EURONEXT Inventory Management Service USER GUIDE · EURONEXT INVENTORY MANAGEMENT SERVICE USER ... Warrant Sets are groups of Euronext warrants that can be used ... EURONEXT Inventory

Document title

EURONEXT INVENTORY MANAGEMENT SERVICE USER GUIDE

Document type or subject

User Guide

Version number Date

1.03 22 November

Number of pages Author

37

Euronext

This document is for information purposes only. The information and materials contained in this document are provided ‘as is’ and

Euronext does not warrant the accuracy, adequacy or completeness and expressly disclaims liability for any errors or omissions.

This document is not intended to be, and shall not constitute in any way a binding or legal agreement, or impose any legal

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No part of it may be redistributed or reproduced without the prior written permission of Euronext. Portions of this presentation

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Euronext refers to Euronext N.V. and its affiliates. Information regarding trademarks and intellectual property rights of Euronext is

located at https://www.euronext.com/terms-use.

© 2017 Euronext N.V. - All rights reserved.

https://www.euronext.com/terms-use

EURONEXT Inventory Management Service USER GUIDE Preface

© 2017 Euronext N.V. - All rights reserved. ii of 39 1.03

PREFACE

PURPOSE

Euronext Inventory Management (EIM) supports three kinds of inventory to assist in the physical delivery of

the products traded in Euronext futures contracts: certificats d’entreposage, warrant sets and bills of

lading.

Certificats d’entreposage are produced by storage facilities and act as proof that those with short positions

have material for delivery. Euronext inventory management will see the introduction of an electronic

system that produces Certificats d’entreposage electronically and allows those to be sent to the CCP (LCH

SA) by their owners in an easy and managed way. The CCP will use the system to manage the contract

delivery process, reducing the amount of separate paperwork needed and also reducing the risk of errors.

Warrant Sets are groups of Euronext warrants that can be used as well as, or in place of, Certificats for

notification of intent to deliver. Warrant Sets are provided so that users rarely have to deal with numbers

of individual warrants. A Euronext Warrant, or simply a warrant, gives clear title over product (the physical

commodity that is the subject of a Euronext futures contract). A warrant allows the transfer of that title

between EIM account holders; this facilitates both physical delivery (inventory) and collateral operations,

for example, for futures trading margin calls, financial instruments and trade finance

Bills of Lading are documents issued by a Ship’s master following loading of goods. EIM allows for the

electronic representation of a Bill of Lading linked to the set of warrants associated with the paper

document, a Bill of Lading. EIM Bills of Lading are Warrant Sets with some additional data relating to the

physical document. Like Warrant Sets, Bills of Lading can be used for notification of intent to deliver.

TARGET AUDIENCE

This document should be read by Storage Facility Owners, General Clearing Members (GCMs) and order-

givers all of whom may have a role in the settlement and delivery of Euronext futures contracts. Any of

these organisations who use the system are known as Participants.

Participants of the system are categorised as those who hold Certificats d’entreposage or warrants in their

accounts - account holders and those who do not - non-account holders.

1. Account holders include:

■ General Clearing Members (GCMs) of the Euronext exchange

■ Order-givers (Principal or client end user, non-member of the Euronext exchanges, who utilise the

services of GCMs for clearing)

■ Cooperatives (Account holder with a special tax arrangement)

■ Traders (A non-member of the exchanges who does not participate in contract delivery but does trade product)

■ Financial Institution (Bank, etc.) (providers of finance products using warrants as collateral, they may or may not be members of the Euronext exchanges)

■ Asset holders (any organization with a legitimate need to own Euronext related material)

2. Non-Account holders include:


© 2017 Euronext N.V. - All rights reserved. iii of 39 1.03

■ Storage Facility Owners (Silos), who issue documents of ownership to account holders

■ Euronext customer services (CAS) and other service groups (EMS, CSTG, Membership, Compliance and IT Support)

■ The Clearing Counterparty (CCP), LCH SA.

The Participants in EIM are Account Holders, the CCP and Storage Facility Owners.

ASSOCIATED DOCUMENTS

The following lists the associated documents, which either should be read in conjunction with this

document or which provide other relevant information to the user:

■ EIM application form with associated terms and conditions

■ EIM Rulebook

■ EIM system related documentation

– User Guide

– Test Script (within the User Guide)

CONTACTS

For further information about this document please contact:

■ Euronext Client Coverage Centre at [email protected]

■ EMS Customer Technical Support Group at +33 1 85 148 588 or [email protected]

mailto:Client%20Coverage%20Centre

mailto:[email protected]



© 2017 Euronext N.V. - All rights reserved. iv of 39 1.03

WHAT’S NEW?

The following lists the most recent modification made to this revision/version.

