an automated comparison.

Since the credit for executed transitions will not post to the executing firm’s bank account for 60 business days, eGAINS provides end-of-month trade, position, and pay/collect summary reports. The reports detail the debit and credit amounts FIA Tech shall publish the specific dates to which the monies shall be credited to or debited from the bank accounts (see following report examples).

Reports (CCorp)

All end of trade day reports (available T+1) as well as month-end, reports shall be available for online viewing and downloading (ASCII text files). Reports are patterned after GAINS - therefore users, familiar with the former GAINS report (i.e. GNS00001) content and layout, ought be familiar with eGAINS report content and layout.

Rate Set Differences Daily Report for Executing Participants

• GNS00019 CLEARING CORPORATION MM/DD/YY

• GIVE-UP AUTOMATED INVOICING SYSTEM (GAINS) HH24:MI:SS

• RATE SET DIFFERENCES DAILY REPORT FOR EXECUTING PARTICIPANTS PAGE:No

• CUSTOMER NAME: - XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

• CARRY PARTICIPANT: - XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

• EXECUTING PARTICIPANT: - XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

• AGREEMENT NUMBER: - XXXXXXXXXXXXXXXXXXXXX

• ==============================YESTERDAY'S RATE SETS (OLD)/TODAY'S RATE SETS (NEW)=================================================

• TRAN O TRAN CUR OLD/NEW

• DATE EXCH COM TYPE C SRC FUT RATE FRT OPT RATE ORT FEE MIN FEE MAX CODE FLAG

• ======================================================================================================================================

• XX/XX XXX XXX X X XX XXXXXXXX.XXX X XXXXXXXX XXX X XXXXXXXXXXXX XXXXXXXXXXX XXX XXX

• XXX XXX X X XX XXXXXXXX.XXX X XXXXXXXX.XXX X XXXXXXXXXXXX XXXXXXXXXXX XXX XXX

• XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

• XX/XX XXX XXX X X XX XXXXXXXX.XXX X XXXXXXXX.XXX X XXXXXXXXXXXX XXXXXXXXXXX XXX XXX


• XX/XX XXX XXX X X XX XXXXXXXX.XXX X XXXXXXXX XXX X XXXXXXXXXXXX XXXXXXXXXXX XXX XXX


• XX/XX XXX XXX X X XX XXXXXXXX.XXX X XXXXXXXX.XXX X XXXXXXXXXXXX XXXXXXXXXXX XXX XXX

• XXX XXX X X XX XXXXXXXX.XXX X XXXXXXXX.XXX X XXXXXXXXXXXX XXXXXXXXXXX XXX XXX


Trade Detail End of Cycle Report for Executing Participants

• GNS00005F CLEARING CORPORATION MM/DD/YY

• GIVE UP AUTOMATED INVOICING SYSTEM (GAINS) HH24:MI:SS

• TRADE DETAIL END OF CYCLE REPORT FOR EXECUTING PARTICIPANTS – FINAL PAGE: No.

• EXECUTING PARTICIPANT: XXXXX - XXXXXXXXXXXXXXXXXX

• ------------------------------------------------------------------------------------------------------------------------------

• P O B S

• TRADE EX CA CNTRCT STRIKE / / ORDER TRADE TR TR AGRMNT / G-U RATE G-U FEE T

• DATE EX EX COM MON YR PRICE C C NUMBER PRICE SR TY NUMBER CUR QTY S A

• ------------------------------------------------------------------------------------------------------------------------------

