jse update communication session - cape town leanne parsons 16 november 2006

Copyright© JSE Limited 2005 www.jse.co.za

JSE UPDATE COMMUNICATION SESSION - CAPE TOWN

Leanne Parsons 16 November 2006

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AGENDAJSE Update

Orion Project

− Status of Release A

− Status of Release B

− Status of Release C

Equities Trading System Replacement Project

− Functional Summary

− Technical Summary

− Project Timeline

− Customer Testing

− User Documentation

JSE Managed Network (JSE & MTN)

− Project Background and Objectives

− MTN NS and Solution Overview

− Internet Phase

− International Links Phase

− Customer Network Phase

Environment

Draft Costing

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Release A: Migration Plan

2006

Q2 Q3 Q4

OCT NOV DEC

PotentialGo-Live

System Test & UAT (Corporate Actions)

Internal ETEBusiness

ETE

ParallelRunDevelopment and Testing

ParallelRun Prep

Generation of Generic Test-File

Start 10 days of Client Specific Test-FileGeneration

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Release A: Progress Made to Date

In terms of Release A, efforts on the project have centred around:

Preparation for End to End Testing

− Ongoing testing in the production environment, including the closure of functional and technical errors from previous UAT phases

− Ongoing system performance testing and tuning

− Re-design, build and testing of Corporate Actions functionality

− Statistics verification and checking

− Creation of updated test conditions, scenarios and scripts

− Execution of 3 passes of internal ETE testing

Business End to End Testing (UAT)

− Execution of 2 full cycles of business ETE

− Results verification and confirmation

− Error correction and close out

Operational Readiness (Parallel) Preparation

Start of Parallel Run

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Release A: Next Steps

A further set of system generated non-client specific EOD Equity Dissemination files were made available during the week of the 9 October 2006.

At the completion of ETE on Friday 10 November 2006, the project has moved into the operational readiness phase. During this time, new Orion systems will be run in parallel with the legacy applications to ensure operational readiness. This is a cautious approach to ensure that we do not impact our existing services. Should operational readiness be proven quickly it is likely that the JSE will be ready for implementation of Release A on either 27 November 2006 or

11 December 2006. The JSE did commit to provide new client-specific EOD files for a minimum of ten business days (in addition to the current files) prior to the formal implementation (Go-Live) of Release A. This parallel phase officially commenced on Monday, 13 November.

The first set of client specific EOD test files were already provided on Sunday evening, which contained the data for Friday, 10 November.

Any queries on the files should be sent to: [email protected]

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Release B: Migration Plan

2006 2007

Q2 Q3 Q4 Q1 Q2 Q3 Q4

System /Integration Test

JSE Formal Integration Testing

Formal User Testing

Dress Rehearsal

POSSIBLEGO-LIVE

Training

Vendor Development and System Testing

JSEActiviti

es

Member

Activities

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Release B: Progress Made to Date

MSS Update:

− Design Close-out:

• A total of 33 functional specifications have been signed off.

• Reports Functional Design has been signed off and Reports Technical specifications are complete and agreed with FRI.

• The following Design activities are complete:

» Interface Design

» Batch Design

» Data Integrator (the MSS loader tool for file interfaces) and Technical Architecture

» All Dissemination Designs

− Update on Code Delivery:

• FRI has delivered 10 code drops to date.

− Testing:

• Progress with installation of FRI code drops into the test environment.

• System Test Models signed-off for 70% of all Functional System Test Models, expected to be completed during 2006.

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Release B: Progress Made to Date (Cont.)

MSS Workgroups Update

− Two successful screen demonstration sessions were done on some of the new system screens with the Orion Core Group.

− Demonstration of the screens to the entire market at a later stage (only applicable to Johannesburg).

− All members have signed the required Non-disclosure Agreements – every staff member should have access to the functional specifications.

− TWG Sessions were held for developers involved in downstream applications:

• To discuss new dissemination files and API’s

• To provide an overview of fundamental functional changes

• To provide a demonstration of new functional screens

MSS Training Update

− The JSE will be offering Conceptual and User Training in Cape Town during 2007, prior to Go-Live.

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Equities Clearing Update

− Design Close-out:

• Functional specifications completed and signed-off.

• Technical interface specifications completed.

• This concludes all of the design portions for the Equities Clearing application.

− Update on Code Delivery:

• Final code drop, including bug fixes, has been received and installed.

− Training:

• Internal training with the Clearing and Settlement Division has commenced on the installed application.

• Clearing training is due to commence early 2007.

• ECS training manuals have been delivered and are currently under internal review.

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Data Conversion Update:

− Conversion design specifications for the Market Services Solution Corporate Actions module

are still in progress. Specifications for data covering the rest of the Market Services Solution’s

modules have all been finalised.

− Specifications detailing the Data Reconciliation requirements are currently in progress. These

specify the data extracts and reporting metrics that will be used to verify the converted data

between the source systems and the Market Services Solution.

− Activities covering the build and unit test of the numerous components to source and transform

the data for these modules that have completed design, is well underway

− Conversion testing activities are currently in progress where data from select brokers is being

converted into the Market Services Solution based upon the conversion rules specified in the

conversion design specifications.

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Surveillance System Update:− User Functional Specifications have been signed off.

− Technical Specification development in progress.

− Business Functions to be tested across all Surveillance modules have been identified.

Update on Technical Specifications to the Market:− MSS API Specs

• All the interface specifications have been published and are final

− All MSS Dissemination Specs are final

− Please forward any queries relating to:

• Dissemination Specs: [email protected]; and

• API Specs: [email protected]

Testing Update:− ECS Systems Test Preparation and Execution by Accenture is completed for all ECS

modules.

− System Test Preparation of Test Models and Test Scripts for all other Release B systems are in progress.

− System Test Execution for other Release B systems expected to start Q1 2007.

