VOLUME 20 - BULLETIN #109

TO:	ALL CLEARING MEMBERS
FROM:	BUSINESS SYSTEMS GROUP
DATE:	April 6, 2000
SUBJECT:	Allocate & Claim Transactions via the Internet (ACT)

In an effort to minimize transaction entry and unmatched trade issues involving back office transactions, the Board of Trade Clearing Corporation is beginning a program to implement one-sided entry for the following transactions:

In addition to changing submission to one sided entry, system interfaces to clearing will change to eliminate 3270 communication and replace it with either web based browser technology or with API’s (Application Program Interface) that are being developed using the TREX record format. The scheduled launch of one-sided transactions will begin with EFPs on June 12^th, 2000. A new system is being developed that can be accessed through BOTCC®’s web page at www.botcc.com to handle these transactions. Firms will be able to access this system, which has been named ACT (Allocate & Claim Transactions), either through the Internet or through BOTCC’s new customer network.

The ACT system is being developed with six new screens. The main page will be a glossary in which the user will select their transaction by clicking on several radio buttons that narrow down the choices for proceeding to the next screen. Other screens to choose from include a trade entry screen, allocation summary screen, allocation detail screen, claim summary screen and a claim detail screen.

The first transactions that have been designated for one-sided entry are EFP’s. The selling firm, who initiates the EFP in the ACT system, can enter the trade utilizing their own trade entry system or by directly entering the trade into the web based ACT system. Trade entry for transaction type ‘9’ will no longer be valid in OTIS and these transactions will only be viewable in the ACT system. When the selling EFP transaction is entered, an API message will be generated informing the selling firm that there is a transaction to allocate. Populating the opposite firm when entering the EFP will automatically allocate the transaction to the buying firm. Several API messages will be generated - the selling firm will receive a confirmation that the allocation has occurred and the buying firm will receive an API notification that there is an EFP transaction that needs to be claimed. The buyer can then claim or reject the trade utilizing the API or the ACT system. As the short side is required to submit the transaction to be claimed by the long, the submission of an EFP by the buying firm will result in an edit error.

Volume 20 - Bulletin #109 Page 2

More information on the new ACT system will be published as the implementation date approaches. BOTCC has kept the service providers involved with the development of this system and any change in requirements for the submission and claiming of one-sided transactions.

Should you have any questions, please call or e-mail one of the following Business Systems Analysts:

BOTCC is a registered trademark of the Board of Trade Clearing Corporation