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Copyright© JSE Limited 2005 www.jse.co.za
JSE UPDATE COMMUNICATION SESSION - CAPE TOWN
Leanne Parsons 16 November 2006
© 2
AGENDAJSE Update
Orion Project
− Status of Release A
− Status of Release B
− Status of Release C
Equities Trading System Replacement Project
− Functional Summary
− Technical Summary
− Project Timeline
− Customer Testing
− User Documentation
JSE Managed Network (JSE & MTN)
− Project Background and Objectives
− MTN NS and Solution Overview
− Internet Phase
− International Links Phase
− Customer Network Phase
Environment
Draft Costing
© 3
Release A: Migration Plan
2006
Q2 Q3 Q4
OCT NOV DEC
PotentialGo-Live
System Test & UAT (Corporate Actions)
Internal ETEBusiness
ETE
ParallelRunDevelopment and Testing
ParallelRun Prep
Generation of Generic Test-File
Start 10 days of Client Specific Test-FileGeneration
© 4
Release A: Progress Made to Date
In terms of Release A, efforts on the project have centred around:
Preparation for End to End Testing
− Ongoing testing in the production environment, including the closure of functional and technical errors from previous UAT phases
− Ongoing system performance testing and tuning
− Re-design, build and testing of Corporate Actions functionality
− Statistics verification and checking
− Creation of updated test conditions, scenarios and scripts
− Execution of 3 passes of internal ETE testing
Business End to End Testing (UAT)
− Execution of 2 full cycles of business ETE
− Results verification and confirmation
− Error correction and close out
Operational Readiness (Parallel) Preparation
Start of Parallel Run
© 5
Release A: Next Steps
A further set of system generated non-client specific EOD Equity Dissemination files were made available during the week of the 9 October 2006.
At the completion of ETE on Friday 10 November 2006, the project has moved into the operational readiness phase. During this time, new Orion systems will be run in parallel with the legacy applications to ensure operational readiness. This is a cautious approach to ensure that we do not impact our existing services. Should operational readiness be proven quickly it is likely that the JSE will be ready for implementation of Release A on either 27 November 2006 or
11 December 2006. The JSE did commit to provide new client-specific EOD files for a minimum of ten business days (in addition to the current files) prior to the formal implementation (Go-Live) of Release A. This parallel phase officially commenced on Monday, 13 November.
The first set of client specific EOD test files were already provided on Sunday evening, which contained the data for Friday, 10 November.
Any queries on the files should be sent to: eodspec@jse.co.za
© 6
Release B: Migration Plan
2006 2007
Q2 Q3 Q4 Q1 Q2 Q3 Q4
System /Integration Test
JSE Formal Integration Testing
Formal User Testing
Dress Rehearsal
POSSIBLEGO-LIVE
Training
Vendor Development and System Testing
JSEActiviti
es
Member
Activities
© 7
Release B: Progress Made to Date
MSS Update:
− Design Close-out:
• A total of 33 functional specifications have been signed off.
• Reports Functional Design has been signed off and Reports Technical specifications are complete and agreed with FRI.
• The following Design activities are complete:
» Interface Design
» Batch Design
» Data Integrator (the MSS loader tool for file interfaces) and Technical Architecture
» All Dissemination Designs
− Update on Code Delivery:
• FRI has delivered 10 code drops to date.
− Testing:
• Progress with installation of FRI code drops into the test environment.
• System Test Models signed-off for 70% of all Functional System Test Models, expected to be completed during 2006.
© 8
Release B: Progress Made to Date (Cont.)
MSS Workgroups Update
− Two successful screen demonstration sessions were done on some of the new system screens with the Orion Core Group.
− Demonstration of the screens to the entire market at a later stage (only applicable to Johannesburg).
− All members have signed the required Non-disclosure Agreements – every staff member should have access to the functional specifications.
− TWG Sessions were held for developers involved in downstream applications:
• To discuss new dissemination files and API’s
• To provide an overview of fundamental functional changes
• To provide a demonstration of new functional screens
MSS Training Update
− The JSE will be offering Conceptual and User Training in Cape Town during 2007, prior to Go-Live.
© 9
Release B: Progress Made to Date (Cont.)
Equities Clearing Update
− Design Close-out:
• Functional specifications completed and signed-off.
• Technical interface specifications completed.
• This concludes all of the design portions for the Equities Clearing application.
− Update on Code Delivery:
• Final code drop, including bug fixes, has been received and installed.
− Training:
• Internal training with the Clearing and Settlement Division has commenced on the installed application.
• Clearing training is due to commence early 2007.
• ECS training manuals have been delivered and are currently under internal review.
© 10
Release B: Progress Made to Date (Cont.)
Data Conversion Update:
− Conversion design specifications for the Market Services Solution Corporate Actions module
are still in progress. Specifications for data covering the rest of the Market Services Solution’s
modules have all been finalised.
− Specifications detailing the Data Reconciliation requirements are currently in progress. These
specify the data extracts and reporting metrics that will be used to verify the converted data
between the source systems and the Market Services Solution.
− Activities covering the build and unit test of the numerous components to source and transform
the data for these modules that have completed design, is well underway
− Conversion testing activities are currently in progress where data from select brokers is being
converted into the Market Services Solution based upon the conversion rules specified in the
conversion design specifications.
© 11
Release B: Progress Made to Date (Cont.)
Surveillance System Update:− User Functional Specifications have been signed off.
− Technical Specification development in progress.
− Business Functions to be tested across all Surveillance modules have been identified.
Update on Technical Specifications to the Market:− MSS API Specs
• All the interface specifications have been published and are final
− All MSS Dissemination Specs are final
− Please forward any queries relating to:
• Dissemination Specs: orion_spec_mssdis@jse.co.za; and
• API Specs: orion_spec_mssapi@jse.co.za
Testing Update:− ECS Systems Test Preparation and Execution by Accenture is completed for all ECS
modules.
− System Test Preparation of Test Models and Test Scripts for all other Release B systems are in progress.
− System Test Execution for other Release B systems expected to start Q1 2007.
© 12
Bandwidth Requirements:Context & Assumptions of the Testing
LANmetrix (LMX) conducted a bandwidth test on the MSS on 23/11/2005.
− The test was conducted on the Market Services Code Drop Environment utilising a network sniffer that was inserted into the Local Area Network and configured to record all traffic flowing between the user workstation and the MSS terminal server.
