Testing guide ESES stream 3 v4 - LCH guide ESES... · /ESES stream 3. The ESES Stream 3 and Single Order Book projects impact Members at the trading, clearing and settlement levels,

SOB/ESES Flux Bourse Stream 3 - Testing Guide - Ver sion 4

Single Order Book, ESES Stream 3 &

LCH.Clearnet Flux Bourse DETAILED TESTING GUIDE October 2008 Version 4

SOB/ESES Flux Bourse Stream 3 - Testing Guide - Ver sion 4 2

TABLE OF CONTENTS Page

1. CONTEXT OF THE TESTS.................................................................................... 3 1.1. INTRODUCTION 3 1.2. MAIN OBJECTIVES OF THE TESTS 3 1.3. PERIMETERS 4 1.4. SCHEDULE OF THE TESTS 5 1.5. SCOPE OF THE SYSTEMS 7 1.6. MEMBER’S INVOLVEMENT 7 1.7. READINESS CRITERIA 8 1.8. INFORMATION ON THE TEST ENVIRONMENT 8 1.9. ACCESS TO DOCUMENTATION 9

2.SETTINGS............................................................................................................. 10 2.1. FILES DESCRIPTION 10

2.1.1. Private files ............................................................................................................................................. 10 2.1.2. Public files............................................................................................................................................... 10

2.2. MEMBERS ACCOUNT STRUCTURE ARCHITECTURE 11 2.3. AVAILABLE FUNCTIONALITIES 11 2.4. LAUNCH SCENARIO 11

3. DESCRIPTION OF THE TESTING PERIODS ..................................................... 12 3.1. GOALS 12 3.2. PRINCIPLES 12 3.3. DATA REFERENTIAL 12

3.3.1 Securities selected for END TO END script tests .................................................................................... 16 3.3.3 CORPORATE EVENTS.......................................................................................................................... 18

3.4. TEST & CHECK LIST RECOMMENDATION 18 3.5. LAUNCH REHEARSAL ORGANISATION 19

3.5.1. Communication ....................................................................................................................................... 19 3.5.2. Launch rehearsal schedule ...................................................................................................................... 19

3.6. MONITORED TESTS 22 3.6.1. GOALS ................................................................................................................................................... 22 3.6.2. Principles................................................................................................................................................. 22 3.6.3. MONITORED Tests schedule 1.............................................................................................................. 24 3.6.4. MONITORED Tests schedule 2.............................................................................................................. 25 3.6.5. RESULTS EXPECTED .......................................................................................................................... 26

4. MEMBER SUPPORT ........................................................................................... 28

5. APPENDIX ........................................................................................................... 29 5.1. INSTRUMENTS AND COE 29 5.2. CHECKLIST AND TEST RESULTS 30 5.3. MEMBERS CONTACTS 32


1. CONTEXT OF THE TESTS

1.1. INTRODUCTION This test platform detailed guide covers member testing to prepare:

• The launch of Single Order Book project, • The settlement migration of the current legacy systems of Brussels and

Amsterdam towards the stream 3 phase of the ESES project on the cash clearing segment.

The settlement migration of RELIT+ system towards the phase 1 of the ESES project on the French cash clearing segment was successfully launched on the 26th November 2007. The main enhancement on a clearing point of view was the new COE processing on all the clearing segments. All Clearing Members active at the launch date on the cash clearing segments (Amsterdam, Paris, Brussels and Lisbon) and the ISVs are requested to check their capacity to switch their internal applications connected to our Clearing platform in line with the market place migration and to process end to end business days in the configuration of Single Order Book /ESES stream 3. The ESES Stream 3 and Single Order Book projects impact Members at the trading, clearing and settlement levels, a common test strategy was built by all the market actors: Fininfo Telekurs Financial Nyse Euronext LCH.Clearnet Euroclear The common testing guide is available on our website at: http://www.lchclearnet.com/projects/eses/attached_documents.asp the document is: ESES Stream 3& SOB testing & Launching plan (21 May). The purpose of this document is to describe LCH.Clearnet’s detailed test strategy resulting from the common test strategy and allow Members to focus in more details to clearing activities. This document aims to describe:

• the different test phases, • the scheduled dates, • the type of test that could be performed.

1.2. MAIN OBJECTIVES OF THE TESTS

The tests aim to:

• Enable Members to perform “End to End” testing (from trading to settlement) on Paris, Brussels and Amsterdam cash markets.

