0001100 0001100 000000 Dynamic Services International, Inc. 0001100 Inc. 000000 amic Services International, 0001100 0001100Inc. 000000 Dynamic Services Inc. 000000International, 0001100 Dynamic Services International, 00000011 000000 000000 0001100 0001100 rnational, Inc. Dynamic Services International, Inc. 0001100 000000 Dynamic International, Inc.0001100 Dynamic Services Municipal Bond SalesServices Incentive and compensation 0001100 000000 Dynamic Services 000000 000000 System Fact Sheet International, Inc. Dynamic Services International, Inc. Web-based application for a Municipal Bond Trading House to track bond sales, derive sales compensation, and analyze sales by customer, bond and bond type, and region Background DSI was approached by a well-established Municipal Bond Trading House to develop a Web-based compensation application for its sales force. The client is active in the sale and trading of Municipal Bonds issued by all 50 states, and has offices in New York, Florida, and California. Challenges 1. Must conform to applicable SEC regulations 2. Must conform to generally accepted accounting standards. application that will meet the Firm's immediate needs, and to the extent possible, provide the ability to adjust incentives to meet future goals without additional programming. PROJECT AT A GLANCE * J2EE Web Application (iPlanet) * Employee Incentive Application * Sales Commission System * Table Driven Business Rules 2. Produce a thin-client, secure, intranet web-based application operating within the corporate firewall. 3. Automate commission calculations to run on a daily basis. 3. Must log all update and delete activities related to security, customer, trader, dates, quantity, commission amount, trader, and trading desk. 4. Commission calculations should be available for restarting and rerunning while maintaining data integrity. 7. Automate the trade-data feed from the IBM DB2 database. Project Benefits The traders typically receive compensation based on a portion of the revenue realized in the successful completion of transactions. The benefits of the project included: . Greater accuracy in the compensation process 5. Application access by user groups will be secured with mandatory password protection. 6. Database platform and programming tools should not be proprietary. Project Objectives Develop a web-based commission system and establish a periodic data feed (trades) sufficient to allow users to maintain and control the commission calculation formula. 1. Design, create, and implement an . Reduction of overhead resulting from manual processing Pay rate control 4. Create quarterly commission feeds to Payroll. 5. Provide user controllable parameters for calculating commissions and sales incentives. 6. Provide a tool to evaluate sales force performance. . Sufficient flexibility to permit the firm to remain competitive in its compensation practices with similar firms trading Munies. Business Highlights 1. The processing logic is based on the foundation of DSI's commission product. 1 57 West 38 Street 12 Floor New York, NY 10018 TEL:212-997-2000 Fax:212-997-4297 0001100 0001100 000000 Dynamic Services International, Inc. 0001100 Inc. 000000 amic Services International, 0001100 0001100Inc. 000000 Dynamic Services Inc. 000000International, 0001100 Dynamic Services International, 00000011 000000 000000 0001100 0001100 rnational, Inc. Dynamic Services International, Inc. 0001100 000000 Dynamic International, Inc.0001100 Dynamic Services Municipal Bond SalesServices Incentive and compensation 0001100 000000 Dynamic Services 000000 000000 System Fact Sheet International, Inc. Dynamic Services International, Inc. 2. Table driven commission pay out rate easy to be administrated. 3. Managers and traders can review production daily 4. The time it takes to review data and produce reports is a fraction of what it was before 5. Analysis is now possible that was not possible before, particularly analysis of sales by customer Seagate Crystal Reports in a Browser. . Commission calculation engine written in Java bean running on application server can be involved real-time, batch or on-demand. . Table driven business rules easy to be controlled by administrative managers. Function List . Commission Calculation Engine: a daily job scheduler controlled by the system administrator to calculate commission rates at the end of the business day. The commission calculation engine consists of a series of programs that process transactions through a number of procedural steps: Technology Highlights . Deploy on Sun Solaris I-Planet web application. . Use JNDI directory services to better manage the distributed applications. . Feed transaction data from IBM main frame DB2 data using XML. . I-net Crystal-Clear enables the use of the market-leading database access and analysis tool on any platform. I-net Crystal-Clear makes reports designed with Seagate Crystal Reports available on any platform due to its leading technology. I-net VOYA is a Viewer for Trade search . Trade capture: the mainframe transmits transaction and trader ASCII files to the Commission Server daily. . Commission Rate Parameter Control: provide a series of screens that 1. Maintain variables for a sequence of commission calculations. 