VERSION NO. DATE AUTHOR CHANGE DESCRIPTION

0.7 13 March 2017 Euronext First draft version

1.0 31 March 2017 Euronext Final version for phase 1

1.01 27 June 2017 Euronext First Draft version for phase 1

1.02 18 October 2017 Euronext Second Draft version for phase 1

EURONEXT Inventory Management Service USER GUIDE Contents

© 2016 Euronext N.V. - All rights reserved. v of 39 1.03

CONTENTS

1. OVERVIEW .................................................................................................................................. 6

1.1 Key Concepts .......................................................................................................................................... 6

2. ACCESS TO EURONEXT INVENTORY MANAGEMENT USER INTERFACE ......................................... 10

2.1 General Procedure ............................................................................................................................... 10

2.2 Supported Browsers ............................................................................................................................. 10

2.3 Configuration ....................................................................................................................................... 10

2.4 Signing In .............................................................................................................................................. 11

2.5 Signing Out ........................................................................................................................................... 12

2.6 Changing The Password ....................................................................................................................... 12

3. GENERAL NAVIGATION RULES ................................................................................................... 13

3.1 Overview of Web interface .................................................................................................................. 13

3.2 Inventory GRID ..................................................................................................................................... 14

3.4 Sorting & filtering ................................................................................................................................. 17

3.5 Localisation & Internationalisation ...................................................................................................... 17

3.6 Email Notification ................................................................................................................................. 17

4. INVENTORY............................................................................................................................... 19

4.1 Certificats d’entreposage ..................................................................................................................... 19

4.2 Inventory Attributes ............................................................................................................................. 19

Certificat d’entreposage Life Cycle .................................................................................................................................... 20

4.3 Warrant sets/Bills of Lading ................................................................................................................. 21

Warrant Life Cycle ............................................................................................................................................................. 22

5. EIM FOR STORAGE FACILITY OWNERS ........................................................................................ 24

5.1 Understanding Pages ........................................................................................................................... 24

5.2 Creating and Issuing New Certificats d’entreposage ........................................................................... 26

5.3 Cancelling Certificats d’entreposage ................................................................................................... 27

5.4 AMENDING Certificats d’entreposage ................................................................................................. 27

6. EIM FOR GENERAL CLEARING MEMBERS .................................................................................... 28


6.2 Accepting Issued Certificats d’entreposage ......................................................................................... 29

6.3 Rejecting Issued Certificats d’entreposage .......................................................................................... 30

6.4 Sending Notice ..................................................................................................................................... 30

6.5 Changing Account for Certificats d’entreposage ................................................................................. 31

7. EIM FOR ORDER-GIVERS ............................................................................................................ 32


7.2 Accepting Issued Certificats d’entreposage ......................................................................................... 34

7.3 Rejecting Issued Certificats d’entreposage .......................................................................................... 34

7.4 Sending Notice ..................................................................................................................................... 34

APPENDIX – TEST SCRIPT FOR CLEARING MEMBERS .............................................................................. 35

APPENDIX – TEST SCRIPT FOR SILO OWNERS ......................................................................................... 37

EURONEXT Inventory Management Service USER GUIDE

© 2017 Euronext N.V. - All rights reserved. 6 of 39 1.03

1. OVERVIEW

The EIM system is designed to allow General Clearing Members, Storage Facility Owners, Order Givers and

Traders (buy and sell community) to operate the settlement and delivery of Euronext futures contracts

efficiently. All interactions between the parties are included in the electronic system.

Milling Wheat No.2 and Corn are the initial commodities for inclusion in the Inventory Management system.

In further phases, the contracts that fit the inventory delivery model include Rapeseed contracts would be

introduced as well.

1.1 KEY CONCEPTS

Accept A storage facility creates certificats d’entreposage on behalf of

their customers who are account holders in Euronext Collateral

Inventory system. The account holders need to accept these

certificates into a nominated account for them to be valid

Accounts Certificats d’entreposage are held in Participants’ accounts.

These accounts can be created and named by account holders

and are designated either ‘client’ or ‘house’ accounts

Action Bar A menu or set of buttons with valid actions enabled

Alternative Delivery

Process (ADP)

If both parties in an expired Euronext future contract agree it is

possible to effect settlement and delivery of the contract outside

the normal Central Counterparty process. This is called the

alternative delivery process and occurs after buyers have been

matched to sellers and delivery locations have been agreed. The

transaction ceases to be covered by the CCP and becomes a

bilateral transaction between buyer and seller. Margins are

returned to both parties when this option is chosen

Buyers Participants who have a long position in a futures contract at

expiry of the contract and are due to buy a specified quantity of

goods at the official final settlement price

Cancelled

Certificat

d’entreposage/

storage certificate

If a certificat d’entreposage is rejected after issuance, its status

becomes Rejected and it must by cancelled by the silo owner. It

cannot be reissued again

A certificate confirming the quantity, quality and title of Product

held at by Storage Facility, on behalf of a participant, for a given

delivery month. It is issued by the Storage Facility Owner at the

request of one of its customers who is a participant in the

system and also an account holder



CCP(Clearing

Counterparty)

LCH SA is clearing counterparty for the clearing, settlement and

delivery of Euronext contracts. As well as acting as central

counterparty for all trades before expiry of future contracts,

they are responsible for managing the settlement and

subsequent delivery process for expired contracts

Co-Mingled A Storage Facility may contain Product from multiple warrants

such that the grains from the warrants are mixed together. In

EIM inventory from the same contract that is in the Storage

Facility (and Storage Cell, if they exists) are deemed to be

comingled. The warrant gives a right to a certain quantity of

grains within the co-mingled silo.