• Enable Members to succeed the launch rehearsals. • Get Members ready on time for the go live dates.


1.3. PERIMETERS The test perimeters are defined as follows:

• Two launch rehearsals are scheduled: • To help Members to test their capacity to switch internal applications in line

with the market. • To repeat the launch strategy from the launch of SOB until the launch of

ESES Stream 3. • Monitored tests with trades injection at the clearing level are organized to help

Member’s readiness. • A script test period is also proposed to provide members with guidelines on some

multi listed securities. • A free test period will follow the script tests to allow Members to perform additional

tests at their convenience. • Corporate events will be processed on the French, Belgium and Netherlands

markets. • No technical impact on Clearing Members • One functional impact concerning a change of order of dates for security

distribution on the Belgium market. • The EUA test platform is connected to the trading and the settlement test platforms to

allow full chain tests.

Out of the perimeter:

• No trades or positions captured from the production environment • Dummy codes at trading, clearing and settlement levels are not allowed in the

account structures • Trades injections at the clearing levels (except for the monitored tests) • No margin calls and fees tests • Performance or volume tests • SOB/ESES fallback scenario


1.4. SCHEDULE OF THE TESTS

The test schedule is synchronised with the one defined by Euroclear and Nyse Euronext. The EUA cash clearing platform remains up and running except on the week of the 15th September (cf detailed planning next page). The settlement platforms will be closed from the week of the 15th September and will re-open on the 6th October. As a consequence, tests at the trading/clearing levels will be possible from the week of the 22nd September until the 3rd October with no settlement service. The positions to be settled will be considered failed and they will be recycled every day until the re-opening of the settlement platforms, buy-in messages might be sent to Members after the expiration of the buy-in delay. Details on the milestones of the launch rehearsals are given in the section 3.5.


ESES Stream 3 and SOB general planning for testing

SOB/ESES Flux Bourse Stream 3 - Testing Guide - Ver sion 4

1.5. SCOPE OF THE SYSTEMS

The test environment is composed with the following systems:

Systems’ scope (EUA environment) � Data provider systems: Fininfo/Telekurs

� Trading system: Nyse Euronext

� Clearing system: LCH.Clearnet

� Members’ access means to clearing �CAP/MAP; E-CCW

� Settlement platforms:

� Euroclear (ESES) France, Belgium and Netherlands

� Euroclear Bank

All theses systems are linked and synchronised to a common referential data with corporate events scheduled. The corporate events of production are not processed on the tests platforms. An initialisation of the data referential (securities) was performed on Friday 25 April 2008 with the snapshot made from the production data referential of Friday 11 April after business day.

1.6. MEMBER’S INVOLVEMENT Member participation is mandatory for each of the 2 launch rehearsals and also in script/free test periods. The Clearing Members active or would become active as of SOB/ESES Stream 3 on Paris, Brussels or Amsterdam cash clearing segment and settling in Euroclear (ESES) or Euroclear Bank are concerned.

In order to perform tests in the best conditions, LCH.Clearnet recommends Members to:

• Test the account structure targeted for production,

• Check that the data referential is synchronised with the test platforms,

• Check the capacity to perform day to day business,

• Check the result of the monitored tests, which is the minimum of testing, required to succeed the tests of conversion and transfers of positions at the launch rehearsals,

• Additional tests of conversion and transfers of positions may be performed on the initiative of members,

• Fill-in and return the test check list to LCH.Clearnet (cf appendix 5.2) after each check point to evaluate members progresses on testing.

Tests Contacts and Week-end launch rehearsal contacts are requested to organise our communication during theses periods. Please full fill and return the questionnaire attached in appendix 5.3 before the end of June.


1.7. READINESS CRITERIA LCH.Clearnet will set-up a follow-up (cf checking points on the detailed planning, section 1.4) of the tests progress with the members in order to monitor the good progress of the tests.

As the projects SOB and ESES stream 3 are managed respectively by Nyse Euronext and Euroclear, LCH.Clearnet and clearing members must put in place all actions needed to be ready for the go lives.

The following readiness criteria will allow LCH.Clearnet to evaluate the capacity of the members to go live:

• Account structure successfully checked • Launch rehearsal validated • Monitored tests successfully performed • End to end business day tests validated

LCH.Clearnet expect Members to full fill and return the test check list in order to evaluate Member’s progresses on testing and give an eventual support to get all members on board. The final Member readiness checklist must be signed and returned before the 31 October 2008.

