CEO Briefing

1
CEO Briefing

• 10 April 2002

2
Countdown
Jarrow Count Down To Go Live as at 10th April
2002 Just 33 Total Days 22 JSE Business Days
Remaining
3
A note of Thanks
We would like to thank Members and Users for all
their efforts to date resulting in us being on
track for Go Live on the 13 May 2002
4
Timeline
2001
2002
June
Aug
Oct
Sept
Feb
Jan
Dec
Nov
July
Mar
April
May
4/6/01
3/8/01
JSE Design
19/10/01
6/8/01
JSE Development
4/6/01
19/10/01
JSE Build and Test of
Technical
Infrastructure
22/10/01
JSE/LSE Prepare and Execute
Integration Test

18/01/02
4/6/01
3/8/01
9/11/01
Prepare and Execute Business Operations Proving
12/4/02
21/1/02
Design of JSE Front End Solution
Build and Test of JSE

Front End Solution
2/03/02
LCON
16/03/02
Design, Build and Test of Data Vendor / Member


Front End Solution
LCON
27/6/01
18/01/02
30/03/02
LCON
13/4/02
1st DR
31/03/02
18/7/01
27/6/01
4/6/01
27/04//02
JSE / LSE Draft Spec
JSE / LSE Final Spec
Prepare and Execute Customer Test
26/11/01
2nd DR
Go-live
5
CEO Brief
Agenda

• Objectives
• Principles
• Timeline
• Participation and Responsibility
• Test Schedule
• Business Freeze
• Other
• Questions

6
CEO Brief
Agenda

• Objectives
• Principles
• Timeline
• Participation and Responsibility
• Test Schedule
• Business Freeze
• Other
• Questions

7
Objectives

• Practise the JSE, LSE, FTSE and User cut over
  activities required for Go Live
• Practise the 1st and 2nd trading day activities
  of the new JSE SETS and InfoWiz systems solution
  
• Gauge the overall level of readiness across the
  JSE, LSE, FTSE and the JSE NSX Users to cut
  over to the new solutions
• Identify any critical issues that need to be
  addressed prior to Go live
• Ensure the overall solution meets JSE
  requirements
• Build internal and external confidence for Go
  Live
• Minimise the risk of unexpected issues on Go Live
  day
• Provide Users with an opportunity to test and
  verify the accuracy and integrity of their NEW
  front-end solutions for trading and information
  dissemination
• Provide Users with an opportunity to test
  accuracy and integrity of related systems and
  feeds

8
Objectives

• Confirm internal JSE, LSE and FTSE readiness for,
  and effectiveness of, new / changed business
  processes, to ensure smooth future operations
• Provide Users with an opportunity to test and
  familiarise themselves with the new JSE trading
  model functionality and revised rules in a
  live-like environment
• Prove existing internal JSE application readiness
  for Go live. e.g. BDA, EMIS etc
• Prove the effectiveness of the new JSE regulatory
  requirements

9
CEO Brief
Agenda

• Objectives
• Principles
• Timeline
• Participation Responsibility
• Test Schedule
• Business Freeze
• Other
• Questions

10
Principles

• All Dress Rehearsals are compulsory for all
  Equity Trading users and subscribers of InfoWiz.
• Dress Rehearsals will be undertaken in the Live
  JSE, LSE User Environments.
• The Live environment of the JSE , LSE FTSE will
  be restored after the rehearsals in readiness for
  business as usual on the following Mondays
• Only Users that have passed their LCON tests will
  be allowed to partake in the Dress Rehearsals
• All Dress Rehearsals will be supported by
  internal JSE departments on a proof of concept
  basis
• The test schedule will be structured around
  normal business operations
• Dress rehearsals are planned to test system
  functionality and integrity. These are not
  stress tests!!!
• Users are expected to behave in an orderly manner
  and to simulate a live trading day with realistic
  order details and related prices
• All User applications to be used in the live
  environment must be tested in the Dress Rehearsal
• All terminals connecting to production must be
  manned by adequately skilled staff for the test

11
CEO Brief
Agenda

• Objectives
• Principles
• Timeline
• Participation and Responsibility
• Test Schedule
• Business Freeze
• Other
• Questions