On 27 February 2006, representative workload scenarios were constructed and agreed to represent a typical workload of an MSS user, during a typical day, in a fully deployed MSS environment.
LMX has conducted a new simulation/modelling exercise which combines the recorded transactions with the new scenarios.
MSS is being deployed over Microsoft terminal services which will result in a Bandwidth (BW) increase over BDA.
The BW consumption of the application would be related to the intensity of use and the usage patterns of the MSS.
Reporting usage patterns will have a significant impact on the BW consumption.
The BW usage would naturally increase with the number of users concurrently operating across the network.
Therefore the approach was to simulate a series of scenarios which are believed to be representative of typical user scenarios in the application.
Further details on the testing and on the scenarios can be made available on request.
© 13
Bandwidth Requirements(Cont.)
Application Performance - Summary of Simulation Results
© 14
Bandwidth Requirements(Cont.)
Summarized Conclusions of the Testing Exercise:
In summary the recommendations coming out of the test were:
For less than 2 users, a 64kbps link is sufficient.
For 3-40 users, bandwidth requirements increase in increments of 128kbps for every 5
additional users or less.
For more than 40 users, requirements grow in increments of 64kbps of bandwidth per 5
users over and above the 1Mbps link required for the 40 users.
The recommendations above can be used to calculate the required bandwidth to
support any number of users.
E.g. BW for 57 users = [40/5*128] + [17/5*64]
= [8 * 128] + [4 * 64]
= 1280 kbps
Copyright© JSE Limited 2005 www.jse.co.za
QUESTIONS?
Refer all Release B queries to Orion_Info@jse.co.za
© 16
Release CTime Line
2006 2007
Q2 Q3 Q4 Q1 Q2 Q3
Weekend DressRehearsals
Draft API Specs
Draft EOD Specs
Draft IP Readiness Requirements
User Training
STT Development and System Testing
Prep Env.JSE
Formal Integration Testing
Config H/W
JSE Demarcation
STT Detail Design
JSEInternal Integration Testing
JSEInternal Training
Core Systems Final Code drop
Formal User Testing(FE & API)
Final API Specs
Final EOD Specs
Final IP Readiness Requirements
JSE
Activities
Member
ActivitiesInformal User
Testing
We are here
Operational Readiness
Proposed
FDD deployment
Proposed
APD deployment
C C
Contingency
Important upcoming activities
© 17
JSE internal testing for Release C commenced in November 2006.
The training approach for members will be distributed to the market before 15 December 2006.
The training booking requirements document will be distributed by end January 2007, highlighting the training dates and timeslots. The JSE intends to start training by end February 2007
We would like to remind all users to review the API Specification and User Connectivity documentation.
The final API Specification document is expected to be issued mid-December 2006.
RELEASE CStatus Update
© 18
RELEASE CConnectivity Requirements
New connectivity requirements in terms of Release C of project Orion entails the following:
All trading members are able to access the new system via their existing lines to SAFEX. The new system runs off TCP/IP, trading members need to in conjunction with the JSE, load the TCP/IP protocol on these circuits. Routers currently support the IP protocol thus it should only be a configuration issue.
The JSE has contracted an external company to conduct independent testing and verification of bandwidth requirements. Once these are complete the JSE will publish the bandwidth requirements which may result in members having to increase their line capacities.
© 19
Similarly a user may want to use their existing circuit for trading (on the current SAFEX system) and testing on the new system until go live mid 2007 – this may also require the increase in their bandwidth (perhaps only temporarily) or to schedule their testing outside of core trading hours as not to impact their production systems.
The JSE is proposing to offer a potential solution for members using the managed network through MTN Network Solutions. This will ultimately result in members having more flexible ways of connecting to the JSE (e.g. 3G, ADSL, leased line to a local POP of MTN to reduce line costs, etcetera). Details of this will also be communicated shortly here after.
RELEASE CConnectivity Requirements cont.
Copyright© JSE Limited 2005 www.jse.co.za
QUESTIONS?
Refer all Derivative queries to Derivative_Info@jse.co.za
Copyright© JSE Limited 2005 www.jse.co.za
JSE EQUITIES TRADING SYSTEM REPLACEMENTMARKET COMMUNICATION SESSION – CAPE TOWN
16 November 2006
Leanne Parsons
© 22
AGENDA Equities Trading System - Market Communication
Background & Objectives
Functional Summary
Technical Summary
Project Timeline
Customer Testing
User Documentation
General
− Connectivity
− Online FAQ’s
− Technical Workgroup Meetings
− Further Market Communication Sessions
Questions?
© 23
AGENDA Equities Trading System - Market Communication
Background & Objectives
Functional Summary
Technical Summary
Project Timeline
Customer Testing
User Documentation
General
− Connectivity
− Online FAQ’s
− Technical Workgroup Meetings
− Further Market Communication Sessions
Questions
© 24
JSE EQUITIES TRADING SYSTEMBackground & Objectives
The current technology and business agreements between the JSE Limited (‘the JSE’) and the London Stock Exchange (‘the LSE’) expire in May 2007.
The London Stock Exchange (‘the LSE’) is nearing completion of a four year technology roadmap strategy to deliver systems offering increased performance, scalability and reliability.
During 2005, the JSE Executive and Board agreed to retain the LSE as the preferred supplier for the Equities Trading Solution, based on their current track record of service delivery, reliability, robustness and functionality.
Negotiations are currently in progress to refine and extend these contracts.
Key technical and functional changes available in the new system will provide more functionality and flexibility.
The JSE therefore needs to align itself to the LSE TRM project and phases.
