EXTENT-2016: Innovative Approach to Testing of Clearing and Settlement Systems

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Alyona Lamash Head of Post Trade QA Exactpro Innovative approach to testing of Clearing and Settlement systems

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Open Access Quality Assurance & Related Software Development for Financial Markets Tel: +7 495 640 24 60 , +1 415 830 38 49 www.exactpro.com 2 Innovative approach to testing of Clearing and Settlement systems Open Access Quality Assurance & Related Software Development for Financial Markets Tel: +7 495 640 2460, +1 415 830 38 49 www.exactpro.com Alyona Lamash, Exactpro

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Alyona Lamash - Head of Post Trade QA division at Exactpro Systems Projects at Exactpro: •Turquose EuroCCP interface •CCP.A MIT NewClear implementation QA •SGX CSD MIT implementation QA •Strategic development of Post Trade QA Introduction

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Our task is Clearing and Settlement platform QA. •There are a number of challenges and complexities in this task •Next several slides describe such complexities and the way our team address them Agenda

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Components of complex post trade infrastructures

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• Participant structure complexity • Trade/Position/Account lifecycle • Risk calculation variety/complexity • Asset classes complexity • Upstream/downstream systems dependency • Access via variety of API endpoints • Test Library size Short list of challenges

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Participant structure complexity

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Participant structure complexity

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Trade/Position/Account lifecycle

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Collateral Upload Risk Run Margin Call Risk Run Settlement Run Trade Date Settlement Date Simulate Delivery Failure Day 1 Penalties BUY IN Cash Settlement Risk Run Trade Input Day 2 Risk Run Corporate Action Trade Input Day 3 Risk Run Settlement Run Collateral Deficit Delivery Default Corporate Action Trade/Position/Account lifecycle Delivery Default Trade Input Trade Input Trade Input

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Risk calculation complexity

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Asset classes complexity

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Upstream / downstream systems dependency

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Upstream / downstream systems dependency

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Access via variety of API endpoints

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Test Library size x x x x = LIBOR 2%

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Innovation in QA: Holistic Integrated Automation Test Framework

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Open Access Quality Assurance & Related Software Development for Financial Markets Tel: +7 495 640 24 60 , +1 415 830 38 49 www.exactpro.com 18 Collateral Upload Risk Run Margin Call Risk Run Settlement Run Trade Date Settlement Date Simulate Delivery Failure Day 1 Penalties BUY IN Cash Settlement Risk Run Trade Input Day 2 Risk Run Corporate Action Trade Input Day 3 Risk Run Settlement Run Collateral Deficit Delivery Default Corporate Action Case Study: ClearTH Delivery Default Trade Input Trade Input Trade Input

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Case Study: ClearTH

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