How Highly Effective Quality Assurance Techniques Can Make A Positive Difference In Delivering Large Post Trade Systems Initiatives Post Trade Forum, Vienna 11 September 2014

Exactpro Company & Experience Exactpro is: 2 • A specialist firm focused on functional and non functional testing of wholesale financial products systems • An independent company incorporated in 2009 now employing over 240 specialists Our locations in Russia: • A US company with four QA & development centres in Russia and sales support in the UK • Mostly engaged in trading platforms for exchanges and brokers, but also significant post trade experience

Introducing Your Speakers 3 Mark Ryland Strategic Adviser to Exactpro • Financial Consultancy and QA of complex Risk Management solutions, including calculation algorithms • BA for Collateral & Risk Management for investment banking; • QA Delivery Manager for large Post Trade projects Alyona Lamash Head of Exactpro Risk Management Practice • IT Manager/CTO • Banking & Market Infrastructure • Trading and Post Trade • Insight and experience of QA

Talk Content PART A Challenges that Affect Large Projects - in General How Great QA Techniques Can Help – Generically PART B Challenges that Affect Post Trade Initiatives – Specifically QA Techniques that Help Post Trade Initiatives - Specifically 4

Testing Making a Positive Contribution to the Whole Responding to Issues/ Unknowns Detailed Functional Understanding Achieving & then Maintaining Test Automation Speed of Test Execution Clarity & Accuracy of Test Results and Defects Reporting 5 Testing a Large System Poses Challenges PART A: Full Test Coverage

How Can Effective QA Be Part of The Solution, Not Part of The Problem • GENERIC – Highly capable people with the right behaviours – Efficient and effective test process – Right use of technology – Independent & objective measurement of progress – RESULTS IN GREAT TEAM DYNAMICS ACROSS THE WHOLE PROJECT TEAM 6

Make a Positive Contribution to the Overall Team 7 Conception Initiation Development Test Implement Project Sponsor Project Manager Business Analyst Architect/Designer Development Team QA Team Production Team

Make a Positive Contribution to the Overall Team 8

Make a Positive Contribution to the Overall Team 9 Pacemaker(s)

1. High Quality Staff The Elements of Highly Effective QA - 1 10 3. Energy, Enthusiasm & Proactivity 2. Deep Domain Knowledge 4. Creativity & Flexibility in Problem Solving Highly capable people with the right behaviours

8. Test Execution & Reporting 1. High Quality Staff 3. Energy, Enthusiasm & Proactivity 5. Planning & Delivering Ability 2. Deep Domain Knowledge 4. Creativity & Flexibility in Problem Solving The Elements of Highly Effective QA - 2 11 7. Defect Reporting & Evidence Highly capable people with the right behaviours Efficient and effective test process 6. Test Case Quality

6. Test Case Quality 8. Test Execution & Reporting 10. Range of Excellent Automation Tools 9. Detailed Management of Test Environment The Elements of Highly Effective QA - 3 12 7. Defect Reporting & Evidence Right use of technology 1. High Quality Staff 3. Energy, Enthusiasm & Proactivity 2. Deep Domain Knowledge 4. Creativity & Flexibility in Problem Solving Highly capable people with the right behaviours 5. Planning & Delivering Ability Efficient and effective test process

Some of our Dynamic & Talented Team 13

Independence & Objectivity 14 1. Understanding of Requirements 1. Understanding of Requirements 2. Delivery of Solution 2. Delivery of Solution 3A. Independent Measurement by QA Team 3A. Independent Measurement by QA Team 3B. Independent Measurement by High Quality QA Team 3B. Independent Measurement by High Quality QA Team Developer Designer Business Analyst Business Manager End Users

Team Dynamics When the QA Team is Excellent 15 DEVELOPERS DEVELOPERS Try harder to get it right in the first place Get rapid/timely feedback on what’s wrong Work harder to solve defects to keep the project on track Try harder to get it right in the first place Get rapid/timely feedback on what’s wrong Work harder to solve defects to keep the project on track ANALYSTS AND DESIGNERS ANALYSTS AND DESIGNERS Have clear problem statements to work from – with detailed supporting evidence Have clear problem statements to work from – with detailed supporting evidence SPONSORS & PROJECT MANAGEMENT SPONSORS & PROJECT MANAGEMENT Have (justified) confidence in the system Fewer problems are going to be found when Live Project will cost less Have (justified) confidence in the system Fewer problems are going to be found when Live Project will cost less

16 Features of Complex Post Trade Infrastructures PART B:

17 Features of Complex Post Trade Infrastructures

18 Collateral Upload Risk Run Margin Call Risk Run Trade Input Trade Input Settlement Run Trade Date Settlement Date Simulate Delivery Failure Trade Input Trade Input Day 1 Examples of Test Scenarios (Before We Get to Specific Problems) Penalties BUY IN Cash Settlement Risk Run Trade Input Day 2 Risk Run Corporate Action Trade Input Day 3 Risk Run Settlement Run Trade Input Trade Input Collateral Deficit Delivery Default Corporate Action Delivery Default Delivery Default

6 Resulting Challenges From a QA Perspective 1) Testing of complex multistep scenarios 2) Limited test availability of downstream and upstream systems 3) Most of endpoints are accessible via API or File exchange (no GUI) 4) Reference Data setup or migration 5) Complexity of Risk Calculation Algorithms 6) Regression Cycle for a substantial number of test scenarios 19

Solving: 1) Testing of complex multistep scenarios 20

Solving: 1) Testing of complex multistep scenarios 21

Solving: 1) Testing of complex multistep scenarios 22

Solving: 2) Limited test availability of downstream and upstream systems 23

Solving: 2) Limited test availability of downstream and upstream systems 24

Solving: 3) Most of endpoints are accessible via API or File exchange (no GUI) 25 REQUEST RESPONSE

Solving: 4) Reference Data setup or migration 26 Reference Data required for Testing Data Management Tools Production Data Migration Tasks

Solving: 5) Complexity of Risk Calculation Algorithms 27 Test Model

Solving: 6) Regression Cycle for a substantial number of test scenarios 28 Test Library (100K Test cases) Test Tools Automated Test Scripts Controlled Test Environment Automated Regression Run (“The Big Button”)

A Holistic Integrated Automated Test Solution 29

Conclusion 30 Great QA Team & Tools for Post Trade

Questions & Answers Thank You 31