© 25
JSE EQUITIES TRADING SYSTEM Background & Objectives
The LSE Technology Roadmap (TRM) is being phased in 4 releases:-
Release Description Status JSE Impact
Release 1 Enhancements to the LSE Corporate Data Warehouse
Completed in 2003
No impact to JSE
Release 2 Migration of LMIL to Infolect Completed Sept 2005
JSE market migrated successfully
Release 3 Migration of Internal Monitoring and Surveillance (IMAS) systems
WIP Internal JSE regulation and support staff will receive replacement product – no market impact
Release 4 Migration of the Trading system WIP – 2007 H1
JSE SETS and INFOWIZ market migration (including InfoWiz message changes)
© 26
JSE EQUITIES TRADING SYSTEM Benefits
Equities Trading System will be the same technology running InfoWiz today - a Microsoft .NET solution
Enhancements as a result of the new technology includes:
− Performance
» Reduce end-to-end latency
» Increase message throughput and processing
» Greater transparency
− Scalability
» Adding capacity seamlessly
» Message throughput
− Functionality
» Multi-product hooks – multiple markets across multiple assets can be added later
» Multi-Functional – support for integrated cash and derivatives trading can be added later
» Global capability – Full multi time zone, multi currency
» Open standards - able to support current interfaces as well as emerging standards
© 27
JSE EQUITIES TRADING SYSTEM Benefits
Enhancements as a result of the new technology includes:
− Impact
» Three common application interfaces unchanged (MC, SII, IRI)
» Fixed-width message formats and BDGs unchanged
− Availability
» InfoWiz has proven that new technology is robust to continue an outstanding level of availability
» Extensive Internal Testing to prove the solution
» Active-Active, Active-Passive components across LSE data centers
» Sub-second automated fail-over of service and components
» Loss of a full site – Less than 5 second interruption of service, automatic recovery to just single site operation, market put into selected period rule state
© 28
AGENDA Equities Trading System - Market Communication
Background & Objectives
Functional Summary
Technical Summary
Project Timeline
Customer Testing
User Documentation
General
− Connectivity
− Online FAQ’s
− Technical Workgroup Meetings
− Further Market Communication Sessions
Questions
© 29
JSE EQUITIES TRADING SYSTEMFunctional Summary
Functionality Enhancements applicable to the JSE Market
− Market Structure
− Order Book Enhancements
− Trade Reporting
− Settlement Information
− Broadcast Interface
− Quote Book Enhancements (N/A to JSE market but included in JSE Guidance Notes for completeness)
© 30
The lowest tier is used to describe the individual tradable instrument itself.
The Sector provides a more granular level that defines the group of Instruments within the Segment that follow the same trading schedule.
The Segment tier is used to define a set of Instruments that follow the same trading model, e.g. an electronic anonymous order-driven market.
Used to describe the geographical elements of a trading environment - its business calendar and time zone the Market is operating in.
Instrument
Sector
Segment
Market
AGL
J1H1
ZA01
JSE
NEW
Functional Summary contd.Enhanced Market Configuration
The new trading system builds upon the current structure to introduce Exchange and Market tiers. This enhances the ability to differentiate between multi-market, asset class and product:
© 31
New System Segment contains:Members InstrumentsTrade typesTick sizes
5MS- Member in Segment
5OX- Period Rules for Mkt segment
5IS- Instrument Trading Data
Market segment Periods5TY Trade Type for Segment
5TM Tick Size Matrix for Segment/ Currency
Old System Segment contains:ParticipantsPeriodsInstruments
5OK - Participant in Market Segment
5OX - Period Rules for Market Segment
5OB - Instrument in Market Segment
Market segment
Periods
Functional Summary contd.Segment Population
© 32
Trader IDs will be validated on the new trading solution. Trader IDs must be submitted into the system via the header of secure interactive enter messages and will be returned on secure interactive acknowledgement messages.
JSE default configuration for go-live is to assign the same Member ID to the Trader Group Code. Trader Groups will be disseminated on existing public messages as opposed to the Member ID. Trader Groups must be populated on the header of SII messages.
The highest level Participant “entity”, intended to correspond to the existing Participant Code (BIC Code)
Trader ID
Trader Group
Member ID
54365
ABC01
ABC
NEW
Functional Summary contd.New Participant Structure
The new trading system introduces an optional 2 tiers to the Participant hierarchy which support the identification of desks and/or individuals within a trading entity:
© 33
Functional Summary contd.Normal Market Size (NMS)
NMS - Normal Market Size (REDEFINED)
− Normal Market Size will be the MiFID defined threshold used on an EU wide basis. For JSE market, field will be left blank.
SMS - Standard Market Size (NEW)
− Standard Market Size is a new MiFID average order size threshold for firms conducting in-house business (internalisation). For JSE market, field will be left blank.
EMS - Exchange Market Size (NEW)
− Exchange Market Size represents the value currently published as the NMS for JSE market. Used to validate the Order/Quote size. EMS replaces all multipliers and obligations associated with NMS and ensures publication of trades is in accordance with current practise.
PTS - Publication Threshold Size (NEW)
− Publication Threshold Size allows a separate figure to be used for setting the volume at which a Trade Report has its publication to the market delayed. Can have separate delay times for different multiples of the PTS (e.g. immediate publication, one hour or one day delay). Delay can be defined as being dependent on either volume and/or consideration.
− EG. In the JSE market , OP trades are delayed for 24 hours (unless pre-released) if the value is greater than R500 000 and the volume is greater than 6 X NMS (on TRM this will be 6 X EMS, where 6 is captured as the PTS)
© 34
Functional Summary contd.Dynamic Tick Sizes
Dynamic tick sizes is new functionality available – however will not be implemented for Go live of the JSE market.
This provides a range of price levels for each Segment, each associated with a lower and upper band.
When submitting an order, the price must be a multiple of the tick size allocated to the range it belongs to. If the price of an order does not match the tick size associated to that price level it will be rejected.
The JSE:
− will continue to use the static Price Format Code of "W” (whole)
− will continue with automated trading in whole cents only
− Consider use of Dynamic Tick Sizes on an instrument by instrument basis for a future release
© 35
Functional Summary contd.Order book Enhancements - Order Handling
The new trading system supports four different order types to cover every Market
Order
Name
Order
Type
Priced Anonymous Hidden Volume
Applicable to JSE
Limit Order LO Y Y N Yes
Market Order MO N Y N Yes
Iceberg Order IB Y Y Y No – future release
Named Order NO Y N N No
NEW
© 36Period based validity types
Validity Type Description Behaviour (Add) Behaviour (Remove)
GFD Good for Day Immediately posted to book Deleted at closing period
ATO At the Open Parked for injection at the start of the next opening auction
Deleted at end of opening auction
ATC At the Close Parked for injection at the start of the next closing auction
Deleted at end of closing auction
GFA Good for Auction Parked for injection for the next available auction (Open, Close, Intra-Day or Volatility Auction)
Deleted at end of auction
GFX Good for
Intra-Day Auction
Parked for injection at the next scheduled intra-day auction
Deleted at end of auction
Functional Summary contd.Order Book Enhancements - Validity Types
Validity is categorised into 3 different types:-
− Execution based validity (‘Execute & Eliminate’ and ‘Fill or Kill’)
− Time based validity (Good Till Time - GTT & Good Till Cancelled - GTC) and
− Period based validity (introduces the concept of Parked Orders)
NEW
© 37
The new AB version of the 5DS ‘Delete Single Order’ message will return a 5D2 ‘Acknowledge Order Delete’ message that identifies the size of the order that was removed (Remaining Order Size Before Deletion)
Persistence of market orders – New system will automatically remove all unexecuted market orders prior to moving into continuous trading
Current Trading System New Trading System
Order size is increased.
