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AGENDA

Futures Industry Disaster Recovery Test Briefings September, 2007 “DR IV” Prepared and Moderated by John Rapa, CBCP Tellefsen and Company, L.L.C. AGENDA. Introduction and Welcome Testing Goals and Objectives Review of Testing Protocol Member Firm Readiness Discussion Timeline and Next Steps.

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AGENDA

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  1. Futures IndustryDisaster Recovery Test BriefingsSeptember, 2007“DR IV”Prepared and Moderated byJohn Rapa, CBCPTellefsen and Company, L.L.C.

  2. AGENDA • Introduction and Welcome • Testing Goals and Objectives • Review of Testing Protocol • Member Firm Readiness Discussion • Timeline and Next Steps

  3. I. INTRODUCTION AND WELCOME Our Panelists Today:

  4. II. TESTING GOALS AND OBJECTIVES • Test the basic ability to conduct business (order entry through clearing) from alternate/back-up facilities simultaneously. • Test disaster recovery capabilities among futures commission merchants, back-office service providers, recovery services providers and trading system vendors. • Test the connectivity between exchanges, clearinghouses and their constituents’ back- up facilities (“back-up to back-up”), and confirm member firms’ ability to send/receive information to/from their back-up facilities/interfaces.

  5. GOALS AND OBJECTIVES … Continued • Enter a small but meaningful sampling of orders and trades, carried out by a limited number of essential personnel from alternate locations. • Confirm the receipt/transmission of information to/from clearing members. • Transmit key clearing reports and information to clearing firms to verify “round-trip” communications.

  6. III. REVIEW OF TESTING PROTOCOL • Exchanges will specify products available for order entry/trading. • All exchanges will use their electronic trading venues for the test. Testing will take place between 9:00 a.m. and 3:00 p.m. EDT. • FIA will manage the test via an open conference bridge (conference bridge number to be announced). • Member firms will confirm connectivity with their respective exchanges/clearinghouses: • Pre-test connectivity testing will be offered, as applicable. • Unless so noted, firms will execute a pre-defined script of orders. Firms will use test accounts. • Exchanges will generate fill reports on the orders. • All firms will report results and confirm post-test production connectivity to the respective exchanges.

  7. CBOE FUTURES EXCHANGE • Will use CBOEdirect back up ETS. • Trade entry via scripts: • Products to traded: VIX futures. • Pre-test requirement - Users must register via the FIA website and establish back-up connectivity to CFE via the CBOE API Client Relations Group. • Data will be edited to modify the trade date: • Order entry systems will reflect October 26th trade date. • Will accept either October 26th or October 27th trade date on order input.

  8. CBOE FUTURES EXCHANGE (Cont’d)… • There will be no clearing component as OCC is not participating. • Transmission of regulatory data to NFA via FTP. • Pre-test connectivity tests will be offered on Tuesdays and Thursdays in October. Please contact us to schedule a date/time. • Contact CBOE Client Relations Group with any test related questions: 312 786 7300.

  9. CME GROUP - eCBOT • Will use eCBOT production trading system via back-up site. • Firms must register via the FIA website. • Members will be allowed to logon to check connectivity • Members should call Market Operations to report confirmation of connectivity from Primary or Disaster Recovery Location – 312-347-4600 • CBOT will inject trades in trade handling system via backup site. • Trades will be injected using data from October 26th for CBOT, KCBT, and WCE. • Injected trades will be processed through to the appropriate clearing organization. • Trade date will be October 26th.

  10. CME GROUP - GLOBEX • Will use GLOBEX via remote data center. • Firms must pre-register via the FIA’s web portal. • Verify firm connectivity: • All GLOBEX Markets will be in Pre-Opening state. • Can use either October 26th or October 27th trade dates. All fills will be sent back to the Firms with the trade date of the 26th. • Firms can send a test order in any market they wish. • No trades will occur during the Pre-Opening period. • Firms will verify connectivity and can send/receive messages.