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Bandwidth Requirements:Context & Assumptions of the Testing

LANmetrix (LMX) conducted a bandwidth test on the MSS on 23/11/2005.

− The test was conducted on the Market Services Code Drop Environment utilising a network sniffer that was inserted into the Local Area Network and configured to record all traffic flowing between the user workstation and the MSS terminal server.

On 27 February 2006, representative workload scenarios were constructed and agreed to represent a typical workload of an MSS user, during a typical day, in a fully deployed MSS environment.

LMX has conducted a new simulation/modelling exercise which combines the recorded transactions with the new scenarios.

MSS is being deployed over Microsoft terminal services which will result in a Bandwidth (BW) increase over BDA.

The BW consumption of the application would be related to the intensity of use and the usage patterns of the MSS.

Reporting usage patterns will have a significant impact on the BW consumption.

The BW usage would naturally increase with the number of users concurrently operating across the network.

Therefore the approach was to simulate a series of scenarios which are believed to be representative of typical user scenarios in the application.

Further details on the testing and on the scenarios can be made available on request.

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Bandwidth Requirements(Cont.)

Application Performance - Summary of Simulation Results

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Bandwidth Requirements(Cont.)

Summarized Conclusions of the Testing Exercise:

In summary the recommendations coming out of the test were:

For less than 2 users, a 64kbps link is sufficient.

For 3-40 users, bandwidth requirements increase in increments of 128kbps for every 5

additional users or less.

For more than 40 users, requirements grow in increments of 64kbps of bandwidth per 5

users over and above the 1Mbps link required for the 40 users.

The recommendations above can be used to calculate the required bandwidth to

support any number of users.

E.g. BW for 57 users = [40/5*128] + [17/5*64]

= [8 * 128] + [4 * 64]

= 1280 kbps


QUESTIONS?

Refer all Release B queries to [email protected]

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Release CTime Line

2006 2007

Q2 Q3 Q4 Q1 Q2 Q3

Weekend DressRehearsals

Draft API Specs

Draft EOD Specs

Draft IP Readiness Requirements

User Training

STT Development and System Testing

Prep Env.JSE

Formal Integration Testing

Config H/W

JSE Demarcation

STT Detail Design

JSEInternal Integration Testing

JSEInternal Training

Core Systems Final Code drop

Formal User Testing(FE & API)

Final API Specs

Final EOD Specs

Final IP Readiness Requirements

JSE

Activities

Member

ActivitiesInformal User

Testing

We are here

Operational Readiness

Proposed

FDD deployment

Proposed

APD deployment

C C

Contingency

Important upcoming activities

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JSE internal testing for Release C commenced in November 2006.

The training approach for members will be distributed to the market before 15 December 2006.

The training booking requirements document will be distributed by end January 2007, highlighting the training dates and timeslots. The JSE intends to start training by end February 2007

We would like to remind all users to review the API Specification and User Connectivity documentation.

The final API Specification document is expected to be issued mid-December 2006.

RELEASE CStatus Update

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RELEASE CConnectivity Requirements

New connectivity requirements in terms of Release C of project Orion entails the following:

All trading members are able to access the new system via their existing lines to SAFEX. The new system runs off TCP/IP, trading members need to in conjunction with the JSE, load the TCP/IP protocol on these circuits. Routers currently support the IP protocol thus it should only be a configuration issue.

The JSE has contracted an external company to conduct independent testing and verification of bandwidth requirements. Once these are complete the JSE will publish the bandwidth requirements which may result in members having to increase their line capacities.

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Similarly a user may want to use their existing circuit for trading (on the current SAFEX system) and testing on the new system until go live mid 2007 – this may also require the increase in their bandwidth (perhaps only temporarily) or to schedule their testing outside of core trading hours as not to impact their production systems.

The JSE is proposing to offer a potential solution for members using the managed network through MTN Network Solutions. This will ultimately result in members having more flexible ways of connecting to the JSE (e.g. 3G, ADSL, leased line to a local POP of MTN to reduce line costs, etcetera). Details of this will also be communicated shortly here after.

RELEASE CConnectivity Requirements cont.


QUESTIONS?

Refer all Derivative queries to [email protected]


JSE EQUITIES TRADING SYSTEM REPLACEMENTMARKET COMMUNICATION SESSION – CAPE TOWN

16 November 2006

Leanne Parsons

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AGENDA Equities Trading System - Market Communication

Background & Objectives

Functional Summary

Technical Summary

Project Timeline

Customer Testing

User Documentation

General

− Connectivity

− Online FAQ’s

− Technical Workgroup Meetings

− Further Market Communication Sessions

Questions?

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Functional Summary

Technical Summary

Project Timeline

Customer Testing

User Documentation

General

− Connectivity

− Online FAQ’s



Questions

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JSE EQUITIES TRADING SYSTEMBackground & Objectives

The current technology and business agreements between the JSE Limited (‘the JSE’) and the London Stock Exchange (‘the LSE’) expire in May 2007.

The London Stock Exchange (‘the LSE’) is nearing completion of a four year technology roadmap strategy to deliver systems offering increased performance, scalability and reliability.

During 2005, the JSE Executive and Board agreed to retain the LSE as the preferred supplier for the Equities Trading Solution, based on their current track record of service delivery, reliability, robustness and functionality.

Negotiations are currently in progress to refine and extend these contracts.

Key technical and functional changes available in the new system will provide more functionality and flexibility.

The JSE therefore needs to align itself to the LSE TRM project and phases.