1.8. INFORMATION ON THE TEST ENVIRONMENT Members will be able to access the EUA platform only with their acceptance equipment. The EUA environment is available to test participants from 9:00 to 18:00 (CET) and will be extended during launch rehearsals (week-end included). Real time messages resulting are sent during the day or batch treatments (COE treatments) of the afternoon and evening (same timing as production). The result files (PR3, SIF, BIF …etc) will be made available for members in the evening (same timing as production). LCH.Clearnet reminds members that the EUA platform is used for functional purposes only and not sized for volume testing.


1.9. ACCESS TO DOCUMENTATION Members could access all the available Clearing documentation about this project via the Internet site: http://www.lchclearnet.com/projects/eses/default.asp The following documentation is already available to members:

• Q&A, • Phase 1 documentation:

o Detailed service description and the files description (SIF, PR3, Messages); o Description of the corporate event record sequences.

• Info flashes, • Members meetings reports, • Common launch strategy of SOB/ESES Stream 3, • Workshop presentation and minutes.

Additional Clearing information will be provided via Info-Flashes and SMS messages during the launch rehearsals.


2.SETTINGS

2.1. FILES DESCRIPTION During the testing period, members will receive as currently all the requested clearing files on their test equipment. 2.1.1. PRIVATE FILES Private Files FILE NAMES ON CASH TEST PLATFORM IMPACTED by ESES

Stream 3 Positions

Position Report 3rd Resume: POS.SHxxxS3

NO

Margin Requirements

PB Result ITD1: POS.SHxxxxB1

NO

SIF SIF file for Brussels: EHxxxxxxxxBESIFday SIF file for Paris: EHxxxxxxxxFRSIFday SIF file for Amsterdam: EHxxxxxxxxNLSIFfay SIF file for Lisbon: EHxxxxxxxxPTSIFday

YES for position transfers during

launch rehearsals only

BIF BIF file for Brussels: EHxxxxxxxxBEBIFday BIF file for Paris: EHxxxxxxxxFRBIFday BIF file for Amsterdam: EHxxxxxxxxNLBIFday BIF file for Lisbon: EHxxxxxxxxPTBIFday

NO

2.1.2. PUBLIC FILES Public Files CASH IMPACTED by ESES

Stream 3 COE file Corporate event summary file : POS.ShxxxCE

NO

Instruments characteristics

For the current business date (morning - 0353): EHPUBLICXXLCCD02 day

NO

Instruments characteristics

For the next business date (morning - 0453): EHPUBLICXXLCCD01 day

NO


2.2. MEMBERS ACCOUNT STRUCTURE ARCHITECTURE Clearing members must provide their settlement solution for each clearing segment to allow LCH.Clearnet to open at least one delivery account per CSD of reference. Member may choose among these possibilities: • an operational facility open in ESES • an account open in Euroclear bank • a settlement agent participant of ESES or Euroclear bank The account structures that exist in production were sent to Members end of April. Members were asked to study and send back their changes to LCH.Clearnet by the end of June at the latest. The account structure defined by members will be parameterised on the clearing test platform until mid of July 2008 at the latest. Account structures were resent to Members in September for final validation before the test session 2. No changes in the structures will be accepted 2 weeks before and 2 weeks after the launch rehearsals.

2.3. AVAILABLE FUNCTIONALITIES All the business functionalities of our clearing systems are available for testing.

2.4. LAUNCH SCENARIO One of the two main purposes of the tests is to perform the launch rehearsals based on a detailed launch strategy. As a consequence, Members are recommended to read the following documents: - Launch strategy & testing approach, some slides are describing the conversions/transfers of positions management (presentation made in the workshop meetings of April). The document is available on our website at:: http://www.lchclearnet.com/projects/eses/attached_documents.asp. - Detailed description on the launch strategy to be issued mid of June and will be available on our website in due time.


3. DESCRIPTION OF THE TESTING PERIODS

3.1. GOALS The testing periods are organised to allow CMF to test in the platform with regard to the clearing system in the context of an end to end testing (trading to settlement) in free mode scenario let to the initiative of the Members. A frame of script and monitored tests is built to allow members to test in the best conditions with regards to the different impacts.

