Welcome to

1

• Welcome to

2
Briefing Session

• DCASS Implementation HKATS Upgrade
• Market Rehearsal Briefing Session (Trading)
• (Start from Slide 3)
• DCASS Implementation HKATS Upgrade
• Rollout Briefing
• (Start from Slide 66)

3
DCASS Implementation HKATS Upgrade Market
Rehearsal Briefing Session (Trading)
4
Agenda

• Introduction
• PART I
• Project Overview Milestones
• Features of OMEX 17.1 CL
• Procedural change of OMEX 17.1 CL
• OMEX 17.1 CL - External Test Program

5
Agenda

• PART II
• MR Objectives
• Participants Requirements
• MR Schedule
• MR Environment
• Checklist and Test Script
• Dos and Donts
• Evaluation

6
Agenda

• Compliance
• EP Communication Channels
• Help Desk Support
• Arrangements After MR
• Summary
• PART III
• Fallback Contingency Plan
• Q A

7

• PART I
• DCASS Overview
• (Trading Operation)

8
Project Overview

• Objective Review
• OMEX system upgrade in response to the DCASS
  project
• From Ver.17.1 DC to Ver.17.1 CL
• Benefits
• Give-up at order level
• Open/closed at order level
• Better password protection
• STP with DCASS

9
Project Milestones (Overall)
10
Features of OMEX 17.1 CL

• Password
• Better Encryption
• Customize by user
• Expire every 90 days
• (both Click OAPI)
• Your new password
• should contain 820
• characters and/or numbers
• (with no spaces or symbol
• in between)

11
Features of OMEX 17.1 CL

• Open/closed at order level
• Give-up at order level

12
Features of OMEX 17.1 CL

• Open/closed at order level
• Give-up at order level
• Stock Options OAPI users must specify either OPEN
  or CLOSE before sending the order to the market

13
Features of OMEX 17.1 CL

• For Clearing Trade Window, External Trade Number
  (9xxxxx) will be replaced by Instrument Series
  Trade Number (No)

14
Features of OMEX 17.1 CL

• Grouping of deals in Ticker Window and Clearing
  Trade Window
• In OMEX 17.1 DC

15
Features of OMEX 17.1 CL

• Grouping of deals in Ticker Window and Clearing
  Trade Window
• In OMEX 17.1 CL

16
Features of OMEX 17.1 CL

• The Clearing Trade Window will display
  transactions created by both trading and clearing
  operations.
• All users should be able to differentiate those
  transactions
• OAPI users are advised to ensure their systems
  could identify transactions between front and
  back offices.

17
Features of OMEX 17.1 CL

• Give-up Trades at trade level

18
Features of OMEX 17.1 CL

• Take-up Trades

19
Features of OMEX 17.1 CL

• Error Trade

20
Features of OMEX 17.1 CL

• Unusual Price

21
Features of OMEX 17.1 CL

• Account Transfer, Change Info.

22
Features of OMEX 17.1 CL

• Rule of Thumb to identify actions by back office
• There will be a C added in front of the
  companys mnemonic for most back office users
  under the CMP column in the Clearing Trades
  window.
• Example ABC Company
• Mnemonic ABC (Trading)
• CABC (Clearing)

23
Features of OMEX 17.1 CL

• Click users can filter information in Trade
  Statistics window by Trader ID to avoid
  transactions from back office.
• Press the Search button to have the most
  updated information.

24
Procedural change in OMEX 17.1 CL

• Error Trade
• Curfew
• Site Failover
• For details please refer to the following links
  of HKEx Website
• http//www.hkex.com.hk/futures/futurestradesys/Tra
  ding_Changes_DC_CL.doc
• http//www.hkex.com.hk/futures/futurestradesys/OAP
  I_TECH_DOC.zip

25
Error Trade

• OMEX 17.1 DC (markets other than stock options)
• Report to the Exchange within 10 minutes
• Trade is allocated back to the claimant by Form
  1B
• Claimant will close out his position by
  submitting Form 3B
• Trading Fee imposed
• 3000 Error Trade Handling Charge

26
Error Trade

• OMEX 17.1 DC (stock options)
• Report to the Exchange within 30 minutes
• The claimant shall submit a Form OP303 in respect
  of the correction by reversal of the Error Trade
• Trading Fee imposed
• 3000 Error Trade Handling Charge

