Functionality

Executing a Give-Up Agreement Online
Executing and clearing brokers, traders and customers can execute the customer and trader versions of the FIA uniform and exchange-for-physical give-up agreements.

Any party to the system can initiate a give-up agreement with up to eight parties. Some firms have indicated that they prefer to initiate agreements so the system has a feature that alerts system users when the party they have selected is a "preferred initiator."

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The initiator selects from a library of standard give-up agreements or modifies an existing agreement. The initiator can insert a "standard" amendment from the public amendment library, select one from the firm's private amendment library or customize the text for a particular agreement. The system automatically highlights any changes in the text.

When Fast Path phase two is implemented, EGUS will provide a standard rate template in spreadsheet format which can be attached to the agreement. Any party can input rates on the standard rate template. It is also possible to specify one rate that applies to all transactions.

Multiple rate schedules, identified by executing account numbers, can be attached to an individual agreement. Executing brokers have the opportunity to hide the rate schedule from clearing brokers when the clearing broker is not part of the billing process.

The initiator sends the agreement to all counterparties simultaneously. The agreement appears in the counterparties' queue with an alert that indicates action is required. As counterparties review the agreement, they can comment or request a change. If a change is requested, the initiator will reissue the agreement. The system tracks documents throughout the process.

The agreement life-cycle illustration, describes the workflow of a standard EGUS Give-Up agreement.

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Managing the Process
Each system user has its own queue to manage documents. From "my queue," users view agreements in progress. The queue shows who has approved the agreement and who has not. The agreement is effective when all parties have approved it. The user can also view account numbers, the history of a document, the effective date, the date it was modified and by whom. If an agreement sits in a queue for more than 90 days, it automatically moves to a "stale" file. Users can reactivate agreements from the "stale" file whenever they like. The initiator can also manually enter an effective date.

Contacting Counterparties
EGUS makes available counterparty contact information, which includes firm address and billing information in addition to trading and documentation contact names. Contact information for executing and clearing brokers will be available to all users of the system; however, each firm has its own database of contact details for customers. Brokers cannot see customer and trader contact information unless the customer or trader has given permission for this information to be visible to a specific broker.

Searching the System
Documents are stored on the system and users can search by counterparty, executing or clearing account number, effective date, agreement ID and status. All agreements can be printed or emailed.

Getting Users Onboard
Users are required to sign an adherence agreement in order to gain access to the system. The user agreement not only spells out the terms by which participants can use the system, it also requires participants to acknowledge that all agreements executed by electronic signature on the EGUS system will be binding in the same way actual signatures on the paper give-up agreements bind the parties.

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Administering Access
Once a system user agreement is received, a firm administrator is given access to the system. The firm administrator determines who at the firm has access to the system and what type of access each user is given: processing, approval or view only. The administrator fills in contact details for processors, approvers and billing. Customer and trader administratorsí permission which brokers can have access to its contact information. Firms have the option to require multiple approvers to "sign off" on the document before approval is final.

Onboarding Legacy Documents
PDFs of the documents can be uploaded to the system and stored, but in order for users to obtain information from the system in the second phase, the documents need to be tagged. Rates must be inserted into the standard rate template in order to make the information available for use in external systems. Only one party to the agreement needs to upload a legacy agreement.

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