2nd Market Dress Rehearsal Brief

1
2nd Market Dress Rehearsal Brief

• 17 April 2002

2
Countdown
Jarrow Count Down To Go Live as at 17th April
2002 Just 26 Total Days 17 JSE Business Days
Remaining
3
A note of Thanks
We would like to thank JSE Users for all their
effort, commitment and participation thus far,
including the Dress Rehearsal, resulting in us
still being on track for Go Live on the 13 May
2002
4
Project Timeline
2001
2002
June
Aug
Oct
Sept
Feb
Jan
Dec
Nov
July
Mar
April
May
4/6/01
3/8/01
JSE Design
19/10/01
6/8/01
JSE Development
4/6/01
19/10/01
JSE Build and Test of
Technical
Infrastructure
22/10/01
JSE/LSE Prepare and Execute
Integration Test

18/01/02
4/6/01
3/8/01
9/11/01
Prepare and Execute Business Operations Proving
12/4/02
21/1/02
Design of JSE Front End Solution
Build and Test of JSE

Front End Solution
2/03/02
LCON
16/03/02
Design, Build and Test of Data Vendor / Member


Front End Solution
LCON
27/6/01
18/01/02
30/03/02
LCON
13/4/02
1st DR
31/03/02
18/7/01
27/6/01
4/6/01
27/04//02
JSE / LSE Draft Spec
JSE / LSE Final Spec
Prepare and Execute Customer Test
26/11/01
2nd DR
Go-live
5
2nd Market Dress Rehearsal Brief
Agenda

• Objectives
• Principles
• Deployment Timeline
• Lessons Learnt
• Participation and Responsibility
• Test Schedule
• Other
• Questions

6
2nd Market Dress Rehearsal Brief
Agenda

• Objectives
• Principles
• Deployment Timeline
• Lessons Learnt
• Participation and Responsibility
• Test Schedule
• Other
• Questions

7
Objectives

• Practise the JSE, LSE, FTSE and User cut over
  activities required for Go Live
• Practise the 1st and 2nd trading day activities
  of the new JSE SETS and InfoWiz systems solution
  
• Gauge the overall level of readiness across the
  JSE, LSE, FTSE and the JSE NSX Users to cut
  over to the new solutions
• Identify any critical issues that need to be
  addressed prior to Go live
• Ensure the overall solution meets JSE
  requirements
• Build internal and external confidence for Go
  Live
• Minimise the risk of unexpected issues on Go Live
  day
• Provide Users with an opportunity to test and
  verify the accuracy and integrity of their NEW
  front-end solutions for trading and information
  dissemination
• Provide Users with an opportunity to test
  accuracy and integrity of related systems and
  feeds

8
Objectives

• Confirm internal JSE, LSE and FTSE readiness for,
  and effectiveness of, new / changed business
  processes, to ensure smooth future operations
• Provide Users with an opportunity to test and
  familiarise themselves with the new JSE trading
  model functionality and revised rules in a
  live-like environment
• Prove existing internal JSE application readiness
  for Go live. e.g. BDA, EMIS etc
• Prove the effectiveness of the new JSE regulatory
  requirements

9
Objectives
How were the previous Dress Rehearsal Objectives
met?
10
Objectives
How were the previous Dress Rehearsal Objectives
met?
11
2nd Market Dress Rehearsal Brief
Agenda

• Objectives
• Principles
• Deployment Timeline
• Lessons Learnt
• Participation and Responsibility
• Test Schedule
• Other
• Questions

12
Principles

• All Dress Rehearsals are compulsory for all
  Equity Trading Users and subscribers of InfoWiz
• Dress Rehearsals will be undertaken in the Live
  JSE, LSE User Environments
• The Live environment of the JSE , LSE FTSE will
  be restored after the rehearsals in readiness for
  business as usual on the following Mondays
• Only Users that have passed their LCON tests will
  be allowed to partake in the Dress Rehearsals
• All Dress Rehearsals will be supported by
  internal JSE departments on a proof of concept
  basis
• The test schedule will be structured around
  normal business operations
• Dress rehearsals are planned to test system
  functionality and integrity. These are not
  stress tests!!!
• Users are expected to behave in an orderly manner
  and to simulate a live trading day with realistic
  order details and related prices
• All User applications to be used in the live
  environment must be tested in the Dress Rehearsal
• All terminals connecting to production must be
  manned by adequately skilled staff for the test