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JSE EQUITIES TRADING SYSTEM Background & Objectives

The LSE Technology Roadmap (TRM) is being phased in 4 releases:-

Release Description Status JSE Impact

Release 1 Enhancements to the LSE Corporate Data Warehouse

Completed in 2003

No impact to JSE

Release 2 Migration of LMIL to Infolect Completed Sept 2005

JSE market migrated successfully

Release 3 Migration of Internal Monitoring and Surveillance (IMAS) systems

WIP Internal JSE regulation and support staff will receive replacement product – no market impact

Release 4 Migration of the Trading system WIP – 2007 H1

JSE SETS and INFOWIZ market migration (including InfoWiz message changes)

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JSE EQUITIES TRADING SYSTEM Benefits

Equities Trading System will be the same technology running InfoWiz today - a Microsoft .NET solution

Enhancements as a result of the new technology includes:

− Performance

» Reduce end-to-end latency

» Increase message throughput and processing

» Greater transparency

− Scalability

» Adding capacity seamlessly

» Message throughput

− Functionality

» Multi-product hooks – multiple markets across multiple assets can be added later

» Multi-Functional – support for integrated cash and derivatives trading can be added later

» Global capability – Full multi time zone, multi currency

» Open standards - able to support current interfaces as well as emerging standards

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JSE EQUITIES TRADING SYSTEM Benefits

Enhancements as a result of the new technology includes:

− Impact

» Three common application interfaces unchanged (MC, SII, IRI)

» Fixed-width message formats and BDGs unchanged

− Availability

» InfoWiz has proven that new technology is robust to continue an outstanding level of availability

» Extensive Internal Testing to prove the solution

» Active-Active, Active-Passive components across LSE data centers

» Sub-second automated fail-over of service and components

» Loss of a full site – Less than 5 second interruption of service, automatic recovery to just single site operation, market put into selected period rule state

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Functional Summary

Technical Summary

Project Timeline

Customer Testing

User Documentation

General

− Connectivity

− Online FAQ’s



Questions

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JSE EQUITIES TRADING SYSTEMFunctional Summary

Functionality Enhancements applicable to the JSE Market

− Market Structure

− Order Book Enhancements

− Trade Reporting

− Settlement Information

− Broadcast Interface

− Quote Book Enhancements (N/A to JSE market but included in JSE Guidance Notes for completeness)

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The lowest tier is used to describe the individual tradable instrument itself.

The Sector provides a more granular level that defines the group of Instruments within the Segment that follow the same trading schedule.

The Segment tier is used to define a set of Instruments that follow the same trading model, e.g. an electronic anonymous order-driven market.

Used to describe the geographical elements of a trading environment - its business calendar and time zone the Market is operating in.

Instrument

Sector

Segment

Market

AGL

J1H1

ZA01

JSE

NEW

Functional Summary contd.Enhanced Market Configuration

The new trading system builds upon the current structure to introduce Exchange and Market tiers. This enhances the ability to differentiate between multi-market, asset class and product:

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New System Segment contains:Members InstrumentsTrade typesTick sizes

5MS- Member in Segment

5OX- Period Rules for Mkt segment

5IS- Instrument Trading Data

Market segment Periods5TY Trade Type for Segment

5TM Tick Size Matrix for Segment/ Currency

Old System Segment contains:ParticipantsPeriodsInstruments

5OK - Participant in Market Segment

5OX - Period Rules for Market Segment

5OB - Instrument in Market Segment

Market segment

Periods

Functional Summary contd.Segment Population

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Trader IDs will be validated on the new trading solution. Trader IDs must be submitted into the system via the header of secure interactive enter messages and will be returned on secure interactive acknowledgement messages.

JSE default configuration for go-live is to assign the same Member ID to the Trader Group Code. Trader Groups will be disseminated on existing public messages as opposed to the Member ID. Trader Groups must be populated on the header of SII messages.

The highest level Participant “entity”, intended to correspond to the existing Participant Code (BIC Code)

Trader ID

Trader Group

Member ID

54365

ABC01

ABC

NEW

Functional Summary contd.New Participant Structure

The new trading system introduces an optional 2 tiers to the Participant hierarchy which support the identification of desks and/or individuals within a trading entity:

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Functional Summary contd.Normal Market Size (NMS)

NMS - Normal Market Size (REDEFINED)

− Normal Market Size will be the MiFID defined threshold used on an EU wide basis. For JSE market, field will be left blank.

SMS - Standard Market Size (NEW)

− Standard Market Size is a new MiFID average order size threshold for firms conducting in-house business (internalisation). For JSE market, field will be left blank.

EMS - Exchange Market Size (NEW)

− Exchange Market Size represents the value currently published as the NMS for JSE market. Used to validate the Order/Quote size. EMS replaces all multipliers and obligations associated with NMS and ensures publication of trades is in accordance with current practise.

PTS - Publication Threshold Size (NEW)

− Publication Threshold Size allows a separate figure to be used for setting the volume at which a Trade Report has its publication to the market delayed. Can have separate delay times for different multiples of the PTS (e.g. immediate publication, one hour or one day delay). Delay can be defined as being dependent on either volume and/or consideration.

− EG. In the JSE market , OP trades are delayed for 24 hours (unless pre-released) if the value is greater than R500 000 and the volume is greater than 6 X NMS (on TRM this will be 6 X EMS, where 6 is captured as the PTS)

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Functional Summary contd.Dynamic Tick Sizes

Dynamic tick sizes is new functionality available – however will not be implemented for Go live of the JSE market.

This provides a range of price levels for each Segment, each associated with a lower and upper band.

When submitting an order, the price must be a multiple of the tick size allocated to the range it belongs to. If the price of an order does not match the tick size associated to that price level it will be rejected.

