International Capital Market Association TRAX2 Matches, Reports

1
International Capital Market
AssociationTRAX2 Matches, Reports Complies
Brian Eyles Head of Business Liaison
2
Agenda

• Overview Benefits
• TRAX2 Matching
• TRAX2 Reports Complies
• Future Developments
• ICMA Securities Database
• Questions Answers

3
Agenda

• Overview Benefits
• TRAX2 Matching
• TRAX2 Reports Complies
• Future Developments
• ICMA Securities Database
• Questions Answers

4
TRAX2 Overview Benefits

• Operated by ICMA since 1989, TRAX is a real-time
  post-trade/pre-settlement operational risk
  managment tool for transactions traded in the OTC
  market space.

5
TRAX2 Overview Benefits

• TRAX2 went live on 26 June 2006.
• All existing TRAX1 users were seamously switched
  over to the new TRAX2 central system and database
  with minimal distruption.
• All TRAX1 users will be required to implement
  TRAX2 by end of Q3 2007
• TRAX2 Repo went live in August 2006 with five
  major investment banks (JP Morgan, Goldman Sachs,
  Nomura, Credit Suisse Securities HSBC). A
  number of additional firms including buy-side
  firms will becoming on-stream shortly.
• TRAX1 and TRAX2 is now processing 5 Million
  trades per month.

6
TRAX2 Overview Benefits

• TRAX2 supports the 15022 and 20022 (XML)
  messaging standards to enable rapid and easy
  integration with front, back or middle-office
  systems.
• It also utilises ISO standards where available
  including, ISO 6166 (ISIN), ISO 10383 (MIC Place
  of Trade) ISO 9362 (BICs), etc.
• Internet connectivity using SSL encryption
• Highly competitive reporting/matching transaction
  costs
• Central TRAX2 transaction data is on-line for 1
  year

7
TRAX2 Overview Benefits

• TRAX2 is supported by its own dedicated web site
  www.trax2.org

8
Agenda

• Overview Benefits
• TRAX2 Matching
• TRAX2 Reports Complies
• Future Developments
• ICMA Securities Database
• Questions Answers

9
TRAX2 Matching

• Enables any asset class including cash (FI
  equities), repo, and on or off-exchange
  derivative instruments (Options, Futures, CFDs,
  etc. ) to be bi-laterally agreed and matched
  through the system.
• New settlement matching model with real time
  exchange of standard settlement instructions
  (SSI) enabling firms to agree settlement details
  prior to the start of the settlement cycle.
• Real time graphic display of unresolved
  transactions with dynamic real time query
  monitor.
• Flexible matching model to meet specific firms
  business requirements.

10
TRAX2 Matching

• TRAX2 Repo is the first confirmation system to be
  specifically developed for firms trading in the
  OTC repo space. The system enables
• Fixed or variable rate terms, BSBs or open terms
  entered as a single transaction incorporating
  both the start and end legs both legs are
  matched and allocated an individual status.
• Provision to add end date and closing amount post
  trade actions (PTAs) for open, FRN and variable
  rate terms and rate, spread or price change PTAs
  (rate rolls) for open repos throughout its
  maturity.
• Provision of roll-back or roll-forward facility
  for amending end leg details.
• Support for overnight repos or any other duration
  including maturities gt12 months.
• Available for both buy and sell side firms

11
Agenda

• Overview Benefits
• TRAX2 Matching
• TRAX2 Reports Complies
• Future Developments
• ICMA Securities Database
• Questions Answers

12
TRAX2 Reports Complies

• ICMA is applying to be an Approved Reporting
  Mechanism (ARM) to the FSA in the UK - TRAX is
  presently recognised as a Permitted Reporting
  System (PRS)
• TRAX2 is currently compliant with Article 12
  (Articles 25(3) and (5) of Directive 2004/39/EC)
  of the Level II Implementing Directive of MiFID
  (the 23 fields).
• ICMA will ensure TRAX2 will continue to be
  compliant with any super-equivalence that may
  be imposed by Competent Authorities (CAs) such as
  the FSA (CDSs, Proprietary Trading)

13
TRAX2 Reports Complies

• Options for receipt of transaction data from
  firms include
• TRAX2 PC Gateway using ISO based messaging or
• TRAX2 FTP Batch (excluding ICMA reportable
  securities)
• Options for delivery mechanism of transaction
  data to CAs include
• End of day batch or
• Real time via a TRAX2 CA Gateway
• This will enable any asset class as denoted in
  the directive to be reported to any respective CA
  throughout the EEA The Central European Hub.

14
TRAX2 Reports Complies
15
Future Developments

• Phase two enhancements will include
• Partial Repo Repayment Post Trade Action (PTAs)
• Queries/Reports for Repo netting opportunities
  and report of due coupon payments.
• STP links to CSDs, ICSDs and Custodians with
  external settlement instruction matching status
  available within the TRAX2 client application
  and/or TRAX2 host messaging.

16
Agenda

• Overview Benefits
• TRAX2 Matching
• TRAX2 Reports Complies
• Future Developments
• ICMA Securities Database
• Questions Answers

17
ICMA Securities Database

• To support the TRAX2 system and ICMAs end of day
  pricing and data products, ICMAs securities
  database contains over 360,000 securities
  comprising Bills Convertibles Equities FRNs
  GDRs Straights and Warrants.
• Source information from Lead Managers, Clearing
  Houses Data vendors
• Pricing information in over 11,000 bonds is
  provided by TRAX and quotations received by
  ICMAs Council of Reporting Dealers (CRD).
• Sub-set is currently available via TRAX2 screens
  and downloadable for ICMA reportable instruments.
  
• Full database is available through
  www.icma-info.org or data feeds.

18
ICMA Securities Database
19
ICMA Securities Database
20
Questions Answers