The check-in
Engie is a major issuer of NEU CP and US CP, so we met them early in Onbrane’s life.
Its main points were those we had identified for the entire market:
- to have a dedicated Virtual Office where you can connect from anywhere while maintaining high-security standards;
- the willingness to digitize processes to avoid Front-Office traders from having to make manual entries to get trades down into their systems;
- to bring all market players on one platform to guarantee the dynamism of the Commercial Paper market;
- to have access easily to beautifully designed market data visualizations from several sources to better understand the market and its trends.
After exchanging our visions of the NEU CP market and the need to automate the processes, a later visit to Brussels in their trading room, and then a demonstration of the platform, they decided to trust us and start the onboarding.
Engie Onboarding
Onboarding Strategy
Following the interest of Engie’s trading room, we conducted a gradual onboarding. By taking it step by step, we would validate the different levels of integration and make the platform available as soon as possible.
This way, the trader could use Onbrane even if the more advanced IT integration took a little more time.
We usually recommend such progressive integration. This way, we avoid getting lost in long, complex processes. It also allows us to recognize specific milestones as they occur.
Step 1: Onbrane as a negotiation tool
The first step in onboarding was to use the platform as a negotiation platform for commercial paper issuance.
This step does not require IT integration because we do not get into these issues but allows you to trade freely on Onbrane with your collaborators and benefit from these optimized features.
To reach this integration stage, Engie only had to validate two legal documents: the General Terms of Use and the General Terms of Sale.
For Engie, we directly implemented in one day a SAML 2.0 (Security Assertion Markup Language) connection before starting. SAML is a standard for exchanging authentication and authorization identities between security domains.
This means that Engie manages the authentication of its users on Onbrane via its own SAML, making it easier to keep track of who is using Onbrane and makes it easier to execute.
Onbrane has fully adapted to the use of SAML specific to its customers.
NEU CP transactions were then made on Onbrane by Engie on the platform. They were able to validate that the negotiation and validation system was working properly.
At this stage, the recovery of the ISIN code and the transmission to Back-Office systems was still to be done manually. Nonetheless, Engie was able to use the Onbrane platform from the very beginning.
Step 2: Onbrane as a full negotiation (negotiation and Post-Trade) platform
Once this milestone was validated, we immediately moved on to the IT integration of Onbrane with Engie’s Back-Office systems and the recovery of the ISIN code with Euroclear France.
– For the transmission of the transactions carried out on Onbrane into Engie’s Back-Office systems, we set up a flat-file recovery program with integrated mapping of the various fields of the transaction.
– For ISIN code retrieval, we connected Engie’s account on Onbrane to Euroclear France following the POA signed with its Paying agent, which authorizes us to request ISIN codes in their name.
The Proof-of-Work
In June, Engie and Tradition completed their first digitized transaction through the Onbrane platform. Once the ‘Need’ was created, the negotiation module allowed the two counterparties to start presenting offers and counter-offers. How many? That’s a secret!
Once the transactions had been accepted and confirmed by both counterparties, Onbrane directly notified Euroclear France to retrieve the ISIN Code.
The confirmation ticket was then updated with the ISIN Code directly through KTP before going to Engie’s Back-Office system. No manual entry needed anymore from the Front-Office!
The optimized process is now well set up and is used for all new transactions.
From our side, we will continue the onboarding with Engie through a new step: automatizing the instructions of its Paying Agent following the transaction. This will soon be a reality!
Acknowledgment & Testimonies
The implementation of the STP process would not have been possible without Onbrane’s active and thoughtful collaboration with Engie treasurers and their Back-Office and IT teams, led by Gregory Michel and Mickaël Basroger;
“Onbrane was really efficient during the onboarding process. They quickly interfaced Onbrane with our systems and then were capable to swiftly correct bugs that appeared during testing.
Negotiating new debt issuances, retrieving the ISIN codes automatically from Euroclear and subsequently lowering the newly issued transactions into KTP – our treasury system – is now a reality thanks to Onbrane.
Engie is committed to pushing digitalization and innovation to create efficiency and to lower operational risk. With Onbrane, Engie is happy to finally be able to bring its debt issuance process to contemporary standards.”
Gregory Michel, Senior Front Officer, Treasury & Risk Management at Engie
And now your turn?
As you can see, the onboarding of Engie on Onbrane was virtually painless. Companies such as Engie are recognizing just how much of a game changer our product is. By facilitating and digitizing Commercial Paper issuance, we allow all parties to enjoy an easier negotiation and post-trade processes.
You are a Commercial Paper issuer and you want to join Onbrane to facilitate your issuances? You are a dealer, broker or an investor and you want to use Onbrane to improve your commercial papers’ negotiations?