The JSE:

− will continue to use the static Price Format Code of "W” (whole)

− will continue with automated trading in whole cents only

− Consider use of Dynamic Tick Sizes on an instrument by instrument basis for a future release

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Functional Summary contd.Order book Enhancements - Order Handling

The new trading system supports four different order types to cover every Market

Order

Name

Order

Type

Priced Anonymous Hidden Volume

Applicable to JSE

Limit Order LO Y Y N Yes

Market Order MO N Y N Yes

Iceberg Order IB Y Y Y No – future release

Named Order NO Y N N No

NEW

© 36Period based validity types

Validity Type Description Behaviour (Add) Behaviour (Remove)

GFD Good for Day Immediately posted to book Deleted at closing period

ATO At the Open Parked for injection at the start of the next opening auction

Deleted at end of opening auction

ATC At the Close Parked for injection at the start of the next closing auction

Deleted at end of closing auction

GFA Good for Auction Parked for injection for the next available auction (Open, Close, Intra-Day or Volatility Auction)

Deleted at end of auction

GFX Good for

Intra-Day Auction

Parked for injection at the next scheduled intra-day auction

Deleted at end of auction

Functional Summary contd.Order Book Enhancements - Validity Types

Validity is categorised into 3 different types:-

− Execution based validity (‘Execute & Eliminate’ and ‘Fill or Kill’)

− Time based validity (Good Till Time - GTT & Good Till Cancelled - GTC) and

− Period based validity (introduces the concept of Parked Orders)

NEW

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The new AB version of the 5DS ‘Delete Single Order’ message will return a 5D2 ‘Acknowledge Order Delete’ message that identifies the size of the order that was removed (Remaining Order Size Before Deletion)

Persistence of market orders – New system will automatically remove all unexecuted market orders prior to moving into continuous trading

Current Trading System New Trading System

Order size is increased.

Order loses time priority Order loses time priority

Private order code is updated

Public order code is updated

Private order code is maintained


Order size is decreased.

Order loses time priority Order maintains time priority

Private order code is updated


Private order code is maintained

Public order code is maintained

Order modification

Order modification – The Table shows the differences in the way private order codes and price/time priority are handled in the new system.

Functional Summary contd. Order Book Enhancements - Order modification and deletion

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Functional Summary contd.Order Book Enhancements - Basket Messages

Optional functionality for the JSE market, can be implemented into trading front-ends as and when user solutions are ready.

New system supports the ability to enter multiple orders through the use of a single 5BO ‘Basket Instruction for Enter Order’ message.

Each individual order must belong in the same Segment (as Segment Code is identified in the message header).

Each order will be processed and acknowledged individually using 5E4 ‘Acknowledge Order Details’ message, and each provided with individual order codes.

It is possible to submit a basket modification using the 5BM ‘Basket Instruction for Modify Order’ message. This will be acknowledged with a 5M7 ‘Acknowledge Basket Instruction for Modify Order’ message. These will be treated as individual modifications to the orders specified.

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Decommissioned Messages

5DT ‘Delete all orders for a Tradable Instrument/Currency’ message will no longer be supported by the new system.

5DA ‘Delete all orders for Participant in Sector’ message will no longer be supported by the new system.

Replacement Message

5DO ‘Delete all orders for Trader Group in Segment’ message enhances current functionality to offer the ability to extend the breadth of orders included in the request (from Sector to Segment), and to narrow the Participant wide impact down to an individual Trader Group.

NOTE: Current single order delete functionality remains as is.

Functional Summary contd.Order Book Enhancements - Mass order deletions

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Eligible trade types for segment

− Currently restricting the range of trade types within a particular segment impacts all participants enabled in that segment eg: the NX trade type can not be used in JSE Segments (ZA01, ZA02, ZA03 and ZA04).

− Note applied currently in the JSE market – however an extension of functionality – the new system introduces a further restriction through the use of ‘role’ e.g. a Marker maker registered in the security being given sole use of the block trade type for this instrument.

Price Validation

− Validation of the Price submitted for a Trade Report against a pre-determined tolerance around the previous closing price. If the price falls outside of this range it will be rejected.

− This validation is based on a multiplier; i.e. if the multiplier was 10 and closing price was 300 ZAC, the system will reject any price less than 30 ZAC (300/10) and any price greater than 3000 ZAC (300*10).

− The JSE will NOT implement this functionality from Go-live but will consider it for a future release.

Functional Summary contd.Trade Reporting – Trade Type Validation

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Currently you cannot link the public contra CT trade type to the original trade cancelled by a participant, as the CT is assigned a new trade code.

In the new system, for an automatic trade (AT) the contra is handled differently and will allow specific identification (linking) of the erroneous trade.

The new system will treat the contra as a status change to the original trade, specifying the original trade code.

This will be accomplished through the publication of a ‘cancel trade report’ message, with a broadcast update action of D (DELETE) – rather than today, where a new ‘CT’ trade report is published with a broadcast update action of A (ADD).

Functional Summary contd.Trade Reporting – Trade Cancellations

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The current JSE Dual Sided Trade Reporting process will remain as is.

The current JSE Single Sided Trade Reporting process remains as is, however the valid counterparty codes will change to “INTRAFIRM1” and “NON-MEMBER1”.

Functional Summary contd.Trade Reporting – Dual-Sided Trade Reports

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Functional Summary contd.Settlement Information - Settlement Account and Venue

Settlement Account is a mandatory field on the new 5EO (Enter Order) messages and must be set to "S" for the JSE market

Settlement venue must be left blank on the new 5EO (Enter Order) messages for the JSE market. It will be defaulted by the trading system to an agreed JSE value (JCP).

The new system provides the ability to submit a Settlement Account and Venue on an Order record which can be used downstream for routing Settlement information to a specific settlement venue

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Functional Summary contd.Broadcast Interface - Disaster Recovery

Today, in a disaster scenario, the 5RD ‘Disaster Recovery’ message is used to flag when messages should be processed regardless of whether the sequence number has been processed previously and the recovery process having been invoked.

The new system will ensure that all messages are synchronised with the alternative site, and guarantees that all re-sent messages will have the same sequence number.

This removes the requirement to flag those messages newly originating from the alternate site; therefore this message and process of recovering will be decommissioned.

In the event of a total site failure, the JSE may still opt to invoke a HALT period.

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Functional Summary contd.Period Rules

The trading system currently allows a maximum of 3 auction extensions and these follow a strict sequence of combinations, which in turn are dependant on what extensions have already been triggered.