2. Administer the application of commission rates at predefined steps in the processing. Trade split commission Java(TM) technology which enables the presentation of reports done with screens. Different from the commission rate parameters control screen, these screens support a system administrative function that controls and maintains the commission calculation engine. Parameter tables include a holiday table, a table for daily, monthly, quarterly and year-end cut off times, and tables for user login and password maintenance. 3. Support commission simulations (what-if scenarios). . System Parameter Control: exercise system parameter control using a set of system table maintenance 1. Convert downloaded trades to the commission trade layout. 2. Based on commission rate parameter tables, apply pay rate and commission payout to each trade or create additional commission records (e.g. by trading group). 3. Generate MTD commission summary records on a daily basis. 4. At month-end, generate monthly commission summary records. . Daily batch 1. Run the DB2 daily transaction download. 2. Prepare the download for processing. 3. Run the daily trade insertion. 2 57 West 38 Street 12 Floor New York, NY 10018 TEL:212-997-2000 Fax:212-997-4297 0001100 0001100 000000 Dynamic Services International, Inc. 0001100 Inc. 000000 amic Services International, 0001100 0001100Inc. 000000 Dynamic Services Inc. 000000International, 0001100 Dynamic Services International, 00000011 000000 000000 0001100 0001100 rnational, Inc. Dynamic Services International, Inc. 0001100 000000 Dynamic International, Inc.0001100 Dynamic Services Municipal Bond SalesServices Incentive and compensation 0001100 000000 Dynamic Services 000000 000000 System Fact Sheet International, Inc. Dynamic Services International, Inc. 4. Run the daily commission calculation. 5. Generate summary data, month-to-date and year-to-date. Support re-runs and restarts. . Monthly Batch 1. Generate reports from summary data, month-to-date and year-to-date. 2. Close out month and update batch statistics. 3. Create year-to-year comparisons. 4. Support re-runs and restarts. . Quarterly Feed to Payroll: provide input to the payroll system at the end of each quarter. Once the third month of each quarter, as defined in the Parameter Control tables, has been processed, the Administrator is able to generate a file for input to the firm's payroll system for compensation processing. The quarterly feed processing produces reports that display the results of the consolidation of data into the quarterly format. Completion of this step closes out the quarter. Restarts and re-runs are supported. Comparative reports and charts may be created based on the results of the completed processing. . Reports Commission Year-to-Date Summary This report is a spreadsheet that displays current year year-to-date and past year summaries at year-end. The spreadsheet will display commissions by Desk and by Trader, Commission calculation engine commissions by Situation Trade day's commission totals by Desk and by buy / sell; Bid Wanted buy / sell, and Trader, by Situation Trade buy / sell; Bid by lot. It will look similar to the current Wanted buy / sell, and by lot. It may be Excel spreadsheet. viewed online and printed out as required. Trader Commission Monthly This report displays current month-end totals. It will display commissions by Desk and by Trader, commissions by Project Duration 10/2001 - 02/2003 References Available upon request . Year-End Processing: at year-end, to close out the year and to provide comparison reporting over the twelve months and year-to-year, the Commission Compensation application provides a special process. Completion of this step closes out the year. Restarts and re-runs are supported. Trader Commission Transaction Detail The Daily Detail report displays the day's activity Desk and by Trader. It is designed to report show the transactions behind the commissions that were generated that day. It can be run singly for each Desk and each Trader. It may be viewed online and printed out as required. Technology platforms Commission report Situation Trade buy / sell; Bid Wanted buy / sell, and by lot. It may be viewed online and printed out as required. Server OS: Sun Solaris Client: Workstations with Web browsers Database: Oracle 8i on Sun Solaris Application Server: I-Planet Languages: Java, JavaBeans, JSP, JNDI DSI contact Trader Commission Daily This a daily report that aggregates the info@dsii.net (212)997-2000 3 57 West 38 Street 12 Floor New York, NY 10018 TEL:212-997-2000 Fax:212-997-4297