ASX New Trading Platform

Customer Forum

ASX NTP Team

13 July 2016

Agenda

Project Update

Customer Readiness Activities

Industry Wide Testing

Risk Terminal Update

Q&A

Project Update

Fortnightly EDM sent out today

• Release 9

• Expected to be available within the next 2/3 weeks (Potentially 1st August)

• 12 week Customer Preparation Period starts

• Many vendors and customers have already completed a run through of conformance on Release 8.5

• Updated product and pricing released in the next week

• Letters sent to each ASX 24 customer

• Like for like comparison tables

• NTP Order Forms sent out

• Like for like trading and market data sessions

• From go-live first 3 months consistent billing from existing services

Project Status Update – ASX 24

4

Indicative Timeline assuming 1th August Customer Preparation Period start

Project Status Update – ASX 24

5

Key functionality reminders:

• Change in behaviour of Limit orders

• Global standard, trades to limit price

• TPS – Transactions per second

• Changing from 12 to 15

• Can have up to 75 TPS (5*15 TPS blocks) on same session

• Change in behaviour of order rejections for pre-open and open

• Linked directly to TPS of session

• Quarterly tick changes

• Retaining all ‘on-tick’ GTC orders

• User Define Combinations (replaces Custom Market)

• Net premium pricing as well as fixed legged option

• User Guide and Procedures

• Demo’s available

Project Status Update – ASX 24

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Terminology

• Market Access = 10g fibre connection or GiC connection or ASX Net connection to ASX 24 for trading and/or market data

• ASX24 LCC (12 TPS) = ASX 24 Participant LCC 15 TPS FIX Session via cross connect in ALC or Bondi

• ASX 24 GiC (12 TPS) = ASX 24 Participant GiC 15 TPS FIX Session via GiC in ALC or Bondi

• AOEI or ASX Trade24 GW (Trading) = ASX 24 Participant ASX Net 15 TPS FIX Session via GiC at customer ASX Net site

• AOEI or ASX Trade24 GW (Market Data) = ASX 24 FIX Market Data Lite –Session

• ITCH24 = ASX 24 Multicast Market Data Session via cross connect in ALC

• ASX24 Drop Copy Gateway = ASX 24 Drop Copy Session

• ASX 24 FIX MarketSource = ASX 24 FIX Market Data Full –Session

• ITC = Move to either FIX Lite or FIX Full or Multicast Market Data session

All Participants who trade through their own mnemonic will have 1 PTRM terminal as a minimum

Project Status Update – ASX 24

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Customer Readiness Activities

• Conformance testing for all In-House and ISV applications - CDE

• Production Connectivity

• Failover and Recovery activities - Production

• End-to-End testing - CDE

• Industry Wide Testing (IWT) - CDE

• Weekend Implementation Rehearsals - Production

• Administration – Account and Limits setup complete – Production

• Attestations

Customer Readiness

Run Sheet of activities

9

New Conformance Model

• ASX has moved to a 80/20 “Self Conformance” / Assisted assessment model for Conformance testing.

• Many customers have already performed trial runs.

• Customers perform the self assessment first, then contact CTS for the assisted testing phase.

• Customers submit an exception form highlighting what will NOT be supported

• Expectation is that customers know when they have passed and ASX will validate.

• Email or call CTS to book your assisted test.

• Conformance test script is available via the NTP Document library on the website.

• All ASX facing applications must pass conformance testing prior to attending IWTand Production Dress Rehearsals.

Customer Readiness

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Production Connectivity

Customers/ASX working to resolve any/all issues prior to Dress Rehearsal 1

• 90% of customers have connected to Primary and DR across their connection types

• Need applications to login across all services and across all connectivity methods i.e. LCC /ASX Net.

• Customers should ask for Beta Software versions from the Software provider

• Terminal logins should also be tested and confirmed.

• Production will be cleared down of all orders prior to go-live

• Administration of accounts and limits setup and uploads tested.

• Member Units /Shared Order Groups (SOG) confirmed

Customer Readiness

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ASX centric testing

ASX have conducted a Market Recovery Dry Run on the ASX Production environment.

• NTP running from Primary site; fail the Matching Engine (ME) to the DR Site –Market Halt, ASX resume the Market from the DR site.