The new system functionality treats the method of extensions differently, with no such restrictions on the number of extensions and allowing these extensions to be triggered according to market conditions at the time

A Market Order extension will continue to take priority over Price Monitoring extensions. However, for markets that have a maximum of three extensions to an auction, a Market Order extension can now take place, even after two Price Monitoring extensions have occurred.

NOTE: Current JSE period extension rules will apply for go live, the JSE will re-visit the above for a future release.

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Functional Summary

Technical Summary

Project Timeline

Customer Testing

User Documentation

General

− Connectivity

− Online FAQ’s



Questions

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Technical Summary Message Impact Summary

J02 Period Rules not backward compatibleB11 Tradable Instrument Reference Data J10 Period Rules not backward compatibleB10 Tradable Instrument Reference Data

NOTES:

DR – indicates BDG’s where the only change to the BDG, is the removal of the ‘DR’ message. (included in total counts)

Messages included in more than 1 BDG have been included in totals for both BDG’s

SII – totals include all messages counts, including Quotes and & Enhanced Dual Sided Trade Reports not implemented in the JSE market

SERVICECURRENT

COUNTJSE

DECOMMNEW

MSGSNEW VER

NEW COUNT

J01 3 DR 2B10 5 4 8 9J02 8 6 4 6J03 6 5 6 7B11 5 4 11 12J10 8 6 4 6J11 7 6 6 6J20 4 DR 3J21 6 DR 5J22 3 DR 2J23 8 DR 7J24 3 DR 2J25 3 DR 2J50 7 DR 6J51 5 DR 4N01 3 DR 2N02 20 2 18N03 3 DR 2N04 5 DR 4

TOTAL 112 45 39 105

SII 46 11 26 16 61GRD TOT 158 56 65 16 166

InfoWiz - Public Real Time Feed

JSE SETS - Private Trading Feed

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The new system includes a number of enhancements identified during customer consultation in order to facilitate trading:

Service Codes - Only certain messages and message versions are enabled for certain Service Codes. Current JSE service codes are T01 and T02. As part of TRM, the JSE will use T02, T03 and T04. T01 will be decommissioned for JSE users.

Unsolicited connection status - This field is included in the business header for all interactive messages sent from the Exchange to the Participant. This field indicates that the Participant has stopped acknowledging unsolicited messages and will therefore no longer receive them

Own Order Book Download (OOBD) - A new AB version of the 5RO ‘Request Order Download’, 5OF ‘First Order Download response’ and 5S1 ‘Subsequent Download Response’ messages that provide additional information not currently included with the AA version

Own trades book download (OTBD) - OTBD is a new service offering similar functionality to the current Own Order Book Download (OOBD). This provides a Trader Group the ability to request a download of their Trade book (automated and reported)

Technical Summary contd.Interactive Services

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The existing Broadcast, Interactive and Secure Interactive interfaces will continue to be used. No additional interfaces are being introduced.

Interface Specification

The current method of authentication will be supported on the new system and all existing keys will remain valid for testing and production purposes. KEKs will remain associated with a specific USAP regardless of how many Trader Groups are configured.

Key Encryption Keys (KEK’s)

Existing USAPs can continue to be used, although they may be changed during the migration, if required.

User Service Access Point

Participant Codes will be replaced with Member ID and Trader Group. However to minimise impact, these can both be set to reflect the current Participant Code.

Participant Code

New Service Codes will be introduced for the Interactive and Secure Interactive Interfaces.Service Codes

The existing IP Addresses and Ports will be maintained for the production environment. New enablements and IP addresses will be used for the new testing services.

IP Addresses

Bandwidth allocation is reviewed on an ongoing basis but is not expected to increase specifically for the changes described in this document.

Bandwidth

The current BDGs will remain unchanged with the exception that some messages will be decommissioned and new messages being introduced.

Broadcast Data Groups

Technical Summary contd.High Level Impact Summary

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Technical Summary contd.High Level Impact Summary

New Period Names and Codes will be introduced in addition to existing Periods, with some periods being deleted.

Period Names

No changes or new Sectors for the JSE market.Sector Codes

No changes or new Segments for the JSE market.Segment Codes

New session and application advisory codes are being introduced; existing codes may be used in a different context to today and may be received in a different order.

Advisory Codes

New fields are being introduced for new and existing messages and some existing fields are being renamed with new descriptions defined.

Field Descriptions

Many of the existing messages will continue to be used. A number of new message types and versions are being introduced, and some are being decommissioned.

Message Types & Versions

All existing headers will continue in their current format. A number of reserved fields are being used but will not impact the size of the header message.

Message Headers

The underlying specification is unchanged from today. New message protocols such as FIX may be introduced in addition to the current specification at a later stage.

Message Specification

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New Reference

Data Message

Current Reference

Data Msgs

New Reference

Data Message

Current Reference

Data Msgs

Technical Summary contd.Reference Data – Instrument Data

5OA

5OC 5ER

5ER ‘Instrument Background Data’

5IS ‘Instrument Trading Data’

5IS

Tradable Instrument

Company Info

TI / Currency in Market Segment

5OB

5CT5OB

TI/ Currency in Market Segment

Tradable Instrument Control

Reference data restructure and consolidation to support the new functionality

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Functional Summary

Technical Summary

Project Timeline

Customer Testing

User Documentation

General

− Connectivity

− Online FAQ’s



Questions

© 53

2006 2007

JSE Analysis & Design

Prepare and Execute Business Operations Proving

9 weeks 18 Sept – 17 Nov

5 Weeks 20 Nov – 22 Dec

Aug OctSept FebJanDecNov Mar

9 Weeks 2 Jan – 2 Mar

JSE/LSE Prepare and Execute Integration Test

User Readiness Actions

Design, Build and Test of Data Vendor / Member Solutions

JSE System Testing

JSE Development

6 Weeks 21 Aug – 30 Sept

Dress Rehearsal

We are here!

