System Release
Frequently Asked Questions
August 2012
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Contents
With the upcoming system release, what is the major functionality change in store for ICE Clear U.S.’
PTMS and ACT applications? ......................................................................................................................... 4
As Broker Allocation functionality is no longer being supported, how will my firm’s daily trade processing
be affected? .................................................................................................................................................. 4
The client for whom the broker executed the trade does not reside at my firm. How will the broker get
the trade to correct firm and client account?............................................................................................... 4
How can a broker give-up a single trade to multiple firms and/or clients? ................................................. 4
The broker, at the time of trade entry or through the use of PTMS, provided incorrect give-up allocation
instructions. Will the broker have the ability to correct inaccurate allocations?........................................ 4
Since brokers will not have access to ACT, how will the brokers, particularly the ones that my firm
guarantees, be able to ascertain the status of their give-up activity? ......................................................... 4
Will firms still have the ability to challenge a block trade? .......................................................................... 5
How will firms that currently use passive acceptance to process broker allocated trades be affected by
the system release? ...................................................................................................................................... 5
My firm did not claim a give-up that was allocated to us on trade date. Can we claim the give-up the
next business day? ........................................................................................................................................ 5
With give-up transaction volume increasing, are there any changes in give-up processing that my firm
needs to be aware of? .................................................................................................................................. 5
If a trade is accidently marked as a give-up, can the give-up indicator be removed from the trade? ......... 5
What can be done if a trade from a previous day was given up to the wrong firm? ................................... 5
Yesterday, my firm gave up an incorrect Average Price group. What are the options for correction? ...... 6
What are some of the other changes that will occur in ACT and PTMS when the system release is
implemented? ............................................................................................................................................... 6
Even though they may not specifically pertain to the system release, these are some of the common
questions ICE Clear U.S. receives about ACT and PTMS? ............................................................................. 7
Who can I speak to if I have questions regarding ACT, PTMS, give-up processing and/or clearing? ........... 7
Do allocation instructions that represent the full quantity of the give-up need to be completed before
the trade is considered to be allocated? ...................................................................................................... 7
How will unclaimed allocations be handled? ............................................................................................... 7
As the take-up firm will I have the ability to update take-up information? ................................................. 7
Will I be able to partially claim an allocation? .............................................................................................. 7
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Will I have the ability to claim a take-up into multiple accounts?................................................................ 7
Will I have the ability to give-up a claimed take-up to other firms? ............................................................ 7
What do I do if I do not recognize an allocation? ......................................................................................... 7
If the allocation is still unclaimed… ........................................................................................................... 8
If the allocation has been claimed ............................................................................................................ 8
An Average Price Group that I created today is incorrect. I need to remove and/or add trades to the
group or unwind the group altogether. What are my options? .................................................................. 8
If the group within the PTMS Group Review screen is in an “I” (Incomplete) status… ............................ 8
To add trades. ........................................................................................................................................... 8
To remove trades. ..................................................................................................................................... 8
If the group within the PTMS Group Review screen is in an “S” (Submitted) status… ............................. 8
And in ACT with an UA (Unallocated Status). ........................................................................................... 8
And in ACT with an “A” (Allocated) Status. ............................................................................................... 8
And in ACT with a “C” (Claimed) Status. ................................................................................................... 8
How will unclaimed allocations be handled? ............................................................................................... 9
Yesterday I forgot to allocate a give-up transaction, what are my options?................................................ 9
Trade(s) was originally marked for give-up…............................................................................................ 9
Trade(s) was not marked for give-up (within two business days of trade date)… ................................... 9
Trade(s) was not marked for give-up (outside of two business days of trade date)… ............................. 9
I discovered that after the original trade date I forgot to create an Average Price group and allocate it
through ACT. What are my options? ........................................................................................................... 9
Within two business days of original trade date… ................................................................................... 9
Outside of two business days of original trade date….............................................................................. 9
My firm does not have a middleware system in place to perform give-ups and take ups. Is there another
option available that will automate the allocation and claim process? ....................................................... 9
My firm already has a middleware system in place to perform give-ups and take-ups. In the event my
middleware system goes down, can I use the ACT profile system as a back-up? ...................................... 10
How will the fees be calculated for give up transactions? ......................................................................... 10
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With the upcoming system release, what is the major functionality change in store for ICE Clear
U.S.’ PTMS and ACT applications?
The Broker Allocation model will no longer be supported.
As Broker Allocation functionality is no longer being supported, how will my firm’s daily trade
processing be affected?
The Accept/Challenge screen in PTMS will be replaced by the Trade Review screen. All trades executed
by a broker will automatically be cleared by the broker’s guarantee firm. A guarantee firm will not have
the ability to challenge a trade.