27
Error Trade

• OMEX 17.1 CL (all markets)
• No change on the reporting time (30 mins for
  stock options and 10 mins for non-stock options)
• Trades will be cancelled by the Exchange
• A corresponding deal in opposite positions will
  be shown in Clearing Trades window of both
  involved parties
• No trading fee imposed
• 3000 Error Trade Handling Charge

28
Curfew

• HKATS users are advised to logout before 1800
  normally on every business day

29
Site Failover

• In OMEX 17.1 DC
• outstanding orders will be automatically
  cancelled by the system after failover
• Re-entry of orders is needed
• In OMEX 17.1 CL
• outstanding orders can be cancelled or
  inactivated at the discretion of the HKATS users
  after failover

30
OMEX 17.1 CL External Test Program

• Market Rehearsal (MR) will be conducted
• Feb. 8 2004 1st MR (Clearing only)
• Feb. 9 13 2004 2nd MR (Clearing only)
• Feb. 15 2004 3rd MR (both Trading
  Clearing)

31
OMEX 17.1 CL External Test Program

• All Exchange Participants (EP) Clearing
  Participants (CP) are required to join these MRs
• OMEX system 17.1 CL with DCASS will be put on
  production upon successful results from MRs

32

• PART II
• MR 3 Overview

33
Objectives of 3rd MR

• Confirmation of Functionalities
• Trading Functions on HKATS
• New Features and Changes
• Trade Confirmation Procedures
• Company Trades Window
• Clearing Trades Window
• Confirmation of DCASS
• Clearing functions on DCASS

34
Objectives of 3rd MR

• Confirmation of Performance
• Volume test sessions
• Confirmation of Readiness
• HKEx Status
• Exchange Clearing Participants Status

35
EPs Requirements

• Click Workstation Configuration
• Minimum Specification (same as now)
• P4 CPU with 256MB RAM is recommended
• Click Software 5.3-7.3 Installed
• OAPI Certification
• Test Applications and Interface
• Handle trade rectification properly
• Accredited Staff
• HKATS/Click Trained
• Test Access Limit
• One Click or OAPI connection per EP

36
3rd Market Rehearsal (MR) Schedule

• Session I
• 0900 0945 - Login Click 5.3-7.3
• 0945 1000 - Pre-market Opening (HSI
  MHI markets only)
• 1000 1045 - Open Trading Session
  (with 3x peak capacity)
• 1045 - Market Pause
• 1045 1145 - Return Evaluation on
  Session I to the Exchange

37
3rd Market Rehearsal (MR) Schedule

• Session II
• 1115 1130 - Pre-market Opening (HSI
  MHI markets only)
• 1130 1215 - Open Trading Session
  (with 3x peak capacity)
• 1215 - Market Close
• 1215 1315 - Return Evaluation on
  Session II to the Exchange

38
3rd Market Rehearsal (MR) Schedule

• If there is any situation that will lead to delay
  or postpone of MR 3, the Exchange will notify the
  EP through EP Communication Channels no later
  than 8 a.m.
• Situation such as
• Black rainstorm
• Typhoon
• System Readiness

39
3rd MR Trade Script

• Time Interval Duration Target of trades per EP

40
3rd MR Trade Script

• All EPs are required to execute at most two
  give-up trades in both session I and II.
• The counter-party would be CCCC

41
3rd MR Trade Script

• Both front and back office share the same
  network.
• Coordinate front and back office activities to
  avoid network traffic congestion during trading
  hours.

42
MR Environment

• Production Infrastructure
• HKATS Host
• Production Network
• Participants Click/OAPI
• DCASS

43
MR Environment

• Markets Available
• Hang Seng and Mini-Hang Seng Index Futures and
  Options
• Price Range (Futures1000013000 Combo -5050)
• Contracts per order ( 1 lot )
• HIBOR Futures
• Price Range (Futures90.00100.00)
• Contracts per order ( 1 lot )

44
MR Environment

• Markets Available
• Stock Futures
• Price Range (Futures 0.01150.00)
• Contracts per order ( 1 lot )
• Stock Options
• Price Range (Options0.0150.00)
• Contracts per order ( 1 lot )

45
MR Environment

• System date and business date
• Use the Current Date Approach
• 15th February 2004
• Series Available
• Same as Production