Order loses time priority Order loses time priority
Private order code is updated
Public order code is updated
Private order code is maintained
Public order code is updated
Order size is decreased.
Order loses time priority Order maintains time priority
Private order code is updated
Public order code is updated
Private order code is maintained
Public order code is maintained
Order modification
Order modification – The Table shows the differences in the way private order codes and price/time priority are handled in the new system.
Functional Summary contd. Order Book Enhancements - Order modification and deletion
© 38
Functional Summary contd.Order Book Enhancements - Basket Messages
Optional functionality for the JSE market, can be implemented into trading front-ends as and when user solutions are ready.
New system supports the ability to enter multiple orders through the use of a single 5BO ‘Basket Instruction for Enter Order’ message.
Each individual order must belong in the same Segment (as Segment Code is identified in the message header).
Each order will be processed and acknowledged individually using 5E4 ‘Acknowledge Order Details’ message, and each provided with individual order codes.
It is possible to submit a basket modification using the 5BM ‘Basket Instruction for Modify Order’ message. This will be acknowledged with a 5M7 ‘Acknowledge Basket Instruction for Modify Order’ message. These will be treated as individual modifications to the orders specified.
© 39
Decommissioned Messages
5DT ‘Delete all orders for a Tradable Instrument/Currency’ message will no longer be supported by the new system.
5DA ‘Delete all orders for Participant in Sector’ message will no longer be supported by the new system.
Replacement Message
5DO ‘Delete all orders for Trader Group in Segment’ message enhances current functionality to offer the ability to extend the breadth of orders included in the request (from Sector to Segment), and to narrow the Participant wide impact down to an individual Trader Group.
NOTE: Current single order delete functionality remains as is.
Functional Summary contd.Order Book Enhancements - Mass order deletions
© 40
Eligible trade types for segment
− Currently restricting the range of trade types within a particular segment impacts all participants enabled in that segment eg: the NX trade type can not be used in JSE Segments (ZA01, ZA02, ZA03 and ZA04).
− Note applied currently in the JSE market – however an extension of functionality – the new system introduces a further restriction through the use of ‘role’ e.g. a Marker maker registered in the security being given sole use of the block trade type for this instrument.
Price Validation
− Validation of the Price submitted for a Trade Report against a pre-determined tolerance around the previous closing price. If the price falls outside of this range it will be rejected.
− This validation is based on a multiplier; i.e. if the multiplier was 10 and closing price was 300 ZAC, the system will reject any price less than 30 ZAC (300/10) and any price greater than 3000 ZAC (300*10).
− The JSE will NOT implement this functionality from Go-live but will consider it for a future release.
Functional Summary contd.Trade Reporting – Trade Type Validation
© 41
Currently you cannot link the public contra CT trade type to the original trade cancelled by a participant, as the CT is assigned a new trade code.
In the new system, for an automatic trade (AT) the contra is handled differently and will allow specific identification (linking) of the erroneous trade.
The new system will treat the contra as a status change to the original trade, specifying the original trade code.
This will be accomplished through the publication of a ‘cancel trade report’ message, with a broadcast update action of D (DELETE) – rather than today, where a new ‘CT’ trade report is published with a broadcast update action of A (ADD).
Functional Summary contd.Trade Reporting – Trade Cancellations
© 42
The current JSE Dual Sided Trade Reporting process will remain as is.
The current JSE Single Sided Trade Reporting process remains as is, however the valid counterparty codes will change to “INTRAFIRM1” and “NON-MEMBER1”.
Functional Summary contd.Trade Reporting – Dual-Sided Trade Reports
© 43
Functional Summary contd.Settlement Information - Settlement Account and Venue
Settlement Account is a mandatory field on the new 5EO (Enter Order) messages and must be set to "S" for the JSE market
Settlement venue must be left blank on the new 5EO (Enter Order) messages for the JSE market. It will be defaulted by the trading system to an agreed JSE value (JCP).
The new system provides the ability to submit a Settlement Account and Venue on an Order record which can be used downstream for routing Settlement information to a specific settlement venue
© 44
Functional Summary contd.Broadcast Interface - Disaster Recovery
Today, in a disaster scenario, the 5RD ‘Disaster Recovery’ message is used to flag when messages should be processed regardless of whether the sequence number has been processed previously and the recovery process having been invoked.
The new system will ensure that all messages are synchronised with the alternative site, and guarantees that all re-sent messages will have the same sequence number.
This removes the requirement to flag those messages newly originating from the alternate site; therefore this message and process of recovering will be decommissioned.
In the event of a total site failure, the JSE may still opt to invoke a HALT period.
© 45
Functional Summary contd.Period Rules
The trading system currently allows a maximum of 3 auction extensions and these follow a strict sequence of combinations, which in turn are dependant on what extensions have already been triggered.
The new system functionality treats the method of extensions differently, with no such restrictions on the number of extensions and allowing these extensions to be triggered according to market conditions at the time
A Market Order extension will continue to take priority over Price Monitoring extensions. However, for markets that have a maximum of three extensions to an auction, a Market Order extension can now take place, even after two Price Monitoring extensions have occurred.
NOTE: Current JSE period extension rules will apply for go live, the JSE will re-visit the above for a future release.
