Update

Operational Projects

	EGAINS – the brokerage payments system

The FIA, with support from the FOA, continues to work towards the implementation of an electronic brokerage payments system in Europe. Initially the project plans to cater to business done on LIFFE, Eurex and ICE Futures and to this end, work continues to put in place formal contractual arrangements with these exchanges. At the same time, major FCMs are signing up to become ‘supporting firms' which translates into a financial commitment to the project of ~ £50K. The funds from these supporting firms will pay for the licensing of the Egains system from The Clearing Corp. and purchasing the necessary hardware and software. Ultimately the Egains system will be self-funding through the interest earned on the ‘float' created by the delay between receipt and payment of brokerage – once this is achieved, the financial ‘deposits' from firms can be used to fulfil Egains brokerage obligations. For further details click here.

Firms wishing to learn more about this initiative should contact either Hugo Jenkins at the FOA or Mary Ann Burns at the FIA.

	The development of a standard industry messaging protocol for the clearing of listed derivatives

Through the FIA's Standards Working Group, an initiative has been established to develop a standard communication protocol for post-trade processing of listed derivatives business – the objective being to reduce the costs and inefficiencies associated with cross-border business. This initiative now has the support for a range of European and US exchanges/clearinghouses as well as member firms and vendors. To date the focus has been on defining a common set of post-trade business processes and preparing an appropriate response to the European Commisson-sponsored SWIFT recommendation for addressing the so-called “Giovannini Barrier One”. The Working Group plans to work closely with both FIX and SWIFT in the development of the protocol throughout 2008 with implementation planned for 2009.

Firms wishing to learn more about this initiative should contact either Hugo Jenkins at the FOA or Mary Ann Burns at the FIA.