The client for whom the broker executed the trade does not reside at my firm. How will the broker
get the trade to correct firm and client account?
1. The trading ending will be updated to allow a broker to mark a trade as a give-up along
with the claim firm and claim account information.
2. Brokers will also have access to their trades through PTMS where they will be able to
mark a trade as a give-up once, along with applicable claim information. This action can
be accomplished manually or through the use of short codes. Once submitted the trade
will be processed as a give-up through the ACT application.
3. Firms can also work with brokers to automate the give-up allocation process by
leveraging FIXML messaging and the firm’s middleware.
4. Firms that do not have middleware in place can choose to use the Profile Management
system in ACT to define rules to automate the give-up allocation process.
How can a broker give-up a single trade to multiple firms and/or clients?
The broker will use the Split trade functionality in PTMS, then use one of the methods 1 - 4 as defined in
the previous answer.
The broker, at the time of trade entry or through the use of PTMS, provided incorrect give-up
allocation instructions. Will the broker have the ability to correct inaccurate allocations?
No. A broker is only allowed to allocate a trade once. If an allocation instruction was incorrect. The
broker will need to work with their clearing member guarantor’s back office to correct a previously
allocated give-up trade.
Since brokers will not have access to ACT, how will the brokers, particularly the ones that my firm
guarantees, be able to ascertain the status of their give-up activity?
Brokers, within PTMS, will have the ability to request and export a give-up activity report that will
provide them with the current status of each one of their give-up transactions.
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Will firms still have the ability to challenge a block trade?
No, once both counterparties have agreed to a trade within ICE Block, the trade is matched and cleared.
Confirmation messages are sent and the trade can be viewed in the PTMS Trade Review screen by the
clearing member firms that represent the counterparties. If need be, further give-up allocation
instructions can be provided.
How will firms that currently use passive acceptance to process broker allocated trades be affected by
the system release?
Passive acceptance will no longer be supported. Your firm will no longer receive trades through the
broker allocation model. Your firm will now receive broker executed trades through a give-up allocation
from the broker’s guarantor firm. Claiming firms are required to review the give-ups allocated to their
firm and actively accept them through ACT. Claiming firms (aka take-up firms) can also choose to
automate the give-up claiming process by leveraging FIXML messaging using middleware. Firms that do
not have middleware in place can choose to use the Profile Management system in ACT to define rules
to automate the give-up claim process. Give-allocations not actively claimed by the take-up firm will not
clear.
My firm did not claim a give-up that was allocated to us on trade date. Can we claim the give-up the
next business day?
Yes, unclaimed transactions remain in ACT for four additional business days and can be claimed at any
time.
With give-up transaction volume increasing, are there any changes in give-up processing that my firm
needs to be aware of?
Yes, specifically in give-up correction processing for both top-day and as/of give-ups. Those changes are
highlighted in the Questions and Answers that follow.
If a trade is accidently marked as a give-up, can the give-up indicator be removed from the trade?
1. If the give-up trade in question is unallocated then PTMS will allow the give-up indicator to
be removed.
2. If the give-up trade has been allocated but not claimed, PTMS will allow the give-up
indicator to be removed and the give-up allocations will automatically be deleted.
3. If the give-up trade has been allocated a partially or fully claimed, PTMS will not allow the
give-up indicator to be removed until the claimed allocations have been confirmed reversed
and the unclaimed allocations deleted.
What can be done if a trade from a previous day was given up to the wrong firm?
Within four business days of the original give-up, users can search the Prior Day Give-up database in ACT
for previously cleared give-up transactions and initiate an as/of Reversal request. If need be, the same
transaction can be used to re-allocate the give-up to the correct firm once the requested reversal has
been confirmed. At confirmation, the give-up firm can re-allocated the prior day give-up to the correct
firm and client.
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Yesterday, my firm gave up an incorrect Average Price group. What are the options for correction?
1. In ACT, within four business days of the original Average Price Group give-up, using the
Prior Day Give-Up database, firm users can search for previously cleared Average Price
give-up transactions and initiate an as/of Reversal request.
2. In PTMS, within two business days of the submitted Average Price group, using the
Previously Cleared Transaction screen, firm users can assign trades a new average price
group ID, even trades that were associated with another as/of submitted Average Price
Group. Once all trades have been assigned to a new group, the group can be completed
and submitted to ACT for further give-up processing.
3. Outside of two business days, back-offices will need to use the Add New Position
Transfer screen in PTMS to transfer an AP group to the final take-up firm. Brokerage
and Execution fees associated with AP group corrections that were moved as a transfer
instead of a give-up may need to be manually adjusted.
What are some of the other changes that will occur in ACT and PTMS when the system release is
implemented?
