ASEAN Link On-boarding procedures

Transcription

1 1 Introduction 1.1 Background ASEAN Trading Link is a technology infrastructure provided by the participating ASEAN Exchanges which allows investors from one market to trade securities listed in another market. As at 15 Oct 2012, there are three ASEAN Exchanges namely Bursa Malaysia, SGX and SET connected via the ASEAN Trading Link. The participation date of other ASEAN Exchanges collaboration members, namely, Hanoi Stock Exchange (HSE), HoChiMinh Stock Exchange (HOSE), Indonesia Stock Exchange (IDX) and The Philippines Stock Exchange(PSE) will be announced later. 1.2 Objective The objective of this document is to provide the brokers the procedures for on-boarding to trade in ASEAN Link. It provides the end to end process from the application to participate up to testing and go live to trade in the ASEAN Link. 1.3 Contact Details Organization Subject SGT Certification of ASEAN FIX (OMS), Drop Copy, FIX/FAST(Market Data), Risk Import Files and Trade Export File Contact details Vincent On (for BMB market) Vincent.ON@sungard.com Norbert Binot (for SGX and SET market) (Norbert.BINOT@sungard.com) ASEAN Link On-boarding Procedures Final8 Page 1 15-Oct-12

2 Organization Subject Contact details BMB On-boarding process SET On-boarding process SGX On-boarding process Definition Participating Exchanges Originating Broker (OB) Sponsoring Broker (SB) Originating Exchange (OE) Executing Exchange (EE) Originating ASEAN Link Gateway (O-ALG) Executing ASEAN Link Gateway (E-ALG) Participating Agreement (PA) Market Data License Agreement (MDLA) Support Agreement (SA) SGX, BMB and SET for the 1 st and 2 nd stages and HSE, HOSE, IDX, PSE at a later stage. Broker sending orders to execute in any of the other Participating Exchanges. Broker sponsoring the trades of the Originating Broker. The exchange where Originating Broker is a member The exchange where orders are executed Name given to ASEAN Trading Link Gateway when used as an Originating Exchange gateway Name given to the ASEAN Trading Link Gateway when used as an Executing Exchange gateway Agreement for participation in the ASEAN Link Agreement to be signed with the individual exchanges for the distribution and/or redistribution of market data Support Agreement to be signed between broker and SunGard for the support of ASEAN Link On-boarding Procedures Final8 Page 2 15-Oct-12

3 Valdi Selector Manager (VSM) Valdi Trader (VT) Broker Back Office System (BOS) SunGard Global Trading (SGT) Valdi Trader and Valdi Selector Manager SunGard Risk Management application provided together with the ASEAN Link Solution SunGard OMS application provided for the first 18 months of the ASEAN Link solution on a complimentary basis Broker Back Office System Vendor providing the ASEAN Link solution. 1.5 Targeted audience Brokers Exchanges SunGard Both Originating and Sponsoring Brokers Participating Exchanges Vendor providing the ASEAN Trading Link solution ASEAN Link On-boarding Procedures Final8 Page 3 15-Oct-12

4 2. Overview of ASEAN Link Solution ASEAN Link On-boarding procedures The following diagram provides an overview of the ASEAN Link architecture. There will be a gateway (ASEAN Link Gateway ALG) located at each participating exchange for local members to connect and trade in the ASEAN Link. Additionally, there will also be a neutral access point (NAP) for non-asean members and clients to connect and trade into ASEAN. ASEAN Link On-boarding Procedures Final8 Page 4 15-Oct-12

5 3 On-boarding procedures descriptions Item Stage/ Process Responsible Party Steps ASEAN LINK PARTICIPATION APPLICATION: ONE-TIME 1. ASEAN Link Participation 2. ASEAN Link Participation 3. Establish Inter-broker Relationship OB SB OB & SB Complete paper work: 1. Sign Participation Agreement with Originating Exchange 2. Sign Market Data License Agreement with Executing Exchange 3. Sign software Support Agreement with SunGard (Valdi Trader and Valdi Selector Manager) Complete paper work: 1. Sign Participation Agreement with Executing Exchange 2. Sign software Support Agreement with SunGard (Valdi Selector Manager) Originating Broker has to establish an inter-broke relationship with a Sponsoring Broker of a participating ASEAN Exchange. (ASEAN exchanges can assist in facilitating contact/process if required.)the list of brokers and contact information are available on :- For Bursa Malaysia: of_brokers_alpha.html For Singapore Exchange: directory+of+members/ Dependency/ Timeframe Anytime Anytime As and when required ASEAN Link On-boarding Procedures Final8 Page 5 15-Oct-12