•

• CARRY PARTICIPANT ID: XXXXXX CARRY ACCOUNT: XXXXX CARRY DISPLAY ACCOUNT: XXXXXX EX ACCT: XXXXXX

• MM/DD XX XX XXX XX XX XXXXX X X XXXXXXXXXXX XXXXXX XX XX XXXXXXXXXXX XXX XXX X XXXXXX.XXX XXXXXX.XX X


• SUB TOTAL : XXXX XXXXXXX.XX

•

• CARRY PARTICIPANT ID: XXXXXX CARRY ACCOUNT: XXXXX CARRY DISPLAY ACCOUNT: XXXXXX EX ACCT: XXXXXX




•

• TOTALS FOR CARRY PARTICIPANT : XXXXXX

• TOTAL REVENUE : XXX XXXX XXXXXXX.XX

• LESS REJECTED TRADES : XXX XXXX XXXXXXX.XX

• NET REVENUE : XXX XXXX XXXXXXX.XX

•




•

• COMBINED TOTAL REVENUE : XXX XXXX XXXXXXX.XX


• COMBINED TOTAL NET REVENUE:XXX XXXX XXXXXXX.XX

•



• COMBINED TOTAL NET REVENUE: XXX XXXX XXXXXXX.XX

Trade Detail End of Cycle Report for Carry Participants

• GNS00006F CLEARING CORPORATION MM/DD/YY

• GIVE UP AUTOMATED INVOICING SYSTEM (GAINS) HH:MM:SS

• TRADE DETAIL END OF CYCLE REPORT FOR CARRY PARTICIPANTS - FINAL PAGE: No.

• CARRY PARTICIPANT: XXXXX - XXXXXXXXXXXXXXXXXX

• ------------------------------------------------------------------------------------------------------------------------------

• P O B S

• TRADE EX CA CNTRCT STRIKE / / ORDER TRADE TR TR AGRMNT / G-U RATE G-U FEE T

• DATE EX EX COM MON YR PRICE C C NUMBER PRICE SR TY NUMBER CUR QTY S A

• ------------------------------------------------------------------------------------------------------------------------------

•

• EXECUTING PARTICIPANT ID: XXXXXX EX. ACCOUNT: XXXXX CARRY DISPLAY ACCOUNT: XXXXXX CARRY ACCT: XXXXXX




•

• EXECUTING PARTICIPANT ID: XXXXXX EX. ACCOUNT: XXXXX CARRY DISPLAY ACCOUNT: XXXXXX CARRY ACCT: XXXXXX




•

• TOTAL FOR EXECUTING PARTICIPANT : XXXXXX

•




•




•




•




Payment End of Month Report for Executing Participants

GNS00013 CLEARING CORPORATION MM/DD/YY

GIVE-UP AUTOMATED INVOICING SYSTEM (GAINS) HH24:MI:SS

PAYMENT END OF MONTH REPORT FOR EXECUTING PARTICIPANTS PAGE: NO

ALL PARTICIPANTS (PROD & TEST) FOR THE PAYMENT CYCLE = XXXXX

EXECUTING PARTICIPANT: XXX - XXXX, XXXXXXX.

CURRENCY CODE: XXX - XXXXX

--------------------------------------------------------------------------------------------------------

CALCULATED CASH REVENUE ADJUSTED CALCULATE

-- CARRY -- REVENUE ADJUSTMENTS DISPUTED REVENUE ONLY

PARTICIPANT ACCOUNT (+) (+) (-) (=) (Y/N)

--------------------------------------------------------------------------------------------------------

XXX XXXXX $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX X



--------------------------------------------------------------------------------------------------------

TOTAL REVENUE $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX

LESS:REJCTD PMTS $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX

NET REVENUE $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX

--------------------------------------------------------------------------------------------------------

CALCULATE ONLY: $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX X

TOTAL REVENUE $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX X

LESS:REJCTD PMTS $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX X

NET REVENUE $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX X

BILL-TO REVENUE: $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX X



NET REVENUE $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX X• --------------------------------------------------------------------------------------------------------

Payment End of Month Report for Carry Participants

GNS00014 CLEARING CORPORATION MM/DD/YY

GIVE-UP AUTOMATED INVOICING SYSTEM (GAINS) HH24:MI:SS

PAYMENT END OF MONTH REPORT FOR CARRY PARTICIPANTS PAGE: NO

ALL PARTICIPANTS (PROD & TEST) FOR THE PAYMENT CYCLE = XXXXX

CARRY PARTICIPANT: XXXX - XXXXX, XXXXXXXXXXXXXXX.