Contract (Euronext)

Delete

In Euronext Collateral Inventory service, the term Contract

encompasses the definition of Product, quality and delivery

month of a contractual agreement, made through Euronext, to

buy or sell that Product at a pre-determined price in the delivery

month

After being created a Certificat d’entreposage may be deleted (and optionally recreated) by the Storage Facility Owner up until a set time before delivery

Delivery At the expiry of the contract month the Product associated with

open short positions on a futures contract at expiry will be

physically delivered. This will occur through the proscribed CCP

process, or if both parties agree, a bilateral alternative delivery

process

Dematerialise To represent a Certificats d’entreposage in electronic form,

rather than as a physical paper document

Euronext BDM A system used by Euronext for the purpose of Business

Intelligence and reporting

General Clearing

Member (GCM)

Members of the Euronext exchanges (i.e. they can trade on their

own behalf and on behalf of third party principals) treated as a

direct contractual counterparty by the CCP for all trades

Inventory A complete list of Product (as represented by Certificats

d’entreposage, warrant sets and bills of lading)

Issue (Certificats

d’entreposage)

The process of creating certificats d’entreposage by storage

facilities on behalf of their customers

LCH SA The CCP (Clearing Counter Party) for all Euronext future

contracts

Navigation Bar A high level menu dividing the system into main functional areas



Participant An organisation which uses the Collateral Inventory

Management system

Off-EIM

Order-Giver

Actions which take place outside of the system using other

means

An order-giver is a non-member client end user represented in

Euronext by a GCM (referred to as a Principal). Order-givers can

have access to Collateral Inventory Management Service Phase 1

and they can request Storage Facility Owner to issue certificats

d’entreposage. For each storage certificate that they notify to

the CCP they must gain agreement from the GCM who

represents them that they can notify the CCP

Participant An organisation which uses the EIM system and has EIM

Account(s) in which Certificats d’entreposage may be held (e.g.

Silo Owner, GCM, CCP)

Post-Trade Access Hub (PTAH)

A single sign on solution that allows a user to sign in once to a

family of Euronext Collateral Management Services applications

or indeed post-trade systems in general. PTAH is compliant with

the OpenID Connect, single sign-on standard

Order-Giver An order-giver is a non-member client end user represented in

Euronext by a GCM (formerly referred to as a Principal). Order-

givers can have access to EIM Phase 1 and they can request (off-

EIM) that a Storage Facility Owner issue Certificats

d’entreposage. For each batch of Certificats d’entreposage they

make visible to the CCP they must specify the GCM delivering on

their behalf

Product The physical commodity that is the subject of a Euronext

contract (and/or certifying storage of the commodity with a

certificat d’entreposage )

Sellers A GCM who has a short position in a Euronext future contract at

expiry of that contract

Certificat

d’entreposage

English term for a certificat d’entreposage

Storage Facility (Silo) Storage Facilities are located at Storage Locations and the

facilities include silos and will in later phases also include

warehouses and barges. Storage Facilities have owners (Storage

Facility Owners) who are Participants in Collateral Inventory

Management system and can issue certificat d’entreposage s

for account holder participants



Storage Facility

Owners (Silo Owners)

Participants in EIM who own or run Storage Facilities and can

therefore issue Certificats d’entreposage

Storage Location A physical address for a set of Storage Facilities

Tab Permits multiple user interface elements to be shown in the

same area

Transfer (Account) Certificat d’entreposage s are held in accounts created by

participants. Whilst certificat d ’ entreposage s are non-

transferable between participants they can be transferred from

one account to another within participants

Warrant In EIM Phase 2 a Warrant is a dematerialised and sometimes

(immobilised, paper) representation of title and possession of

Product. Ownership of the Warrant can be transferred from one

owner (Participant in EIM) to another. In EIM the Warrant record

will be used to record both Warrants and Certificats

d’entreposage

Warrant Set A group of comingled warrants that are collected together to

make their transfer or management easier



2. ACCESS TO EURONEXT INVENTORY MANAGEMENT USER INTERFACE

2.1 GENERAL PROCEDURE

■ Step 1. Any EIM participant must complete and sign an EIM application form to gain credentials to do

conformance test in the system. These duly signed documents must be returned to

[email protected].

Step 2. After the validation of the documents signed, Euronext Customer Access Services team ([email protected]) will contact appointed Member Connectivity Administrators to guide them how to access a secure area to authorize their internal users. The MCA person will be requested to register their internal users to Euronext Inventory Service by filling online electronic form available from https://connect2.euronext.com/en/form/chequers-login-creation once the users are created by CAS team, the users could start conformance test.

Please note that a conformance test is mandatory for all participants wishing to use the system for the

first time, based on a test script (attached in the appendix).

Euronext’s Customer Technical Support Group (CTSG) and LCH SA Ops team will provide support to members while testing.

■ Step 3. After completing the conformance test, participants than should ask Euronext Membership team

([email protected]) for getting credentials in production environment. Each user

appointed by the MCA person will receive its credential to log into the Inventory Service and follow

instructions for first time password creation.

Please also note that the service will only be effective when the full lists of approved silos are live on the

service.

