Putting STP Theory into STP Practice
Introductions & Agenda
Agenda—Overview—Q&A
Introduction
FMCNet is a real-time, single system solution for the communication of trade information between— Investment Managers— Brokers— Custodians
Broker allocations, confirms, matching and delivery of settlement instructions across multiple instrument types
FMCNet is an ASP service that provides:— Automated ETC, Local and Central Matching— Integrated SSI Database— Industry standard formats, XML and ISO 15022— Integrated middleware, translations and format transformations— Supports trade & settlement (Omnibus) blocks
Hosted STP Infrastructure
Manager
Interestedparties
Custodian
Broker
Swift
Othernetworksor media e.g. fax
TradeSuite &
MISYS
FMCNet
Delivery InstructionData Base
ETC, Local & Central - Match
NOE
Allocations
Confirm
NOE
Allocations
Confirm
Pre and postmatch advice
Match
AffirmSettlementadvice
FIX
The Services You Need minus the Complexity
Manager
Interestedparties
Custodian
Broker
Swift
Othernetworksor media e.g. fax
TradeSuite &
MISYS
FMCNetServicesMatching
SSIRules
NOE
Allocations
Confirm
NOE
Allocations
Confirm
Pre and postmatch advice
Match
AffirmSettlementadvice
FIX
Transformation Layer
Non-Sequential Trade Flow
Instruments Processed (include)
Equity Bonds •MBS Notes OptionsCommonPreferredConvertible PrefUnitConvertibleInterconvertibleCommon
Eligible BillsForward Rate AgreementFloating Rate AgreementFX:Same DayNext DaySpotForwardCurr Swaps
Sinking FundExtendible / RetractableConvertiblePerpetualPass Through CertLevel Principal InterestCallableSingle Coupon, etcResidue OnlyGiltsStepSerialFloating RateIndex Part of Equity Swap Floating Part of EquitySwapSwap NotionalPayment in Kind
Fixed RateAdjustable RateInterest only- Principal & NotionalPrincipal Only StripGraduated ABS
Asset-Backed SecAccrual BondPrincipal Only StripInterest Only (Notional & Principal)
Interest BearingTerm DepositCert of DepositSWAP DepositMunicipal NoteDiscount LoanProvisional T BillTreasury BillDisc Commercial PaperDisc Promisory Bearer Depository Banker’s AcceptanceShort-term Inv FundCall Loan
Level Principal Interest
Call & Puts for:CommoditiesFuturesBondsCurrencyAmericanEuropean
ValuePriceAverage
FX / Deal CMO •Mortgage Index
FMCNet – SSI Database (DIDB)
—Dynamic enrichment of trades with counterparty SSIs
—Fully integrated and free of charge—Counterpart settlement instructions easily
maintained in a single location—Fully structured and ISO 15022 compliant—Comprehensive on-line help
– SSI Database (DIDB)
The Need to Harmonize Standards
Delivery InstructionData Base
Delivery InstructionData Base
Interestedparties
Interestedparties
CustodianCustodian DTC* & MISYS
DTC* & MISYS
ManagerManager Broker
Othernetworksor media e.g. fax
Othernetworksor media e.g. fax
SWIFTSWIFT
NOE NOE
Allocations Allocations
Confirm Confirm
Pre and post match advice
Settlement advice
Match
Affirm
MatchLocal - - Central
FMCNetFMCNet
• FIX 4.0-4.4
• ISO 15022
• Proprietary
• Flat file
• XML
• FIX 4.0-4.4
• ISO 15022
• Proprietary
• Flat file
• XMLF
MC
Net
Mid
dlew
are
Single global post-trade solution
Greater instrument & SSI support Fully integrated solution
— Single development effort Enterprise wide processing from a single
business unit— Business & user segregation
Single ‘pipe’ from block to Custodians, sub custodians and interested parties—FMCNet moving into the pre-trade space
Ease & Speed of Deployment
Rapid integration through FMCNet middleware ASP web-hosted solution
— Global implementation with no hardware or software requirements
— Leverage of existing infrastructure Single global business unit Limited client IT resource requirements Proven FMC implementation experience Web training
Aggregation for Omnibus Trading
Trade & Settlement Blocks for program / trust / bulk / omnibus trading— Reduction – confirmation volumes— Reduction – depository & settlement costs— Reduction – FMCNet message costs— Reduction – investment manager costs
37% of 810,000 trades per day in USA
Flexible Web-Based Reporting
Customized intra-day & inter-active reporting system that is flexible, easy to use & affordable.—Settlement Reporting—Billing Reconciliation—Affirmation Analysis—Commission Reporting—Archive Confirm Records
Greater Flexibility
FMCNet is a non-prescriptive solution that supports the requirements of each individual client— ETC, Local or central matching (by market, by
counterpart, by instrument type – ‘mix & match’)— User and market defined matching tolerances— Preferred client data formats / standards— Single or multiple business units
Paying For Post-Trade ETC and ETS Services Today
CEO / CTO / CFO
KITKIT
ITIT
OPSOPS
OtherOther
KITKIT
ITIT
OPSOPS
OtherOther
CEO / CTO / CFO
Hardware Middleware Softwareupgrades
Network IT Support License fees
Transaction costs
Annual / monthly base fee
SSI database
IT project resource
BCP Time
Typical costs
CEO / CTO / CFO
KITKIT
ITIT
OPSOPS
OtherOther
KITKIT
ITIT
OPSOPS
OtherOther
Typical costs
CEO / CTO / CFO
Hardware Middleware Softwareupgrades
Network IT Support License fees
Transaction costs
Annual / monthly base fee
SSI database
IT project resource
BCP Time
By outsourcing the IT process to ASP, you outsource the pain !
Not Paying For With Post-Trade Services Tomorrow
Typical cost SAVINGS
FMCNet Contact Info
Jose Manso Vice President, FMCNet, USA +1 (646) 213-7178 (office) +1 (917) 658-1131 (mobile) [email protected]
Website: www.ssctech.com