6 Item Stage/ Process Responsible Party Steps Dependency/ Timeframe For Stock Exchange of Thailand: IT INFRASTRUCTURE SETUP and DEVELOPMENT : ONE-TIME 4. Broker Infrastructure set-up OB 1. Complete the following infrastructure set-up. Procurement of hardware and network for: a) Valdi Selector Manager Minimum PC specifications for Valdi Selector Manager is as follows: Intel CPU: at least dual core Memory: at least 2 GB Disk: at least 50 GB OS: Windows XP 32 bits or Windows 7 64 bits After signing the Participation Agreement & establishing relationship b) Valdi Trader terminals (mandatory for Originating Broker who wants to use the ASEAN Link Valdi Trader terminals) Minimum PC Specifications for Valdi Trader terminal is as follows: Intel CPU: at least dual core Memory: at least 2 GB Disk: at least 50 GB OS: Windows XP 32 bits or Windows 7 64 bits c) ASEAN FIX compliant OMS where appropriate (mandatory ASEAN Link On-boarding Procedures Final8 Page 6 15-Oct-12

7 Item Stage/ Process Responsible Party Steps Dependency/ Timeframe for Originating Broker using own OMS) d) New or upgrade of network lines to link the following (Dependent on volume of transactions and subscription to Exchanges market data. Broker can leverage on existing line if bandwidth is deemed sufficient): Valdi Selector Manager to ALG, Valdi Trader terminals to central ASEAN Link OMS or any other ASEAN FIX compliant OMS to ALG. Exchange SFTP server to facilitate uploading or downloading of files (for Bursa Malaysia, existing efix facility will be used) Network architecture and bandwidth requirement as recommended by each local exchange. e) Network equipment as required to facilitate connectivity of the network lines. 2. Complete the following development: a) Development/enhancement of BOS where necessary to support range of post-trade functions required to service end-clients who trades in ASEAN Link including but limited ASEAN Link On-boarding Procedures Final8 Page 7 15-Oct-12

8 Item Stage/ Process Responsible Party Steps Dependency/ Timeframe to provision of custodian services such as share holding, corporate action, etc. b) Development of risk parameters file (mandatory when Originating Broker wants to upload risk filters to ALG from its internal system) c) On-boarding with other ASEAN FIX compliant OMS i. Acquisition/development of ASEAN FIX certified OMS as appropriate (mandatory for brokers who want to onboard using their own OMS). ii. Complete OMS certification process with SunGard if OMS is not yet certified to be ASEAN FIX compliant iii. Development of feed adapter to receive real-time Drop Copy from ALG, as required (mandatory if broker opts to receive real-time Drop Copy of broker s own orders and trades from ALG) Note: i. Broker who uses the Valdi Trader terminals provided are required to onboard with their own OMS within 18 months of launch. ii. The ASEAN FIX message specifications are available on the ASEAN and individual participating Exchanges web sites. ASEAN Link On-boarding Procedures Final8 Page 8 15-Oct-12

9 Item Stage/ Process Responsible Party Steps Dependency/ Timeframe iii. Brokers can connect to SunGard CERT environment for developmental testing or certification testing. 3. Install the hardware, software and network components and connectivity. 5. Broker Infrastructure set-up SB 1. Complete the following infrastructure set-up. Procurement of hardware and network for: a) Valdi Selector Manager (mandatory for all SBs) b) New or upgrade of network lines to link the following (if any): Valdi Selector Manager to E-ALG; Broker system to E-ALG for drop copy Exchange SFTP server to facilitate uploading or downloading of files (for Bursa Malaysia, existing efix facility will be used) After establishing relationship Network architecture and bandwidth requirement as recommended by each local exchange depending on the volume of the transactions. 2. Complete the following development: a) Development of BOS to support range of post-trade functions required to service Originating Broker who trade in ASEAN Link, including but not limited to custodian services such as share holding, corporate action, etc. ASEAN Link On-boarding Procedures Final8 Page 9 15-Oct-12