46
Checklist for MR

• Part I II of MR
• Appendix A and C of the test kit
• Login Procedures
• Check Click Version 5.3-7.3
• Check Information Feed Status ON
• Trading Procedures
• Pre-Market Opening (HSI and MHI Futures only)
• Order Placement, Alteration and Cancellation
• Order Activation and Inactivation
• Open Trading
• Quote Requests
• Trade Confirmation
• Execution Requirements Session 1-5 2-4

47
Dos and Donts

• Dos
• Early Login
• Communication between your front and back office
• Assure Proper Version of Click 5.3-7.3
• Synchronize Clocks
• 1 Contract per Order
• Strictly follow the Checklists
• For quick response, please use Company Trade
  Window for Trade Confirmation
• Fax the evaluation form ASAP after each session

48
Dos and Donts

• Donts
• Do not attempt to change your HKATS password
• Do not terminate your Click workstation even if
  it appears to be hanging
• Do not attempt to rectify the problem by closing
  any window and program
• Do not generate unnecessary quote or query
  requests
• Do not trade other trading series not listed

49
Compliance

• Compliance To Meet Tests Objectives
• Participants Requirements
• Firm Internal Briefing
• Testers Familiarization
• Responsible Officer Involvement
• Adherence to Scripts and Checklists
• Audit Trail
• Acceptance Tests Monitoring
• Exchange Staff
• Test Activities Review

50
Evaluation

• Evaluation Objectives
• Constructive Feedback
• Functionality As Implemented
• Performance As Realistic
• Details of Issues

51
Evaluation

• Evaluation Forms
• Completion after each test
• Appendix B for Session I MR with 3x peak volume
• Appendix D for Session II MR with 3x peak volume
• Sign off by Responsible Officer
• Fax to HKEx ASAP (within 1 hour) after each
  session
• Fax number 2509-0724, 2877-0017, 2815-7616,
  2878-7548

52
EP Communication Channels

• EP Communication Channels activate for any
  special announcement or arrangement.
• 4 means of Communication Channels
• Market Message Window
• HKATS Email System
• Participants Email System (PES)
• Group Paging System
• EP are requested to have these channels readily
  ON throughout the MR

53
Help Desk Support

• Hotline Assistance
• Click Workstation Problems
• Connection Problems
• Login Problems
• HKATS 2211 6360 2840 3580
• Call Logging
• Caller Identity and Contact
• Issue Description
• Help Desk Response
• On Line Advice
• Call-Back Advice
• Call Log Analysis

54
Arrangement after MR 3

• Please clean up all test data created during
  MR 3 if necessary
• Double verify that all OAPI are reverted to 17.1
  DC version.

55
Arrangement on the following Monday

• Click Version
• Continue to use the current production CLICK
  version 5.3-7.3
• OAPI Version
• Remember to use the copy of OMex 17.1 DC for
  production

56
Summary

• Participants Cooperation Is Essential
• To Meet Objectives
• For Constructive Results
• Please Study The Test Kits
• Please Follow the Guidelines
• Please Seek Clarification If Required
• Ideally Before The Test Day

57

• PART III
• Fallback Contingency Plan

58
Fallback Contingency Plan

• Overview
• 1st 2 weeks after software upgrade is called
  stabilization period
• Occurrence of unexpected system failure
• Fallback from OMEX v. 17.1 CL to v. 17.1 DC
• System will not available until next business day
• Do not attempt to change the HKATS password until
  the end of the stabilization period

59
Fallback Contingency Plan
60
Fallback Contingency Plan

• EPs Arrangement
• Login
• Click Users
• Double click the shortcut for CLICK 5.3-7.3
  (existing production version)
• OAPI Users
• Start their copies of OAPI programs for OMEX v.
  17.1 DC

61
Fallback Contingency Plan

• EPs Arrangement
• Connection
• Check if information feed status is ON
• Open Market Message Window
• The schedule of market open
• Notice of any special arrangement for trading in
  OMEX v.17.1 DC
• Other important market information

62
Fallback Contingency Plan

• EPs Arrangement
• Order Information
• All outstanding orders are cancelled
• Examine EPs in-house orderbook and re-enter all
  valid orders into the marketplace

63
Fallback Contingency Plan

• EPs Arrangement
• Validation of Trades on HKFEs product
• Trades executed in OMEX v.17.1CL would not be
  shown in OMEX v.17.1 DC
• Daily Trading Statement (DTS) will be available
  in Participants Access Service (PAS) for trade
  reconciliation after system recover
• Use the online query function on the PAS to check
  your trades and positions
• The trade number and grouping of deals will be in
  OMex 17.1 DC format after fallback

