Give-Up Projects/eGAINS
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Introduction
Project Overview
How eGAINS Works
Supporting FCMs for eGAINS
Fee Structure
FIA Tech Responsibilities
Markit Responsibilities
ICE Responsibilities 
eGAINS User Testing Guide v3


Introduction

The Futures Industry Association has been working for the last five years to reduce inefficiencies in the give-up process. The most inefficient aspect of the give-up process is the billing and collecting of fees between executing and clearing brokers. eGAINS is the give-up invoicing system licensed by FIA Tech on behalf of participating futures exchange clearing members to facilitate the calculation, invoicing, and payment of firm give-up fees. eGAINS receives give-up data from futures exchange clearing systems and provides previous month and current month-to-date views of clearing firms' give-up payables and receivables. To facilitate the calculation of give-up fees, eGAINS continuously retrieves give-up agreements from EGUS, which is an industry-wide electronic give-up agreement administration system.  eGAINS matches give-up trades to give-up agreements using the executing and carrying exchange firm codes, and executing and carrying account numbers. After a give-up is matched to an agreement, eGAINS finds the appropriate give-up fee for that transaction, using detailed criteria such as futures/options, spread codes and product codes.

 

Project Overview

FIA Technology Services, Inc., a wholly owned subsidiary of FIA, has licensed the GAINS application system from CCorp. FIA Tech has outsourced the operation of eGAINS to Markit Group, a respected provider of automated solutions to the financial services industry. Markit built EGUS for FIA and currently operates and supports the system. This solution is designed to assure the confidentiality of the data.

FIA Tech will enter into agreements with participating exchanges to provide their data to the system. Eurex, ICE Futures and Liffe are the first exchanges we have approached to provide data. We plan to make the system available to additional exchanges in the North and South America, Europe, and Asia in the future.

FIA Tech will also put in place agreements with executing and clearing brokers to use the system. FIA Tech has commitments in principle from 16 major clearing firms to participate in the system. We are in the process of contacting executing brokers to invite them to participate.

FIA Tech will be governed by a board appointed by the FIA board. The FIA Tech board will be advised by a committee of participating firms.

How eGAINS Works

  1. The executing broker (XB) enters the customer give-up agreement, account, and rate information via eGAINS or downloads the information from EGUS.
  2. The "bill to" participant or clearing/carrying broker (CB) reviews the give-up agreement, account, rate, and trade information. The CB can reject account, rate, and trade information.
  3. Participating exchanges send cleared give-up trade data to the eGAINS System at the end of each business day.
  4. eGAINS calculates fees based on a match of executing account, carrying firm, and account information.
  5. eGAINS automatically generates pays and collects between the counterparties.
  6. eGAINS pulls the necessary funds fromtheCB account and pays XB according to the payment schedule (see page 3).

Supporting FCMs for eGAINS

citibank
db
goldsachs
hsbc
jpmorgan

morganstanly
newedge
rbs
 
ubs
 

Fee Structure

The FIA Tech board of directors sets the fees for eGAINS. As the number of firms and exchanges in the system increases, the fee will be reduced. The eGAINS fee for 2012 is split equally between the executing and clearing broker and is based on volume. 
• The fee for matched contracts is USD$0.0125.

The fee is payable in USD on the Credit Date. Using JPMorgan ACCESS, on the 20th business day after debiting the clearing broker's account, FIA Tech will credit the executing broker's account and can debit the fee from the executing broker's USD account or invoice according to the broker's instructions. All fees are due within five business days of Credit Date. 

FIA Tech Responsibilities

FIA   Tech Responsibilities

Business Operations

Billing and Banking

Establish Banking Relationships with Firms

Impose Penalties for non payment

Process adjustments for non-paying firms/ customers

Establish the framework for new currencies as needed

Collect eGAINS fees from firms

Monitor debits from carrying firms and credits to executing   firms

Assist firms with reconciling trades to fees

Calculate eGAINS fees for participating firms



Participant Implementation

Step by step administrative set up of participants, users and training data in learning environment

Provide current training documents

Provide current overview presentation

User training for eGAINS and web-based report distribution

Setup firms and users in QA and Production

Set up FIA administration and control environment

Conduct system user group conference calls to coordinate firm issues



Implement exchange interfaces

Test data acceptance with participating exchanges

Define specifications for exchange interface files

Coordinate file transfers between exchanges and Markit

assemble exchange working groups for onboarding exchanges and firms


Support and Dispute Resolution

Assist first-line support during transitional period

Provide second-line support after transitional period

Assist firms with their reconciliation processes

Work with firms and exchanges regarding questions about trade files



Ongoing Project Management and Administrative Support

Create new members/accounts

Security access control/password management

eGAINS Software Provision

eGAINS software installation

Assistance in setting up Markit operational environments

Data management

Import EGUS agreements for firm onboarding

Periodically audit EGUS agreements for completeness

Import account number rules for firms

Import trade changes for firms

Operations Training

Train ICE personnel on eGAINS

Train Markit on eGAINS Operational tasks



Technical Operations

Monitor system operation

Manage customer communication during production problems

Manage production problems with Markit technical staff



Project Management

Develop requirements for future releases

Test functional enhancements on behalf of firms


Markit   Responsibilities

Business Operations

Technical Operations

Data Aggregation

Receive exchange files for processing

Work with exchanges for missing files if not received by 11 pm

Identify when duplicate transmissions are received

Back up files for recovery purposes



Facilities Management

Hosted technology management

Production, testing/development, disaster recovery environments

DR on a warm standby basis, different location to production environment

Staff data centers: US and Europe


Systems Management

Monitor Application server resources for usage statistics

Monitor Database server resources for usage statistics

Monitor Web server resources for usage statistics

Server statistics should measure/monitor disk space, memory, CPU utilization, network bandwidth

Alert FIA Tech, Markit when resources approach problem thresholds

Archive data files and logs

Monitor for the availability of the physical servers (application, web, database)

Alert if any server experiences problems

Provide for DR recovery

Execute regular disaster recovery tests

Maintain Oracle database configurations for performance tuning

Maintain app/web server configurations for performance tuning


Applications Management

Execute scripts necessary to facilitate eGAINS daily job schedule

Provide for conditional execution (1st - 10th bus day, 16th bus day, EOM)

Distribute end of day files to report folders for firm distribution

Monitor application logs and alert FIA Tech when exception conditions are found

Monitor database logs and alert FIA tech when exception conditions are found (from   application)

Monitor the eGAINS UI for availability

Monitor the eGAINS activity date for correctness

Monitor the contents of the report folders for correctness

Monitor the Weblogic console for exceptions

Monitor Oracle performance consoles for exceptions


Project Management

Coordinating the receipt of new exchange files

Testing new network configurations with new exchanges

Deploying new releases


ICE Responsibilities

Business Operations

None



Technical Operations



None

Ongoing Project Management

Managing   eGAINS Release development and testing

Identify software defects; implement fixes



Product Enhancement

Develop enhancements as mutually agreed

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