VOLUME 22 – BULLETIN #071 Allocation and Claim Transaction System (ACT) Version 2.3 Upgrade – Give-Up Processing for ETS and Pit Trades

The Board Of Trade Clearing Corporation will implement version 2.3 of the Allocation and Claim Transaction System (ACT^TM) on Friday, June 28, 2002. Version 2.3 will require firms to allocate and claim give-up trades for CBOT a/c/e and pit trades on the ACT system. In addition, a new feature will be added that will provide the ability to do same day transfers. Same-day transfers will allow firms to ‘give-up’ trades without disclosing where the position will ultimately reside. No detail of the transfer will be provided to the execution broker. As such, ATOM^®brokerage is assumed by the executing firm. The ability to Give-up trades, Memo-add Give-up trades, Release Give-up trades and Give-up Reversal functionality will no longer be supported through the OTIS^® System. Additionally, using 3270-screen scraper functionality to allocate and claim give-ups will be eliminated with the move to a web-based GUI front end.

All transactions types will be processed through the ACT System according to business rules using one-sided entry process. Details pertaining to each transaction and enhancements are provided below.

• Give-ups: All trades marked as a give-up will now be processed through the ACT System. Firms have the option of submitting a give-up through the following methods: 1) submitting via Give-up Application Program Interface (GAPI) 2) submitting through the firm’s bookkeeping systems using the current TREX format, completing the give-up process using the ACT System, or 3) manually keying the transaction through the ACT System using the ‘Create Summary Screen’. Firms will also have the ability to give-up a claimed give-up transaction.

Additionally, the ‘Release’ functionality will no longer be available through GAPI or the ACT System. Firms will be required to initiate reversals to correct Give-ups claimed in error.

• Same-Day Position Transfers: Firms will have the option of moving a top-day position as a same–day transfer through the following methods: 1) submitting via GAPI, or 2) using the ACT System to mark a give-up summary record as a same-day position transfer. The initiating firm that transfers positions using these methods will be responsible for payment of executing brokerage.

• Initiate and Accept Profiles: The ACT System will allow back offices to set up auto initiate and accept profiles. By setting up profiles, the ACT System can allocate and claim transactions automatically.

Using 3270-screen scraper functionality to allocate and claim give-ups will be eliminated with the move to a web-based GUI front end. As previously stated, the ACT System uses an Application Program Interface (API) as the messaging protocol. Firms will need to receive GAPI messages from ACT either indicating actions to be taken or transactions to be processed in their bookkeeping. 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.

Firms will have access to the test system for the new release two weeks prior to implementation. Bulletins will be sent announcing when the test system will be available. Once the test system is available, users will 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.

The Business Systems Group will hold training classes for the new release. Details pertaining to training classes will be provided in future bulletins.

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