64
Q A
65
Thank You !!
66
DCASS Implementation HKATS Upgrade Rollout
Briefing
March 2004
67
DCASS Implementation HKATS Upgrade Rollout
Briefing (Trading)
March 2004
68
Agenda

• Introduction
• Rollout Schedule
• Features of OMEX 17.1 CL
• Procedural change of OMEX 17.1 CL
• EP Communication Channels
• Fallback Contingency Plan
• Decommissioning of TOPS
• Q A

69
Introduction

• DCASS/HKATS Upgrade
• Introduce an integrated new system that includes
  DCASS, CCMS and CLICK 17.1 CL
• Successful result from 3rd Market Rehearsal on 15
  February 2004
• Tentative launch date 6 April 2004
• Subject to approval from SFC

70
Rollout Schedule

• Launch date
• 6 April 2004 (Tuesday)
• Login
• CLICK users continue to use the existing Click
  5.3-7.3 version
• OAPI users should only use their certified 17.1
  CL version to login

71
Rollout Schedule

• All users should use their existing passwords to
  login
• No Good-Till-Cancel (GTC) orders will be carried
  forward from 2 April to 6 April. Users are
  reminded to re-enter such orders on 6 April if
  necessary.
• Optional OAPI login test on 5 April 2004

72
Rollout Schedule

• Stabilization Period
• 6 April (Tuesday) 21 April (Wednesday)
• All users MUST NOT change their passwords in
  HKATS
• No new or modified OAPI system can be put into
  production

73
Features of OMEX 17.1 CL

• Password
• Better Encryption
• Customize by user
• Expire every 90 days
• (both Click OAPI)
• Your new password
• should contain 820
• characters and/or numbers
• (with no spaces or symbol
• in between)

74
Features of OMEX 17.1 CL

• Open/closed at order level
• Give-up at order level

75
Features of OMEX 17.1 CL

• Open/closed at order level
• Give-up at order level
• Stock Options OAPI users must specify either OPEN
  or CLOSE before sending the order to the market

76
Features of OMEX 17.1 CL

• For Clearing Trade Window, External Trade Number
  (9xxxxx) will be replaced by Instrument Series
  Trade Number (No)

77
Features of OMEX 17.1 CL

• Grouping of deals in Ticker Window and Clearing
  Trade Window
• In OMEX 17.1 DC

78
Features of OMEX 17.1 CL

• Grouping of deals in Ticker Window and Clearing
  Trade Window
• In OMEX 17.1 CL

79
Features of OMEX 17.1 CL

• The Clearing Trade Window will display
  transactions created by both trading and clearing
  operations.
• All users should be able to differentiate those
  transactions
• OAPI users are advised to ensure their systems
  could identify transactions (BD4) between front
  and back offices.

80
Features of OMEX 17.1 CL

• Give-up Trades at trade level

81
Features of OMEX 17.1 CL

• Take-up Trades

82
Features of OMEX 17.1 CL

• Error Trade

83
Features of OMEX 17.1 CL

• Unusual Price

84
Features of OMEX 17.1 CL

• Account Transfer, Change Info.

85
Features of OMEX 17.1 CL

• Rule of Thumb to identify actions by back office
• There will be a C added in front of the
  companys mnemonic for most back office users
  under the CMP column in the Clearing Trades
  window.
• Example ABC Company
• Mnemonic ABC (Trading)
• CABC (Clearing)

86
Features of OMEX 17.1 CL

• Click users can filter information in Trade
  Statistics window by Trader ID to avoid
  transactions from back office.
• Press the Search button to have the most
  updated information.

87
Features of OMEX 17.1 CL

• Click users are strongly advised to set up their
  default accounts for individual instrument type.

88
Features of OMEX 17.1 CL

• Click users are strongly advised to set up their
  default accounts for individual instrument type.