• Thank you to those who participated

• ASX will scheduled further NTP Production environment tests including:

• Repeating the above test

• Failure and then recovery of the Primary ME

• Week day stop and start of the system

• ASX is promoting awareness on the transaction reversal process, which can occur in a fail to DR scenario:

• Matching Engine failovers to be run in CDE TBC

• Refer to the NTP Failover and Recovery Guide via the NTP Document library on the website

ASX Market Recovery

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End to End testing with Genium Clearing and Clearers

• Market Wide End-to-end testing available in CDE

• Purpose to test/confirm End-to-end trading processes

• All trades flow from CDE to Genium test env.

• Daily settlement process

• Preparation for Industry Wide Testing

End to End

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ASX will conduct 3 Implementation Rehearsal weekends on the production infrastructure, designed to ensure Participant connectivity and configurations prior to Go-Live:

1. Implementation Rehearsal 1 – Go-live simulation + Transaction Load and initial failover tests

2. Implementation Rehearsal 2 – Go-live Simulation + Full recovery test

3. Implementation Rehearsal 3 – Go-live Simulation only + contingency for Full recovery test

ALL Mandatory

Implementation Rehearsal Summary Page

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1. Rehearsal 1 - Go-live simulation + Transaction Load and initial failover tests

The First market-wide Go-live simulation + Transaction Load and initial failover test will be critical to reduce risks associated with the go-live implementation

All products will be available (Business Date will be the Saturdays date)

• All order books will be empty

• Settlement / Close prices for the Friday night session will be loaded

• CLDeal number will increment from the last transacted numbers on ASX Trade24

• Participants can place orders, get trade notifications and see market state transitions on FIX, FIX MD, ASX Market Data Protocol, and ASX Terminal connections

• Load will be full production day load generated by ASX plus customer transactions

Failover scenarios will be:

• Fail Primary gateway instances to force connection to Secondary.

• Customers MUST connect to ASX Trade24 for Monday trading.

Implementation Rehearsals

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Rehearsal 2 and 3 – Go-live Simulation + Full recovery test

The Go-live Simulation and Full recovery test will also be mandatory to reduce risks associated with the go-live implementation and any subsequent production market failure scenarios.

Baseline test will be as per previous Implementation Rehearsal

• Business date will be the Saturdays date.

Failover scenario will be:

• ASX will be running from Primary, fail the Matching Engine to the DR Site – Market will Halt, ASX will resume the market from the DR site.

• Customers should be able to fully recover via their trading applications AND the ASX Trading and Admin and Risk terminals.

• Customers MUST connect to ASX Trade24 for Monday trading.

Implementation Rehearsals

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• Key Go-Live timings will be confirmed prior in a Go/No Go notice

• Further communications to follow with final workshop and walk through

Go-Live

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Industry Wide Testing (IWT)

Customer Prerequisites

• Connectivity

• CDE, Genium Clearing Test

• Software readiness

• Trading/ART Terminals, ISV software

• NTP functionality

• PTRM, Accounts & Limits, Shared Order Group

• Resourcing

• IWT Registration, Testing & Escalation contacts

Industry Wide Testing (IWT)

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Test Scenarios

Scenarios Schedule

Spread ratio adjustments Daily

Facilitated order and trade cancellation Daily

Regulatory halt Days 1, 2, 5, 6

Market stop/start Day 3

Option strike extensions Days 3, 7, 9

Expiry simulation / Tick increment change Days 4, 6

Public holiday simulation Day 5

New product listing Day 7-8

Primary matching engine failover Day 10

Industry Wide Testing (IWT)

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Test ScheduleIndustry Wide Testing (IWT)

IWT: Day 1

Market Event Simulation Time (AEST) Customer Action

YT/XT Spread Ratio Adjustment

ASX maintenance is done during business day 1

Change is live for the business day 2

• Confirm Order entry prior to change • Confirm new tradable instrument is visible• Validate order entry and fills post change

AP Regulatory Halt 11.30am – First regulatory halt simulation

11.30pm – Second regulatory halt simulation

• Enter order in AP Intra-spreads• Confirm halt for the contract• Confirm receipt of news/text message

regarding Regulatory Halt and resumption time

• Validate the purge of any spread orders• Confirm removal of the halt

Order/Trade Cancellation

10am-2pm • Contact ASX Trading Operations to facilitate Trade and Order cancellations