© 46
AGENDA Equities Trading System - Market Communication
Background & Objectives
Functional Summary
Technical Summary
Project Timeline
Customer Testing
User Documentation
General
− Connectivity
− Online FAQ’s
− Technical Workgroup Meetings
− Further Market Communication Sessions
Questions
© 47
Technical Summary Message Impact Summary
J02 Period Rules not backward compatibleB11 Tradable Instrument Reference Data J10 Period Rules not backward compatibleB10 Tradable Instrument Reference Data
NOTES:
DR – indicates BDG’s where the only change to the BDG, is the removal of the ‘DR’ message. (included in total counts)
Messages included in more than 1 BDG have been included in totals for both BDG’s
SII – totals include all messages counts, including Quotes and & Enhanced Dual Sided Trade Reports not implemented in the JSE market
SERVICECURRENT
COUNTJSE
DECOMMNEW
MSGSNEW VER
NEW COUNT
J01 3 DR 2B10 5 4 8 9J02 8 6 4 6J03 6 5 6 7B11 5 4 11 12J10 8 6 4 6J11 7 6 6 6J20 4 DR 3J21 6 DR 5J22 3 DR 2J23 8 DR 7J24 3 DR 2J25 3 DR 2J50 7 DR 6J51 5 DR 4N01 3 DR 2N02 20 2 18N03 3 DR 2N04 5 DR 4
TOTAL 112 45 39 105
SII 46 11 26 16 61GRD TOT 158 56 65 16 166
InfoWiz - Public Real Time Feed
JSE SETS - Private Trading Feed
© 48
The new system includes a number of enhancements identified during customer consultation in order to facilitate trading:
Service Codes - Only certain messages and message versions are enabled for certain Service Codes. Current JSE service codes are T01 and T02. As part of TRM, the JSE will use T02, T03 and T04. T01 will be decommissioned for JSE users.
Unsolicited connection status - This field is included in the business header for all interactive messages sent from the Exchange to the Participant. This field indicates that the Participant has stopped acknowledging unsolicited messages and will therefore no longer receive them
Own Order Book Download (OOBD) - A new AB version of the 5RO ‘Request Order Download’, 5OF ‘First Order Download response’ and 5S1 ‘Subsequent Download Response’ messages that provide additional information not currently included with the AA version
Own trades book download (OTBD) - OTBD is a new service offering similar functionality to the current Own Order Book Download (OOBD). This provides a Trader Group the ability to request a download of their Trade book (automated and reported)
Technical Summary contd.Interactive Services
© 49
The existing Broadcast, Interactive and Secure Interactive interfaces will continue to be used. No additional interfaces are being introduced.
Interface Specification
The current method of authentication will be supported on the new system and all existing keys will remain valid for testing and production purposes. KEKs will remain associated with a specific USAP regardless of how many Trader Groups are configured.
Key Encryption Keys (KEK’s)
Existing USAPs can continue to be used, although they may be changed during the migration, if required.
User Service Access Point
Participant Codes will be replaced with Member ID and Trader Group. However to minimise impact, these can both be set to reflect the current Participant Code.
Participant Code
New Service Codes will be introduced for the Interactive and Secure Interactive Interfaces.Service Codes
The existing IP Addresses and Ports will be maintained for the production environment. New enablements and IP addresses will be used for the new testing services.
IP Addresses
Bandwidth allocation is reviewed on an ongoing basis but is not expected to increase specifically for the changes described in this document.
Bandwidth
The current BDGs will remain unchanged with the exception that some messages will be decommissioned and new messages being introduced.
Broadcast Data Groups
Technical Summary contd.High Level Impact Summary
© 50
Technical Summary contd.High Level Impact Summary
New Period Names and Codes will be introduced in addition to existing Periods, with some periods being deleted.
Period Names
No changes or new Sectors for the JSE market.Sector Codes
No changes or new Segments for the JSE market.Segment Codes
New session and application advisory codes are being introduced; existing codes may be used in a different context to today and may be received in a different order.
Advisory Codes
New fields are being introduced for new and existing messages and some existing fields are being renamed with new descriptions defined.
Field Descriptions
Many of the existing messages will continue to be used. A number of new message types and versions are being introduced, and some are being decommissioned.
Message Types & Versions
All existing headers will continue in their current format. A number of reserved fields are being used but will not impact the size of the header message.
Message Headers
The underlying specification is unchanged from today. New message protocols such as FIX may be introduced in addition to the current specification at a later stage.
Message Specification
© 51
New Reference
Data Message
Current Reference
Data Msgs
New Reference
Data Message
Current Reference
Data Msgs
Technical Summary contd.Reference Data – Instrument Data
5OA
5OC 5ER
5ER ‘Instrument Background Data’
5IS ‘Instrument Trading Data’
5IS
Tradable Instrument
Company Info
TI / Currency in Market Segment
5OB
5CT5OB
TI/ Currency in Market Segment
Tradable Instrument Control
Reference data restructure and consolidation to support the new functionality
© 52
AGENDA Equities Trading System - Market Communication
Background & Objectives
Functional Summary
Technical Summary
Project Timeline
Customer Testing
User Documentation
General
− Connectivity
− Online FAQ’s
− Technical Workgroup Meetings
− Further Market Communication Sessions
Questions
© 53
2006 2007
JSE Analysis & Design
Prepare and Execute Business Operations Proving
9 weeks 18 Sept – 17 Nov
5 Weeks 20 Nov – 22 Dec
Aug OctSept FebJanDecNov Mar
9 Weeks 2 Jan – 2 Mar
JSE/LSE Prepare and Execute Integration Test
User Readiness Actions
Design, Build and Test of Data Vendor / Member Solutions
JSE System Testing
JSE Development
6 Weeks 21 Aug – 30 Sept
Dress Rehearsal
We are here!
Project Timeline
TWG
TWG
Test Infr Readiness Prod Infr Readiness
CTS LIVE
EAS LIVE
New JIMAS
GO LIVE
End Mar
Dress Rehearsal
Dress Rehearsal
Start Date 7 Aug
JSE DevelopmentTALX Analysis & Design
JSE System Testing
TWGTWGTWGTWGTWG TWG
COMMS COMMS COMMS
Customer Conformance
© 54
Project TimelineKey Dates
*Note: These confirm technical go live dates, functional go live for some new functionality to be confirmed
14 August 2006 Kick off JSE SETS TWG session
25 August 2006 Kick off InfoWiz TWG session
8 September 2006 JSE Market Guidance note published
15 September 2006 JSE Market Communication Briefing
9 October 2006 New Enhanced CTS Go live
6 November 2006 New Enhanced Conformance Go Live
27 November 2006 Early Access Service Go Live (EAS = New Prod Environment)
End January 2007 Target date for all solution providers to be conformed
February – March 2007 Mandatory Production Dress Rehearsals (including LCON’s)
17 Feb 2007 & 10 Mar 2007
March/April 2007 JSE Go live – Release 4.1 (current functionality plus)
26 Mar 2006 with contingency 2 Apr 2007
Second Half 2007 JSE TRM Release 4.2 Go live – Release 2 Value Add functionality
© 55
AGENDA Equities Trading System - Market Communication
Background & Objectives
Functional Summary
Technical Summary
Project Timeline
Customer Testing
User Documentation
General
− Connectivity
− Online FAQ’s
− Technical Workgroup Meetings
− Further Market Communication Sessions
Questions
© 56
New enhanced CTS environment supporting the new system functionality has been implemented
Run in parallel to current CTS service to support user software development and testing
Connectivity to this enhanced CTS service will be facilitated through existing user test lines
Standard booking and conformance process and procedures will apply via Customer Support
Accredited Software Providers will conform their solutions once, then roll out SW to all their clients
Legacy CTS service will be decommissioned post the successful go live of the system
Early Access Service (EAS) is the new production environment to which access will be facilitated for testing prior to go live. Prerequisite to connect is conformed software.