Project Timeline

TWG

TWG

Test Infr Readiness Prod Infr Readiness

CTS LIVE

EAS LIVE

New JIMAS

GO LIVE

End Mar

Dress Rehearsal

Dress Rehearsal

Start Date 7 Aug

JSE DevelopmentTALX Analysis & Design

JSE System Testing

TWGTWGTWGTWGTWG TWG

COMMS COMMS COMMS

Customer Conformance

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Project TimelineKey Dates

*Note: These confirm technical go live dates, functional go live for some new functionality to be confirmed

14 August 2006 Kick off JSE SETS TWG session

25 August 2006 Kick off InfoWiz TWG session

8 September 2006 JSE Market Guidance note published

15 September 2006 JSE Market Communication Briefing

9 October 2006 New Enhanced CTS Go live

6 November 2006 New Enhanced Conformance Go Live

27 November 2006 Early Access Service Go Live (EAS = New Prod Environment)

End January 2007 Target date for all solution providers to be conformed

February – March 2007 Mandatory Production Dress Rehearsals (including LCON’s)

17 Feb 2007 & 10 Mar 2007

March/April 2007 JSE Go live – Release 4.1 (current functionality plus)

26 Mar 2006 with contingency 2 Apr 2007

Second Half 2007 JSE TRM Release 4.2 Go live – Release 2 Value Add functionality

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Functional Summary

Technical Summary

Project Timeline

Customer Testing

User Documentation

General

− Connectivity

− Online FAQ’s



Questions

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New enhanced CTS environment supporting the new system functionality has been implemented

Run in parallel to current CTS service to support user software development and testing

Connectivity to this enhanced CTS service will be facilitated through existing user test lines

Standard booking and conformance process and procedures will apply via Customer Support

Accredited Software Providers will conform their solutions once, then roll out SW to all their clients

Legacy CTS service will be decommissioned post the successful go live of the system

Early Access Service (EAS) is the new production environment to which access will be facilitated for testing prior to go live. Prerequisite to connect is conformed software.

New System Customer Development Service (CDS)

Services available for the new system enhanced CTS environment being introduced:-

Legacy Service New Service JSE

Live Simulation Service Live Simulation and Training Service (LSTS)

xTraining Service

Scripted Scenarios ServiceModel-based Testing Service (MBT) x

Customer Specific Service

Volume Input Service Not offered

Customer TestingNew System Enhanced CTS

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Live Simulation and Training Service (LSTS)

The Live Simulation and Training Service (LSTS) is “live-like” and as such provides a quote and order book with the configuration of the live service, containing live securities, live service segments, live service timings and full service rules

A testing tool (ICTT) will enter background orders to ensure that a minimum level of order book depth and trading activity is always present across certain key segments

Reference data will be refreshed weekly from the Production service. To prevent a live data overlay whilst testing trial configurations, functionality will be introduced to dynamically “ring-fence” segments. This allows the preservation of changes made in LSTS prior to deployment on the live system.

The ICTT tool will be used to ensure that a minimum level of order book depth and trading activity is always present across key segments

Customer Testing contd.New System Enhanced CTS

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Conformance Service - High Volume Service

HVS testing is divided into three parts:

− Dissemination of HVS reference data

− Disseminate a High Volume of messages according to the message profile agreed with the business

− Forced re-request confirming that the interactive aspect of the customer’s system is working correctly and ensuring that any messages missed during the High Volumes test have not been ignored by the customer’s system

Cycle No Brief Description of Cycle

HVS Part 1 Reference Data Downloads

HVS Part 2 High Volumes Data Dissemination

HVS Part 3 Forced Re-request

Customer Testing contd.New System Enhanced CTS

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Cycle ID Title Old Cycle ID

T01 Empty Order Book and Empty Trades Book Download New

T02 Pre-Market Trading T01

T03 Logon/Logoff and Loss of Secure Interactive Session T02

T04 Limit Orders T08

T05 Execute and Eliminate Orders T09

T06 Fill or Kill Orders T10

T07 Iceberg Orders T10a

T08 Committed Principal Orders T11

T09 Client Order Reference Modification T12

T10 Order Deletions/Empty own Order Book Download T13

Test Cycles will be introduced or removed according to their fit with live system functionality.

Customer Testing contd.Trading Conformance

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Cycle ID Title Old Cycle ID

T11 Basket Instruction for Enter Order New

T12 Firm Quotes T15

T13 Executable Quotes New

T14 Basket Instruction for Enter Quote New

T15 Trade Reporting T16

T16 Single-sided Trade Reporting T17

T17 Dual-sided Trade Reporting T18

T18 Full Dual-sided Trade Reporting New

T19 Error Messages T21


Trading Conformance continued…

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Cycle ID Title

T04 Indicative Exposure Orders

T05 Firm Exposure Orders

T06 Hit Orders

T07 Passive Market Orders

T14 Indicative Quotes

T19 Company Information

T20 Control Information


Decommissioned Trading Cycles

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Cycle ID Title

I01 Start of Day Download

I03 Logon/Logoff to Interactive Request Session

I04 Loss of Broadcast and Interactive Request Sessions Rebroadcast

I05 Missed Messages without Loss of Session

I06 Component Failure, Rebroadcast

I07 Indicative Trading, Ex-Markers and News

I08 Firm Trading, Trade Reporting and Uncrossing

I09 Close of Day and Market Changes

The current I10 Disaster Recovery cycle will be decommissioned

Customer Testing contd.Information Conformance

Information Conformance

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Functional Summary

Technical Summary

Project Timeline

Customer Testing

User Documentation

General

− Connectivity

− Online FAQ’s



Questions

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User DocumentationJSE Market Guidance Note

URL: http://www.jse.co.za/jse_initiatives/jsetrad_info_sys/index1.htm

Any recommendations and questions concerning the content detailed in this draft pack may be addressed to: [email protected]

# Document Name File Name Document Objective Updates

1 JSE TRM Covering Letter 1_JSE_TRM_Covering_Letter_V0.2.doc

An introduction to the JSE TRM project and related Guidance Note pack.