3.2. PRINCIPLES

Members are able to perform complete cycle from order entry, posting in the clearing system and settlement in the different CSDs. They have to define their own scripts according to the specific aspects of their activities. Two launch rehearsals are scheduled during the testing periods to help Members to repeat and be prepared to the migration operations. Monitored test cases are proposed to Members to focus on the clearing impacts to assure fails conversions/transfers at the ESES switch over. This is a minimum of tests and does not cover all the different cases of conversion/transfer of positions during the launch. The monitored tests do not allow members to reconciliate information between trading and clearing because of the trades injected by LCH.Clearnet at the clearing level. Members are suggested to:

- Prepare their own tests scenario, - Complete the conversion/transfer of positions test cases, - Perform end to end tests in order to reconcilate the information from trading to

settlement with clearing activities in the middle. Some multi-securities are selected from the data referential for the script tests. Some guidelines are brought to the securities to ease Members to perform their tests: • Exceptional support from NYSE Euronext for order entries, on request. • Last reference price of production recommended for order entries • NYSE Euronext will assure liquidity at the end of a testing day • Multi listed securities with balances initialised at Euroclear France, Euroclear Belgium

and Euroclear Bank to get fails or positions settled.

3.3. DATA REFERENTIAL An initialisation of the data referential was performed on Friday 25 April 2008 with the snapshot made from the production data referential of Friday 11 April after business day. Therefore, members can test on the instruments copied from Production. This referential will be available for the first part of the testing (until 15th September).


For the second part of the testing (from 06th October), the clearing test platform referential was initialised with the snapshot made from the production data referential of Friday 11 April. The following list of instruments is reserved for the testing of other projects, Members are asked not to perform tests on them. Other securities might join this panel for new projects:

