ALD: Broker Dealers Problem Escalation Process Flows

1
ALD Broker Dealers Problem Escalation Process
Flows
A Guideline to broker-dealers for resolving
problems occurring during the daily ALD process
flow
October 2006
2
Content

• Broker-dealer connecting directly to DTCC
• File and notification flow
• Guidelines and Legend
• File retrieval decision making process
• Problem research flows
• Agent Lender direct to DTCC
• Agent Lender using EquiLend
• Agent Lender using SunGard
• Broker-dealer using EquiLend
• File and notification flow
• Guidelines and Legend
• File retrieval decision making process
• Problem research flows
• Agent Lender direct to DTCC
• Agent Lender using EquiLend
• Agent Lender using SunGard
• Broker-dealer using SunGard
• File and notification flow
• Guidelines and Legend

3
Broker-Dealer Accessing Through DTCC
Files and Notification Flow
Problem Notification Update
Expected File Receipt/ Delivery
Agent Lender SunGard client
DTCC systemic failure notification
SunGard
Broker-Dealer
DTCC
EquiLend
Agent Lender (EquiLend client)
Agent Lender DTCC direct
4
Broker-Dealer Daily file receipt via DTCC
Guidelines

• Broker-dealers that experience problems
  retrieving agent lender files from DTCC should
• Check for e-mail notification from vendors
  (SunGard, EquiLend) or agent lenders of problems
  or delays in delivering the loan and/or
  collateral file(s)
• Check the file status on the DTCC website or
  contact the DTCC, 24 hour PIP Hotline ( 1 212
  855.8989)
• Contact agent lenders directly

DTCC WILL NOT NOTIFY BROKER-DEALERS OF PROBLEMS
RECEIVING AGENT LENDER FILES AND DOES NOT TRACK
EXPECTED VERSUS RECEIVED FILES.
DTCC will send automatic notifications (through
their existing crisis management system) only in
the case of systemic failures. These
notifications will be sent to anyone who wishes
to receive them and who provides a contact email
to DTCC. Any broker-dealer connecting directly to
DTCC who wishes to be part of this notification
process should send their contact email to
Margaret Koontz, mkoontz_at_dtcc.com
Broker-dealers should be notified by vendors
(SunGard, EquiLend) and agent lenders of problems
or delays in delivering loan and/or collateral
file(s)

• Notifications should be received at the
  broker-dealers group e-mail address that was
  specified to their vendor and agent lender
  counterparties

• A vendor or agent lender notification should
  include
• Identity of sending firm and contact information
• The general nature and severity of the problem
• An estimate for correcting the problem
• Identification if this is the initial
  notification of the problem or an update related
  to a prior notification

5
Broker-Dealer Daily file receipt via DTCC Legend
Broker-dealers must research missing or
unavailable files using the DTCC website and the
DTCC PIP Hotline to determine if the files were
successfully received by DTCC
Check DTCC Website For File Availability

• If the broker-dealer finds that files were not
  successfully received by DTCC then the
  broker-dealer should check for vendor or agent
  lender notifications of problems

• If the broker-dealer determines that DTCC
  successfully received the agent lender files,
  then the broker-dealer should verify their
  processing with DTCC and contact the DTCC PIP
  Hotline for additional support

Call DTCC PIP Hotline Monitor Status

• Monitoring Notifications
• Once the broker-dealer receives e-mail
  notification of a problem, they should continue
  to monitor e-mail for updates on resolving the
  issue
• If the sender (agent lender, vendor) does not
  specify an expected time for resolving the
  problem or has not provided an update by the time
  specified, the broker-dealer should call the
  sender using contact information provided

• Agent lenders must produce notification and
  status updates of
• problems creating the loan and/or collateral
  file(s) that may result in no files being sent
• delays in creating files
• problems transmitting the loan and/or collateral
  file(s) to their primary recipient (EquiLend,
  SunGard or DTCC).

