VOLUME 21 – BULLETIN #063
TO:
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ALL CLEARING MEMBERS
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FROM:
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BUSINESS SYSTEMS GROUP
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DATE:
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March 27, 2002
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SUBJECT:
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Allocation and Claim Transaction System (ACT) Version 2.1 Upgrade
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The next phase of the Allocation and Claim Transaction System (ACTTM) is scheduled to be implemented on Friday, April 5, 2002. Version 2.1 of the ACT System will include the processing of Misclears, Transfers, Average Price Give-ups, Average Price Transfers, and the ability to memo add Give-up transactions.
New Functionality
All transaction types will be processed through the ACT system according to business rules using the one-sided entry process. The ability to enter Misclears, Transfers, APS transfers, and APS memo group adds will no longer be supported through the OTISTM system. Details pertaining to each transaction and enhancements are provided below.
• Misclears: Trades cleared in error will be backed out through the ACT System, with the exception of SLEDS transactions. Back out of differential spread trades will still be processed through two-sided entry using ‘E’ as the Transaction Type. The firm that originally cleared a sell will be required to initiate a Misclear transaction. Firms have the option of initiating a Misclear through the following methods: 1) using a database accessed through the ACT System that will contain cleared data for the previous four business days allowing the user to mark a trade as a Misclear, 2) manually keying the transaction through the ACT System using the ‘Create Summary’ screen, 3) submitting via an Application Program Interface (API), or 4) going through the firm’s bookkeeping system using the current TREX format. Misclears initiated through use of the database, ‘Create Summary’ screen and API will use From/To logic. The initiating firm will be the ‘From Sell’ clearing an offsetting buy position, while the claiming firm will be the ‘To Sell’, clearing an offsetting sell position. If a firm chooses #4 to initiate a Misclear, the Misclear will be submitted as an offsetting buy position with a Transaction Type ‘3’, for both future and option contracts, using the TREX record format. The Clearing Corporation will accept these positions, and convert them to the From/To logic format, loading a ‘From-Sell’ into the ACT System. For additional information please refer to Volume 22 – Bulletin #49. All applicable API messages sent back to firms will contain a ‘3’ in the Transaction Type field. Please refer to the one-sided entry clearing matrix below for details pertaining to Trade Register Data File detail records.
• Transfers: The firm where the positions currently reside (or the From firm) will initiate the Transfer transactions. Firms have the option of initiating position transfers using the following methods: 1) Manually keying the transaction through the ACT System using the ‘Create Summary’ screen, 2) submitting via API, 3) going through a firm’s bookkeeping system using the current TREX format, 4) or submitting a diskette to the Clearing Corporation. Option #4 will require both firms to submit a transfer file via diskette, which will be matched and displayed in OTIS Trade Inquiry screens. Transfers initiated through use of the ‘Create Summary’ screen and API will use From/To logic. If a firm chooses #3 to initiate a Transfer, the Transfer will be submitted as an offsetting buy or sell position as a Transaction Type ‘8’, for both future and option contracts, using the TREX record format. The Clearing Corporation will accept these positions and convert them to the From/To logic format, loading a From-Buy or From-Sell into the ACT System. For options, firms can still submit a From-Buy or From-Sell Transfer as an ‘H’ card. All applicable API messages sent back to firms will contain an ‘8’ in the Transaction Type field.
Additionally, a feature has been added that will allow the firms to produce an equity run using the previous day’s settlement price. This feature will give firms the ability to verify the accuracy of transfer positions by allowing them to cross check against a firm-produced equity run or customer statement.
• Average Price Give-ups/Transfers: Firms will now be allowed to give-up or transfer positions that also include an actual average price or a rounded average plus residual per contract through the ACT System. To give-up or transfer an Average Price transaction, firms will be required to include the A8 block of the TREX record layout that contains actual average price and residual information. Firms will have the option of entering the trade directly into the ACT System using the ‘Create Summary’ screen.
• Memo Adds of Give-up Transactions: Firms will now have the ability to memo add pit and a/c/e Give-up transactions through the ACT System, using the ‘Create Summary’ screen and selecting the appropriate session indicator.
ACT Give-up Reversals: Firms will now have the ability to reverse prior ACT give-ups allocated and claimed in error. Firms have the option of initiating a ACT give-up reversal through the following methods: 1) using a database accessed through ACT System that will contain cleared ACT give-up data for the previous four business days allowing the user to mark a ‘From’ give-up as a Reversal. The database will not include give-ups processed in OTIS. Or 2) manually keying the ACT give-up Reversal through the ACT System using the ‘Create Summary’ screen. For GAINS to calculate a reversal accurately, all give-ups must be reversed using original trade and account detail.
Clearing Reports
Give-up Allocations, Claims, and Discrepancy reports (Infopac report Ids: TER0080, TER0081, TER0082) will be modified to include average price information by adding an extra line to each give-up transaction. The additional line contains three fields titled: Actual Average Price, Residual per Contract, and Total Residual. The fields will only be populated if an A8 block, containing the Average Price information, is included with the TREX record. Otherwise, the fields will be blank.
Additionally, the following ‘Transaction Type’ descriptions will be modified or added to the Daily Trade and Position Register (Infopac report id: CLR00234).