  11. CME Group (Cont’d)… • Order entry via test script as follows: • Enter bids as customer and offers as house at the settlement price in the market you choose. Enter about 10 trades. • Firms may use any market they want. We do recommend that Firms send orders in on ‘Floor Only Contracts, like the SPZ8 that will be listed on GLOBEX for the test. • Firms may receive crossed trades and/or trades with other counterparties. • Trade reporting to firms’ back office systems: • Should be verified and then deleted. • Enter ex-pit transactions via CME portal URL.

  12. CME Group (Cont’d)… • Change FTP IP address to CME’s remote site IP address to connect to CME FTP server via RDC IP: • Using Friday’s data, FTP the PCS and Large Trader reports. • CME staff will verify receipt and then delete them. • CME will transmit Thursday’s Trade Register and SPAN files. • Firms will verify receipt of these, delete them and contact the GCC to recap the test results.

  13. CME Group (Cont’d)… • Connect to RDC URL and enter a block trade for: • 5000 EDH @9740.0 • CME staff will verify receipt of the block trades and then delete them. • Contact CME Clearing Support (CCS) team at (312) 207-2525 to obtain CME Production IP address, RDC IP address or RDC URL address. • Switch back to CME production site IP address at test conclusion.

  14. THE CLEARING CORP. • Will test from Clearing Corp. back-up site. • Members must pre-register via the FIA website. • Pre-test ping testing will take place on September 29th. • Firms will verify connectivity via a ping test from their back-up site • Will receive successful log in message. • Previous day’s clearing reports will be available for firms to retrieve to their back-up processing sites: • Match off files. • Report files. • SPAN files. • PCS, large trader and/or ex-pit transactions will not be accepted.

  15. EUREX AG • Will use the production Eurex matching engine located in Frankfurt. • Members must pre-register via the FIA web site. • Firms should confirm all software versions at their primary sites (including ISV, proprietary and exchange software applications) are also running at their back-up site. • Firms will conduct a connection test, and can do so from any/all of their locations: • Firms will receive log-in message to confirm connectivity and successful application functionality • No order entry will be permitted. • Contact the Technical Help Desk at 312-544-1200 (US) or +4969 211 11200 (EU) with any questions.

  16. ICE FUTURES • Will use ICE Exchange from Disaster Recovery site in Chicago for front end trading application testing. • All existing customers with valid trading IDs are welcome to participate. Valid user ID and production password will be used for login. • Please pre-register via the FIA website • Connectivity Validation - DR site will be available to test login on Saturday, September 29th and October 13th only - beginning at 9:00am ET – 12:00pm ET • Please review the Connection Guidelines for Disaster Recovery for specific connection information at: • https://www.theice.com/publicdocs/technology/WebICE_Firewall_Proxy_Requirements.pdf • No network, DNS, or IP changes will be required to connect to the DR site

  17. ICE FUTURES (Cont’d) … • All markets will be in closed state and only system login will be tested. • All participants who plan to test on 10/27 must test connectivity to the DR site on one of these weekends. • Connection Types Access to DR Site: • Internet – access available for DR site via www.theice.com. This will be available after 7:00pm ET on 10/26/07. • Data Hubs (Atlanta, NY, Chicago, London, Singapore) – dedicated connection to the ICE data hubs will be automatically routed to DR site in beginning at 7:00pm ET on 10/26/07. • CoLo/ICE Direct – All connection for CoLo and ICE Direct customers will be automatically routed to DR site beginning at 7:00pm ET on 10/26/07.

  18. ICE FUTURES (Cont’d) … • The following markets will enter a Pre-Open state at 10:00pm ET on 10/26/07 and Open at 9:00am ET on 10/27/07: • NYBOT Sugar11 • NYBOT Cotton • ICE Futures WTI (**trades will not flow through to LCH clearing) • ICE Futures Brent (**trades will not flow through to LCH clearing) • All OTC markets will be open beginning at 9:00am • Markets will remain Open until 12:00pm ET on 10/27/07. • Firms can trade freely in these open markets. There is no set testing script for trading: • ICE will also submit test orders and trades into all open markets • ICE Block functionality will be live in the DR site and available. • Non-trading applications (clearing admin, web counterparty filter) will be available.

