1. IS 356 IT for Financial Services Bond Market Technology and Web Services May 30, 2016 http://www.evergreen.loyola.edu/~pptallon/is356.htm

2. May 30, 2016© Paul Tallon2/18 CBOT  Open outcry market located around auction pits  Electronic trading is available through e-cbot  Links to LIFFE as part of Euronext and Eurex

3. May 30, 2016© Paul Tallon3/18 CBOT

4. May 30, 2016© Paul Tallon4/18 IT and APIs

5. May 30, 2016© Paul Tallon5/20 Schwab issues periodic alerts as to new bond issues

6. May 30, 2016© Paul Tallon6/18 self-service model

7. May 30, 2016© Paul Tallon7/18

8. May 30, 2016© Paul Tallon8/18

9. May 30, 2016© Paul Tallon9/18

10. May 30, 2016© Paul Tallon10/18 Information sources on bond types…

11. May 30, 2016© Paul Tallon11/18

12. May 30, 2016© Paul Tallon12/18

13. May 30, 2016© Paul Tallon13/18 Electronic Data Interchange (EDI) Materials releases price updates Shipping notices Discrepancy reports Payments remittance information Invoice Order Management Shipping Department Accounts Receivable Invoice Purchasing Department Receiving Department Accounts Payable System P. O.Order Via USPS

14. May 30, 2016© Paul Tallon14/18 What an EDI Invoice Looks Like… ST 810 means invoice EDI Implementation Conventions set the rules for the data stream ISA*00*0000000000*01*01*PASSWORDME*01*123456789bbbbbb*9 87654321bbbbbb*890714*2210*U*00204*000000008*0*P*: GS*IN*012345678*087654321*900509*2210*000001*X*002040 ST*810*0001 BIG*900713* 1001 *950625*P98932 N1*BT*ACME DISTRIBUTING COMPANY N3*P.O. BOX 33327 N4*ANYTOWN*NJ*44509 N1*ST*THE CORNER STORE N3*601 FIRST STREET N4*CROSSROADS*MI*48106 N1*SE*SMITH CORPORATION N3*900 EASY STREET N4*BIG CITY*NJ*15455 PER*AD*C.D.JONES*TE*618555823 ITD*01*3*2**IO ITI**3*CA*12.75**VC*6900 ITI**12*EA*.475**VC*P450 ITI**4*EA*.94**VC*1640Y ITI**I*DZ*3.4**VC*1507 TDS*5111 CAD*M****CONSOLIDATED TRUCK CTT*4*20 SE*21*000001 GE*1*000001 IEA*1*000000008

15. May 30, 2016© Paul Tallon15/18 The Path to Web Services  Motivation: information must be shared across platforms  EDI – Relatively inflexible – Expensive to maintain – Mainframe-era, so what happens when servers appear?  Legacy systems were not designed to share data  ERP possibilities – Expensive – Error prone – Maintenance problems if one partner in transaction changes  Internet – Leverage the strengths of HTML

16. May 30, 2016© Paul Tallon16/18 Understanding the “Lingo”… (part 1) en USD SOAP Paul P. Tallon 422-42-4242 01-01-1999 MD 21117 MA 01702 XML XML: Extensible Markup Language SOAP: Simple Object Access Protocol

17. May 30, 2016© Paul Tallon17/18 Understanding the “Lingo”… (part 2)  What does Expérian do with this SOAP message? – WSDL – interprets what needs to be done and generates a SOAP response to the originator 422-5…. No filings on record 5 XML SOAP WSDL WSDL: Web Services Description Language UDDI: Universal Description, Discovery and Integration UDDI 411

18. May 30, 2016© Paul Tallon18/18 For Next Class…  Read − First exam next class − One page summary of Schwab case due in class on Tuesday