Transaction Type
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Description
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To Give-up EFP
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TO GU EFP
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From Give-up EFP
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FROM GU EFP
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To Average Price Give-up
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TO AP GU
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From Average Price Give-up
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FROM AP GU
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Elimination of Real Time Feeds
As previously stated, the ACT System uses an Application Program Interface (API) as the messaging protocol. All firms must be prepared to handle allocation and claim messages for Give-ups, Average Price Give-ups, Misclears, and Transfers, generated through API. For more information regarding API processing, please refer to Volume 21 – Bulletins #187 and #229 or our website at www.bottc.com/geninfo/misc/index.html#TopOfPage.
Testing
Firms currently have access to the test system for the new release. Users can access the test system by clicking on the ‘Login’ link located at www.botcc.com. Users will be prompted to enter a valid web based user ID and password. Once authenticated, click on the ‘Firm Test Menu’ link, then click on ‘New Functionality: ACT – Allocate & Claim Transaction System’ link.
Training
The Business Systems Group is currently holding training classes. For more information and to sign up for a class, please refer to Volume 22 – Bulletin #61.
Should you have any questions, please call or e-mail one of the following Business Systems Analysts:
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ONE-SIDED ENTRY CLEARING MATRIX FOR MISCLEARS AND TRANSFERS
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ACT SYSTEM DISPLAYS
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POSITION CLEARED
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TRADE REGISTER DATA FILE TT CODE
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Transaction Type (TT)
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Card Code
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Submit Via
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Contract Type
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Position Type
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Initiating Firm
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TT
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Accepting Firm
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TT
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Initiating Firm
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Accepting Firm
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Initiating Firm
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Accepting Firm
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Misclear
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ACT
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Future
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(From) Sell
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(From) Sell
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3
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(To) Sell
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3
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Buy
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Sell
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3
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3
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Misclear
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API
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Future
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(From) Sell
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(From) Sell
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3
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(To) Sell
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3
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Buy
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Sell
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3
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3
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Misclear
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TREX
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Future
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Buy
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(From) Sell
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3
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(To) Sell
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3
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Buy
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Sell
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3
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3
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Misclear
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ACT
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Option
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(From) Sell
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(From) Sell
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3
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(To) Sell
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3
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Buy
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Sell
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3
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3
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Misclear
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API
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Option
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(From) Sell
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(From) Sell
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3
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(To) Sell
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3
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Buy
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Sell
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3
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3
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Misclear
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TREX
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Option
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Buy
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(From) Sell
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3
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(To) Sell
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3
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Buy
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Sell
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3
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3
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Transfer
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ACT
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Future
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(From ) Sell
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(From) Sell
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8
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(To) Sell
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8
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Buy
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Sell
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8
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8
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Transfer
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API
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Future
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(From ) Sell
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(From) Sell
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8
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(To) Sell
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8
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Buy
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Sell
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8
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8
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Transfer
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TREX
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Future
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Buy
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(From) Sell
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8
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(To) Sell
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8
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Buy
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Sell
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8
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8
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Transfer
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ACT
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Future
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(From) Buy
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(From) Buy
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8
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(To) Buy
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8
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Sell
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Buy
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8
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8
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Transfer
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API
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Future
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(From) Buy
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(From) Buy
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8
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(To) Buy
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8
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Sell
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Buy
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8
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8
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Transfer
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TREX
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Future
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Sell
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(From) Buy
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8
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(To) Buy
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8
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Sell
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Buy
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8
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8
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Transfer
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ACT
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Option
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(From ) Sell
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(From) Sell
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8
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(To) Sell
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8
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Buy
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Sell
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F
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10
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T
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11
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Transfer
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API
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Option
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(From ) Sell
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(From) Sell
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8
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(To) Sell
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8
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Buy
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Sell
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F
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10
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T
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11
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Transfer
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TREX
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Option
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Buy
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(From) Sell
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8
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(To) Sell
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8
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Buy
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Sell
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F
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10
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T
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11
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Transfer
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ACT
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Option
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(From) Buy
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(From) Buy
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8
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(To) Buy
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8
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Sell
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Buy
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F
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10
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T
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11
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Transfer
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API
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Option
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(From) Buy
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(From) Buy
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8
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(To) Buy
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8
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Sell
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Buy
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F
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10
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T
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11
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Transfer
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TREX
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Option
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Sell
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(From) Buy
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8
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(To) Buy
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8
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Sell
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Buy
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F
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10
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T
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11
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H
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TREX
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Option
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(From) Sell
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(From) Sell
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8
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(To) Sell
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8
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Buy
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Sell
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F
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10
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T
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11
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H
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TREX
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Option
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(From) Buy
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(From) Buy
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8
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(To) Buy
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8
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Sell
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Buy
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F
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10
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T
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11
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Transaction Type Codes 3, 8, F, and T appear in position 46 of the Trade Register Data - Daily Matched, Unmatched, and Exercise/Assigned Detail.
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Transaction Type Codes 10 and 11 appear in positions 106 through 107 of the Trade Register Data - Daily Matched, Unmatched, and Exercise/Assigned Detail
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