New System Customer Development Service (CDS)
Services available for the new system enhanced CTS environment being introduced:-
Legacy Service New Service JSE
Live Simulation Service Live Simulation and Training Service (LSTS)
xTraining Service
Scripted Scenarios ServiceModel-based Testing Service (MBT) x
Customer Specific Service
Volume Input Service Not offered
Customer TestingNew System Enhanced CTS
© 57
Live Simulation and Training Service (LSTS)
The Live Simulation and Training Service (LSTS) is “live-like” and as such provides a quote and order book with the configuration of the live service, containing live securities, live service segments, live service timings and full service rules
A testing tool (ICTT) will enter background orders to ensure that a minimum level of order book depth and trading activity is always present across certain key segments
Reference data will be refreshed weekly from the Production service. To prevent a live data overlay whilst testing trial configurations, functionality will be introduced to dynamically “ring-fence” segments. This allows the preservation of changes made in LSTS prior to deployment on the live system.
The ICTT tool will be used to ensure that a minimum level of order book depth and trading activity is always present across key segments
Customer Testing contd.New System Enhanced CTS
© 58
Conformance Service - High Volume Service
HVS testing is divided into three parts:
− Dissemination of HVS reference data
− Disseminate a High Volume of messages according to the message profile agreed with the business
− Forced re-request confirming that the interactive aspect of the customer’s system is working correctly and ensuring that any messages missed during the High Volumes test have not been ignored by the customer’s system
Cycle No Brief Description of Cycle
HVS Part 1 Reference Data Downloads
HVS Part 2 High Volumes Data Dissemination
HVS Part 3 Forced Re-request
Customer Testing contd.New System Enhanced CTS
© 59
Cycle ID Title Old Cycle ID
T01 Empty Order Book and Empty Trades Book Download New
T02 Pre-Market Trading T01
T03 Logon/Logoff and Loss of Secure Interactive Session T02
T04 Limit Orders T08
T05 Execute and Eliminate Orders T09
T06 Fill or Kill Orders T10
T07 Iceberg Orders T10a
T08 Committed Principal Orders T11
T09 Client Order Reference Modification T12
T10 Order Deletions/Empty own Order Book Download T13
Test Cycles will be introduced or removed according to their fit with live system functionality.
Customer Testing contd.Trading Conformance
© 60
Cycle ID Title Old Cycle ID
T11 Basket Instruction for Enter Order New
T12 Firm Quotes T15
T13 Executable Quotes New
T14 Basket Instruction for Enter Quote New
T15 Trade Reporting T16
T16 Single-sided Trade Reporting T17
T17 Dual-sided Trade Reporting T18
T18 Full Dual-sided Trade Reporting New
T19 Error Messages T21
Customer Testing contd.Trading Conformance
Trading Conformance continued…
© 61
Cycle ID Title
T04 Indicative Exposure Orders
T05 Firm Exposure Orders
T06 Hit Orders
T07 Passive Market Orders
T14 Indicative Quotes
T19 Company Information
T20 Control Information
Customer Testing contd.Trading Conformance
Decommissioned Trading Cycles
© 62
Cycle ID Title
I01 Start of Day Download
I03 Logon/Logoff to Interactive Request Session
I04 Loss of Broadcast and Interactive Request Sessions Rebroadcast
I05 Missed Messages without Loss of Session
I06 Component Failure, Rebroadcast
I07 Indicative Trading, Ex-Markers and News
I08 Firm Trading, Trade Reporting and Uncrossing
I09 Close of Day and Market Changes
The current I10 Disaster Recovery cycle will be decommissioned
Customer Testing contd.Information Conformance
Information Conformance
© 63
AGENDA Equities Trading System - Market Communication
Background & Objectives
Functional Summary
Technical Summary
Project Timeline
Customer Testing
User Documentation
General
− Connectivity
− Online FAQ’s
− Technical Workgroup Meetings
− Further Market Communication Sessions
Questions
© 64
User DocumentationJSE Market Guidance Note
URL: http://www.jse.co.za/jse_initiatives/jsetrad_info_sys/index1.htm
Any recommendations and questions concerning the content detailed in this draft pack may be addressed to: TradingServices@jse.co.za
# Document Name File Name Document Objective Updates
1 JSE TRM Covering Letter 1_JSE_TRM_Covering_Letter_V0.2.doc
An introduction to the JSE TRM project and related Guidance Note pack.
Created
2 JSE TRM Guidance Note 2_JSE_TRM_Guidance_Note_V0.6.doc
A consolidated overview of all the changes being implemented with the transition to the new trading system.
Created
3 JSE TRM Guidance Note – Appendix A – Broadcast Message Layouts
3_JSE_TRM_Guidance_Note_Appendix_A_V0.1.doc
An overview of message layouts for all new broadcast message types and message versions available with the new trading system.
Created
4 JSE TRM Guidance Note – Appendix B – Interactive Message Layouts
4_JSE_TRM_Guidance_Note_Appendix_B_V0.1.doc
An overview of message layouts for all new Interactive message types and message versions available with the new trading system.
Created
5 JSE TRM Guidance Note – Appendix C – Field Definitions
5_JSE_TRM_Guidance_Note_Appendix_C_V0.1.doc
An inventory of those data fields that form part of Appendix A and B defined message layouts.
Created
6 JSE TRM Guidance Note – Appendix D – Advisory Codes
6_JSE_TRM_Guidance_Note_Appendix_D_V0.1.doc
An inventory of available advisory codes Created
7 JSE TRM Guidance Note – Appendix E – Message Matrix
7_JSE_TRM_Guidance_Note_Appendix_E_V0.12.xls
An inventory of new, changed and decommissioned messages.