  19. ICE FUTURES (Cont’d) … • All ICE web reporting (deal reports, position reports, etc) will be available and will be accurate based on trading activity. • The ICE Helpdesk and ICE Futures and NYBOT Market Supervision will be available from 8:00am ET through 1:00pm ET at the main phone numbers listed on the ICE website: • At the end of the DR testing period, all trade data will be deleted from the ICE exchange and databases and no record of the days transaction will persist. • All participants MUST clean up all backend system data after testing. No trades performed during testing hours will be valid. • All NYBOT Futures trades will be submitted to the ICE Clear backup site. • ICE Futures trades will NOT be submitted to LCH • The Production ICE Trading System and associate components will not be available during the DR test.

  20. KANSAS CITY BOARD OF TRADE • Two aspects to the Kansas City Board of Trade (KCBT) Test: • Injection of eCBOT trades into KCBT clearing remote data center. • Entry of open outcry trades into KCBT clearing remote data center. • eCBOT portion of test: • Members should logon to eCBOT to check connectivity and contact eCBOT Market Operations to confirm connectivity. • Trades will be injected from eCBOT to KCBT clearing. • Trade date sent from eCBOT will be October 26

  21. KANSAS CITY BOARD OF TRADE (Cont’d) … • KCBT open outcry portion of test: • KCBT Clearing will contact designated firm representatives for KCBT and provide the scripted trades that will need to be entered (scripts to be distributed approximately 2 weeks prior to test). • Request that each firm work with their people responsible for daily interaction/operation at KCBT to ensure continuity of documentation and communication. • Clearing login information and instructions have been provided to those responsible for interaction with the KCBT/KCBT Clearing Corp. • Clearing will determine any pre-testing requirements with firms. • Upon completion of trade entry for eCBOT and open outcry, clearing reports will be generated and be made available for download.

  22. LIFFE • Will use production Connect systems environment. • All firms should register via the FIA web portal. • Connectivity testing will take place on September 29th and October 13th with support available between 8:00 a.m. and 11:00 a.m. EDT. • For ping testing - members may ping test Connect central gateways from backup / alternate trading sites. • On test day - ping test central gateways and view actual post trade data from the previous trading day (TRS reports) with normal security controls in place (e.g. live passwords). • No order entry will be allowed. • The test is open to all Liffe members. Non-FIA member firms should email: John.Wilson@liffe.com

  23. MEFF • Trade date will be October 27. • Will use the MEFF production ETS environment. • Members will be able to trade. • During the test we will failover the backup system. • Once the failover is complete, members will be able to continue trading. • Members will be able to get reports of their trades. • Back office systems will be prevented to enter this test.

  24. ICE FUTURES US (NYBOT)ICE CLEAR US (NYCC) • Firms must register via the FIA website. • The 2007 DR/BCP testing will change substantially for ICE Futures US/ICE Clear US trading and clearing members, due to the introduction of the ICE electronic trading system. • ICE Futures US will use the ETS for the entry of orders and trades for the test. CMs can trade freely in the open markets – there is no script for trade testing. • ICE Futures US will also introduce a pre-defined set of trades into the ETS for every clearing member, to create post trade activity in the PTMS and TIPS systems and complete a clearing cycle. • Trade date will be October 27th.

  25. ICE FUTURES US / ICE CLEAR US (Cont’d)… • Test Cases: • Clearing members will use post trade systems (either PTMS and TIPS) to enter ex-pit transactions from script and accept trades loaded by ICE Futures US into the ETS and passed through to clearing. • Test Files: • TIPS intra-day files will be available via File Transfer (FTP) platform. • FixML trade messages will be sent to CMs via MQ • CMs will deliver PCS and Large Trader Files to NYBOT back-up site via Data Express FTP (production files from Friday, October 26th trade date) • ICE Clear US will complete a clearing run and produce the regular clearing data files: • Matchoff files delivered through Data Express FTP • Clearing Reports delivered through ICE eReport • SPAN file (to be available through CME SPAN web site).

