EGUS Project
The project has two phases. The first phase went live on 12 Feb 2007 and provides all parties to the give-up agreement the opportunity to execute all variations of the agreement online. As you can see from the chart above, EGUS has decreased the time to execute an agreement from average of 39 days to 2 days. In the second phase, firms will be able to download information contained in the give-up agreements into their in-house or vendor systems.
Participating in the FIA EGUS system
In order to participate in the FIA Electronic Give-Up Agreement System (EGUS), each system user must physically sign an Adherence Agreement and return it to the FIA. The Adherence Agreement refers to the System User Agreement which includes the terms and conditions for using the system. The System User Agreement does not need to be signed; it will appear as a click-through agreement the first time each user accesses the system.
Making the Process More Efficient
FIA estimates that the average cost of executing a give-up agreement including staff time and postage frequently exceeds $100 per agreement. Customers at a recent FIA end-user roundtable agreed with brokers that executing give-up agreements is an administrative nightmare. EGUS will allow you to:
- Eliminate mailing costs associated with give-up agreements
- Establish trading relationships more quickly
- Reduce staff time
- Keep agreements in an electronic storage facility (think disaster recovery)
- Facilitate communication with counterparties—EGUS prompts participants to update contact information
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