Application Solution Provider User Brief

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Application Solution Provider User Brief
JSE Trading Services
12 December 2002Version 0.5
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Agenda

• What is an ASP?

• Objectives

• Background

• JSE Requirements

• ASP Process Timeline

• Costs Contracts

• General

• Questions

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What is an ASP?

• An Application Solution Provider (ASP) as defined
  by the JSE is a provider of shared infrastructure
  to JSE users for connectivity to JSE SETS
  InfoWiz systems
• E.g . Shared infrastructure -
• - servers
• - routers
• - communication lines
• - networks etc

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Objectives

• The Purpose of this session is to
• provide background into the initiation of this
  process
• explain documentation required by the JSE
• walk through theASP evaluation and approval
  process
• Highlight ASP timelines
• Costs and Contracts
• define next steps

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Background

• JSE Securities Exchange has an obligation as a
  self-regulatory organisation to provide a
  reliable and fair market and recognises the need
  for market participants to reduce costs where
  possible
• Software vendors have expressed an interest in
  becoming Equities Application Solution Providers
  (ASPs) by providing shared infrastructure to
  facilitate trading to customers accessing the JSE
  market (JSESETS InfoWiz)
• The JSE has provided the framework and guiding
  principles under which market participants may
  share trading infrastructure
• To ensure market integrity and stability, the JSE
  requires a full understanding of how the solution
  provider proposes to implement the solution which
  must be verified by the IT Auditor

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JSE Requirements

• Must be an accredited Software Provider
• ASP solution must comply with JSE rules and
  directives, JSE User spec and other legislations
  that may apply
• ASP provider is responsible for all first line
  technical and functional support to its users
  during JSE service hours
• JSE provides first line support to the ASP only
  as they maintain the direct solution to JSE
  connection
• ASP solution is responsible for security and
  confidentiality of data and system access
• ASP solution must provide audit trails of
  messages sent/received
• ASP solution must be able to identify originating
  source of messages submitted
• ASP solution must not confirm messages to users
  unless confirmation received from JSE SETS
  InfoWiz
• ASP solution must cater for peak bandwidths

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JSE Requirements

• ASP must participate in at least one JSE
  Alternate Site Recovery Test per year
• ASP solution must pass LCON for every active
  connection namely primary, secondary, DRP
• ASP must ensure adequate user training as
  required
• ASP Clients accept full responsibility for all
  messages submitted through the solution
• ASP will sign JSA contracts
• ASP must pass conformance test from an
  environment that mirrors the production
  environment
• ASP must be able to facilitate testing as
  required by the JSE from an environment that
  mirrors their production environment

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JSE Requirements
Documentation Required

• Equities Application Solution Provider
  Questionnaire
• aimed at soliciting information for the JSE to
  make an informed decision on whether to approve
  the solution provider as a JSE Equities ASP
• outlines JSE requirements
• Requirements and Questions key principles to
  ensure
• Market Integrity
• Data Privacy
• Security (data and access)
• Market Fairness

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JSE Requirements

• Equities Application Solution Provider
  Questionnaire
• The Equities (ASP) Questionnaire is divided into
  sections
• Customer Support Service Management
• Security
• Monitoring
• Authentication
• Auditing
• Communications
• Time to Market

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JSE Requirements

• Detailed diagram of proposed Infrastructure
• The diagram must include an explanation of
  connectivity and data flows between the end user,
  trading front-end and JSE SETS and InfoWiz
  systems. This should include an explanation and
  specifications of all Infrastructure components
  in use or proposed to be used
• Additional supporting functional and technical
  documentation if required
• Network Infrastructure diagram
• Diagram that includes the IP addressing structure
  including routers, firewalls and switches
• Letter of compliance from independent IT Auditor
• The letter of compliance must verify that the JSE
  requirements are met

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ASP Process Timeline
JSE Evaluation Team
JSE Authorising Team
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Costs Contracts

• Costs
• 2 free conformance slots, additional are paid for
  at current rates
• API server fees are payable by the ASP per server
• Terminal fees are payable per client/per terminal
  as currently
• IT Auditor costs are payable by the ASP
• ASP Evaluation and Approval Costs
• 1st Approval and Evaluation process -- R 20 000
• If within 6 months of the first application
• 2nd Approval and Evaluation process -- R 30 000
• 3rd Approval and Evaluation process -- R 60 000
• Contracts
• ASP signs revised JSA
• ASP Clients sign JIDA, FIDA, JSA (revised)

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General

• Auditors
• PricewaterhouseCoopers is the JSEs auditor and
  understands the JSE environment, therefore the
  JSE has nominated PWC to conduct the independent
  audits of the solutions from the various solution
  providers on behalf of the JSE.
• Audit will include
• Understanding of the proposed solution Audit will
  include
• Verification of the solution providers
  documentation submitted
• Testing, if required
• Security assessment, if required
• Attack and Penetration test, if required
• The result of the audit will be a letter of
  solution compliance and recommendstions
• Other
• Work is in progress to finalise JSE contract
  revisions
• JSE Evaluation start date 10 Jan 2003
• Documentation available on the JSE web site
• JSE Initiatives/JSE trading and information
  systems

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Questions
Refer Queries to tradingservices_at_jse.co.za