12
Deployment Timeline
April
May
March
3 Apr
DR 1 Brief (JHB)
2 May
Cont DR Brief (tbc)
4 Apr
DR 1 Brief (CT)
LCON 1
Dress Rehearsal 3 (CONT)
JSE LSE Internal Dress Rehearsal
Sat/ Sun4-5 May
Sat2 Mar
Sat6 Apr
8 May
Final Cut-Over Brief (JHB)
CEO Brief (JHB)
10 Apr
9 May
Final Cut-Over Brief (CT)
Sat/ Sun13-14 Apr
LCON 2
Dress Rehearsal 1
10 May
CEO Brief (tbc)
Sat16 Mar
17 Apr
DR 2 Brief (JHB)
LEGEND LCON Live Connectivity Testing DR Dress
Rehearsal CONT Contingency ASR Alternate Site
Recovery (LSE) Internal External
Tests completed
18 Apr
DR 2 Brief (CT)
JSE LSE ASR Test
Dress Rehearsal 2
Sat/ Sun27-28 Apr
Sat23 Mar
JHB Brief
LCON 3
Sat30 Mar
CT Brief
13
CEO Brief
Agenda

• Objectives
• Principles
• Timeline
• Participation and Responsibility
• Test Schedule
• Business Freeze
• Other
• Questions

14

Participation

• MANDATORY Participation is required during the
  Saturday live trading day simulation from -
• All JSE and NSX Equities traders 100
  participation in all scheduled DR tests
• All relevant user IT support staff.
  (e.g.networks, applications, PC support etc)
• All information users who will be
  subscribing to InfoWiz
• All basket trading and client order entry
  applications
• All other user applications interfacing with
  their front-end applications
• The test starts at 10h30 and ends at 18h00
  (traders 12h00 18h00)
• All primary and backup(on site) terminals
  must be tested
• NOTE From go live, members accept full
  responsibility for all order and trades submitted
  by their traders. Dress Rehearsals therefore
  facilitate testing in a live-like environment to
  avoid errors and prepare traders for the new JSE
  rules and trading model.

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Participation

• OPTIONAL Participation - (However, strongly
  recommended)
• All Equity Institutional traders
• User Off-site Disaster recovery terminals
  JSE will be testing TALX DRP terminals
• All customers receiving JSE overnight
  End-of-Day (EOD) files
• Sundays trading day simulation testing
  between 08h30 and 10h00 is optional, but
• recommended
• JET testing 11h00 13h00 on Sunday to
  ensure ready for business as usual

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Responsibility
USERS are responsible for ensuring

• They participate throughout the test between
  10h30 18h00 on all the test days
• Full participation from all traders (12h00
  18h00).
• Full participation from all relevant User IT
  support staff (e.g Networks, applications, PC
  support etc)
• Full support from relevant software providers
• Identifying the responsible person per User to be
  used by the JSE as the key contact person. Users
  must provide the contact details to the JSE
  helpdesk by Wednesday (10 April) by 12h00 on
  [phone]
• All Users follow the test plan and schedule -
  PLEASE READ TEST PLAN/SCHEDULE!!!!
• ONLY realistic prices and order details are used
  for all orders failure to do so, will result in
  unnecessary disruptions and potential delays to
  the test schedule. The JSE will be monitoring
  all test data and this behaviour will result in a
  User Dress Rehearsal FAIL!!!!!
• Staff are aware of problem escalation procedures
  to ensure problems logged with the correct
  helpdesk. E.g Front-end queries are logged with
  software providers not the JSE
• All problems are reported and logged with the JSE
  Customer Support [phone]

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Responsibility
USERS are responsible for ensuring (cont..)

• All user test data is removed from their
  production environments after the Dress
  Rehearsals
• All traders have attended conceptual training
  prior to the Dress Rehearsals
• All traders have attended front-end training
  prior to the Dress Rehearsals
• All JSE test scripts and procedures are
  downloaded from the JSE web prior to the test
• That all users are informed this is NOT a stress
  test and that attention should be given to
  functionality and data integrity. Users are
  responsible for ensuring data accuracy.
• Members make use of the JET testing on Sunday to
  ensure they can continue with trading the Monday
  after each test.
• Ensuring users keep track of all actions in the
  event of a problem to assist with problem
  determination.
• Relevant monitoring of their infrastructure and
  related applications is performed during the
  dress rehearsals
• NOTE PATIENCE IS REQUIRED AS ALL TRADERS WILL
  BE TESTING
• THIS WEEKEND

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Responsibility

• JSE is responsible for ensuring
• Support will be through the JSE Customer Support
  helpdesk
• All queries are allocated a reference number
• Ensure all queries are addressed and resolved
• First line support for all TALX related queries
• Monitoring of all test data and users to ensure
  compliance with the test schedule and scripts
  (including errors generated by users)
• Test schedule execution and adjustments as
  required watch the market messages for
  adjustments
• Evaluate Dress Rehearsal participation and
  success and GO LIVE readiness
• Contact Number during test
• JSE Customer Support [phone]