89
Features of OMEX 17.1 CL

• For details on changes between 17.1 DC
• and 17.1 CL, please refer to the following
• links of HKEx Website
• http//www.hkex.com.hk/futures/futurestradesys/
• Trading_Changes_DC_CL.doc
• http//www.hkex.com.hk/futures/futurestradesys/
• OAPI_TECH_DOC.zip

90
Procedural change in OMEX 17.1 CL

• Error Trade
• Curfew
• Network
• Site Failover

91
Error Trade

• OMEX 17.1 DC (markets other than stock options)
• Report to the Exchange within 10 minutes
• Trade is allocated back to the claimant by Form
  1B
• Claimant will close out his position by
  submitting Form 3B
• Trading Fee imposed
• 3000 Error Trade Handling Charge

92
Error Trade

• OMEX 17.1 DC (stock options)
• Report to the Exchange within 30 minutes
• The claimant shall submit a Form OP303 in respect
  of the correction by reversal of the Error Trade
• Trading Fee imposed
• 3000 Error Trade Handling Charge

93
Error Trade

• OMEX 17.1 CL (all markets)
• No change on the reporting time (30 mins for
  stock options and 10 mins for non-stock options)
• Trades will be cancelled by the Exchange
• A corresponding deal in opposite positions will
  be shown in Clearing Trades window of both
  involved parties
• No trading fee imposed
• 3000 Error Trade Handling Charge

94
Curfew

• HKATS users are advised to logout before 1800
  normally on every business day

95
Site Failover

• In OMEX 17.1 DC
• outstanding orders will be automatically
  cancelled by the system after failover
• Re-entry of orders is needed
• In OMEX 17.1 CL
• outstanding orders can be cancelled or
  inactivated at the discretion of the HKATS users
  after failover

96
Network

• Both front and back office share the same
  network.
• Coordinate front and back office activities to
  avoid network traffic congestion during trading
  hours.

97
Network

• Avoid login of BOPC during trading hours
• Avoid download of large report during trading
  hours

98
EP Communication Channels

• EP Communication Channels activate for any
  special announcement or arrangement.
• 4 means of Communication Channels
• Market Message Window
• HKATS Email System
• Participants Email System (PES)
• Group Paging System

99
Fallback Contingency Plan

• Overview
• Applicable only during stabilization period
• Occurrence of unexpected system failure
• Fallback from OMEX v. 17.1 CL to v. 17.1 DC
• System will not available until next business day
• Do not attempt to change the HKATS password until
  the end of the stabilization period

100
Fallback Contingency Plan
DCASS Launch
Current Set Up
After DCASS Launch
OMEx 17.1 DC
OMEX 17.1 CL
Exchange Participant
DCASS CCMS
TOPS
SEOCH Participant
(Manual instruction) INTRACS
PAS
HKCC Participant
DCASS Fallback
101
Fallback Contingency Plan

• EPs Arrangement
• Login
• Click Users
• Double click the shortcut for CLICK 5.3-7.3
  (existing production version)
• OAPI Users
• Start their copies of OAPI programs for OMEX v.
  17.1 DC
• May need to return to their office at midnight
  during stabilization period to prepare for
  fallback

102
Fallback Contingency Plan

• EPs Arrangement
• Connection
• Check if information feed status is ON
• Open Market Message Window
• The schedule of market open
• Notice of any special arrangement for trading in
  OMEX v.17.1 DC
• Other important market information

103
Fallback Contingency Plan

• EPs Arrangement
• Order Information
• All outstanding orders are cancelled
• Examine EPs in-house orderbook and re-enter all
  valid orders into the marketplace

104
Fallback Contingency Plan

• EPs Arrangement
• Validation of Trades on HKFEs product
• Trades executed in OMEX v.17.1CL would not be
  shown in OMEX v.17.1 DC
• Daily Trading Statement (DTS) will be available
  in Participants Access Service (PAS) for trade
  reconciliation after system recover
• Use the online query function on the PAS to check
  your trades and positions
• The trade number and grouping of deals will be in
  OMex 17.1 DC format after fallback

105
Fallback Contingency Plan

• EPs Arrangement
• Validation of Trades on Stock Options
• Use TOPS to verify the trades executed

106
Decommissioning of TOPS

• Connection to TOPS will be terminated after
  stabilization period, i.e. after 21 April 2004
• Arrangement for the collection of equipments back
  from EPs will be provided in separate circular
• Start Line Termination 23 April
• Equipment Collection 26 April (3wks)

107
Summary

• Optional OAPI login Test 5 April 2004
• Launch date 6 April 2004
• Stabilization period 6 21 April 2004
• Do not change your password during stabilization
  period
• No new or modified OAPI during stabilization
  period
• Additional BD4 in Clearing Trade and Trade
  Statistics Windows
• No GTC orders from OMex 17.1 DC to OMex 17.1 CL
• Set Default Account

108
Questions Answers