FISD General Meeting Billing and Administration

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FISD General MeetingBilling and Administration

• Michael Atkin
• December 11, 2003
• New York Mercantile Exchange

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Business Issues Agenda

• Protect intellectual property rights
• Rationalize and reduce the cost of administration
• Simplify and automate market data procurement
• Improve the accuracy and efficiency of reporting,
  billing and inventory reconciliation
• Address the policies and procedures related to
  market data usage to promote global electronic
  commerce

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Summary of FISD Billing Strategy

• Practical recommendations based on the results of
  the FISD workshop
• Payment processing before procurement
• Three fundamental objectives
• Simplify reporting (formats and requirements)
• Promote data consistency
• Simplify and rationalize business rules
• Progress will be incremental and administrative
  processes are interrelated

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Standard Reporting Format

• A single reporting format will make reporting
  more efficient
• An XML-based reporting format has lots of
  advantages
• Ability to transmit meaning with the data
• Reduce/eliminate processing rejections
• XML is extensible (cheaper and easier to modify)
• Easier to integrate multiple providers into a
  single inventory management system

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FISD Billing Strategy

• VRXML to become the global standard reporting
  format (exchanges and vendors)
• Standardize data elements into the VRXML glossary
• Precision, transparency and consistency
• Standard naming conventions are needed
• Controlled vocabularies can be supported
• Document all reporting validation rules
• VRXML schema has validation rules
• Promotes (but does not require) greater
  uniformity
• Business rules repository under consideration

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FISD Billing Strategy

• Modify VRXML as the global invoicing standard
• Exchanges as well as vendors
• Automatically map to inventory to simplify
  reconciliation
• Synchronize reporting cycles
• Eliminate confusion about what the invoice
  represents
• Users want - monthly, in arrears, uniform snap
  date
• Significant commercial and operational obstacles
  to overcome
• Strategy has been verified by FISD members

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Status of VRXML

• Adoption is better than expected!
• Eight exchanges are taking a serious look
• Six vendors are in the process of reporting to
  NYSE
• Five investment banks are working on direct
  reporting
• Three inventory system providers can generate
  VRXML reports
• IPUG meeting in last week London
• VRXML mapping and implementation assistance by
  FISD and Gemini (Fast Track)
• VRXML - standard management
• Glossary Committee being formed
• Change management procedures being defined
• FISD is registration agency and maintenance
  authority

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Next Steps

• Electronic invoices
• VRXML reports from both exchanges and vendors
• Common format for mapping into inventory systems
  for easier reconciliation
• Flowchart of where VRXML can be used throughout
  the administration cycle is needed
• Standardization of billing and reporting cycles
• Much more difficult than VRXML implementation
• Cycles are linked to internal systems and
  processes
• Strong business case to vendors is needed

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Next Steps

• Lots of interest in direct reporting and billing
• The procurement side of the equation
• Account set up and authorization
• Contractual issues
• Standard naming conventions
• Market data business issues are heating up
• Data usage policies (redistribution and derived
  works)
• Subscriber and click on agreements
• Units of count and multiple access fees
• Enterprise licensing