Options Symbology Initiative
The Options Symbology Initiative (OSI) is proceeding according to plan at the industry level, as the 5-character OPRA code currently used to describe options will be eliminated on February 12, 2010.At the firm-level, all planning and remediation should now be COMPLETE, including:
- Applications impact analysis;
- Systems design and planning;
- Internal software development and testing
- Scripted industry testing with exchanges and the OCC;
- Testing with third party vendors of data and software services;
- Testing with clients;
- Testing internal applications.
Who’s Behind the Curtain?
Even firms that depend on vendor services for most of their trading and clearing functionality will need to address integration with upstream and downstream applications, and may be required to participate directly in some aspects of industry testing.Don’t assume that there is not significant work to be done if you use a clearing firm, execution broker or transaction processing vendor. Dealers are still responsible for remediating the many internal processes that will be impacted by the OSI changes. For example, a typical firm that relies on a service bureau to handle back-office processing and a front-end technology vendor for order and execution management services, still has 40-60 high impact internal applications and files that need to be modified to accommodate the new options symbology.
Consider:
- all client facing applications
- consolidated account statements
- compliance reports
- financial controls
Don't forget:
- risk management and margining applications
- cross-product credit and risk exposure
- broker commissions capture and tracking
- quantitative models and cross-product trading programs
Has Reality Set In?
Contact Jordan & Jordan to learn about our 2-4 Week Assessment Program. We’ll let you know where you really stand, and set you on the critical path to completion.Click here to request information on Jordan & Jordan's OSI Assessment Program.
Jordan & Jordan’s OSI expertise leverages our knowledge of OSI activities at the exchanges and in the vendor community, as well as our experience in addressing OSI issues directly with our broker dealer clients. Our participation in all industry OSI conference calls and meetings will keep you informed and up-to-date without the investment of your staff and resources.
Please contact Mary Lou Von Kaenel at 212-652-4483, or e-mail OSIinquiry@jandj.com for more information.