Monitor A/L File Status
Monitor Vendor File Status
Vendors must produce notification and status
updates of problems sending agent lender files to
DTCC.
Agent lenders should be contacted directly when
no e-mail notification has been received from
either the agent lender or a vendor regarding the
missing files
Contact A/L Re Missing Files
Broker dealer should monitor status with DTCC in
the case where a systemic failure email notice
was received from DTCC. Monitoring should be done
through the DTCC website or by contacting the PIP
hotline.
Monitor System Status with DTCC
6
Broker-Dealer via DTCC
Retrieve Agent Lender Loan Collateral Files
Decision Making Process Flow
Start
All Files Retrieved by 300 AM?
Continue Standard ALD Processing
Yes
No
Sys. Failure notification recd from DTCC?
Monitor System Status with DTCC
Yes
Check DTCC Website For File Availability
No
Files Available at DTCC?
Yes
Call DTCC PIP Hotline Monitor Status
No
A/L Delay or Failure Notification Received?
No
Yes
Monitor A/L File Status
Vendor Failure Notification Received?
Monitor Vendor File Status
Yes
No
Research Missing Files
See next 3 slides for specific problem research
flow s
Wait for A/L Files?
No
Yes
Continue with prior day A/L files As contingency
Delay Processing Until A/L files Received then
continue with standard processing
Decision making process must be determined
internally by each broker-dealer
7
Problem research flows
Broker-dealer (Direct to DTCC)
Agent Lender (Direct to DTCC)
A/L Files created?
No
Start
Check DTCC website for agent lender files
Yes
Update B/D with status
No
Correct related Problems
Contact Agent Lender by phone e-mail
File Available?
Create A/L Files
Yes
Files Accepted by DTCC?
No
Yes
A/L Files created?
Yes
No
Check DTCC website for A/L Files
Update B/D with status
Notify DTCC B/D of conflicting info
Resolve retrieval problem with DTCC hotline
Resolve issue with DTCC
Correct related Problems
Update B/D with status
Send Files to DTCC
Update B/D with status
Files Accepted by DTCC?
No
Yes
Update B/D with status
Retrieve files from DTCC
End
8
Problem research flows
Agent Lender (EquiLend)
Broker-dealer (DTCC)
EquiLend
A/L Files created?
Contact Agent Lender by e-mail
No
Start
Check DTCC website for agent lender files
Yes
Update B/D EquiLend with status
Correct related Problems
No
Files Received from A/L?
File Available?
No
Contact EquiLend by phone e-mail
Create A/L Files
Yes
Yes
A/L Files created?
Yes
No
Files Accepted by DTCC?
Files Accepted by EquiLend?
Resolve retrieval problem with DTCC hotline
Yes
No
No
Update B/D EquiLend with status
Yes
EquiLend B/D Resolve retrieval problem with DTCC
EquiLend A/L resolve conflicting info
Notify EquiLend B/D of conflicting info
Correct related Problems
Update B/D A/L with status
Update B/D EquiLend with status
Send Files to EquiLend
Resolve issue with DTCC
Update B/D EquiLend with status
Files Accepted by EquiLend?
Update B/D A/L with status
No
Update B/D EquiLend with status
Yes
Retrieve files from DTCC
End
9
Problem research flows
SunGard
Broker-dealer (DTCC)
Agent Lender (SunGard)
A/L Files created?
No
Start
Check DTCC website for agent lender files
Contact Agent Lender by phone e-mail
Yes
Update B/D SunGard with status
Correct related Problems
No
Files Received from A/L?
File Available?
No
Contact SunGard by phone e-mail
Create A/L Files
Yes
Yes
A/L Files created?
Yes
No
Files Accepted by DTCC?
Files Accepted by SunGard?
Resolve retrieval problem with DTCC hotline
Yes
No
No
Update B/D SunGard with status
Yes
SunGard B/D Resolve retrieval problem with DTCC
Notify SunGard B/D of conflicting info
SunGard A/L resolve conflicting info
Correct related Problems
Update B/D A/L with status
Update B/D SunGard w/ status
Send Files to SunGard
Resolve issue with DTCC
Update B/D SunGard with status
Files Accepted by SunGard?
Update B/D A/L with status
No
Update B/D SunGard with status
Yes
Retrieve files from DTCC
End
10
Broker-dealer using EquiLend

• File and notification flow
• Process flow guidelines and legend
• Decision making process flow
• Problem research flows for B/D using EquiLend
• Agent Lender direct to DTCC
• Agent Lender using EquiLend
• Agent Lender using SunGard