INSTRUMENT Code Isin/Trading

HUNTER DOUGLAS ANN4327C1220

SOLVAY BE0003470755

TESSENDERLO BE0003555639

DELHAIZE GROUP BE0003562700

D'IETEREN BE0003669802

MOBISTAR BE0003735496

UCB BE0003739530

AGFA-GEVAERT BE0003755692

ACKERMANS V.HAAREN BE0003764785

COLRUYT BE0003775898

BEKAERT BE0003780948

BARCO BE0003790079

INBEV(EX.INTERBREW BE0003793107

BELGACOM BE0003810273

EURONAV BE0003816338

CMB BE0003817344

EVS BROADC.EQUIPM. BE0003820371

TELENET GROUP BE0003826436

NAT PORTEFEUILLE BE0003845626

KBC ANCORA BE0003867844

NYRSTAR (D) BE0003876936

UMICORE (D) BE0003884047

HAL TRUST BMG455841020

VICAT FR0000031775

ICADE FR0000035081

FIMALAC FR0000037947

SECHE ENVIRONNEM. FR0000039109

CARBONE LORRAINE FR0000039620

NEXANS FR0000044448

SILIC FR0000050916

ATOS ORIGIN FR0000051732

HERMES INTL FR0000052292

DERICHEBOURG FR0000053381

UBISOFT ENTERTAIN FR0000054470

SECHILIENNE SIDEC FR0000060402

RALLYE FR0000060618

FONC.DES REGIONS FR0000064578

ALTEN FR0000071946

GROUPE STERIA FR0000072910

IPSOS FR0000073298


JC DECAUX SA. FR0000077919

CGG VERITAS FR0000120164

CNP ASSURANCES FR0000120222

NEOPOST FR0000120560

NATIXIS FR0000120685

IMERYS FR0000120859

CIMENTS FRANCAIS FR0000120982

EURAZEO FR0000121121

CASINO GUICHAR.ADP FR0000121139

WENDEL FR0000121204

ESSILOR INTL. FR0000121667

SEB FR0000121709

HAVAS FR0000121881

KLEPIERRE FR0000121964

INGENICO FR0000125346

VINCI (EX.SGE) FR0000125486

CASINO GUICHARD FR0000125585

CLARINS FR0000130296

REMY COINTREAU FR0000130395

CHRISTIAN DIOR FR0000130403

PUBLICIS GROUPE SA FR0000130577

DASSAULT SYSTEMES FR0000130650

TECHNIP FR0000131708

ERAMET FR0000131757

THOMSON (EX:TMM) FR0000184533

THEOLIA FR0000184814

SOITEC FR0004025062

APRIL GROUP FR0004037125

NEUF CEGETEL FR0004166072

EULER HERMES FR0004254035

BUREAU VERITAS FR0006174348

BIOMERIEUX FR0010096479

NEXITY FR0010112524

ALSTOM FR0010220475

EUTELSAT COMMUNIC. FR0010221234

EDF FR0010242511

IPSEN FR0010259150

LEGRAND FR0010307819

ADP FR0010340141

EDF ENERGIES NOUV. FR0010400143

SCOR SE FR0010411983

REXEL FR0010451203

GPE EUROTUNNEL NR FR0010452433

RHODIA FR0010479956

GROUPE EUROTUNNEL FR0010533075

EUROCASTLE INVEST. GB00B01C5N27

ROYAL DUTCH SHELLA GB00B03MLX29

ACCSYS GB00B0LMC530

MW TOPS EUR GG00B1GGVL67

PROLOGIS EURO PROP LU0100194785

ORCO PROPERTY GRP LU0122624777


HEINEKEN HOLDING NL0000008977

TNT NL0000009066

KPN KON NL0000009082

DSM KON NL0000009827

KARDAN NL0000113652

TELE ATLAS NL0000233948

WAVIN NL0000290856

NIEUWE STEEN INV NL0000292324

VAN LANSCHOT NL0000302636

AEGON NL0000303709

ASM INTERNATIONAL NL0000334118

BINCKBANK NL0000335578

BAM GROEP KON NL0000337319

HEIJMANS NL0000341931

EXACT HOLDING NL0000350361

JETIX EUROPE NL0000352524

FUGRO NL0000352565

USG PEOPLE NL0000354488

OCE NL0000354934

CRUCELL NL0000358562

SBM OFFSHORE NL0000360618

MACINTOSH RETAIL NL0000367993

NUTRECO NL0000375400

TEN CATE NL0000375749

RANDSTAD NL0000379121

SCHUITEMA NL0000383040

TOMTOM NL0000387058

UNILEVER NL0000388619

UNIT 4 AGRESSO NL0000389096

SNS REAAL NL0000390706

VOPAK NL0000393007

WESSANEN KON NL0000395317

ORDINA NL0000440584

SLIGRO FOOD GROUP NL0000817179

TKH GROUP NL0000852523

CSM NL0000852549

OPG GROEP NL0000852556

AALBERTS INDUSTR NL0000852564

BOSKALIS WESTMIN NL0000852580

CORPORATE EXPRESS NL0000852861

AMG NL0000888691

VEDIOR NL0006005662

ASML HOLDING NL0006034001

IMTECH NL0006055329

TELE2 NETHERLANDS NL0006129264


3.3.1 SECURITIES SELECTED FOR END TO END SCRIPT TESTS From the data referential initialisation, a general list of instruments was selected for the script tests, the list is available on the Euroclear’s website: www.euroclear.com in: Initiatives > Single Platform > ESES > ESES migration > (ESES testing newsletter 3 section and relatives appendices) From this panel, some multi-listed securities were selected depending on their evolution changes before ESES stream 3 and after. Some support is given to this panel at the trading level to assure liquidity and balances at the CSDs are initialised for all Members to obtain settlement or fails. The types of events are:

- Change of currency, - Quantity type change (UNTvsFMT) - Place of CSD of reference different to the trading one, - Market of reference is one of the three market places.

NYSE.Euronext plays the role of counterparty for unmatched orders by the end of the testing days to assure the liquidity in the order books. This service is available 2 weeks before and 1 week after the launch rehearsals. Euroclear France, Euroclear Belgium and Euroclear bank set settlement accounts for all the settlement participants to: • 0 to get fails • 1000 to get positions settled. Nevertheless, LCH.Clearnet recommends Members to check their balances before testing. Euroclear Nederland and Euroclear Belgium do not initialise settlement participants’s balances. As a consequence, Members need to check their settlement balances and adjust the quantities down enough to allow positions to fail or to settle.


The list of the multi listed securities is the following one:

Members are free to enter orders via their TMF facilities on these securities for their own needs. In case of some clearing members would have difficulties to enter trades, they can exceptionally ask NYSE.Euronext to enter orders in the following conditions: - Contact CTS of NYSE Euronext: at: +33149275050 or [email protected] . - Order entry scenario to be sent to NYSE.Euronext one week before execution, - Scenario limited to 10 orders maximum, - Service available 2 weeks before and 1 week after the launch rehearsals.


