Industry BCP/DR Test

Test Date: October 26, 2019

All Participants Meeting No. 3

October 16, 2019

2

Meeting Agenda

• Introduction

• Scope

• Project timetable

• Data matrix

• Test scripts

• Crisis Communication Centre

• Test day conference bridge

• Post-test reporting

• Recap of Participants Responsibilities & Information Requirements

• iMeet Central Desktop portal overview

3

Introduction

• Dealer Members perform annual BCP tests as required by IIROC Rule 17.16 and if subject to Part 12.4.1 of NI 21-101 Marketplace Operation must participate in IIROC’s biennial industry BCP test

• Dealer Members perform annual connectivity tests with key suppliers, vendors and market infrastructure utilities

• Service Providers and Utilities perform failover tests and provide access for members to test on backup site and play an integral role in assisting IIROC Dealer Members with industry and internal BCP/DR testing

• 2019 Industry Test is one component of the BCP/DR testing carried out by members to

satisfy their regulatory requirements

• 2019 Industry Test is the 6th such event in a 12 year plan to test potential disruptions to

the capital markets in Canada

4

Test Scenario

The planned scenario for 2019:

• IIROC's Dealer Member participants are testing from their

production / primary facilities

– Some members are choosing to test from back-up / BCP locations

and

• Service providers are testing from back-up / DR sites

– Exceptions are being accommodated – where a rationale has been

provided

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We will not:

• Stress test the capacity of the markets or back-up sites

• Test every transaction variant used in normal markets

• Test TSX Smart Order Routing

• Test MQ with CDS

• Test redundancy of telecommunications infrastructure

• Perform latency testing for Equity transactions

• Perform any batch processing for transactions executed during the test

• Settle trades or move money

• Test debt transaction reporting through MTRS

• Test REPO transactions

6

Test Scope

• Products being tested include: CDS Equity Trade & Settlement, Equities,

ETF’s Fixed Income, Futures, GIC’s, Mutual Funds, Options

• Some members are testing selected back-office transactions

• Retail and Institutional functionality

• Manual order routing and selected smart order routing

• IIROC Crisis Communication Centre (CCC)

• IIROC Market Surveillance

7

2019 IIROC Industry Test Market Infrastructure

CDCC

Member2Member1Carr.

Member3

CARR.

Member4Member5 Member 60

ITS IRESS Fidessa

Alpha

TSX

TSX VNASDAQ

Omega

Tri-Act

CSE

Broadridge

MX

Intro

Member2

Intro

Member1

FundSERV

SSC

Net

CannexCandeal

IIROC Surveillance

IIROC CCC

Message

Perimeter

IBM CDS

NEO Exchange

8

Differences from normal trading

• Trade Date Monday October 28, 2019 for:

– TSX, TSX-V, Alpha

– FundSERV

• Test symbols for Equities, Mutual Funds, Options, Futures, ETF

• Smart Order Routing for TSX not available (SOR provided by other

utilities will be available)

9

Project Timetable

Feb – April M ay – O ct O ctober 26 O ct -Dec

Design Build Perform Assess

• Scenario

• Objectives

• Enlist Participants

• Document test

structure

• Trans. test scripts

• Develop Test Plan

• Support infrastructure

• Develop success

criteria

• Perform pretests

• Implement test

support

• Perform test

• Document test

results

• Collect feedback

• Create final test

report

10

Project Milestones & Deliverables

Design PhaseDate Deliverable

Completed Scenario, Objectives

Completed Participant list (members & service providers)

Completed Participants questionnaire templates created (in Word and

in Portal)

Completed Transaction profiles

Completed April 3 All Participants meeting

Build PhaseDate Deliverable

Completed Participant questionnaires to be completed and submitted in the portal

Completed Participants Matrix – mapping members to service providers members

Completed Test Scripts being collected and reviewed

Completed Support Plan being built for use on October 26

Completed Working Group to finalize test results and feedback forms

Oct. 16 Third All Participants meeting

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Project Milestones & Deliverables

Perform Phase

Date Deliverable

Sept - Oct: Connectivity pre-testing (subject to service provider availability)