• Verify resulting cancellation messages (Note that T+1 cancellation not available)

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Test ScheduleIndustry Wide Testing (IWT)

IWT: Day 7

Market Event Simulation Time (AEST) Customer Action

APH7 Strike Extension ASX maintenance is done during business day 7

Change is live for the business day 8

• Confirm Order entry prior to change • Verify new strikes visible after increment

of business date• Validate order entry for new strikes

New Contract Listing ASX maintenance is done during business day 7

Contract is live for the business day 8

• View Contract in the risk terminal (viewable but not tradable)

• Set your limits• Validate order entry and fills once contract

goes live

Order/Trade Cancellation

10am-2pm • Contact ASX Trading Operations to facilitate Trade and Order cancellations

• Verify resulting cancellation messages (Note that T+1 cancellation not available)

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Summary

• Connectivity to CDE

• Have the required software to test

• Familiarity with NTP functionality

• Ensure adequate resourcing is in place for the entirety of the IWT

• Utilise the ASX resources on hand to make the IWT successful for you

• Test according to your business requirements

Industry Wide Testing (IWT)

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Admin and Risk Terminal (ART) Firm Structure Examples

ART explained for NTP

1. Introduction of a new ASX Administration and Risk Terminal (ART).

2. Introduction of the Member Unit (MU) setup/function.

3. Limits are applied at a session level rather than at the gateway level.

4. Hard limits now apply for Account Position Limits.

5. Introduction of Shared Order Group (SOG) Owners.

6. 2 new types of users: Super User and Trading User (ASX Trading Terminal only users).

ART Firm Structure Examples

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Flat Structure – Firm ABCART Firm Structure Examples

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Member Unit Setup:• Firm ABC has no sub-firm MUs setup. • MUs can only be set up by ASX.

SOG Setup:• ABCO1 can see and act on all orders across users ABCO2 and ABCO3.• ABCO2 and ABCO3 can see and act on all orders by ABCO1. • ABCO2 and ABCO3 cannot see and act on each others orders.• Picking the owner of a SOG is important - If an Owner is disabled, all

open orders under the SOG will be purged.

Accounts and Limits:• Accounts and Limits need to be applied to a Firm and/or Member

Unit. • All FIX OE Sessions will have access to the same Accounts and Limits.

Trading Protection Limits:• All FIX OE Sessions will have access to the same TPLs (if set).

Terminal Users:• ABCS1 can see and act on all orders across the firm.• ABCT1 can see all orders across the firm but only act on its own

orders.

Granular Structure – Firm XYZART Firm Structure Examples

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Member Unit Setup:• Firm XYZ has 2 sub-firm MUs setup – XYZMU1 and XYZMU2. Both these MUs

are below the overall firm XYZ.• MUs can only be set up by ASX.

SOG Setup:• 3 SOGs have been setup for XYZ.• SOG1 is designed for viewing and acting on orders under XYZMU1.• SOG2 is designed for viewing and acting on orders under XYZMU2.• SOG3 is designed for viewing and acting on orders under the Firm XYZ. • XYZOA can see and act on orders across all users. XYZOA is an Owner across

all 3 SOGs - If this Owner is disabled, all open orders under the SOG will be purged.

Accounts and Limits:• Accounts and Limits must be applied to Firm and MU levels. • With the granular structure, different sets of Accounts and Limits can be

applied for users under XYZMU1, XYZMU2 and Firm level XYZ.

Trading Protection Limits:• Same logic can be applied as Accounts and Limits.

Granular Structure – Firm XYZ Continued…ART Firm Structure Examples

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ASX Trading Terminal Users:• XYZS1 will only be able to view and act on orders within

XYZMU1.• XYZS2 will only be able to view and act on orders within

XYZMU2.• XYZS3 will be able to view and act on all orders across the Firm

and MUs. This is different style of behaviour attributed only to a Super User via the ATT.

• A ‘standard’ Trader Terminal Users (not Terminal Super Users), will only be able to view all orders as per their MU or Firm Level setup. They can only ever act on their own orders.

Q&A

Thank you