Industry BCP/DR Test Test: October 14, 2017 All Participants - PowerPoint PPT Presentation

Industry BCP/DR Test Test: October 14, 2017 All Participants Meeting and Project Overview - April 19, 2017

• • • • • • Meeting Agenda Introduction Project Structure (Scenario, Objectives, Exclusions) Road Map, Milestones & Deliverables Participant Responsibilities and Information requirements Project iMeet Central Portal - Demo Question Period 2

• • • • • Introduction Dealer Members perform annual BCP tests as required by IIROC Rule 17.16 Dealer Members perform annual connectivity tests with key suppliers, vendors and market infrastructure utilities Utilities perform failover tests and provide access for members to test on backup site 2017 Industry Test is one component of the BCP/DR tests carried out by members & utilities to certify their capability as required by the IIROC BCP Rule 2017 Industry Test is the 5 th such event in a 12 year plan to test potential disruptions to the capital markets in Canada. 3

Test Project Structure Steering Committee for Contingency Planning and Business Continuity Requirements Includes participants from: Dealer Members, Utilities and IIROC 4

• • Test Scenario The scenario for 2017: The test scenario for the 2017 industry test is for IIROC's Dealer Member participants to test out of their production/primary data processing sites. and Service providers will be testing out of their DR data processing sites. 5

Test Goals and Objectives • The goal for members is to validate their ability to process transactions from normal trading and back office locations via their primary data processing sites, connecting to service providers who will be operating in their respective back-up (DR) sites. • The goal for service providers is to validate their ability to process transactions without access to their main data centres. • The objectives are to: • Confirm connectivity between member primary facilities and service provider alternate facilities • Confirm test transactions can be completed from members’ primary work locations to service providers' alternate data centres • Complete a set of pre-arranged transactions • Identify any issues or impediments 6

• • • • • • • • • We will not: Test failover from production to DRP sites for dealer member participants  Utilities only will move to BCP and/or DR site Test the capacity of the markets or member backup sites  transaction volumes for a capacity test not feasible in 2017 Test every transaction variant used in normal markets Test TSX Smart Order Routing Test MQ with CDS Test redundancy of telecommunications infrastructure Perform Latency testing for Equity transactions Perform any batch processing for transactions executed during the test Settle trades or move money 7

• • • • • Project Scope Test transactions for Equities, Mutual Funds, Fixed Income, ETF, GICs, Futures and Options, selected Back Office transactions. Retail and Institutional functionality Manual order routing and selected smart order routing IIROC Crisis Communication Centre IIROC Market Surveillance 8

2017 IIROC Industry Test Market Infrastructure IIROC CCC Message Intro Intro Member1 Member2 Carr. CARR. Member1 Member2 Member5 Member 60 Member3 Member4 IIROC Surveillance ITS I RESS Fidessa SS&C IBM Broadridge CDS CDCC CSE Aequitas FundSERV Alpha Tri-Act MX Candeal Cannex CBID PURE Omega TSX NASDAQ TSX V 9

• • • • • Differences from normal trading TSX Trade Date Saturday October 14, 2017 Test symbols for Equities, Mutual Funds, Options, Futures, ETF Test product for CDS MM Smart Order Routing for TSX not available (SOR provided by other utilities will be available) Datalinx feeds from TSX not available: – - Consolidated Data Feed (CDF) – - Canadian Best Bid and Offer (CBBO) – - Consolidated Last Sale (CLS) – - Consolidated Depth of Book (CDB) 10

Project Road Map April May - July October 14 Oct. – Nov. Design Build Assess Perform  Document test results  Trans. test scripts  Perform pretest • Scenario  Collect feedback  Mechanics  Implement test • Objectives  Create test report  Support infrastructure • Enlist Participants support  Develop success criteria • Document test structure  Perform test 11

Project Milestones & Deliverables Design Phase Date Deliverable Completed Scenario, Objectives Completed Participant list (members & service providers) Completed Participants questionnaire templates created (in Word and in Portal) Completed Transaction profiles (Appendix A) April 19: Pa rticipants meeting Build Phase Date Deliverable May 31: Participant questionnaires to be completed and submitted in the portal June 30: Participants Matrix – including mapping service providers to members June 30: Test details - date, timeline, securities, transactions, counterparties July 30: Test Scripts vetted with utilities for feasibility Aug 31: Test Scripts distributed Sept 15: Support Plan built Sept. 20: Second all participants meeting 12

Project Milestones & Deliverables Perform Phase Date Deliverable Sept - Oct: Pre-test connectivity test (subject to service provider availability) Sept - Oct: Distribute final test specs (if necessary) October 14: Perform test Assessment Phase Date Deliverable Nov 3: Document test results Nov 24: Assemble participant feedback Dec 15: Distribute test reports Dec 22: Archive project artifacts 13

Participants Responsibilities & Information Requirements 1. Assemble internal project team (business, IT, other), as applicable 2. Determine which transaction profiles to be tested 3. Determine counter party requirements (CDS MM) 4. Determine the extent of the internal tests a) Service provider failover included on test day b) Carrying – Introducing Broker arrangements c) Business IT involvement d) Arrange & execute additional tests in addition to IIROC test 5. Complete test information questionnaire provided by IIROC 6. Schedule connectivity pre test with utilities if required 7. Inform telecom supplier of test date to ensure availability on test day 8. Mobilize test resources on test date - October 14, 2017 9. Provide response to the CCC communication 10. Provide feedback and results after the test 14

iMeet Central Portal Overview • Central Desktop in 2015 is now iMeet Central in 2017 • Project portal is available to all test participants • Single User ID has been assigned to the primary contact of each firm • User ID is to be shared with all those involved in your company • Multiple concurrent sessions for one account are permitted • Participants can read and print material from the Portal The portal and a conference bridge will be the primary communication tools for support on test day Messages from the support team will be broadcast on test day Project portal is interactive and used for: • Project team communicating to participants • Project announcements • Dealer Members and service providers communicating with other participants • Dealer Members and service providers communicating with the project team • Test day support and forum for interactive discussion 15

Your Questions 16

Portal Demonstration Des O’Callaghan 17

Appendix A Test Transaction Profiles 18

Equity Order Routing TSX Equity Order Routing - primary market - secondary markets TSX V Introducing Member CSE Service Carrying Bureau Aequitas Member (IBM, Broadridge) Order Routing Omega Service (IRESS, Fidessa, ITS) Others 19

Equity Order Fill Routing 20

Mutual Fund Order Routing Mutual Fund Order Routing 1. Orders routed in real time 2. Orders routed in batches at the discretion of the member 3. Orders entered directly on Fundserv WEBSITE (< 2%) Contract Information Reject Information Service Introducing Carrying Bureau 1 , 2 Fundserv Member Member (IBM, Broadridge) Fundserve 3 Website 21

Fixed Income Trade CDS MM Trade Trade FI Trade 1. Orders entered directly on CDS market 2. Product uploaded to CDS by members Service Bureau Member2 CDS 1 (IBM, Broadridge) 2. Create FI Product Member1 Contract Information 22

Fixed Income Agency Trade FI Agency Trade 1. Orders entered directly on CBID market Contract Information Batch File Service Bureau Member CBID 1 (IBM, Broadridge) Contract Information Manual Entry 23