3.3.3 CORPORATE EVENTS Some corporate events are scheduled by Euroclear and will be processed at the clearing level. Reminder: On the Belgium market, the order of the dates of the corporate events related to the distribution of securities change from the implementation of ESES stream 3. Ex-date = Record date – 2 LCH.Clearnet recommends Members to test theses particular corporate events. All the corporate events that will be processed on the three markets are available on the Euroclear’s website: www.euroclear.com in: Initiatives > Single Platform > ESES > ESES migration > (ESES testing newsletter 3 section and relatives appendices))

3.4. TEST & CHECK LIST RECOMMENDATION LCH.Clearnet suggests members to include the following check points within their test plan:

• Check and validate the changes of the account structures on the 3 Clearing segments,

• Succeed the launch rehearsals: o Delivery of all reporting (messages & files) o Checking the retrieval of public and private files (CCW, CAP/MAP) o Checking the retrieval of public and private messages (CAP/MAP) o Check the content of messages and files, particularly the SIF file o Integration of fails position transfers o Validation of the monitored tests cases o Validation of DA transfers, in case a Member will change its delivery

accounts. Members would have to build its own scenario and can use the securities listed at section 3.3.1.

• Check corporate events regularisations (change of order of date for securities distribution on the Belgium market)

• Non regression test of the day to day functionalities: • Postings (manual; systematic; automatic) • Give-ups/ Take ups • Integrate trades reports • Integrate positions reports • Feeding of internal applications or Back Office systems


3.5. LAUNCH REHEARSAL ORGANISATION 3.5.1. COMMUNICATION LCH.Clearnet will send info flashes and SMS messages all along the migration processes from the launch of SOB until the end of the launch of ESES stream3 to the members’ contacts returned for both tests and launch rehearsal week-ends. LCH.Clearnet will also call Members during the launch rehearsal week-ends to check the progress of the testing. Please full fill and return the form attached in appendix 5.3. 3.5.2. LAUNCH REHEARSAL SCHEDULE Please find hereafter the detailed planning of the second launch rehearsal operations. � Friday 10 October: • During the day: An Info Flash will confirm that the first trades have been injected by

LCH.Clearnet for the monitored tests. • In order to get fails returns, Members are recommended to check that their balances

are flat enough at the CSDs , in particular at Euroclear Netherlands and Euroclear Belgium were the balances are not initialised to zero for the securities involved in the monitored and scripted tests.

� Wednesday 15 October: • NYSE Euronext will confirm the green light for the launch of SOB. • During the day: An Info Flash will confirm that the second trades have been injected by

LCH.Clearnet for the monitored tests. • First day where the PR3 file will report the new position accounts created (on Member’s

request) for ESES Stream 3. � Friday 17 October: • In the morning: A test SMS will be sent to validate the communication system. • Around 06:15pm CET: An Info Flash + SMS will be sent to confirm that the SIF file on

the Portuguese and Luxemburg clearing segment has been sent (no impact). • In the evening: Data referential update of the CSD of reference for some securities.

Data disseminated via the Cash data referential file (0453) and data providers. • After Euroclear group’s point of no return reached (end of accounting day): An

Info Flash + SMS will be sent to confirm the green light for the launch of ESES stream 3.

• Around 11:00pm CET: The PR3 file will be sent to Members (no impact), an Info Flash + SMS will be sent to confirm that the file has been sent.

� Saturday 18 October: • During the day:

o LCH.Clearnet will convert and transfer positions to the market of reference of Multi-listed securities and will change the CSD of reference. The Currency conversions will be performed with the currency rates officially


published in the evening of Friday 17 October available in the Span file (Records T: Currencies exchange rates).

o LCH.Clearnet will send all the positions to be settled in the full ESES stream 3 configurations to Euroclear.

• Expected around 11:00pm CET: After LCH.Clearnet’s internal check and Euroclear’s

validation, LCH.Clearnet will disseminate the SIF/BIF files that will report the first positions for settlement in ESES stream 3. An Info Flash + SMS will be sent to confirm that the SIF/BIF files have been disseminated.

• Around Midnight CET: Depending on the SIF/BIF files dissemination time, a

conference call is scheduled to get a first status report from pilot Members on the SIF/BIF file reception. An info flash + SMS will be sent to report this status to all Members.

