1. Future Trends in Processing Security-Related Derivatives
Converging Systems
Future Trends in Processing
Security-Related Derivatives

2. Current State of Affairs
Futures Processing
Securities Processing
Transaction Registration/ Reconciliation
Matched Trade Clearing
Payments
Position Keeping/Marking
Margining
Delivery
Dividends/Interest
Corporate Actions
Transaction Registration/ Reconciliation
Matched Trade Clearing
Payments
Position Keeping/Marking
Margining
Delivery
Dividends/Interest
Corporate Actions
Where Function Handled

3. Panelists
Leslie R. Sutphen, President, Financial Markets Consulting, Inc.
Stephen P. Auerbach, President, SunGard Futures Systems
James Birney, Chief Financial Officer, Rolfe & Nolan
Eric Wicart, Global Head of Sales, Ubitrade
Leonard Musso, First Vice President, Lehmann Brothers

4. Eric Wicart: The European Experience

5. Lenny Musso: Likely Customers
Hedge Funds
CTA’s
Retail Clients

6. Integrated Processing Solution Futures Engine Securities System OCC
Customer
Physical
Cash and option position
Futures Clients
Security Clients
Portfolio Repository
Margin
Engine
Trade Rec and Settlement
Margin Calc
OCC
Customer Statements
SEG
SIPC

7. Steve Auerbach: Margining Across Asset Classes
Legal Perspective: What am I allowed to do?
Operational Perspective: What can I do?
Business Strategy Perspective: What do my customers want?

8. Margining Across Asset Classes
Algorithm favors equities
European/Asian experience show listed derivatives win

9. Key: Know Your Customer
Daytrader would favor futures treatment
Position trader would favor equity treatment

10. Jim Birney: Handling Physical Delivery

11. General Discussion
What unique delivery problems are presented by narrow based index products?

12. General Discussion
Where is equity derivative processing headed?

13. General Discussion
What problems do lack of product fungibility present?

14. General Discussion
What do “securities only” firms do to process security futures?

15. General Discussion
Will securities futures processing impact other financial futures?