2.2 SUPPORTED BROWSERS

The Euronext User Interface has been tested with Internet Explorer, Google Chrome and Firefox. Other

browsers may be used but any issues relating to those browsers are the responsibility of the user to

resolve.

2.3 CONFIGURATION

The following table provides the links to connect to Euronext Collateral Inventory User Interface in the EUA

and Productions environments.

EUA (Test Environment) Production

Internet access https://eua-inventory.euronext.com https://inventory.euronext.com


https://connect2.euronext.com/en/form/chequers-login-creation



https://eua-inventory.euronext.com/

https://inventory.euronext.com/



2.4 SIGNING IN

Before signing in, participants have to complete the process to gain access to the system, including setting

the password. In order to log in to the EIM application, please follow the steps below:

■ Step 1. Start the web browser.

■ Step 2. Enter the URL address, and the EIM services Login box is displayed as following.

■ Step 3.Type the username and password and click on the ‘Sign In’ button. Please pay attention that a

password reset is required at first login as well as every time a new password is provided by the

Customer Access Services team.

The EIM Login box:

For security reasons there are rules around the password in order to ensure a minimum strength of

password to retain the security of the system. Accordingly, passwords must be a minimum of eight (8)

characters and contain a combination of at least three out of the four character types listed below:

- At least 1 upper case character – A-Z

- At least 1 lower case character – a-z

- At least 1 westernised Arabic numeral – 0-9

- At least 1 special (non-alphanumeric) character - !”£$%^&*() etc.

Following entry of user id and password, users are logged in to the Collateral Inventory home page. In case

of forgetting or losing a password then the user must contact Euronext Customer Access Services at

[email protected] to reset the password.

Five unsuccessful logon attempts in a row results in lockout of the account. Please contact Euronext

Membership team [email protected].





2.5 SIGNING OUT

To log out from the EIM User Interface, click on the ‘Sign Out’ ( ) button at the top right of the title

bar, or simply close the browser.

2.6 CHANGING THE PASSWORD

For the users who forget the password, they need to click the ‘Forget Password’ and will receive a mail to

reset the password.



3. GENERAL NAVIGATION RULES

3.1 OVERVIEW OF WEB INTERFACE

The EIM user interface is a web based and it is accessed using an Internet browser. EIM is tested on recent

versions of Internet Explorer, Chrome and Firefox.

The screenshots in this document are recent versions of the application. However, the detail of the test

may not exactly match the screenshots.

The screenshot below shows the general user interface. It has the following general features and facilities:

1. Sign out button

2. User name and Participant

3. Environment: Production (Prod) or EUA

4. Language selector

5. Page navigation bar

6. Action Bar, buttons

7. Action Bar, further actions drop-down menu

8. Drill-down and related actions

9. View tabs

10. Set number of rows displayed per page

11. Clear filters for table

12. Select columns that are visible in table

13. Inventory list, column headers

14. Inventory list, filters

15. Inventory list, inventory items

16. Page selector

17. Items selected

18. Lot numbers and weight for items selected



3.2 INVENTORY GRID



COLUMN DESCRIPTION POSSIBLE VALUES

Number Unique identifier of the certificat d’entreposage Whole numbers except 0

Status

■ Issued: When SFO creates the certificats d’entreposage for

the nominated party (order giver or GCM)

■ Transferred: the nominated party accepts the certificats

d’entreposage

■ GCM Notified: when the order giver select a GCM

■ CCP Notified: when GCM sends the notice to CCP

■ Notice Accepted: When CCP accepts the notice sent by GCM

■ Rejected: Account Holder rejects issued Certificats

d’entreposage

■ CCP Rejected: When CCP rejects the certificats

d’entreposage

■ Invalid: Certificats d’entreposage expired

■ Cancelled: the SFO cancels the certificats d’entreposage

■ Issued

■ Transferred

■ GCM Notified

■ CCP Notified

■ Notice Accepted

■ Rejected

■ CCP Rejected

■ Invalid

■ Cancelled

Contract Euronext Commodities Futures ■ Milling Wheat No.2

■ Corn

Delivery Month Based on the product contract specifications ■ Varied from different contract

Lots The number of lots in the inventory

Net Weight 50 tonnes per lot

Type The inventory type

■ Certificat d’entreposage

■ Warrant sets

■ Bill of lading

Tag

A tag can be optionally added to inventories but not to

individual warrants, i.e. only to items in the main grid. They are visible to everyone who can see the inventory and are not required to be unique. Tags can also be changed by the title owner at any time. The tag stays the same when a set is split and the user is prompted to enter the tag of the new set. After merge, the tag of the oldest set is kept.

Inventory can only have a single tag.