13
Principles
How were the previous key Dress Rehearsal
Principles met?
14
2nd Market Dress Rehearsal Brief
Agenda

• Objectives
• Principles
• Deployment Timeline
• Lessons Learnt
• Participation and Responsibility
• Test Schedule
• Other
• Questions

15
Deployment Timeline
April
May
March
3 Apr
DR 1 Brief (JHB)
2 May
Cont DR Brief
LCON 1
4 Apr
DR 1 Brief (CT)
Dress Rehearsal 3
Sat2 Mar
Sat/ Sun4-5 May
JSE LSE Internal Dress Rehearsal
Sat6 Apr
8 May
Final Cut-Over Brief (JHB)
9 May
Final Cut-Over Brief (CT)
LCON 2
10 May
CEO Brief (tbc)
Sat16 Mar
Sat/ Sun13-14 Apr
Dress Rehearsal 1
Go-live
13 May
17 Apr
DR 2 Brief (JHB)
JSE LSE ASR Test
LEGEND LCON Live Connectivity Testing DR Dress
Rehearsal CONT Contingency ASR Alternate Site
Recovery (LSE) Internal External
Tests completed
Sat23 Mar
18 Apr
DR 2 Brief (CT)
Dress Rehearsal 2
Sat/ Sun27-28 Apr
LCON 3
Sat30 Mar
JHB Brief
CT Brief
16
2nd Market Dress Rehearsal Brief
Agenda

• Objectives
• Principles
• Deployment Timeline
• Lessons Learnt
• Participation and Responsibility
• Test Schedule
• Other
• Questions

17
Lessons Learnt
Technical Key Areas of concern -
18
Lessons Learnt
Technical Key Areas of concern (continued)-
19
Lessons Learnt
Other key issues-

• Lack of testing by ALL Users in test environment
  post conformance LCON
• Insufficient Front-End training and play time by
  Users
• Users not familiar with own front-end
  functionality and set up e.g. -
• Booking of contra/correction trades
• Confirmation of dual sided trade reports
• Rands versus Cents
• Lack of user understanding of principal / agency
  rules and how to apply these to the various trade
  types e.g. OP principal trade
• Not all users attended and clearly understood
  conceptual trading model training Users should
  undertake refresher training on their own using
  the conceptual training tool on the JSE website.
  CDs available in toolkits
• Lack of accurate problem reporting to Customer
  Support, users to provide detailed information
• Incorrect user contact details supplied to JSE
  to improve communications JSE requires correct
  contact details

20
Lessons Learnt

• JSE escalation process was not utilised Members
  must make full use of the escalation process
• Users should have print-outs of all configuration
  files to assist with problem resolution
• Provision of front-end cheat sheets relating
  specific front-end functionality to the JSE test
  script
• Users did not load previous closing prices into
  their front-ends. This meant that during the
  opening auction no reference price was available.
  Users can source this information from the JSE
  EOD Dissemination files or an Excel spreadsheet
  on the JSE website or provide traders with hand
  outs. This is only an issue during the Opening
  Auction
• Full reference data downloads were not performed
  on each test day this created confusion for some
  users as old data still in systems
• Invalid trader ids submitted on orders and trade
  reports. ONLY JSE assigned RST codes are valid
  5 numeric digits (as per existing JET logon)
• Default value for the CX flag should be N not
  Y

21
Lessons Learnt

• Invalid BDA client accounts submitted on ALL
  orders and trade reports. These should be padded
  with leading zeros. e.g. if BDA client account is
  23570, then 0023570 to be submitted. Failure to
  do this results in excessive back office
  administration on BDA to correct re-allocations
• Incorrect use of trade types on reported trades.
  Trade types apply across all segments, members
  must ensure they submit valid trade types per
  market. E.g OP only valid in segments ZA01,
  ZA02, ZA03
• Orders carried forward to next day - some members
  complained that their orders were not carried
  forward to the next day
• This should be checked with the members'
  application service providers. The JSE downstream
  systems reconciled with the start of day download
  BDGs (J01 and N01) which reflect the state of the
  public order book at the start of day
  indicating no problems on the trading engine.
  Members should check the configuration of their
  front end systems to ensure correct configuration
  to carry open orders forward to the next day.
  Ensure correct shutdown start-up procedures in
  place