October 23: Confirm final test specifications with Working Group

October 26: Perform test

Assessment Phase

Date Deliverable

October 31: Collect test results from participants

October 31: Collect participant feedback from participants

December 30: Complete drafting of test report

January: Archive project artifacts

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Data Matrix

• Information gathered in the Dealer Member and Utility questionnaires

has been captured in a working spreadsheet referred to as the Data

Matrix

• The matrix summarizes the test scope by showing which dealers are

testing with which utilities and which product types are being tested

• As Dealer Members have been reviewing and confirming their scope,

changes are being reflected in updates to the matrix

• The latest version of the matrix is maintained in the iMeet portal at all

times. A final version will be approved by the Working Group at its final

meeting on October 23rd

• Participants should ensure they have the final version available for

reference during the October 26th test

13

Test Scripts

• Utilities provide essential trade transaction testing specifications and

details to dealer members via test scripts

– Symbols, quantities, prices, available time windows to enter trades

• Dealer members may create their own internal test scripts based on the

utility scripts, but it is not required to file them with IIROC

• Dealer Members must review all utility scripts relevant to their own

testing in detail – raise any questions or concerns immediately with the

utility concerned

• All utility test scripts were approved as final versions at the Working

Group meeting on October 9th and are posted to the iMeet portal

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Test Scripts - continued

• Draft scripts currently posted in the portal:

– TSX, TSX-V, Alpha

– MX

– CDS Equity / Debt Trade Entry, Confirmation & Settlement

– CDCC

– CSE

– Nasdaq (CXC, CX2, CXD)

– CANNEX

– NEO Exchange

– MatchNOW (Tri-Act)

– FundSERV

– Candeal

– Omega

– Perimeter

– Instinet ICX

– Back Office Functions

15

Test Day Contact List

• A test day master contact list has been assembled from information

gathered in the questionnaires and provided by e-mail

• The list is specific to those who are actively involved in the test, who

may need to contact counterparties and others on test day

• We continue to add names as identified and advised

– Send updates to docallaghan@bell.net

• The latest version of the Test Day Contact List is being maintained in the

iMeet portal at all times. A final version will be posted prior to test day

• Participants should ensure they have the final version available for

reference during the October 26th test

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Crisis Communication Centre (CCC)

• Advance notification of October 26, 2019 CCC test to be sent to all

CCC test contacts on October 21

• CCC test contacts will receive an e-mail early morning on October

26, 2019 and will be asked to respond to the e-mail message

• We expect all CCC test contacts to respond to the message and will

be reporting on the response rate

• CCC test contacts have been identified in the Dealer Member and

Service Provider questionnaires available in the iMeet portal 2019

Workspace and a master list will be maintained by IIROC

17

Test Day Conference Bridge

• Opens at 7 am on October 26, 2019

• Staffed at the IIROC offices throughout the test

• Dial-in local: 416-933-9440

• Dial in LD: 1-855-453-6959

– Conference ID no. 1034330 #

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Post-Test Reporting

• Each Service Provider and Dealer Member processing simulated

transactions must submit the applicable test results form containing

the results of their test day activities:

– Dealer Member Test Results Form

– Service Provider Test Results Form

• Will be pre-populated with Dealer Member names per data matrix

• Blank Test Result Forms and Feedback Forms were finalized by the

Working Group and are posted to the iMeet portal

• Test Result Forms submission deadline is Thursday Oct. 31, 2019

• Test Feedback Forms submission deadline is also Thursday Oct. 31,

2019

• Submit both forms to lsankar@iiroc.ca

• Please ensure to include your firm’s corporate name in the file name

of all submissions

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Recap of Participant Responsibilities &

Information Requirements

1. Review information in the matrix for accuracy

2. Review test scripts for sufficiency and accuracy

3. Conduct internal / provider connectivity pre-testing (where applicable)

4. Deploy and coordinate test resources on test date

5. Confirm all external provider availability on test date

6. Respond to the scheduled CCC communication at the start of the test

7. Perform Test

8. Complete and submit test results and feedback forms

9. Attend post test reception in Toronto (Location TBD)

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iMeet Central Portal Overview

• Project portal is available to all test participants

• Single User ID has been assigned to the primary contact of each

participant

• User ID can be shared with all those involved in your company

• Multiple concurrent sessions for one account are permitted

• Participants can read and print material from the iMeet Portal 2019

Workspace

• The portal is the definitive source for test information

• First level portal support: Des O’Callaghan (docallaghan@bell.net)

• Note: The conference bridge will be the primary communication tool

utilized on test day

21

Questions

Please submit any questions to:

docallaghan@bell.net

and

lsankar@iiroc.ca