10 Item Stage/ Process Responsible Party Steps Dependency/ Timeframe b) Development of risk import file (mandatory when Sponsoring Broker wants to upload risk filters to ALG from its internal system) c) Development of feed adapter to receive realtime Drop Copy from ALG as required (mandatory when broker wants to receive realtime Drop Copy of Originating Broker s orders and trades from ALG) 3. Install the hardware, software, network components and connectivity. OPERATIONAL SETUP : FOR EACH SPONSORING RELATIONSHIP 6. Access/Subs criber ID Application SB & EE For inbound trading into Executing Exchange: 1. SB applies to EE for access (e.g. APPLICATION FOR BURSA ACCESS form for BMB, SGX ACCESS APPLICATION FORM for SGX, etc)for: Access ID for connection between E-ALG and EE (at least one connection per Sponsoring Broker) Broker code for every new OB After establishing relationship 2 weeks for EE to issue the ID 2. EE process the ID and inform SGT and SB on the assigned Access/Subscriber ID and Broker Code (for OB). ASEAN Link On-boarding Procedures Final8 Page Oct-12

11 Item Stage/ Process Responsible Party Steps Dependency/ Timeframe 3. If it is a new SB, EE to also provide the new SFTP file location to SGT and SFTP account information to SB. 7. Exchange Access Gateway setup EE Complete the following infrastructure set-up. 1. Procurement of hardware and network facility for Exchange Access Gateway for Sponsoring Broker, if necessary 2. Installation of hardware, software, network components and connectivity, if necessary. After step 6 Require 8 weeks lead time, if new hardware is required 8. Account Opening OB 1. Open trading account with Sponsoring Broker 2. Open depository account with the Depository via Sponsoring Broker in the Executing Exchange 3. Inform SGT on the above information which include, depository account (e.g. CDS account for BMB and CDP account for SGX, etc.). This depository account should be used as a default if the depository account number is not entered into by the client. After establishing relationship 9. Logical configuration SGT 1. Between OB-OMS and O-ALG a) FIX interface for order route for every new OB and EE the OB is trading into b) FAST interface for market data for every new OB and EE the OB is trading into c) FIX interface for drop copy for every new OB subscribe to drop copy After EE s approval and provided with a Subscriber s ID ASEAN Link On-boarding Procedures Final8 Page Oct-12

12 Item Stage/ Process Responsible Party Steps Dependency/ Timeframe 2. Between O-ALG and OE-FTP facility a) Trade Export location for every new OB b) Risk import file location for every new OB 3. Between E-ALG and EE a) New line handler for every new SB or additional line handler requested by SB 4. Between E-ALG and EE-FTP a) Trade Export location for every new SB (between E-ALG and EE-FTP) b) Risk import file location for every new SB (between E-ALG and EE-FTP) 5. Between E-ALG and SB a) FIX interface for drop copy for every new SB subscribe to drop copy 10. Operational Setup OB, SB & SGT 1. SGT setup the order route 2. Risk Management Setup a. SGT create Valdi Selector Manager ID for every new SB, new OB and new EE the OB is trading into b. SGT create new node for every new OB, OMS, Valdi Trader, new EE the OB is trading into in O-ALG c. SGT create new node for every new OB and SB in E-ALG After logical configuration Step 9 and 10 takes 1 week ASEAN Link On-boarding Procedures Final8 Page Oct-12