22
Lessons Learnt
InfoWiz key issues-

• Start of day data should not automatically be
  re-requested. Check for not authorised for
  service error message. Users enabled on request
• User applications can and should automatically
  re-request missed messages intra day
• User Applications should send one request for a
  range of missed messages i.e. if messages 2,3,4
  and 6 are missing this should result in 2
  requests not 4
• Users applications should be built so that
  re-request data is satisfied by either the IRI
  connection or via the broadcast interface
• The start of day downloads (B10, J01, J02, J03,
  N01) do not send idle polls prior to sending
  'real' data as do all the other BDGs
• Users applications must cater for start of day
  BDGs broadcast at 05h00 UK TIME. Therefore, April
  - October, the data will be broadcast from 06h00
  SA time and November - March from 07h00 SA time.
  For subscribers in London the time remains 05h00
  UK time through out the year
• Applications must cater for Multicast data which
  can be received out of sequence (UDP based)

23
Lessons Learnt

• Dress Rehearsal Communications Issue Management
  -
• Unplanned delay in dress rehearsal start caused
  confusion
• What caused it? System pre-back up had not
  completed successfully and had to be re-run. The
  environment could not be restored if not run
• Investigate and implement alternate method for
  schedule/test script change communication
• Include software providers in all test
  communications
• Improve internal/external JSE escalation
  processes of user status
• Improve User issue management tracking,
  monitoring and status, including number of
  connected users
• Look at alternative communication methods for the
  test. Telephone calls, email, chat facilities,
  internet page, etc.
• More timeous distribution of JSE Dress Rehearsal
  test scripts. Clarify correct document version
  (internal/external)
• Improve turn around time for enablement of SOD
  re-request

24
Lessons Learnt
General -

• Missed Messages and duplicate messages
• Internal JSE hardware problem with existing JSE
  production equipment
• JSE task force assigned to resolve prior to next
  dress rehearsal
• Not all User applications can handle (and
  therefore issued many re-requests
• Messages received out of sequence
• Messages requested via IRI but satisfied via BI
• CDS reference data re-synchronisation work is
  in progress to achieve this
• CDS period schedules are published in the JSE
  customer testing documentation. Users to ensure
  they are ready when the various auctions kick in,
  in this environment
• 2 Dress Rehearsal test checklists outstanding
  OVERDUE
• Educate, Practice, Educate, Practice.

25
2nd Market Dress Rehearsal Brief
Agenda

• Objectives
• Principles
• Deployment Timeline
• Lessons Learnt
• Participation and Responsibility
• Test Schedule
• Other
• Questions

26

2nd DR Participation

• MANDATORY Participation is required during the
  next Saturday live trading day simulation from -
• All JSE and NSX Equities traders 100
  participation in all scheduled DR tests
• All relevant user IT support staff.
  (e.g.networks, applications, PC support etc)
• All information Users who will be
  subscribing to InfoWiz
• All basket trading and client order entry
  applications
• All other user applications interfacing with
  their front-end applications
• The test starts at 10h30 and ends at 18h00
  (traders 12h00 18h00)
• All primary and backup(on site) terminals
  must be tested
• NOTE From go live, members accept full
  responsibility for all order and trades submitted
  by their traders. Dress Rehearsals therefore
  facilitate testing in a live-like environment to
  avoid errors and prepare traders for the new JSE
  rules and trading model.

27

2nd DR Participation

• OPTIONAL Participation - (However, strongly
  recommended)
• All Equity Institutional traders
• User Off-site Disaster recovery terminals
  JSE will be testing TALX DRP terminals
• Sundays trading day simulation testing
  between 08h30 and 10h00 is optional, but
• recommended
• JET testing 11h00 13h00 on Sunday to
  ensure ready for business as usual

Note only 69 of RSTs participated
28
Responsibility
USERS are responsible for ensuring

• They participate throughout the test between
  10h30 18h00 on all the test days
• Full participation from all traders (12h00
  18h00)
• Full participation from all relevant User IT
  support staff (e.g Networks, applications, PC
  support etc)
• Full support from relevant software providers
• Identifying the responsible person per User to be
  used by the JSE as the key contact person. Users
  must provide the contact details to the JSE
  helpdesk by Tuesday (23 April) by 12h00 on (011)
  520-7309
• All Users follow the test plan and schedule -
  PLEASE READ TEST PLAN/SCHEDULE!!!!
• ONLY realistic prices and order details are used
  for all orders failure to do so, will result in
  unnecessary disruptions and potential delays to
  the test schedule. The JSE will be monitoring
  all test data and this behaviour will result in a
  User Dress Rehearsal FAIL!!!!!
• Staff are aware of problem escalation procedures
  to ensure problems logged with the correct
  helpdesk. E.g Front-end queries are logged with
  software providers not the JSE
• All problems are reported and logged with the JSE
  Customer Support [phone]