Created

2 JSE TRM Guidance Note 2_JSE_TRM_Guidance_Note_V0.6.doc

A consolidated overview of all the changes being implemented with the transition to the new trading system.

Created

3 JSE TRM Guidance Note – Appendix A – Broadcast Message Layouts

3_JSE_TRM_Guidance_Note_Appendix_A_V0.1.doc

An overview of message layouts for all new broadcast message types and message versions available with the new trading system.

Created

4 JSE TRM Guidance Note – Appendix B – Interactive Message Layouts

4_JSE_TRM_Guidance_Note_Appendix_B_V0.1.doc

An overview of message layouts for all new Interactive message types and message versions available with the new trading system.

Created

5 JSE TRM Guidance Note – Appendix C – Field Definitions

5_JSE_TRM_Guidance_Note_Appendix_C_V0.1.doc

An inventory of those data fields that form part of Appendix A and B defined message layouts.

Created

6 JSE TRM Guidance Note – Appendix D – Advisory Codes

6_JSE_TRM_Guidance_Note_Appendix_D_V0.1.doc

An inventory of available advisory codes Created

7 JSE TRM Guidance Note – Appendix E – Message Matrix

7_JSE_TRM_Guidance_Note_Appendix_E_V0.12.xls

An inventory of new, changed and decommissioned messages.

Created

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User Documentation contd.Customer Test Documentation

Customer Test Documentation will be published next week

New Enhanced CTS Market Guidance Notes

CTS Conformance Scripts and procedures

Model Based Testing

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Equities System Project Food For Thought….

As at today 16 November 2006 there are:-

− Only 6 Mondays left this year

− 25 working days to Christmas

− 18 weeks to the Go Live

− 92 Business days to Go live

− 64 Business days to the 1st Dress Rehearsal

− 79 Business days to the 2nd Dress Rehearsal

− 78 Conformance slots to the 1st Dress Rehearsal

− 96 Conformance slots to the 2nd Dress Rehearsal

− 108 Conformance slots to Go Live

− PLEASE GET YOUR CONFORMANCE BOOKINGS IN EARLY !!!


Questions?

Refer all Equities TRM queries to: [email protected]


JSE MANAGED NETWORK PROJECTMARKET COMMUNICATION SESSION – CAPE TOWN

16 November 2006

Leanne Parsons (JSE)

Mike Brierley (MTN)

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AGENDAManaged Network – Market Communication

Project Background and Objectives

MTN and Solution Overview

− Company Overview

− Telecommunications: Today and Tomorrow

− MTN Solution Offering

Internet Phase

International Links Phase

Customer Network Phase

− Environment

− Draft Costing

Questions

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MTN NS and Solution Overview



− MTN NS Solution Offering

Internet Phase



− Environment

− Draft Costing

Questions

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JSE MANAGED NETWORKProject Background

The JSE Managed Network project was established following a high level assessment of the overall JSE network architecture in order to:

− find ways of optimising customer connections to the JSE and

− manage the impact of increased bandwidth requirements to JSE customers due to the implementation of new Orion applications (e.g. the Market Services Solution and Derivatives Trading Solution).

In April 2005 the JSE embarked on a detailed Request for Proposal and Vendor Selection process to identify the most suitable partner to provide the best possible solution to the JSE and its customers.

An RFP was issued to selected suppliers and evaluation and selection was based on criteria including delivery capability and quality of plan, BEE credentials, cost, long term viability of organisation, technology offered and innovation of solution offered.

MTN Network Solutions was selected as the preferred Managed Network Solution Provider.

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JSE MANAGED NETWORKProject Objectives & Phases

Phase Description

1: Internet Connection Transition of the JSE’s Internet connectivity to a solution using MTN NS for the provision of local and international Internet bandwidth.

2: International Links Transition of the international connectivity between the JSE and the LSE for the JSE SETS system to a MTN NS solution including SAT2, SAT3/SAFE and ISDN.

3: Customer Network Provision to the JSE customers of an alternative connectivity solution (allowing consolidation of customer network lines where appropriate) in order to manage the envisaged costs of the bandwidth requirements for the Market Services Solution and the Derivatives Trading Solution.

Objectives of the overall project include:

− Reduced complexity

− Improved support model

− Higher availability and redundancy

− Cost effective operations

The JSE Managed Network project is being implemented in 3 phases:

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JSE MANAGED NETWORKMTN NS – Company Overview

MTN Group & Johncom acquire Citec a small ISP in June 2001.

National core network completely redesigned and rebuilt.

Company renamed to MTN Network Solutions.

Hosting facility in Rosebank opened in May 2003.

Certified as a Cisco Silver partner (2004).

MTN acquires 100% ownership (April 2005).

JUNIPER PARTNER

6 x JNCIA

1 x JNCIS

PROJECT MANAGEMENT CERTIFICATIONS

2 Certified Project Managers

CISCO SILVER PARTNER

25 certified technical staff

51 Cisco certifications

4 x CCIE 21 x CCNA

7 x CCNP 2 x CCSP

2 x CCDA 2 x Wireless LAN

3 x WLAN Support 2 x CVOICE

1 x BCRAN 4 x CCSE (sales)

1 x INFOSEC 2 x BSCI

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JSE MANAGED NETWORKCorporate Telecommunications: Today

PicoCell

ISDN

CorporateWAN

PABX

Remoteaccess

Banking

Real-time data

ISP

RemoteBranch

Intranet

Datacentre

Real-time data

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JSE MANAGED NETWORKCorporate Telecommunications: Tomorrow