11
Broker-dealer Accessing Through EquiLend
Files and Notification Flow
Problem Notification Update
Expected File Receipt/ Delivery
DTCC systemic failure notification
Agent Lender SunGard client
SunGard
Agent Lender EquiLend client
DTCC
EquiLend
Agent Lender DTCC direct
Broker-Dealer
12
Broker-Dealer Daily file receipt via
EquiLend Guidelines and Legend
Broker-dealers should be notified by vendors
(SunGard, EquiLend) and agent lenders of problems
or delays in delivering loan and/or collateral
file(s)

• Notifications should be received at the
  broker-dealers group e-mail address that was
  specified to their vendor and agent lender
  counterparties

• A vendor or agent lender notification should
  include
• Identity of sending firm and contact information
• The general nature and severity of the problem
• An estimate for correcting the problem
• Identification if this is the initial
  notification of the problem or an update related
  to a prior notification

• Monitoring Notifications
• Once the broker-dealer receives e-mail
  notification of a problem, they should continue
  to monitor e-mail for updates on resolving the
  issue
• If the sender (agent lender, vendor) does not
  specify an expected time for resolving the
  problem or has not provided an update by the time
  specified, the broker-dealer should call the
  sender using contact information provided

DTCC will send automatic notifications (through
their existing crisis management system) only in
the case of systemic failures. These
notifications will be sent to anyone who wishes
to receive them and who provides a contact email
to DTCC. Any broker-dealer using a vendor who
wishes to be part of this notification process
should send their contact email to Margaret
Koontz, mkoontz_at_dtcc.com
Legend

• Agent lenders must produce notification and
  status updates of
• problems creating loan and/or collateral file(s)
  that may result in no files being sent,
• delays in creating files,
• problems transmitting the loan and/or collateral
  file(s) to their primary recipient (EquiLend,
  SunGard or DTCC)

Monitor A/L File Status

• Vendors must produce notification and status
  updates of
• Problems sending agent lender files to DTCC,
• Issues preventing broker-dealers from receiving
  files

Monitor Vendor File Status
Agent lenders should be contacted directly when
no e-mail notification has been received from
either the agent lender or a vendor regarding the
missing files
Contact A/L Re Missing Files
13
Broker-Dealer via EquiLend Decision Making
Process Flow
Start
Receive Agent Lender Loan Collateral Files
All Files Received by 300 AM?
Continue Standard ALD Processing
Yes
No
A/L Delay or Failure Notification Received?
Yes
Monitor A/L File Status
No
Vendor Failure Notification Received?
Yes
Monitor Vendor File Status
No
See next three slides for specific problem
research flows.
Contact vendor Re Missing Files
Wait for A/L Files?
No
Yes
Continue with prior day A/L files As contingency
Delay Processing Until A/L files Received then
continue with standard processing
Decision making process must be determined
internally by each broker-dealer
14
Problem research flows
Agent Lender (DTCC)
Broker-dealer (EquiLend)
EquiLend
A/L Files created?
Start
No
No
Contact Agent Lender by phone e-mail
Files Available at DTCC?
Yes
Update B/D EquiLend with status
Check EquiLend browser for agent lender files
Yes
Correct related Problems
Check DTCC website for A/L Files
Create A/L Files
Files Accepted by DTCC?
Yes
No
A/L Files created?
Files Received from DTCC?
No
No
Contact EquiLend by phone e-mail
Files Available?
Check DTCC website for A/L Files
No
Yes
Yes
Yes
Update B/D EquiLend with status
Resolve B/D retrieval Issue
Resolve retrieval problem with EquiLend
Notify DTCC, B/D EquiLend of conflicting info
Update B/D with status
Correct related Problems
Resolve issue with DTCC
Resolve retrieval problem with DTCC
Send Files to DTCC
Update B/D EquiLend with status
Update B/D EquiLend with status
Files Accepted by DTCC?
Update B/D with status
No
Yes
Update B/D EquiLend with status
Retrieve files from EquiLend
End
15
Problem research flows
Agent Lender (EquiLend)
Broker-dealer (EquiLend)
EquiLend
A/L Files created?
No
Start
Yes
Check EquiLend browser for agent lender files
Update B/D EquiLend with status
Contact Agent Lender by e-mail
Contact EquiLend by phone e-mail
Correct related Problems
Notify EquiLend B/D of conflicting vendor info
File Available?
No
Create A/L Files
A/L Files created?
No
Yes
EquiLend A/L resolve conflicting info
Files Accepted by EquiLend?
Yes
Yes
Update B/D EquiLend with status
No
Update B/D A/L with status
Correct related Problems
Resolve retrieval problem with EquiLend
Send Files to EquiLend
Update B/D EquiLend with status
Files Accepted by EquiLend?
No
Yes
Update B/D EquiLend with status
Retrieve files from EquiLend
End
16
Problem research flows
Broker-dealer (EquiLend)
Agent Lender (SunGard)
SunGard
EquiLend
A/L Files created?
Start
No
Contact Agent Lender by phone e-mail
Yes
No
Update B/D, SunGard EquiLend with status
Files Received from A/L?
Contact SunGard by e-mail
Check EquiLend browser for agent lender files
No
Yes
Files Available at DTCC?
Correct related Problems
Files Accepted by DTCC?
Yes
Yes
Files Available?
No
Create A/L Files
Check DTCC website for A/L Files
EquiLend SunGard resolve retrieval problem with
DTCC
A/L Files created?
No
No
Yes
Yes
No
Contact EquiLend by phone e-mail
Files Received from DTCC?
Update B/D, SunGard EquiLend with status
Update B/D, EquiLend A/L with status
Files Accepted by SunGard?
Yes
Resolve issue with DTCC
Resolve retrieval problem with EquiLend
Resolve B/D retrieval Issue
No
Yes
Update B/D with status
Update B/D, EquiLend A/L with status
Notify EquiLend, SunGard B/D of conflicting info
Resolve retrieval problem with DTCC
SunGard A/L resolve conflicting info
Correct related Problems
Update B/D with status
Update B/D, EquiLend A/L with status
Send Files to SunGard
Update B/D, SunGard EquiLend with status
Update SunGard B/D with status
Files Accepted by SunGard?
No
Retrieve files from EquiLend
Update B/D, SunGard EquiLend with status
Yes
End
17
Broker-dealer using SunGard