Created
© 65
User Documentation contd.Customer Test Documentation
Customer Test Documentation will be published next week
New Enhanced CTS Market Guidance Notes
CTS Conformance Scripts and procedures
Model Based Testing
© 66
Equities System Project Food For Thought….
As at today 16 November 2006 there are:-
− Only 6 Mondays left this year
− 25 working days to Christmas
− 18 weeks to the Go Live
− 92 Business days to Go live
− 64 Business days to the 1st Dress Rehearsal
− 79 Business days to the 2nd Dress Rehearsal
− 78 Conformance slots to the 1st Dress Rehearsal
− 96 Conformance slots to the 2nd Dress Rehearsal
− 108 Conformance slots to Go Live
− PLEASE GET YOUR CONFORMANCE BOOKINGS IN EARLY !!!
Copyright© JSE Limited 2005 www.jse.co.za
Questions?
Refer all Equities TRM queries to: TradingServices@jse.co.za
Copyright© JSE Limited 2005 www.jse.co.za
JSE MANAGED NETWORK PROJECTMARKET COMMUNICATION SESSION – CAPE TOWN
16 November 2006
Leanne Parsons (JSE)
Mike Brierley (MTN)
© 69
AGENDAManaged Network – Market Communication
Project Background and Objectives
MTN and Solution Overview
− Company Overview
− Telecommunications: Today and Tomorrow
− MTN Solution Offering
Internet Phase
International Links Phase
Customer Network Phase
− Environment
− Draft Costing
Questions
© 70
AGENDAManaged Network – Market Communication
Project Background and Objectives
MTN NS and Solution Overview
− Company Overview
− Telecommunications: Today and Tomorrow
− MTN NS Solution Offering
Internet Phase
International Links Phase
Customer Network Phase
− Environment
− Draft Costing
Questions
© 71
JSE MANAGED NETWORKProject Background
The JSE Managed Network project was established following a high level assessment of the overall JSE network architecture in order to:
− find ways of optimising customer connections to the JSE and
− manage the impact of increased bandwidth requirements to JSE customers due to the implementation of new Orion applications (e.g. the Market Services Solution and Derivatives Trading Solution).
In April 2005 the JSE embarked on a detailed Request for Proposal and Vendor Selection process to identify the most suitable partner to provide the best possible solution to the JSE and its customers.
An RFP was issued to selected suppliers and evaluation and selection was based on criteria including delivery capability and quality of plan, BEE credentials, cost, long term viability of organisation, technology offered and innovation of solution offered.
MTN Network Solutions was selected as the preferred Managed Network Solution Provider.
© 72
JSE MANAGED NETWORKProject Objectives & Phases
Phase Description
1: Internet Connection Transition of the JSE’s Internet connectivity to a solution using MTN NS for the provision of local and international Internet bandwidth.
2: International Links Transition of the international connectivity between the JSE and the LSE for the JSE SETS system to a MTN NS solution including SAT2, SAT3/SAFE and ISDN.
3: Customer Network Provision to the JSE customers of an alternative connectivity solution (allowing consolidation of customer network lines where appropriate) in order to manage the envisaged costs of the bandwidth requirements for the Market Services Solution and the Derivatives Trading Solution.
Objectives of the overall project include:
− Reduced complexity
− Improved support model
− Higher availability and redundancy
− Cost effective operations
The JSE Managed Network project is being implemented in 3 phases:
© 73
AGENDAManaged Network – Market Communication
Project Background and Objectives
MTN NS and Solution Overview
− Company Overview
− Telecommunications: Today and Tomorrow
− MTN NS Solution Offering
Internet Phase
International Links Phase
Customer Network Phase
− Environment
− Draft Costing
Questions
© 74
JSE MANAGED NETWORKMTN NS – Company Overview
MTN Group & Johncom acquire Citec a small ISP in June 2001.
National core network completely redesigned and rebuilt.
Company renamed to MTN Network Solutions.
Hosting facility in Rosebank opened in May 2003.
Certified as a Cisco Silver partner (2004).
MTN acquires 100% ownership (April 2005).
JUNIPER PARTNER
6 x JNCIA
1 x JNCIS
PROJECT MANAGEMENT CERTIFICATIONS
2 Certified Project Managers
CISCO SILVER PARTNER
25 certified technical staff
51 Cisco certifications
4 x CCIE 21 x CCNA
7 x CCNP 2 x CCSP
2 x CCDA 2 x Wireless LAN
3 x WLAN Support 2 x CVOICE
1 x BCRAN 4 x CCSE (sales)
1 x INFOSEC 2 x BSCI
© 75
JSE MANAGED NETWORKCorporate Telecommunications: Today
PicoCell
ISDN
CorporateWAN
PABX
Remoteaccess
Banking
Real-time data
ISP
RemoteBranch
Intranet
Datacentre
Real-time data
© 76
JSE MANAGED NETWORKCorporate Telecommunications: Tomorrow
Remote accessReal time dataBankingISPVoiceCellular
RegionalBranches
NetworkService Provider
VPN
WLAN data and GSM voice extensions
WWW
Voiceswitch
Voice & GPRS
Datacentre
© 77
JSE MANAGED NETWORKMTN NS Solution Offering
Single, integrated MPLS network
− All points-of-presence reside within MTN switching centers
− Fully redundant core network
− High reliability and availability
Wide geographic footprint
Quality of Service implemented – end to end
Highly redundant local peering
Resilient international peering
© 78
JSE MANAGED NETWORKMTN NS Solution Offering:
Building a Network for the Future
Reliable network
− Strong SLA
− High availability
− QoS
Low cost providers
− Efficient network
− Massive scale
One converged network
− Reduces capex
− Improves scale
Wide product range
− Full telco service offer
− Single point of service and account management
Manageable
− Productive staff
© 79
Harrington
Randburg
Berea
Tygerberg
Rosebank
New Germany
Left Network Right NetworkFully Integrated Network
Tygerberg
Rosebank
NewGermany
Randburg
Berea
Harrington
JSE MANAGED NETWORKMTN NS Solution Offering: Redundant Core Infrastructure
© 80
JSE MANAGED NETWORKMTN NS Solution Offering:
Putting it all together
© 81
3 International POPs
17 SADC POPs
11 SA Cities
JSE MANAGED NETWORKMTN NS Solution Offering:
Wide SADC Footprint
© 82
JSE MANAGED NETWORKMTN NS Solution Offering:
Global Connectivity – Multiple Routes
© 83
Expedited Forwarding
Assured Forwarding
Best Effort
Packet loss
All voice on the link will be affected
Demoted TrafficDifferentiated Services Model – All traffic is not equal
JSE MANAGED NETWORKMTN NS Solution Offering:
QoS
© 84
Mission Critical Corporate Applications
Real-time Financial
Voice
Internet
JSE MANAGED NETWORKMTN NS Solution Offering:
Aggregated Services
© 85
MTN NSCore
MTN NSCore
ADSLADSL GSMGSM
Wireless
Wi-maxWi-Fi
Wireless
Wi-maxWi-Fi
VSatVSat
MetroFibre
MetroFibre
A multi-provider strategy
DiginetATM
WirelessWi-max
Wi-Fi
WirelessWi-max
Wi-Fi
MTNGSM
MTNGSM
JSE MANAGED NETWORKMTN NS Solution Offering:A Multi-Access VPN Strategy
© 86
AGENDAManaged Network – Market Communication
Project Background and Objectives
MTN NS and Solution Overview
− Company Overview
− Telecommunications: Today and Tomorrow
− MTN NS Solution Offering
Internet Phase
International Links Phase
Customer Network Phase
− Environment
− Draft Costing
Questions
© 87
JSE MANAGED NETWORKInternet Phase
The JSE currently uses two Internet Service Providers to provide its local and international Internet bandwidth. In order to meet the requirement for an end-to-end solution, cost saving, and a highly available Internet connection, the JSE will be implementing an MTN NS Internet solution.