29
Responsibility
USERS are responsible for ensuring (cont..)

• All user test data is removed from their
  production environments after the Dress
  Rehearsals
• All traders have attended conceptual training
  prior to the Dress Rehearsals
• All traders have attended front-end training
  prior to the Dress Rehearsals
• All JSE test scripts and procedures are
  downloaded from the JSE web prior to the test
• That all Users are informed this is NOT a stress
  test and that attention should be given to
  functionality and data integrity. Users are
  responsible for ensuring data accuracy
• Members make use of the JET testing on Sunday to
  ensure they can continue with trading the Monday
  after each test
• Ensuring Users keep track of all actions in the
  event of a problem to assist with problem
  determination
• Relevant monitoring of their infrastructure and
  related applications is performed during the
  dress rehearsals

30
Responsibility
JSE is responsible for ensuring

• Support will be through the JSE Customer Support
  helpdesk
• All queries are allocated a reference number
• Ensure all queries are addressed and resolved
• First line support for all TALX related queries
• Monitoring of all test data and Users to ensure
  compliance with the test schedule and scripts
  (including errors generated by Users)
• Monitoring errors generated by users
• Test schedule execution and adjustments as
  required watch the market messages for
  adjustments
• Evaluate Dress Rehearsal participation and
  success and GO LIVE readiness
• Contact Number during test
• JSE Customer Support [phone]

31
Problem Reporting
To assist with effective problem resolution,
Users must provide accurate details when
reporting the query/problem to the JSE helpdesk -

• Is it a JSE SETS or InfoWiz query?
• USAP Code faster resolution and tracking with
  the LSE
• Is it your primary/secondary/DRP connection?
• Which Front-End Software?
• Which Segment and Instrument the query relates to
• Provide Order Code and trade code where possible
• Time of order entry / trade execution
• Order details namely, Order type, price, volume
• Your name and contact number for feedback

32
2nd Market Dress Rehearsal Brief
Agenda

• Objectives
• Principles
• Deployment Timeline
• Lessons Learnt
• Participation and Responsibility
• Test Schedule
• Other
• Questions

33
Dress Rehearsals Schedule
Proposed schedule - under discussion
Systems Startup Ref Data Download
Normal Trading Schedule
1
Saturday
Pre Open
MktClose
11h00
18h00
12h00
Checking of Batch Results
2
08h00
Software VendorFeedback
Internal JSE/LSE Checkpoint
JSE Prep Session
Sunday
12h00
08h30
11h00
09h30
SystemsStartup RefData Download
Normal Trading Schedule (partial)
1
ContinuousTrading
Pre-Open
06h00
08h30
10h00
Colour Legend

• Trading Schedule will be condensed to fit into
  shorter window (details on next slide).
• Batch processing will be done during the 1st
  Market Dress Rehearsal (13-14 Apr).
• Intraday checkpoints with Users will be indicated
  in the detailed schedule.
• All times reflected are SA standard time (SAST)

JSE/LSE Internal
Notes
JSE User Participation
JSE User Feedback
JSE/LSE Checkpoint
34
Dress Rehearsals Trading Periods
Proposed schedule - under discussion
Trade Reporting
Normal schedule, but with late start,and
condensed into the DR day
12h45
18h00
Open
SystemsStartup Ref DataDownload
OpeningAuction
ContinuousTrading
ContinuousTradingwith VWAP
ClosingAuction
RunOff
MarketClose
Saturday
16h40
12h00
11h00
12h05
12h30
16h50
17h00
18h00
MANDATORY
Trade Reporting
Normal schedule, normal start,but cut off around
10h00
08h45
Sunday
SystemsStartup Ref DataDownload
Open
OpeningAuction
ContinuousTrading
06h00
10h00 (tbc)
08h30
08h50
09h00
OPTIONAL
35
Test Schedule Saturday
Certain period names may differ depending on
which segment or sector used in NOTE The
extension of trading hours will be for one
segment only
36
Test Schedule Saturday
Continuous Trading Phase
Halt 1 segment only
16h00 16h30
37
Test Schedule Sunday
Objective to allow Users to test normal systems
startup, reference downloads as per the normal
market hours
Certain period names may differ depending on
which segment or sector they are used in NOTE
There is no closing auction, the system is simply
shut down!
38
2nd Market Dress Rehearsal Brief
Agenda