■

Location The delivery location ■ It is set up by Euronext based on

the contract specification

Storage Facility

Storage Facilities are located at Storage Locations and the

facilities are limited to export Storage Facilities that are good for

delivery for Euronext product. Each Storage Facility has a licence

number

■ It is set up by storage facility

owners

Storage Cell Storage Facilities may be divided into individual Storage Cell. ■ It is set up by storage facility

owners

Emission Date The date of creation of the inventory

Valid Until




Reference Storage Facility Reference

Storage Facility

Owner

Storage Facilities have owners (Storage Facility Owners) who are

Participants in EIM and are commonly referred to as Silo Owners Registered silo owners

Title Owner Party The owners of the inventories

Title Nominated

Party

Possession Owner

Party

Possession

Nominated Party

General Clearing

Member

Order-Giver

Reference

Number

Loading Date

Accounts To current date and time

Timestamp ■ To current date and time

Inventory

attributes ■ Non-GMO for corn contract



3.4 SORTING & FILTERING

The inventory list provides a control for selecting which columns are visible. These are drawn from the

inventory types and all the significant related data such as storage and product quality. Visible columns can

be sorted and filtered.

3.5 LOCALISATION & INTERNATIONALISATION

The language displayed in the user interface defaults to that of the web browser in use but can be

overridden with the use of the drop-down locality control in the top right corner. The languages available in

EIM are Dutch, English, French and German.

If a translation is not available for an individual resource then English will be shown as a fall-back.

When navigating through the different panes, the users can go back to the home page by clicking on the

Euronext logo in the title bar:

3.6 EMAIL NOTIFICATION

For each action taken place on a given inventory, participants will receive an email as a notification (one

example is as following:

Please note that each participant involved in the process will be notified by email. For instance:

■ When the silo issues the Certificat d’entreposage to the GCM, both silo and GCM will receive

notifications;

■ When the GCM accepts the Certificat d’entreposage from the silo, both GCM and silo will receive

notifications;

■ When the GCM selects an order-giver and send a notice to the CCP, silo, GCM, order giver and CCP will

all receive notifications;



■ When the CCP accepts the Certificat d’entreposage notification from the GCM, silo, GCM, order giver

and CCP will all receive notifications.

■ When the silo amends the Certificat d’entreposage, participants who will receive notifications depends

on different status of Certificats d’entreposage:

– Issued: silo & GCM

– Transferred: silo & GCM

– CCP notified: silo, GCM, order-giver & CCP

– Notice accepted: silo, GCM, order-giver & CCP

Please note that when the silo amends the lot size of Certificat d’entreposage, the status will be changed to

‘Issued’ from any other statuses.

In the case of Certificat d’entreposage rejected by CCP, the status of Certificat d’entreposage will change

from ‘CCP Notified’ to ‘CCP Rejected’. As a result, GCM has to perform another Certificat d’entreposage

notification.



4. INVENTORY

There are 2 inventory types in EIM platform in outline:

Certificats d’entreposage are warehouse ‘receipts’ issued in the short term as a non-binding statement that the specified number of lots of a given product are held in storage for a Participant. Certificats d’entreposage specify a variable number of lots in a single certificate and do not “contain” or “group” anything. There are limited rights for a certificat d’entreposage. They do not represent ownership and they are not transferable.

Warrant Sets are groups of warrants. Warrant Sets contain a variable number of warrants and each warrant contained represent a single lot of product. Warrants give ownership rights to the underlying material and are transferable in the system.

4.1 CERTIFICATS D’ENTREPOSAGE

Certificats d’entreposage are issued to selling Clearing Members by Storage Facility Owners and can be

notified by the selling Clearing Member to the CCP. The CCP can then view the Certificats as part of the

delivery process, the remainder of which happens outside EIM. Certificats d’entreposage expire shortly

after delivery for the specified contract month is complete. Certificats d’entreposage are defined in the LCH

delivery procedures and convey no ownership rights and are not transferable.

Certificats visible to a participant are displayed together in a single list, and have similar filtering and sorting

facilities.

4.2 INVENTORY ATTRIBUTES

Inventory attributes are associated with the selected contract. The available inventory attribute currently

includes Non-GMO for corn contract.

When silos create inventory for corn product, they must tick the box for NON-GMO to attest delivery of a

conventional product, namely a product without GMO risk.



Certificat d’entreposage Life Cycle

Operation Conditions Who Popup Action Status Visibility

Create & Issue New Certificat SFO Select GCM/OG/TR Issued SFO

Title Nominated Party

Change size Not Cancelled/Invalid

Not covering position

SFO Confirm Issued /

Rejected

SFO


Issue Rejected

No title owner

SFO Select GCM/OG/TR Issued SFO


Accept Issued Title Nominated Party Select account Transferred SFO

Title Owner Party

Reject Issuance Issued/Offered Title Nominated Party Enter reason Rejected SFO

Change Account Transferred Title Owner Party Select account No change SFO

Title Owner Party

Send Notice Transferred / Rejected /

CCP Rejected

Title Owner Party (OG) Select GCM GCM Notified SFO

GCM

OG (if any) Title Owner Party (GCM) Select OG CCP Notified

Accept Notice GCM Notified GCM Confirm CCP Notified SFO

GCM

OG (if any)

CCP

CCP Notified CCP Notice

Accepted

Reject Notice GCM Notified GCM Enter reason Rejected SFO

Title Owner Party

CCP (if applicable) CCP Notified CCP CCP Rejected

Cancel Not Cancelled/Invalid SFO Confirm Cancelled No change



4.3 WARRANT SETS/BILLS OF LADING

Warrant Sets are groups of warrants. Warrant Sets contain a variable number of warrants and each warrant

contained represent a single lot of product.