13 Item Stage/ Process Responsible Party Steps Dependency/ Timeframe d. SB must provide the Trader ID and Default Trading account to Exchange as part of onboarding information e. SB Must set up the Trading account check in Selector Manager ; the procedure is outline in the addendum A - Set up of Trading Account Check in Selector by Sponsoring Broker f. SB must activate the market and set the limit for each OB; g. OB set limit if they choose to use the Valdi Selector Manager for risk management 11. Authorisation OE, EE OE and EE authorises OB and SB to trade Before connectivity test 1 day 12. Connectivity Test OB, OE, EE, SB & SGT To be coordinated by SGT 1. SGT coordinate end-to-end connectivity test involving the OB, OE, EE, SB and SGT to confirm order routing path is correctly setup. 2. OB and SB confirm to OE, EE and SGT that trading, risk filters, drop copy and EOD trade export are successfully tested. 3. All parties to sign-off the connectivity test. If not, fix the problem and repeat this step until pass. 4. Go live is dependent on passing connectivity test. To be conducted on Friday after trading hours (from 5:15pm to 8pm) ASEAN Link On-boarding Procedures Final8 Page Oct-12

14 4 Addendum A Set up of Trading Account Check in Selector by SGX Sponsoring Broker Procedure Name Purpose of this procedure Purpose of the trading account validation rules SET UP OF TRADING ACCOUNT CHECK IN SELECTOR BY SGX SPONSORING BROKER To enable SGX SB (sponsoring broker) to set up trading account validation rules in the Selector. To ensure that only OB orders with the correct trading account numbers (as assigned by SB to the respective OBs) are allowed to be routed into the SGX Reach-ST trading engine. If OB enters an order with a trading account that has not been pre-enabled by SB for ASEAN Link (ie, the trading account has not been enabled/activated by the SB in the Selector for SGX orders), the order will fail this validation check and gets rejected. How and where is this trading The trading account validation rules can be set up using the Selector Manager ASEAN Link On-boarding Procedures Final8 Page Oct-12

15 account validation rules set up? The detail steps are described below. Who should the SB set trading account validation rules on? SB should set up a trading account validation rule for every trading account used by an OB over ASEAN Link. 4.2 Procedure for Setting Up Trading Accounts in Selector for SGX Orders The steps are illustrated below using SGXX as the OB and SGXB as the SB. The Executing Exchange is SGX. Step 1: SB to login to selector on the OB Node. ASEAN Link On-boarding Procedures Final8 Page Oct-12

16 Step 2: In the selector view, click on the SB-OB Combination (ie, SGXX-SGXB). Step 3: In the Global filter, select the tab labeled Specifics. Step 4: Right click to Inset New Field. See screenshot. Step 5: Choose the Long Name from the list. See screenshot. ASEAN Link On-boarding Procedures Final8 Page Oct-12

17 Step 6: Set the correct Trading account in the Value field. Multiple accounts can be set up here. Example taken here is Important note: Repeat Step 3-6 for all trading accounts to be used by all OBs trading into SGX. ASEAN Link On-boarding Procedures Final8 Page Oct-12

18 4.3 How Trading Account Validation Works a. Test Case #1: SGXX (OB) places an order to SGX by not specifying the Trading account. See screenshot, Long Name field is not entered. System response: Order is rejected with reason as Forbidden Long Name. See screenshot. ASEAN Link On-boarding Procedures Final8 Page Oct-12

19 b. Test case #2: SGXX (OB) places an order to SGX by specifying the wrong Trading account. See screenshot, Long Name field is entered with the wrong account. ASEAN Link On-boarding Procedures Final8 Page Oct-12

20 System Response: Order is rejected with reason as Forbidden Long Name. See screenshot. ASEAN Link On-boarding Procedures Final8 Page Oct-12

21 c. Test Case #3: SGXX (OB) places an order to SGX by specifying the correct Trading account. See screenshot, Long Name field is entered with the correct account. System response: Order is accepted. See screenshot. ASEAN Link On-boarding Procedures Final8 Page Oct-12

22 ASEAN Link On-boarding Procedures Final8 Page Oct-12

23 4.4 Step to Enable Market (10 f) Set Up Limits and click Apply Enable the Market by Ticking the Exchange and click Apply: ASEAN Link On-boarding Procedures Final8 Page Oct-12

24 4.5 Step for Limits set up by OB (10g) Set Up Limits and Click Apply ASEAN Link On-boarding Procedures Final8 Page Oct-12

25 4.6 SunGard Contact points in case Members need assistance in the setting up the procedure 1) Vincent On (for BMB market) ) Norbert Binot (for SGX and SET market) ASEAN Link On-boarding Procedures Final8 Page Oct-12