• Objectives
• Principles
• Deployment Timeline
• Lessons Learnt
• Participation and Responsibility
• Test Schedule
• Other
• Questions

39
Business Freeze
DUE TO BUSINESS FREEZE, ALL CHANGES FOR DRESS
REHEARSAL NEED TO BE AGREED AND DISCLOSED TO
THE JSE!!
40
BDGs for Release 1
NSX BDGs N01, N02, N03, N04
Optional Added Product
J50 JSE News Service SENS
J51 FTSE / JSE Africa Index
Value Add Products
Currently Free
J25 JSE Cumulative Number and Volume of Trades
J24 JSE VWAP
Level 2 J20 Full Order Book
Level 1 J21 Best Bid and Ask
Level 2
Level 1
NOTE These are included in the
membership fees
41
JSE Systems NOT Available
On these dates no JSE Applications are available
for normal production activity
42
Monitoring Success / Pass Criteria

• User ability to connect and trade
• 100 interactive participation throughout
  the test period
• Adherence to the test schedule and
  conditions
• Adherence to realistic order details and
  prices
• Adherence to normal trading and volume
  activity (NB!! NOT a stress test)
• Completed and signed test checklists/results
  returned to the JSE
• Completed and signed declaration that
  functionality and data integrity was intact
• All problems logged with JSE Help Desk
  before end of each test day
• Key responsible person identified and
  communicated to JSE prior to test
• No excessive re-requests for data during
  tests
• Limited system errors generated by Users in
  system logs
• All user participation
• Number of traders logged on
• Time of first and last message sent per
  trader
• Order and trade data generated per trader
• Error messages generated per user
• Order and trade summary of all client
  application trader ids (AOP/AOF)

43
Data for Dress Rehearsal

• Test scripts for the next Dress rehearsal
  will have minor amendments
• applied. We will highlight the error
  conditions as optional for the next tests.
• These will be published by close of
  business on Friday 19 April 2002
• JSE reference data as at 25 April will be
  used in the 2nd dress rehearsal
• Users must do a FULL download on all dress
  rehearsals and the morning of go live
• Instruments (incl. warrants) and ex-markers
  expiring before 13 May 2002 have been
• excluded
• On the 2nd Market Dress Rehearsal, the
  following dates will be reset to 27 April 2002
• - instrument effective date
• - participant effective date
• Instruments will be suspended by the LSE as
  at 25 April 2002
• Closing prices as at Thursday 25 April will
  be used for the test users to ensure
• these have been loaded to the front-ends
  prior to the test or provided traders with
• hand-outs. This is only a problem during
  the open auction
• www.jse.co.za / JSE Initiatives / JSE
  Trading and Information Systems
• (Will be there Friday 26 April under the
  Market Dress Rehearsal Documentation bullet)

44
Other

• The FTSE/JSE index series download will only be
  available after the
• Wednesday (2nd May) following the 2nd
  dress rehearsals via email.
• Those who wish to receive a copy must
  please advise Data Services indexdata_at_jse.co.za
• 2nd Dress Rehearsal Outputs available to users
  NO overnight batch run-
• BDA dissemination will NOT be available as part
  of the Dress Rehearsal
• JSE EOD will NOT be available as a batch run is
  not being performed

45
1st DR Feedback

• Test results and key issues per user will be made
  available by close of business on Friday 19 April
  2002
• Users wishing to apply changes to their solutions
  must please notify the JSE by close of business
  today as conformance slots may need to be
  negotiated
• Interesting Statistics generated from Saturday -
• 69 RSTs participated (still investigating order
  entry traders)
• 12, 432 Trades successfully executed
• 23, 082 total orders submitted - 17,318 Valid
  orders
• 1,688 Trade reports
• 275 instruments used for automated trading
  (AT/UT)
• All Trade types tested AS, AT, BT, CF, LT, NX,
  OP, OX, PC, PF, TX, UT, WX
• Invalid trade types entered - B, O, LC, NX in
  incorrect segment
• 11 Orders submitted with invalid BIC codes
• 18 Orders submitted with incorrect ISIN codes
• 176 trades submitted with invalid trader ids
  (buy/sell)
• 22 orders submitted with invalid trader ids
• 3,699 trades submitted with invalid BDA account
  codes
• 3,121 orders submitted with invalid BDA account
  codes

46
Questions