Warrants do convey ownership rights over the goods they refer to. They are transferable between parties

in the EIM system and the ownership of goods transfers with them.



Warrant Life Cycle

Operation Conditions Who Popup Action Status Visibility

Create New warrant SFO Confirm Created SFO

Create & Issue New warrant SFO Select GCM/OG/TR Issued SFO


Issue Created/Rejected

No title owner

Not locked

SFO Select GCM/OG/TR Issued SFO


Offer Transferred/Rejected

No possession owner

Not sold under repo

Not locked

Title Owner Party Select GCM/OG/TR Offered SFO

Title Owner Party


Accept Title Issued/Offered

Not locked

Title Nominated Party Select account Accepted SFO

Title Owner Party


Reject Title Issued/Offered

Not locked

Title Nominated Party Enter reason Rejected SFO

Title Owner Party (if any)

Transfer Title Accepted

Not locked

SFO/Title Owner Party Confirm Transferred SFO

New Title Owner Party

Pledge Transferred/Rejected

No possession owner

Not sold under repo

Not locked

Title Owner Party Select FI Possession

Offered

SFO

Title Owner Party

Possession Nominated Party

Accept Possession Possession Offered

Not locked

Possession Nominated Party Select account Accepted SFO

Title Owner Party


Reject Possession Possession Offered

Not locked

Possession Nominated Party Enter reason Rejected SFO

Title Owner Party

Transfer Possession Accepted Title Owner Party Confirm Pledged SFO



Not locked Title Owner Party

Possession Owner Party

Return Pledged

Not locked

Possession Owner Party Confirm Transferred SFO

Title Owner Party

Seize Pledged

Not locked

Possession Owner Party Confirm Transferred SFO

New Title Owner Party (FI)

Sell Under Repo Transferred/Rejected

No possession owner

Not sold under repo

Not locked

Title Owner Party Select GCM/OG/TR Offered SFO

Title Owner Party


Sell Back Transferred

No possession owner

Sold under repo

Not locked

Title Owner Party Confirm Offered SFO

Title Owner Party

Original Owner Party

Lock Not Invalid/Cancelled

Not locked

SFO Confirm No change No change

Unlock Not Invalid/Cancelled

Locked

SFO Confirm No change No change

Change Account Accepted/Transferred/Ple

dged

Title Owner Party


Possession Owner


Select account No change Account holder only



5. EIM FOR STORAGE FACILITY OWNERS

5.1 UNDERSTANDING PAGES

Pages in the EIM User Interface for Storage Facility Owners (SFO) are laid out in a tabbed interface, and

contain the following components:

1. Inventory

The ‘Inventory’ is the home page when logging in to the EIM Service User Interface, and it provides Storage

Facility Owners:

■ An overview of all inventories

■ The details of selected inventory (by clicking the arrow on the right)

– The ability to ‘Amend’ the net weight of Inventory (applicable only for certificats d’entreposage) in the detail pop-out

■ The ability to ‘Create Inventory ’ or ‘Cancel Inventory’

■ The ability to ‘Export’ all certificats into a CSV file

■ The ability to choose different actions from the drop-down menu of ‘Action’ for the selected one/more

inventories (applicable only for warrant sets and bills of lading)

■ The ability to download a PDF version of selected inventory by click ‘View’

Example of a home page for Storage Facility Owner:



2. History Page

A separate history page for viewing the audit trails for inventory can allow for filtering of action history for

multiple inventories and support export to CSV file.

It is important to understand that the entries in the history represent the fields defining the state of the

inventory. They are not inventories in themselves. A certificate d’entreposage that has been created, issued

and allocated to an account will have at least three or four audit entries, one for each of those actions.

3. Storage page

The storage page displays all the detailed information for each registered storage facility and delivery

locations. Storage Facilities are located at Storage Locations and the facilities are limited to export silos that

are good for delivery for Euronext No. 2 Milling Wheat and Corn Futures product. Each Storage Facility has

a license number.

Storage facility owners can edit the storage cells for each storage facility in this page.

Please note that the delivery locations are edited by Euronext Corporate Action team.



Example of a ‘Storage’ page for Storage Facility Owner:

The following information is displayed in the ‘Storage Facilities’ list to Storage Facility Owners:


License Number Each Storage Facility has a license number

Warehouse Code Internal warehouse code

Storage Facility Type Silo

Location Location of the facility

City

Storage Cells

5.2 CREATING AND ISSUING NEW CERTIFICATS D’ENTREPOSAGE

The Storage Facility Owner can choose to create new certificats d’entreposage for a GCM or an Order Giver.

■ Step 1. Click on the ‘Create Inventory’ button

■ Step 2. Fill in the information in the pop up window appeared on right; supporting documents can be

uploaded to the inventory

■ Step 3. Click the ‘Save’ button



■ Step 4. Select the participant from the dropdown list and click ‘confirm’ in the pop-up window

After confirming, the new certificats d’entreposage are created with the status ‘issued’

5.3 CANCELLING CERTIFICATS D’ENTREPOSAGE

Certificats d’entreposage are marked as cancelled as a result of a Cancel operation by the Storage Facility

Owner. As a result certificat d’entreposage s become invalid (as distinct from cancelled) automatically, on

D+7.