� Sunday 19 October: For Members who have not validated the integration of their SIF/BIF files into their internal applications on Saturday, LCH.Clearnet requests that these members report their status firstly around 09:00am and secondly before 11:00am CET by e-mail to the following address: [email protected]. • LCH.Clearnet CTH will provide technical support to members on Sunday from

09:00am. Members are recommended to check that their access means will be up and running during the week-end. Technical maintenance on the access means is strongly disadvised.

• 09:00am to Midday CET: LCH.Clearnet will provide functional support to members. • Around Midday CET: A conference call is scheduled to make a final status after the

validation of the integration of their SIF/BIF. • Around 02:00pm CET, and after checking with members, LCH.Clearnet will send an

Info Flash + SMS to inform members of the end of the Sunday process at the clearing level.

• Monday 20 October: first day with ESES configuration: • In the morning : The Product implementation team will contact Members to check their

internal process validation. • Around 08:00pm CET: an Info Flash + SMS will confirm the end of the first full ESES

accounting day and the dissemination of the SIF and BIF files for all segments. • Around 11:00pm CET: The PR3 file will be sent to Members (no impact), an Info

Flash + SMS will be sent to confirm that the file has been sent. � Tuesday 21 October: • During the day : An Info Flash + SMS will confirm the end of the 2nd launch rehearsal

period.


LCH Clearnet SA will send to all members an info flash as per the above mentioned dates, from 10 to 20 October recalling in details every item and action described in this anticipated communication plan.


3.6. MONITORED TESTS 3.6.1. GOALS One of the main impacts on Members is to integrate the conversion and transfers of positions at the launch of ESES stream 3 via book entries. The functional launch plan is detailed in the section 2.4. The aim of the monitored tests is to ease Members to test the main functional cases of conversions and transfers:

- Fails Positions transfer Linked to SOB - Currency conversion of fails - Fails Positions transfer Linked AND change of QTY type - Change of CSD of reference - Fail Position on a foreign currency security transfer to a delivery account linked

to a Euroclear Bank settlement address LCH.Clearnet decided to set up the monitored tests in a passive testing mode in order to make member’s tests preparation easier. The monitored tests focus on a set of test cases that allow participants to:

• Get used to the launch book entries, • Check the files/messages and results expected in accordance with the test

scenarios that are provided • Validate book entries transfers • Integrate the book entries into their internal applications.

This is the minimum of testing to validate conversion and transfers of positions, the scenarios proposed do not cover all the situations, Members are recommended to perform additional test cases on their initiative.

3.6.2. PRINCIPLES The tests scenarios are created and directly keyed by LCH.Clearnet into the clearing test platform. For each of the two launch rehearsals, the principle remains the same:

• Same set of test cases on all clearing segments • Balances of members in Euroclear France and Euroclear Bank are set to zero

to obtain fails systematically • On the Dutch market, members may check and adjust their balance in

Euroclear Nederlands and Euroclear Belgium to make sure that the trades injected will be returned failed. The quantity traded must be greater than the balance.

• Trades are injected at the CCP level by LCH.Clearnet for each of the test cases:

o One trade will be injected per Individual Clearing Member. o Two trades will be injected per General Clearing Member. The trades will

be processed with the TMFs proposed to Members mid September or up to Members’ choice.


o The TMFs appointed have a valid membership in ESES stream 3.a, (same memberships as the ones of the production environment).

o The trades injected 3 days before SOB launch will be returned failed on

SOB launch day and the fails will remain in book until the operations of conversions and transfers

• Conversions and transfers are processed by LCH.Clearnet on the Friday evening/Saturday during the migration operations to ESES stream 3

The resulted book entries of deletion and creation related to conversions and transfers are netted (CNS process) with the positions corresponding to the trades injected on the securities “market of reference”. Members validate and/or integrate the positions from their SIF files in their internal applications


3.6.3. MONITORED TESTS SCHEDULE 1 (CLOSED)


3.6.4. MONITORED TESTS SCHEDULE 2


3.6.5. RESULTS EXPECTED Members are requested to check the following results for each day of testing: SOB -3 day:

• Messages 5011:

o Trade legs injection reported. • PR3 file:

o Trades injection reported, check records 10000, 20000 and 30000 • SIF file:

o No particular check SOB -1 day:

• Messages 5011:

o No particular check • PR3 file:

o No particular check • SIF file:

o Positions related to trades injected on SOB-3 are reported as positions to settle,

o Check records 00010 and 00060. SOB launch day:

• Messages 5011: o Trade legs injection reported.