• File and notification flow
• Process flow guidelines and legend
• Decision making process flow
• Problem research flows for B/D using SunGard
• Agent Lender direct to DTCC
• Agent Lender using EquiLend
• Agent Lender using SunGard

18
Broker-dealer Accessing Through SunGard
Files and Notification Flow
Problem Notification Update
Expected File Receipt/ Delivery
DTCC systemic failure notification
Agent Lender SunGard client
SunGard
Broker-Dealer
DTCC
Agent Lender DTCC direct
EquiLend
Agent Lender EquiLend client
19
Broker-Dealer Daily file receipt via
SunGard Guidelines and Legend
Broker-dealers should be notified by vendors
(SunGard, EquiLend) and agent lenders of problems
or delays in delivering loan and/or collateral
file(s)

• Notifications should be received at the
  broker-dealers group e-mail address that was
  specified to their vendor and agent lender
  counterparties

• A vendor or agent lender notification should
  include
• Identity of sending firm and contact information
• The general nature and severity of the problem
• An estimate for correcting the problem
• Identification if this is the initial
  notification of the problem or an update related
  to a prior notification

• Monitoring Notifications
• Once the broker-dealer receives e-mail
  notification of a problem, they should continue
  to monitor e-mail for updates on resolving the
  issue
• If the sender (agent lender, vendor) does not
  specify an expected time for resolving the
  problem or has not provided an update by the time
  specified, the broker-dealer should call the
  sender using contact information provided

DTCC will send automatic notifications (through
their existing crisis management system) only in
the case of systemic failures. These
notifications will be sent to anyone who wishes
to receive them and who provides a contact email
to DTCC. Any broker-dealer using a vendor who
wishes to be part of this notification process
should send their contact email to Margaret
Koontz, mkoontz_at_dtcc.com
Legend

• Agent lenders must produce notification and
  status updates of
• problems creating loan and/or collateral file(s)
  that may result in no files being sent,
• delays in creating files,
• problems transmitting the loan and/or collateral
  file(s) to their primary recipient (EquiLend,
  SunGard or DTCC)

Monitor A/L File Status

• Vendors must produce notification and status
  updates of
• Problems sending agent lender files to DTCC,
• Issues preventing broker-dealers from receiving
  files

