On a nightly basis, eGAINS receives exchange give-up interface files from participating exchanges for all eGAINS participants. Exchanges also transmit files containing current product codes and exchange-firm codes (for eGAINS reference tables). The eGAINS files are prepared by each exchange as a part of their daily clearing cycles. eGAINS reads each give-up transaction as a matched pair; one transaction in eGAINS represents a transaction that was “given-up” by an executing firm and “taken-up” by a clearing firm. eGAINS matches give-up trades to give-up agreements using the executing and carrying exchange firm codes, and executing and carrying account numbers. After a give-up is matched to an agreement, eGAINS finds the appropriate give-up fee for that transaction, using detailed criteria such as futures/options, spread codes and product codes.
The diagrams below show a high-level overview of eGAINS processing:
• Firms A and B grant Exchange Consent to Send Give-ups to eGAINS (inital set-up)
• Firm A Gives up Trades to Firm B on Exchange Claring Platform
• Exchange Transmits Matched Pairs of Give-ups to eGAINS
• Exchange Provides Product Codes and Exchange Firm Codes to eGAINS
• Firm A and Firm B view their give-ups in eGAINS as eGAINS Participant A and eGAINS Participant B
• Executing Firm stores give-up agreements in eGUS
• Executing account numbers and electronic rate schedules are stored
• Clearing firm enters carrying account numbers
• Both firms approve “Executed” agreement
• Executed Give-up agreements are downloaded in eGAINS on an hourly basis
• One-time loads of Give-up Agreements are performed for new onboarding firms.