Members submit their ex-clearing trades to OW for real-time matching by the contra-party. Once the submitting party enters the required transaction information, an advisory is sent by OW to the contra-party requesting that they respond by submitting identical transaction details to facilitate a compared obligation, or by affirming the obligation via the OW Web screen. The matched trade is then considered an open obligation.
Open obligations are tracked and maintained in the OW until those obligations are settled, cancelled, or otherwise closed in the system. A daily maintenance function will apply certain mandatory corporate action events, and will forward to CNS those open obligations stored in OW that become CNS-eligible. However, OW is not a guaranteed service, and an obligation forwarded to CNS will only be guaranteed to the extent that the Member meets its settlement obligation on the date the item is originally scheduled to settle in CNS. Additionally, the non-CNS obligations being stored in OW are re-priced to the current market value and re-netted during the periodic RECAPS cycle.
Firms can submit real-time input and receive real-time output using MQ messaging as well as within the OW Web browser screens. Firms will also receive end of day reports reflecting their positions.