Monitor Vendor File Status
Agent lenders should be contacted directly when
no e-mail notification has been received from
either the agent lender or a vendor regarding the
missing files
Contact A/L Re Missing Files
20
Broker-Dealer via SunGard Decision Making Process
Flow
Start
Receive Agent Lender Loan Collateral Files
All Files Received by 300 AM?
Continue Standard ALD Processing
Yes
No
A/L Delay or Failure Notification Received?
Yes
Monitor A/L File Status
No
Vendor Failure Notification Received?
Yes
Monitor Vendor File Status
No
See next three slides for specific problem
research flows.
Contact vendor Re Missing Files
Wait for A/L Files?
No
Yes
Continue with prior day A/L files As contingency
Delay Processing Until A/L files Received then
continue with standard processing
Decision making process must be determined
internally by each broker-dealer
21
Problem research flows
Broker-dealer (SunGard)
Agent Lender (DTCC)
SunGard
A/L Files created?
Start
Contact Agent Lender by phone e-mail
No
No
Yes
Files Available at DTCC?
Yes
Update B/D SunGard with status
Check SunGard website for agent lender files
Correct related Problems
Check DTCC website for A/L Files
Create A/L Files
Files Accepted by DTCC?
Yes
No
Files Received from DTCC?
A/L Files created?
No
File Available?
Contact SunGard by phone e-mail
No
Check DTCC website for A/L Files
No
Yes
Yes
Yes
Update B/D SunGard with status
Resolve B/D retrieval Issue
Resolve retrieval problem with SunGard
Notify DTCC, B/D SunGard of conflicting info
Update B/D with status
Correct related Problems
Resolve issue with DTCC
Resolve retrieval problem with DTCC
Send Files to DTCC
Update B/D SunGard with status
Update B/D SunGard with status
Files Accepted by DTCC?
Update B/D with status
No
Yes
Update B/D SunGard with status
Retrieve files from SunGard
End
22
Problem research flows
Broker-dealer (SunGard)
Agent Lender (EquiLend)
EquiLend
SunGard
A/L Files created?
Contact Agent Lender by e-mail
No
Start
Yes
No
Update B/D, SunGard EquiLend with status
Files Received from A/L?
Check SunGard website for agent lender files
Contact EquiLend by phone e-mail
No
Yes
Files Available at DTCC?
Correct related Problems
Files Available?
Files Accepted by DTCC?
No
Yes
Yes
Create A/L Files
Yes
Contact SunGard by phone e-mail
Check DTCC website for A/L Files
EquiLend SunGard resolve retrieval problem with
DTCC
A/L Files created?
No
No
Yes
No
Files Received from DTCC?
Update B/D, SunGard EquiLend with status
Update SunGard A/L with status
Resolve retrieval problem with SunGard
Files Accepted by EquiLend?
Yes
Resolve issue with DTCC
Resolve B/D retrieval Issue
No
Yes
Update B/D with status
Update SunGard A/L with status
Notify EquiLend, SunGard B/D of conflicting info
Resolve retrieval problem with DTCC
EquiLend A/L resolve conflicting info
Update B/D with status
Correct related Problems
Update SunGard A/L with status
Update EquiLend B/D with status
Send Files to EquiLend
Update B/D, SunGard EquiLend with status
Update B/D with status
Files Accepted by EquiLend?
No
Retrieve files from SunGard
Update B/D, SunGard EquiLend with status
Yes
End
23
Problem research flows
Agent Lender (SunGard)
Broker-dealer (SunGard)
SunGard
A/L Files created?
No
Start
Contact Agent Lender by phone e-mail
Check SunGard website for agent lender files
Yes
Update B/D SunGard with status
No
File Available?
Files Received from A/L?
Contact SunGard by phone e-mail
No
Correct related Problems
Notify SunGard B/D of conflicting vendor info
Create A/L Files
Yes
Yes
Resolve B/D retrieval Issue
A/L Files created?
No
Update B/D with status
Files Accepted by SunGard?
Yes
Yes
No
Update B/D SunGard with status
SunGard A/L resolve conflicting info
Resolve retrieval problem with SunGard
Correct related Problems
Update B/D A/L with status
Send Files to SunGard
Update B/D SunGard with status
Files Accepted by SunGard?
No
Update B/D SunGard with status
Yes
Retrieve files from SunGard
End
24
Problem Research Flows

• Version 5 changes
• Changed method of EquiLend contacting agent
  lenders and SunGard from phone e-mail to
  e-mail only on all flows as per comments from
  EquiLend.