Remote accessReal time dataBankingISPVoiceCellular

RegionalBranches

NetworkService Provider

VPN

WLAN data and GSM voice extensions

WWW

Voiceswitch

Voice & GPRS

Datacentre

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JSE MANAGED NETWORKMTN NS Solution Offering

Single, integrated MPLS network

− All points-of-presence reside within MTN switching centers

− Fully redundant core network

− High reliability and availability

Wide geographic footprint

Quality of Service implemented – end to end

Highly redundant local peering

Resilient international peering

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JSE MANAGED NETWORKMTN NS Solution Offering:

Building a Network for the Future

Reliable network

− Strong SLA

− High availability

− QoS

Low cost providers

− Efficient network

− Massive scale

One converged network

− Reduces capex

− Improves scale

Wide product range

− Full telco service offer

− Single point of service and account management

Manageable

− Productive staff

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Harrington

Randburg

Berea

Tygerberg

Rosebank

New Germany

Left Network Right NetworkFully Integrated Network

Tygerberg

Rosebank

NewGermany

Randburg

Berea

Harrington

JSE MANAGED NETWORKMTN NS Solution Offering: Redundant Core Infrastructure

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Expedited Forwarding

Assured Forwarding

Best Effort

Packet loss

All voice on the link will be affected

Demoted TrafficDifferentiated Services Model – All traffic is not equal


QoS

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MTN NSCore

MTN NSCore

ADSLADSL GSMGSM

Wireless

Wi-maxWi-Fi

Wireless

Wi-maxWi-Fi

VSatVSat

MetroFibre

MetroFibre

A multi-provider strategy

DiginetATM

WirelessWi-max

Wi-Fi

WirelessWi-max

Wi-Fi

MTNGSM

MTNGSM

JSE MANAGED NETWORKMTN NS Solution Offering:A Multi-Access VPN Strategy

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JSE MANAGED NETWORKInternet Phase

The JSE currently uses two Internet Service Providers to provide its local and international Internet bandwidth. In order to meet the requirement for an end-to-end solution, cost saving, and a highly available Internet connection, the JSE will be implementing an MTN NS Internet solution.

The new Internet solution will provide access to local Internet sites via multiple local access points with international access provided via access points in New York and London. This solution is provided on SAT3 with restoration over SAFE.

This implementation will not impact JSE customers but will result in higher availability of JSE websites e.g. JSE, TALX, AltX, Extranet, Satrix, YieldX, SAFEX, etc.

The Internet phase has the following key activities:

Activity Status

Prove business case for JSE to use MTN NS as internet solution provider

Complete

Define and sign-off technical design Complete

Conduct technical impact analysis for required change control

Complete

Pre cut over activities (e.g. domain transfer and registration, hardware purchase, cable installation and configuration)

Work in Progress - Planned completion Dec 2006

Cut-over of Internet from current solution providers to MTN NS

Planned for Jan 2007

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JSE MANAGED NETWORKCustomer Network Phase:

Proposed Environment

MTN NSMPLS

Network

MTN NSMPLS

Network

Randburg

Rosebank

JSE member

JSE member

JSEDC

NSDC

JSE member

JSE

Customer Network Design

Benefits to Customers

Improved resilience on the access layer : Dual

Connect

Improved redundancy (reliability) in the network

core

Better utilisation of access capacity : Load

Balancing

Comprehensive monitoring and reporting

Quality of Service, enabling converged services

Future access alternatives : Diginet replacement

technologies

Improved access speeds : larger local leads

Cost effective solution

Capability to inexpensively add value-added services

Multiple services through a single managed

interface

A huge value proposition, offering savings, improved reliability, converged services, and a single point of support and management

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Future Environment

Bringing it all together: MTN NS – Africa strategy, fully integrated mobile data, hosting, VoIP.

MTNGSM

Network

MTNGSM

Network

MTN NSMPLS

network

MTN NSMPLS

network

ADSLnetwork

ADSLnetwork

Remotebranch

Africa

GPRS/EDGE3G/HSDPA

Homeuser

DRJSE

WWWWWW

Headoffice

I-Net

Smallbranch

GSMbackup

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Draft Costing

This section provides an indication of the costs that will be incurred by customers for the Managed Network – these costs are indicative only and subject to JSE EXCO approval of the Customer Network Business Case.

The Customer Network comprises of 2 main cost components namely:

− Bandwidth Fee: The fee payable for the use of the bandwidth inside the core MPLS Network

− Management Fee: A fee payable per site/branch regardless of the number of connections/ lines

Customers connecting directly to the JSE POP will only incur a management fee, whilst customers connecting to the MTN NS MPLS network will incur both a management fee and bandwidth costs.

Directly connected to JSE Connecting via MPLS

Management Fee

MPLS Core Bandwidth Cost Not applicable Cost per 64kbps of bandwidth required - See table on next slide

Value Added Services: VPN Extra R300 per 64kbps per month No extra cost

Value Added Services: Internet and Network / Security, etc

Pricing dependent on specific services required by customers but will result in reduced costs as customer is already part of VPN.

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Draft Costing

RSA – National Namibia

kbps Total BW Cost

Cost per 64k

Total BW Cost

Cost per 64k

64 700 700 1850 1850

128 1400 700 3700 1850

192 2100 700 5550 1850

256 2800 700 7400 1850

320 3500 700 9250 1850

384 4200 700 11100 1850

512 5400 675 14400 1800

640 6750 675 18000 1800

768 8100 675 21600 1800

1024 10400 650 28000 1750

1984 20150 650 54250 1750

Applicable costs per month per 64kbps bandwidth in the MPLS Core Network:

Please Note:

– Customers connecting directly to the JSE will still incur Telkom costs

– Customers connecting to the MPLS network will still incur Telkom costs for the last mile


QUESTIONS?

Refer all Managed Network queries to: [email protected]


THANK YOU

jse update communication session - cape town leanne parsons 16 november 2006

Documents