1. Presently in PTMS, firms transferring a position through use of the Create Position
Screen submit the transfer using the opposite (or offsetting) buy/sell code of the
position they hold on behalf of the client. For example, when transferring a long
position, the From firm submits a sell and the To firms receives a buy. Conversely,
when transferring a short position, the From firm submits a buy and the To firm
receives a sell. With the system release, firms will submit the transfer using the
buy/sell code reflecting the position as it is held for the client. To transfer a long, the
From firm will submit a buy, the To firm will receive a buy. To transfer a short, the
From firm will submit a sell, the To firm will receive a sell. This change only impacts
the PTMS GUI; no changes to FIXML messages are required.
2. In PTMS, the Add New APT (Average Price Transfer) screen, which allowed back offices
to transfer positions at an average price along with rounded price and residual
information, will no longer be supported. The Add New Position Transfer screen will be
updated to allow back-offices to transfer positions at an average price.
3. Presently in ACT, when the From firm initiates an as-of Give-Up Reversal Request, the
buy/sell code is flipped. If a buy was given-up in error, the submitted as-of reversal
position is reflected as a sell. If a sell was given-up in error, the submitted as-of
reversal position is reflected as a buy. With the system release, the buy/sell code will
no longer be flipped. If a buy was given-up in error, the submitted as-of reversal
position will now be reflected as a buy. If a sell was given-up in error, the submitted asof reversal position will now be reflected as a sell.
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Even though they may not specifically pertain to the system release, these are some of the
common questions ICE Clear U.S. receives about ACT and PTMS?
Yes
Who can I speak to if I have questions regarding ACT, PTMS, give-up processing and/or clearing?
ICE Clear U.S. has set up a Clearing Application Help Line to handle such questions. The new Help Line is
(312) 836-6777.
Do allocation instructions that represent the full quantity of the give-up need to be completed before
the trade is considered to be allocated?
No, full instructions are not required at the point of give-up. Give-ups can be partially allocated as
instructions are received.
How will unclaimed allocations be handled?
Unclaimed give-ups will remain in ACT for 4 additional business days (or until the last trading date of the
contract, whichever is sooner) and will appear on an Uncleared Trades report produced during end-ofday (EOD) processing. If necessary, the give-up firm will still be able to update the allocation
information.
As the take-up firm will I have the ability to update take-up information?
Yes, take-up firms will have the ability to update the claim account, Seg, and CTI at the time the give-up
is claimed. The take-up firm will also have the ability to change this information after the give-up has
been claimed. Once claimed, the give-up firm may no longer modify this information.
Will I be able to partially claim an allocation?
No, take-up firms only have the option to claim the full quantity of the allocation.
Will I have the ability to claim a take-up into multiple accounts?
Yes, a take-up firm must first fully claim the give-up. Once claimed, the take-up firm can sub-allocate
the full or partial take-up quantity into multiple accounts and/or firms.
Will I have the ability to give-up a claimed take-up to other firms?
Yes, a take-up firm must first fully claim the give-up. Once claimed, the take-up firm can sub-allocate
the full or partial take-up quantity to multiple accounts and/or firms.
What do I do if I do not recognize an allocation?
If take-up firms do not recognize an allocation, they have the option to Reject the allocation. This action
alerts the give-up firm that inaccurate allocation instructions may exist and further action may need to
be taken before the trade will be claimed by the take-up firm. I allocated a give-up in error today. What
are my options?
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If the allocation is still unclaimed…
The give-up firm has the ability to edit and correct the claim information or delete the allocation
entirely.
If the allocation has been claimed…
The give-up firm will need to request a Reversal. Once requested, the take-up firm will also need to
confirm the Reversal. After the Reversal has been confirmed by the take-up firm, the give-up is no
longer considered for clearing. At this point, the give-up firm if needed can re-allocate the trade.
An Average Price Group that I created today is incorrect. I need to remove and/or add trades to the
group or unwind the group altogether. What are my options?
If the group within the PTMS Group Review screen is in an “I” (Incomplete) status…
To add trades.
You can add trades to a group by locating the applicable trades within the PTMS Accept/Challenge
Screen. Once located, add the group’s ID within the Group ID field and click save. These trades will be
added to the group.
To remove trades.
You can remove a trade from a group by highlighting the applicable group within the PTMS Group
Review screen, and then click the Review Detail button.
The AP Group Detail will be displayed. Highlight the trade that needs to be removed and then click the
“Remove From Group” button. At this point the trade has been removed from the AP group.
Alternatively, you can use the PTMS Accept\Challenge screen to update or remove the Group ID from a
selected trade.
If the group within the PTMS Group Review screen is in an “S” (Submitted) status…
And in ACT with an UA (Unallocated Status).