• PR3 file: o Trades injection reported, check records 10000, 20000 and 30000

• SIF file: o Positions related to trades injected on SOB-3 are returned failed from

the CSD o Check records 00020, 00030 and 00060


ESES-1 day (during the launch rehearsal wek-end):

• Messages 5011: o No particular check

• PR3 file: o No particular check

• SIF file: o Positions related to trades injected on SOB-3 are returned failed again

from the CSD o Positions related to trades injected on SOB day are reported as postions

to settle, (Check records 00010). o Book entries of positions deleted, check records 00050 o Book entries of positions created, check records 00040 o New positions to settle are the result of the netting of the positions

related to trades o Injected on SOB day + the book entries created/deleted o check records 00060 / 00070.


4. MEMBER SUPPORT

LCH.Clearnet will provide assistance to the members for all kinds of problems encountered when accessing the clearing central information systems. Procedures and terms during the test phase will be identical to those applied to normal use situation.

1st level of support Who to contact In the event of questions regarding: • General information on the project • Global follow up • Test organisation • Coming steps of the project

Product Implementation managers: Tom Badman: +33 1 70 37 67 69, [email protected] , François Marton: +33 1 70 37 67 54, [email protected] , Christophe Robert: +33 1 70 37 67 08, [email protected] Product Implementation director: Catherine MOLLARD Phone: +33 1 70 37 66 57 e-mail: [email protected]

2nd level of support Who to contact A functional problem at the clearing level such as: • Understanding and using the Clearing

systems • Using the E-CCW • Understanding clearing files and

messages

Operations Department: Tel: +33 1 70 37 66 27 or +33 1 70 37 66 26 or +33 1 70 37 66 08 e-mail: [email protected]

A technical problem at the clearing level such as: • Connecting CAPIs • Connecting E-CCWs • Receiving files & messages

CTH Costumer Technical Helpdesk Tel: +33 1 70 37 66 00 Fax: +33 1 70 37 65 05 e-mail: [email protected]


5. APPENDIX

5.1. INSTRUMENTS AND COE The list of instruments used for script tests and the corporate events on all the three segments can be found on the euroclear’s website at: https://www.euroclear.com/site/p/EF/ and follow the path: Euroclear France home / Initiatives / Plate-forme unique / Eses / Eses migration / Eses testing Newsletter (bottom of the page)


5.2. CHECKLIST AND TEST RESULTS Identification

Company name: Clearing member code: Project manager name

TOPICS TESTED % READY COMMENTS OK/NOK/

NA (Date)

(Clearing)

Account structure

Reconciliation Trading/Clearing Reconciliation Clearing internal applications

Reconciliation Clearing/Settlement Reconciliation Trading/Settlement Change of CSD of reference on mono listed securities

Position Results 3rd resume file SIF file Monitored test case: 1 currency conversion Monitored test case: 3 conversion UNT FMT Monitored test case: 4 SOB transfer Monitored test case: 5 CSD ref place <> trading Monitored test case: 6 Foreign currency transfer of position to EB

Multi listed securities management (transfers/conversions of positions)

Change of CSD of reference on mono listed securities

Corporate events management

Transfer of positions from a DA to another one Transfer of position linked to foreign currency Other tests? Next tests?


On the basis of our test activities, we____________________________ [name of the

company involved] hereby confirm the LCH.Clearnet Clearing test was [successfully, not

successfully] * completed.

If it is not successfully, please list actions to drive to be ready for launch:

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

Place, Date

Signature

To be returned to your Product Implementation Manag er after each check point. Final return expected signed on 31 October 2008 at the latest


5.3. MEMBERS CONTACTS Identification

Company name: Clearing member code: Project manager name

TESTS CONTACTS

Name Test leader (Y/N) Phone number e-mail

* WEEK-END CONTACTS Launch rehearsal: 01 and 02 August 2008

Name Phone N° reachable during the WE

Mobile phone (SMS sending)

e-mail

Launch rehearsal: 17 and 18 October 2008

Name Phone N° reachable during the WE

Mobile phone (SMS sending)

e-mail

Documents

Testing guide ESES stream 3 v4 - LCH guide ESES... · /ESES stream 3. The ESES Stream 3 and Single Order Book projects impact Members at the trading, clearing and settlement levels,