| |
|
 |
FAQ-eGAINS Overview
What is eGAINS? How did eGAINS come about? How does EGUS differ from eGAINS? How does eGAINS work? Who manages or administrates the eGAINS systems? What exchanges are included in eGAINS? What products are supported in eGAINS? What currencies does the eGAINS system support? How does eGAINS differ from other give-up processing systems? What is the status of eGAINS – when will it be launched? In preparation for the eGAINS launch, what are the operational timelines and user deadlines? Will there be eGAINS training for firms/users? To view additional Frequently Asked Questions, please click on the applicable link below:
» What is eGAINS?
Electronic Give-Up Automated Invoicing System (eGAINS) is a web-based billing system for processing give-up transactions at multiple exchanges.
» How did eGAINS come about?
The Futures Industry Association (FIA) spent three years helping the listed derivatives industry address inefficiencies in the give-up process. In February 2007, FIA launched EGUS - an electronic system to execute give-up agreements. Concurrently FIA has been working with the Futures and Options Association to put a system in place to manage give-up payments between executing and clearing brokers.
U.S. exchanges and clearing organizations have developed proprietary systems to automate their billing process and manage the clearing member firms’ payables and receivables (i.e. GAINS). The FIA European Chapter worked for over a decade to get a similar system in place for the European markets. Attempts to launch a similar system for the European markets were unsuccessful because the exchanges did not want to share their data with competing clearinghouses. To solve this dilemma, the FIA agreed to license GAINS from The Clearing Corporation (CCorp) and enlist the services of an independent third-party service provider (Markit Group) to run the system.
» How does EGUS differ from eGAINS?
EGUS is the FIA’s Electronic Give-Up Agreement System - a web-based system allowing executing and clearing brokers, traders and customers to execute the FIA International Uniform Give-Up Agreement electronically. eGAINS is the FIA’s Electronic Give-Up Automated Invoicing System - a web-based participant billing system for processing give-up transactions at multiple exchanges. EGUS facilitates and automates give-up agreement processing (documents) and eGAINS facilitates and automates give-up trade fee processing (payments).
» How does eGAINS work?
Given a completed give-up agreement and rate schedule in EGUS, the eGAINS system will:
- Obtain give-up agreement and rate information from EGUS (hourly downloads from EGUS to eGAINS).
- Receive the end-of-day give-up transaction file from the participating exchange(s).
- Look up the execution agreement, account, rate, and calculate the give-up transaction fees.
- Provide the participants T+1 reports and end-of-month preliminary and final reports.
- Allow participants to review trade details, modify transactions, resolve discrepancies, and confirm or reject trade changes.
- Complete the billing cycle. eGAINS automatically debits and credits the clearing and execution participants respectively.
» Who manages or administrates the eGAINS systems?
FIA Technology Services, Inc., a wholly owned subsidiary of FIA, is the administrator of eGAINS. Operationally, the exchanges electronically send trade data at the end of each trading day. Each day eGAINS downloads agreement and rate information from EGUS. The eGAINS application cross references the exchange trade data against EGUS agreements resulting in daily and month-end trade summaries and billing reports. At the end of the monthly billing cycle, FIA Tech facilitates pay/collects to participant accounts.
» What exchanges are included in eGAINS?
Participating exchanges, at the launch of eGAINS, include:
» What products are supported in eGAINS?
eGAINS supports cleared futures and options give-up transactions executed on Eurex, ICE, and Liffe. It also will support cleared OTC trades on facilities such as Bclear.
» What currencies does the eGAINS system support?
eGAINS settlements are denominated in EUR, GBP, USD and no other currencies.
» How does eGAINS differ from other give-up processing systems?
eGAINS is independently operated and provides a standard platform for multiple exchanges. |
|