The new Internet solution will provide access to local Internet sites via multiple local access points with international access provided via access points in New York and London. This solution is provided on SAT3 with restoration over SAFE.
This implementation will not impact JSE customers but will result in higher availability of JSE websites e.g. JSE, TALX, AltX, Extranet, Satrix, YieldX, SAFEX, etc.
The Internet phase has the following key activities:
Activity Status
Prove business case for JSE to use MTN NS as internet solution provider
Complete
Define and sign-off technical design Complete
Conduct technical impact analysis for required change control
Complete
Pre cut over activities (e.g. domain transfer and registration, hardware purchase, cable installation and configuration)
Work in Progress - Planned completion Dec 2006
Cut-over of Internet from current solution providers to MTN NS
Planned for Jan 2007
© 88
AGENDAManaged Network – Market Communication
Project Background and Objectives
MTN and Solution Overview
− Company Overview
− Telecommunications: Today and Tomorrow
− MTN Solution Offering
Internet Phase
International Links Phase
Customer Network Phase
− Environment
− Draft Costing
Questions
© 89
JSE MANAGED NETWORKCustomer Network Phase:
Proposed Environment
MTN NSMPLS
Network
MTN NSMPLS
Network
Randburg
Rosebank
JSE member
JSE member
JSEDC
NSDC
JSE member
JSE
Customer Network Design
Benefits to Customers
Improved resilience on the access layer : Dual
Connect
Improved redundancy (reliability) in the network
core
Better utilisation of access capacity : Load
Balancing
Comprehensive monitoring and reporting
Quality of Service, enabling converged services
Future access alternatives : Diginet replacement
technologies
Improved access speeds : larger local leads
Cost effective solution
Capability to inexpensively add value-added services
Multiple services through a single managed
interface
A huge value proposition, offering savings, improved reliability, converged services, and a single point of support and management
© 90
JSE MANAGED NETWORKCustomer Network Phase:
Future Environment
Bringing it all together: MTN NS – Africa strategy, fully integrated mobile data, hosting, VoIP.
MTNGSM
Network
MTNGSM
Network
MTN NSMPLS
network
MTN NSMPLS
network
ADSLnetwork
ADSLnetwork
Remotebranch
Africa
GPRS/EDGE3G/HSDPA
Homeuser
DRJSE
WWWWWW
Headoffice
I-Net
Smallbranch
GSMbackup
© 91
JSE MANAGED NETWORKCustomer Network Phase:
Draft Costing
This section provides an indication of the costs that will be incurred by customers for the Managed Network – these costs are indicative only and subject to JSE EXCO approval of the Customer Network Business Case.
The Customer Network comprises of 2 main cost components namely:
− Bandwidth Fee: The fee payable for the use of the bandwidth inside the core MPLS Network
− Management Fee: A fee payable per site/branch regardless of the number of connections/ lines
Customers connecting directly to the JSE POP will only incur a management fee, whilst customers connecting to the MTN NS MPLS network will incur both a management fee and bandwidth costs.
Directly connected to JSE Connecting via MPLS
Management Fee
MPLS Core Bandwidth Cost Not applicable Cost per 64kbps of bandwidth required - See table on next slide
Value Added Services: VPN Extra R300 per 64kbps per month No extra cost
Value Added Services: Internet and Network / Security, etc
Pricing dependent on specific services required by customers but will result in reduced costs as customer is already part of VPN.
© 92
JSE MANAGED NETWORKCustomer Network Phase:
Draft Costing
RSA – National Namibia
kbps Total BW Cost
Cost per 64k
Total BW Cost
Cost per 64k
64 700 700 1850 1850
128 1400 700 3700 1850
192 2100 700 5550 1850
256 2800 700 7400 1850
320 3500 700 9250 1850
384 4200 700 11100 1850
512 5400 675 14400 1800
640 6750 675 18000 1800
768 8100 675 21600 1800
1024 10400 650 28000 1750
1984 20150 650 54250 1750
Applicable costs per month per 64kbps bandwidth in the MPLS Core Network:
Please Note:
– Customers connecting directly to the JSE will still incur Telkom costs
– Customers connecting to the MPLS network will still incur Telkom costs for the last mile
© 93
AGENDAManaged Network – Market Communication
Project Background and Objectives
MTN and Solution Overview
− Company Overview
− Telecommunications: Today and Tomorrow
− MTN Solution Offering
Internet Phase
International Links Phase
Customer Network Phase
− Environment
− Draft Costing
Questions
Copyright© JSE Limited 2005 www.jse.co.za
QUESTIONS?
Refer all Managed Network queries to: managednetwork@jse.co.za
Copyright© JSE Limited 2005 www.jse.co.za
THANK YOU