■ Step 1. Select one or more Certificats d’entreposage by clicking on the box before each

Only the Certificats d’entreposage with same status can be grouped together to be cancelled by clicking on

the boxes in front of them and ‘Cancelled certificat d’entreposage s’ cannot be cancelled again.

■ Step 2. Click on the ‘Cancel Inventory’ button:

■ Step 3. The following window pops up and click on the ‘Yes’:

5.4 AMENDING CERTIFICATS D’ENTREPOSAGE

The number of lots in a Certificat d’entreposage can be amended under certain conditions but only for the

Certificats d’entreposage which have not been cancelled by the storage facility owners. After amending the

lots in a certificat d’entreposage, the status will be changed to ‘Issued’ from any other statuses.



6. EIM FOR GENERAL CLEARING MEMBERS


Pages in the EIM User Interface for General Clearing Members (GCMs) are laid out in a tabbed interface,

and contain the following components:

1. Inventory page

The ‘Inventory’ page is the home page when logging in to the Euronext User Interface, and it provides

GCMs:



■ The ability to upload document for selected inventory

■ The ability to change account for the selected inventory

■ The ability to ‘Accept’ or ‘Reject’ the selected inventory

■ The ability to ‘Send Notice’ to CCP of an intent to deliver the goods associated with the selected

inventory

■ The ability to ‘Accept Notice’ if the GCM is notified by order-giver

■ The ability to ‘Export’ all inventories (unfiltered) into a CSV file

■ The ability to ‘View’ selected inventory and download a PDF version of this inventory



Please note that when a GCM uses this system, he must ensure that all certificats he is responsible for will

be processed only via EIM system instead of the existing paper based certificats solution except there is a

big system failure.

Example of an ‘Inventory’ home page for (GCM):



2. History Page




inventory. They are not inventories in themselves. A certificate d’entreposage that has been created, issued


3. Accounts

GCM’s positions are divided into house positions which related to their own accounts and client positions

which related to the accounts of their order-givers. Please note that order-givers and traders must have a

minimum one account.

Only a user belonging to the Participant holding the account can delete accounts. Accounts that have been

active and hold no inventory can be deleted. Accounts holding inventory cannot be deleted.

In this page, a GCM can ‘Add’ / ‘Edit’ / ‘Delete’ the account it is holding now.

6.2 ACCEPTING ISSUED CERTIFICATS D’ENTREPOSAGE

The GCM can accept all the issued certificats d’entreposage by using the corresponding buttons in the

action bar and store the certificat d’entreposage s in the selected account.

■ Step 1. Select the certificat d’entreposage s by clicking on the box before

■ Step 2. Click on the ‘Accept’ button:



■ Step 3. Choose an account from dropdown menu and click on the ‘Accept’ button.

Then the status of chosen certificat d’entreposage s changes from ‘Issued’ to ‘Transferred’.

6.3 REJECTING ISSUED CERTIFICATS D’ENTREPOSAGE

The GCM can reject the issued certificats d’entreposage by using the corresponding buttons in the action

bar and is promoted to provide a reason for the rejection.

■ Step 1. Select the certificats d’entreposage by clicking on the box before

■ Step 2. Click on the ‘Reject’ button:

■ Step 3. Provide the rejection reasons in the box and then click on the ‘Confirm Rejection’ button.

Then the certificats d’entreposage disappears from the list.

6.4 SENDING NOTICE

The GCM will provide visibility of the certificat d’entreposage s to the CCP by clicking on the ‘Send Notice’

button. This is done for the purpose of establishing that the product is available for delivery.

The GCM may optionally specify the order-giver involved in delivery for the certificat d’entreposage s.

■ Step 1. Select the certificats d’entreposage by clicking on the box before:



■ Step 2. Click on the ‘Send Notice’ button:

■ Step 3. Select the participant from dropdown menu:

Then the status of chosen batch changes from ‘Transferred’ to ‘CCP Notified’.

In the case of Certificat d’entreposage rejected by CCP, the status of Certificat d’entreposage will change

from ‘CCP Notified’ to ‘CCP Rejected’. As a result, GCM has to perform another Certificat d’entreposage

notification.

6.5 CHANGING ACCOUNT FOR CERTIFICATS D’ENTREPOSAGE

The Certificat d’entreposage which belongs to the same Participant can be moved between accounts by

clicking on ‘Changing Account’ button:

■ Step 1. Select the Certificat d’entreposage by clicking on the box before:

■ Step 2. Click on the ‘Changing Account’ button:

■ Step 3. Choose an account from dropdown menu and click on the ‘Confirm’ Button.

To check the moved Certificat d’entreposage, please go to Inventory>Account page and click on the account.



