Update

Operational Projects

	Launch of EGAINS – automated brokerage payments system

With 16 major FCMs supporting the launch of the EGAINS system, the focus is now on adding as many execution-only brokers as possible in order to maximise the percentage of brokerage which can be processed through the System for the three supporting exchanges, namely Eurex, NYSE Euronext.liffe and ICE Futures. To this end, FIA Tech Services now have a consultant, based in London, who will be helping with the project's management over the coming months – Robert Drew can be contacted via rdrew@futuresindustry.org or via 0207 090 1348.

EGAINS is scheduled to run its first billing cycle in August this year. Firms wishing to obtain further information about the initiative should contact either Hugo Jenkins at the FOA or Robert Drew at FIA Tech Services.

	LCHClearnet SA

...fines for late netting of Paris commodity contracts

It has emerged that a number of firms are being fined for late netting of commodity contracts on Euronext Paris. These fines have increased significantly in line with the growth in volumes over the past six months. The fines are levied via LCHClearnet SA's monthly invoicing and as a result have not always been spotted by firms.

Whilst firms appreciate the need for the exchange to publish accurate open interest figures, the current deadline for netting (6pm on trade date) does not leave enough time if, for example, allocation instructions are submitted late.

The FOA has written to LCH.C SA to request higher levels of transparency regarding the fines which have been levied and to suggest that Euronext Paris move to a similar process as Euronext.liffe where firms have until 10.30am on T+1 to net off positions.