A submitted average price group has been sent to ACT for further processing. To edit a group that has
been sent to ACT, locate the group in ACT, highlight the Re-Open radio button and click submit. This
action will update the same group in PTMS and revert the status back to “I” (Incomplete) so that the
group can be updated. See previous section on updating groups in an “I” status.
And in ACT with an “A” (Allocated) Status.
For Average Price Groups that are in an Allocated status within ACT, the Re-Open radio button will not
be available. To access the Re-Open button, all allocations associated with this group must be deleted.
Once deleted, the Re-Open feature is unlocked for use.
And in ACT with a “C” (Claimed) Status.
For Average Price Groups that have a Claimed status within ACT, the Re-Open radio button will not be
available. To access the Re-Open button, all claimed allocations associated with this group must
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reversed and confirmed. Once the requested reversals have been confirmed, the Re-Open feature is
unlocked for use.
How will unclaimed allocations be handled?
Unclaimed give-ups will remain in ACT for 4 additional business days (or until the last trading date of the
contract, whichever is sooner). If necessary, the give-up firm is still be able to update the allocation
information.
Yesterday I forgot to allocate a give-up transaction, what are my options?
Trade(s) was originally marked for give-up…
An unallocated group representing a trade that was marked for give-up during a previous business is
retained in ACT for four additional business days. The allocation process can be completed by accessing
the unallocated group within the ACT Allocate Group screen and providing the allocation instructions.
Trade(s) was not marked for give-up (within two business days of trade date)…
If a trade had been inadvertently not marked for give-up, the trade, if executed within the last two
previous business days, can be accessed through the PTMS Previously Cleared Transaction screen and
marked for give-up. Once the as/of trade has been marked for give-up, a group will be available within
the Allocate Group screen in ACT to allocate.
Trade(s) was not marked for give-up (outside of two business days of trade date)…
Firm users will need to enter a position transfer to move the trade to the end firm and client. Manual
adjustments for brokerage and give-up service execution fees will need to be manually updated within
the applicable application.
I discovered that after the original trade date I forgot to create an Average Price group and allocate it
through ACT. What are my options?
Within two business days of original trade date…
Access the Previously Cleared Transaction screen in PTMS and locate the applicable trades that make-up
the group using the search feature. After locating the trades, input the same group ID across each trade
in the field provided and click the “Save” button. This action will create a new group to be managed
within the PTMS Group Review screen. Once the average price group has been reviewed, submit the
group to ACT where instructions to allocate the average price group can be completed.
Outside of two business days of original trade date…
Firm users will need to enter a average price position transfer to move the position to the end firm and
client. Manual adjustments for brokerage and give-up service execution fees will need to be manually
updated within the applicable application
My firm does not have a middleware system in place to perform give-ups and take ups. Is there
another option available that will automate the allocation and claim process?
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Yes, ACT has an Allocate and Claim Profile feature that allows firms to establish instructions that will
automatically allocate give-up and claim take-up transactions. For additional information, please refer
to the ACT Allocate & Claim Profile Training guide located at:
https://www.theice.com/publicdocs/clear_us/ACT_AllocateAndClaimProfiles_TrainingGuide.pdf
My firm already has a middleware system in place to perform give-ups and take-ups. In the event
my middleware system goes down, can I use the ACT profile system as a back-up?
Yes, to assist in disaster recovery purposes, ACT profiles can be activated and deactivated quickly.
additional information, please refer to the ACT Allocate & Claim Profile Training guide located at:
For
https://www.theice.com/publicdocs/clear_us/ACT_AllocateAndClaimProfiles_TrainingGuide.pdf
How will the fees be calculated for give up transactions?
Exchange fee billing for give-up transactions will be set up to pass charges to the ultimate carrying
(claiming) firm. Each transaction will be assessed an exchange fee. The charge assessed for the trade
execution will be offset by a negative charge (i.e. credit) assessed on the give-up allocation record. The
take-up firm will then be assessed an exchange fee for the claim record.
Take-up firms will also be assessed a clearing fee of $.10 per contract for give-up trades they claim.
Brokerage fees assessed in ATOM will also pass to the claiming firm. Brokerage on trades marked for
give-up will be assessed as if it is a regular trade execution but will be subsequently offset when the
allocation (FROM) record is processed. A credit (negative) fee will be calculated for all FROM records
using the same rate parameters that apply to trade executions. A debit (positive) fee will be calculated
for all claim (TO) records. See CM Notice 10-079 for more information.
https://www.theice.com/publicdocs/clear_us/notices/10-079_ATOM_Processing_and_Give-ups.pdf
All matched give-up FROM and TO records will be downloaded into eGains, an automated billing system
which is supported by the FIA and Markit. Clearing members can optionally use eGains to assess
execution brokerage fees to the claiming firm. Fee rates can be downloaded, if applicable, directly from
eGus into eGains.
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