CURRENCY CODE: XXX - XXXXXX

-----------------------------------------------------------------------------------------------------------

CALCULATED CASH REVENUE ADJUSTED CALCULATE

-----EXECUTING------- REVENUE ADJUSTMENTS DISPUTED REVENUE ONLY

PARTICIPANT ACCOUNT (+) (+) (-) (=) (Y/N)

-----------------------------------------------------------------------------------------------------------




-----------------------------------------------------------------------------------------------------------

TOTAL REVENUE $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX

LESS:REJCTD PMTS $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX

NET REVENUE $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX

-----------------------------------------------------------------------------------------------------------

CALCULATE ONLY: $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX X




BILL-TO REVENUE: $XXXXX.XX $XXXXX.XX $XXXX.XX $XXXX.XX X




-----------------------------------------------------------------------------------------------------------

Systems Testing (CCorp)

Systems testing will be completed in 3 Phases (Phase 1: Confirm Rates; Phase 2: Confirm Trades and Processing Requirements; Phase 3: Confirm End-of-Month Banking Cycle).

Timeline (June)

01 Jun Firms granted user access to eGAINS (Production)

eGAINS data verification (validate data received from EGUS)

Firms begin manual input into eGAINS, if needed

02 Jun EGUS to EGAINS agreement & rate load (complete by 30 Jun)

09 Jun Firm user training: data entry (in London) continues through 13 June

10 Jun Firms Confirm Rates (complete by 27 June, Phase 1)

16 Jun Confirm Firm online view of give-out and take-up trade data


Timeline (July)

01 Jul Start test cycle (see CC test approach Phase 2)

Systems training (Firm users) for month-end processing (on line June 15 - June 30)

02 Jul Test cycle reports - CCorp to run month-ends reports (June 15- June 30)

09 Jul TEST: Deadline for executing Firms to correct/adjust eGAINS trade data (June)

21 Jul TEST: Deadline for carrying Firms to re-accept or reject eGAINS trade data (June)

23 Jul TEST: Carrying Firm accounts are debited


Timeline (Aug)

01 Aug eGAINS live

05 Aug Run full cycle for July transactions; validate end-of-month reports (July) (Phase 3)

Participating Firm Summary (Banking) To-Do List

• File e-GAINS Processing Agreement with FIA Tech

• Complete Statement of Intent

• Provide detailed banking instructions to FIA Tech

• Add to EGUS Admin (Search Institution and Parties, Maintain Parties) Exchange and Firm Codes

• File 3rd Party Debit Authorization Form with bank(s)

• Forward completed copies of 3rd Party Debit Authorization Forms to FIA Tech

• Provide FIA Tech with the eGAINS test coordinator

• 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

• 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

Resource Links

Information, agreements, links and resources will be distributed when complete. These include:

• Legal Agreement links

• Timelines

• Frequently Asked Questions (FAQs)

• Learning Environment link

• Spreadsheet for test trade submissions

• Data Layout Specifications

• Phase 1-3 Test Plans

• Report Types and Detail (45 Total)

ContactsFIA Tech

Robert Drew, Consultant, 07812991191, [email protected]

David Adam, Consultant, 312.786.3821, [email protected]

Ron Metcoff, Treasury Consultant, 215.272.6593, [email protected]

Krystal Atha, Relations Manager, 202.466.5460, [email protected]

David Wilson, Technology Project Manager, 202.466.5460, [email protected]

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

CCorp

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

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

Markit

Tony Murljacic, Director, Head of Trade Processing Connectivity, 917.441.6349, [email protected]

Thank You for Attending

WELCOME eGAINS Participants Transitioning to eGAINS Information Sessions

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Transcript of WELCOME eGAINS Participants Transitioning to eGAINS Information Sessions