  26. ICE FUTURES US / ICE CLEAR US (Cont’d)… • ICE Futures US Market Supervision, Data Center, ICE Clear US, and ICE Help Desk staff will be available on the test day and prior to the test to support member firms. • Contact NYHelpDesk@theice.com for the specific information your firm will need to connect to these applications running in back-up: - ICE Trading System - NYBOT PTMS, TIPS, ECS, eReports • Back-up Data Center/Data Express: - Match off File - TIPS file - PCS file - FixML trade messaging • Firms will verify connectivity to the Exchange back up site via a ping test prior to the test date (September 29th, October 13th).

  27. NEW YORK MERCANTILE EXCHANGE • Will use GLOBEX ETS, ClearPort TMS and ClearPort Clearing systems. • Trade date will be Monday, October 29th. • Firms must pre-register via FIA website. • Questions may be directed to NYMEX Director of Business Continuity – BCP@NYMEX.COM. • Test environment will be monitored and managed via conference bridge set up for the test. • Bridge will act as test squawk box – monitored by NYMEX staff at back up emergency operations center • All problems will be brought up via bridge (taken off-line if necessary) • Test will be directed and managed via the bridge.

  28. NEW YORK MERCANTILE EXCHANGE (Cont’d)… • Trades may be entered into Globex by firms. NYMEX staff will enter trades into all other platforms. • Production accounts and products will be used. • Production data will be backed up and restored over test data. Test data will be saved for subsequent review. • Detailed test scripts describing what the firms are expected to do and when to do it will be provided to registered firms. • Test links will be provided for back up systems (C21, CM download, etc.). • The new SFTP system will be used to transfer files. • DR SFTP server IP addresses will also be available to connect to the backup site (these have already been provided to all firms with connectivity to the primary site).

  29. NEW YORK MERCANTILE EXCHANGE (Cont’d)… • Firms to connect to NYMEX via their back up sites or identify if they are not connected via a back up site. • The Exchange will enter trades at DR site for allocation (give-ups) to registered participating firms. • NYMEX Clearing will process end-of-day reports; no intraday • Data/Report Transfer • Members will upload the previous day’s PCS and Large Trader reports via SFTP backup IP addresses. • Firms will retrieve clearing reports and data from Member Trade Register report and CM Download site. • NYMEX will confirm report data against trades from test script. • All firms to report results and confirm post-test production connectivity to NYMEX.

  30. PHILADELPHIA BOARD OF TRADE: • Will use the PBOT/XL trading system • Trade Orders will be received at PBOT/XL Help Desk. • Trade will be manually matched and executed with trade date of Friday October 26, 2007. • Fill reports will be generated. • PBOT trade file will be processed for clearing and settlement.

  31. EXCHANGE AND CLEARING HOUSE TESTING MATRIX • CBOE Futures Exchange and CME will accept either October 26 or October 27 trade dates on order input.. • + CME will accept previous day (October 26) large trader report information. • NYMEX will use October 29 trade date

  32. EXCHANGE AND CLEARING HOUSE TESTING MATRIX • CBOE Futures Exchange and CME will accept either October 26th or October 27th trade dates on order input.. • + CME will accept previous day (October 26th) large trader report information. • NYMEX will use October 29thtrade date

  33. PRE-TEST COMMUNICATIONSTESTING SCHEDULE • September 29th: CME Group, Clearing Corp., Liffe, ICE Futures, NYBOT, NYMEX • October 13th: CME Group, Liffe, ICE Futures, NYBOT, NYMEX • Ad hoc testing: CBOE Futures (Tuesdays, Thursdays)

  34. IV. MEMBER FIRM READINESS • Discussion with member firms as to the state of their readiness: • Back-up systems/communications links. • Order entry and routing. • Market data. • Give up processing. • Clearance and settlement. • Use of third party service providers. • Major issues or concerns.

  35. V. TIMELINE AND NEXT STEPS

  36. FIVE MORE WEEKS TO GO !

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