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CEO Brief
Agenda

• Objectives
• Principles
• Timeline
• Participation and Responsibility
• Test Schedule
• Business Freeze
• Other
• Questions

20
Market Structure

• The trading platform has been divided into
  several functional segments to facilitate trade
  and efficient running of the market.
• Functional segments and sectors facilitate the
  setting of common trade parameters for
  instruments with similar characteristics.
• The segments are determined by grouping stocks
  with similar liquidity classifications as they
  have similar characteristics.

JSE Top Companies ZA01
JSE Medium Liquid ZA02
JSE Less Liquid ZA03
NSX ZA11

• ALSI40 equities and related instruments.
• Functional sectors obey the same trading
  schedules and similar trade period rules.

• Liquid and Medium liquid equities and related
  instruments which are not part of the ALSI40.
• Functional sectors obey the same trading
  schedules and similar trade period rules.

• Less liquid equities and related instruments.
• Functional sectors obey the same trading
  schedules and trade period rules.
• Intra-day liquidity auctions are used to
  facilitate trade.

• NSX instruments.
• Functional sectors may obey different trading
  schedules and trade period rules.
• Intra-day liquidity auctions will be used to
  facilitate trade.

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Dress Rehearsals Schedule
Proposed schedule - under discussion
Systems Startup Ref Data Download
Normal Trading Schedule
SystemsShutdown
JSE Batch Processing
1
2
Saturday
Pre Open
MktClose
11h00
24h00
18h00
12h00
Batch Processing(contd)
2
Checking of Batch Results
2
00h00
08h00
06h00
Software VendorFeedback
Internal JSE/LSE Checkpoint
JSE Prep Session
Sunday
12h00
08h30
10h30
09h30
SystemsStartup RefData Download
Normal Trading Schedule (partial)
1
ContinuousTrading
Pre-Open
06h00
08h30
10h00
Colour Legend

• Trading Schedule will be condensed to fit into
  shorter window (details on next slide).
• Batch processing will be done during the 1st
  Market Dress Rehearsal (13-14 Apr).
• Intraday checkpoints with Users will be indicated
  in the detailed schedule.
• All times reflected are SA standard time (SAST)

JSE/LSE Internal
Notes
JSE User Participation
JSE User Feedback
JSE/LSE Checkpoint
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Test Schedule Saturday
Certain period names may differ depending on
which segment or sector they are used in
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CEO Brief
Agenda

• Objectives
• Principles
• Timeline
• Participation and Responsibility
• Test Schedule
• Business Freeze
• Other
• Questions

24
Business Freeze
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Business Freeze
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Business Freeze
JET GTC Freeze Everyday thereafter will be
reduced by one (1) day Traders responsible for
keeping records for large orders
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CEO Brief
Agenda

• Objectives
• Principles
• Timeline
• Participation and Responsibility
• Test Schedule
• Business Freeze
• Other
• Questions

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BDGs for Release 1
NSX BDGs NO1, NO2, NO3, NO4
Optional Added Product
J50 JSE News Service SENS
J51 FTSE / JSE Africa Index
Value Add Products
Currently Free
J25 JSE Cumulative Number and Volume of Trades
J24 JSE VWAP
Level 2 J20 Full Order Book
Level 1 J21 Best Bid and Ask
Level 2
Level 1
NOTE These are included in the
membership fees
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JSE Systems NOT Available
On these dates no JSE Applications are available
for normal production activity
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Major Milestones
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Monitoring Success / Pass Criteria

• User ability to connect and trade
• 100 interactive participation throughout
  the test period
• Adherence to the test schedule and
  conditions
• Adherence to realistic order details and
  prices
• Adherence to normal trading and volume
  activity (NB!! NOT a stress test)
• Completed and signed test checklists/results
  returned to the JSE
• Completed and signed declaration that
  functionality and data integrity was intact
• All problems logged with JSE Help Desk
  before end of each test day
• Key responsible person identified and
  communicated to JSE prior to test
• No excessive re-requests for data during
  tests
• Limited system errors generated by users in
  system logs
• All user participation
• Number of traders logged on
• Time of first and last message sent per
  trader
• Order and trade data generated per trader
• All messages per user
• Errors generated
• Order and trade summary of all client
  application trader ids

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Questions