VOLUME 20 - BULLETIN #153 Allocate & Claim Transactions via the Internet (ACT)

VOLUME 20 - BULLETIN #153

TO:	ALL CLEARING MEMBERS
FROM:	BUSINESS SYSTEMS GROUP
DATE:	May 16, 2000
SUBJECT:	Allocate & Claim Transactions via the Internet (ACT)

As previously announced in Volume 20 – Bulletin # 109, the 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. Please be aware that by accessing this application via the Internet response time cannot be guaranteed. We suggest that firms access these applications via the Intranet available through the Customer Network.

After June 12^th, EFP transactions will edit if entered into OTIS. These transactions will no longer be viewable in OTIS. They will only be accessible through the ACT system. All current users that have access to OTIS will have access to the ACT system. A new password will be assigned for initial entry. This password can then by synchronized with the users OTIS password for ease of transition.

Only Selling EFP transactions can be entered via MQM TREX messages or by using the Summary Creation screen in the ACT system. An API message will be generated confirming that a selling transaction has been entered. The Buyer will receive an API message indicating that there is a transaction to claim. To claim this transaction, an API message can be submitted using the TREX record format or the transaction can be claimed using the ACT system. Once claimed, API messages will be generated to both the Buyer and Seller confirming this transaction. MQM messages for the ACT system will be generated Real Time. There will be no RJE feeds created for these transactions. If MQM fails or if an emergency arises, an end of day FTP file will be created containing all of these transactions.

Attached you will find the new TREX record block that has been developed, EFP Business Rules that have been defined for this project, and a matrix that has been developed to facilitate API messages that will need to be used when

transmitting and receiving these transactions. A new TREX record A7 block was developed to allow the submitting side of a one-sided transaction to supply the opposite firms account number. The Subcommittee felt that this would aid the opposite side of the transaction to identify where this trade would reside.

The following is a list of hardware, software, and other requirements, which provide optimum performance:

Without the above listed requirements, users will be unable to access this application.

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

1. Only one side of an EFP Trade will be entered in the trade entry systems. The Seller will enter the trade.

2. A browser based on-line system will be provided to enter EFP trades. The system will be accessible from the BOTCC web site. The OTIS system will not be used.

3. Position updates will occur when the EFP is claimed. A buy and sell record will be generated by the ACT system and merged into the clearing process immediately.

4. Reversals can be performed on claimed transactions.

5. The EFP and ACT data will be kept on the database for a rolling week (i.e. Wednesday to previous Tuesday, Thursday to previous Wednesday…) and the system will purge data. The cleanup program will be parameterized to allow for flexibility in the cleanup time line.

6. EFPs can be given up. The ACT system will make use of the existing Give-up software to create the give-up data and users will need to go into the existing Give-up system or use the Give-up API (GAPI) to process their data. When the Give-up functionality is incorporated into the ACT system, the existing Give-up system will be disabled and the Give-up trades will be processed by ACT.

7. A new TREX block (A7) will be used to allow entry of a carrying firm’s account number for an allocation.

8. Over Allocations are not allowed.

9. Over Claims are not allowed.

(This is used for including an Opposite Firm Account on a One Sided Trade Transaction)

Used for designation of the opposite firms' account number when submitting a one sided trade.

Opposing Firm’s Account Number in the situation of a one-sided trade. The ACT project uses this block to bring in the opposing firm’s account number for a one-sided trade through use of the ACT API.