7. EIM FOR ORDER-GIVERS


Pages in the EIM User Interface for Order-givers are laid out in a tabbed interface, and contain the

following components:

1. Inventory page

The ‘Inventory’ page is the home page when logging in to the Euronext User Interface, and it provides

order-givers:



■ The ability to upload document for selected inventory

■ The ability to change account for the selected inventory

■ The ability to ‘Accept’ or ‘Reject’ the selected inventory

■ The ability to ‘Send Notice’ to GCM of an intent to deliver the goods associated with the selected

inventory

■ The ability to ‘Export’ all inventories (unfiltered) into a CSV file

■ The ability to ‘View’ selected inventory and download a PDF version of this inventory



Example of an ‘Inventory’ home page for (Order-givers):

2. History Page






inventory. They are not inventories in themselves. A certificat d’entreposage that has been created, issued


3. Accounts

Order-givers’ positions are divided into house positions which related to their own accounts and client

positions which related to the accounts of their order-givers. Please note that order-givers and traders

must have a minimum one account.

Only a user belonging to the Participant holding the account can delete accounts. Accounts that have been

active and hold no inventory can be deleted. Accounts holding inventory cannot be deleted.

In this page, an order-giver can ‘Add’ / ‘Edit’ / ‘Delete’/ ‘Export’ the account it is holding now.



7.2 ACCEPTING ISSUED CERTIFICATS D’ENTREPOSAGE

See GCM

7.3 REJECTING ISSUED CERTIFICATS D’ENTREPOSAGE

See GCM

7.4 SENDING NOTICE

The order-giver (as opposed to a GCM) will be required to specify their clearer (the GCM who takes on the

delivery obligation with the exchange on their behalf). The status of selected certifcats d’entreposage will

become ‘GCM Notified’ after the order-giver send notice. Once GCM accept notice, the status will become

‘CCP Notified’.



APPENDIX – TEST SCRIPT FOR CLEARING MEMBERS

1 General Principles

All the clearing members wishing to use the system have to do the mandatory tests in Euronext Collateral

Inventory Management system.

■ Tests will be conducted over a 3 days period. Clearing participants will choose one of the two below

test windows:

– From Wednesday 5 April 2017 to Friday 7 April 2017

– Or From Tuesday 11 April 2017 to Thursday 13 April 2017

■ Tests will be performed on Euronext Inventory Management Service (EUA):

https://eua-inventory.euronext.com

■ User Guide and Access means can be requested to Euronext:

– EMS Customer Technical Support Group : [email protected]

– Tel. +33 1 85 148588

■ For any additional information regarding the test script:

– LCH SA Listed Derivatives Operations: [email protected]

– Tel. +33 1 70 37 67 02

2 Summary of the Conformance Test

Here is the overview of the mandatory conformance tests to be performed by clearing participants.

From Step 1 to Step 3, LCH SA will contact the clearing participants at different stage of the test to confirm the tasks to

execute. Please note that the periods listed in the Timetable column are only theoretical and would normally be

applicable to the PROD environment, the tests will be performed over a period of 3 days.






3 Reject Scenarios

Here is the overview of the “reject scenarios” mentioned in step 2 of the conformance test. LCH SA will

contact the clearing participants and request them to perform at least 2 of the below cases:



APPENDIX – TEST SCRIPT FOR SILO OWNERS

1 General Principles

Following the Info-Flash issued by Euronext on Friday 31 March 2017 announcing the introduction of the

Euronext Collateral Inventory Management service, this section summarizes the mandatory tests to be

performed by all participants wishing to use the system, incl. clearing members and silos.

■ Tests will be conducted over a 3 days period. Clearing participants will choose one of the two below

test windows:

– From Wednesday 5 April 2017 to Friday 7 April 2017

– Or From Tuesday 11 April 2017 to Thursday 13 April 2017

■ Tests will be performed on Euronext Collateral Inventory Management Service (EUA):

https://eua-inventory.euronext.com

■ User Guide and Access means can be requested to Euronext:

– EMS Customer Technical Support Group : [email protected]

– Tel. +33 1 85 148588

■ For any additional information regarding the test script:

– LCH SA Listed Derivatives Operations: [email protected]

– Tel. +33 1 70 37 67 02

2 Summary of the Conformance Test

Here is the overview of the mandatory conformance tests to be performed by Commodities market participants.

From Step 1 to Step 3, LCH SA will contact approved silos at different stage of the test to confirm the tasks to execute.

Please note that the periods listed in the Timetable column are only theoretical and would not normally be applicable

to the PROD environment, the tests will be performed over a period of 3 days.






3 Reject Scenarios

For your information, please find below an overview of the “reject scenarios” mentioned in step 2 of the

conformance test. LCH SA will contact the clearing participants and request them to perform at least 2 of

the below cases:



4 Disclaimer

■ The contents of this document are for information purposes only and are subject to further discussions

and modifications.

■ Nothing in this document should be considered to be legal advice. There is no substitute for analyzing

the Listed Derivatives Clearing Documentation of LCH SA as well as other transaction documentation.

Accordingly, clients may not rely upon the contents of this document and should seek their own

independent legal advice.

■ The information and any opinion contained in this document, does not constitute investment advice or

a personal recommendation with respect to any applicable securities or other financial instruments.

This document has not been prepared for a specific client and accordingly no reliance should be placed

on it. Nothing in this document should be taken as a public offer under any applicable legislation or an

offer to sell or to buy any applicable securities or financial instruments.

■ Copyright © LCH SA 2017

All rights reserved. No part of this document may be copied, whether by photographic or any other means,

without the prior written consent of LCH SA.

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