Amendment_4_-_Agenda_for_Focus_Group_Discussion.pdf

RFI-BPD-13-0069 – OPDA Securities Liquidation

Amendment 4 - Agenda for Focus Group Discussion

June 17, 2013, 12:30 pm – 3:30 pm, EST

I. Opening Remarks (5 minutes)

II. Overview of the Security Liquidation Program (15 minutes)

III. Interested Vendors Submitted Questions & Comments (45 minutes)

1. Has a new due date been set for proposal submission?

2. Is the security liquidation program an All or None proposition? IE could it be open to multiple contractors as is typical in the brokerage business?

3. Can contractors bid on specific parts of the program? IE we are an equities dealer and believe our business model would offer significant value in your question to sell equities at the most favorable price. We do not, however, trade bonds. Does that exclude us?

4. Must all of the Contractor Qualifications apply directly to applying brokers or can it apply to their clearing brokers? For example, Goldman Sachs is our clearing broker and meets all criteria (all our trades clear through them) but we ourselves are not a clearing broker.

This is common practice in industry and I believe you will find very few small businesses that self-clear (the back end process that transfers $$$ and securities between entities).

5. Is Treasury open to requesting an exemption for the Affirmative Action Program requirement for this solicitation?

6. Does this procurement action require the contractor or vendor to use subcontractors?

7. If a full service investment bank bids on this solicitation and does not foresee need to use subcontractors, how do you wish them to address the subcontracting plan element in the draft solicitation?

8. Section 4.2: We feel that registration with FINRA should be the sole requirement as

NYSE, NYSEMKT and NSCC are no longer responsible for their self-regulation and have transferred that responsibility to FINRA.

9. Section 4.5: Since the Medallion Signature Guarantee Program is rarely used anymore in the industry, we feel that its requirement should be reconsidered.

10. Section 9.5: For your benefit, order acceptance within two business days is much too long and perhaps be changed to a faster, more market sensitive time frame.

11. Section 9.8: Wording of this clause implies that the government can refuse an entire transaction once executed. This could potentially be a violation of standard practices.

While it's always within a customer's right to cancel an order before execution, an executed trade (or partial thereof) becomes a bona fide contract to which the client is held.

IV. OPDA’s Questions (1 hour & 10 minutes)

1. If you have not proposed on our previous RFP postings, what is preventing your company from submitting a proposal for the Security Liquidations Solicitation?

2. Is there anything in the draft solicitation that is not clearly defined or lacking information?

3. Are the ordering procedures, Section 9.0, pages 11-13, consistent with industry practices and clearly defined?

4. What is the industry practice or standard for establishing, publishing, and applying annual fees to liquidated securities? How would you recommend the government structure the draft pricing template, refer to Attachment A - OPDA Securities Liquidation Fees &

Commission Rates?

5. What is the relationship terminology (i.e. clearing house, broker-dealer) in the industry and how do or could they partner together to liquidate securities for customers?

6. In relation to liquidating securities, what circumstances is the Medallion Signature

Guarantee used and at what business relationship levels (i.e. prime contractor versus partners, subcontractors or other business arrangements)?

7. What other industry standards and practices should the government consider in fulfilling the government's requirement?

V. Open Session for other pertinent Focus Group Questions & Feedback (45 minutes)

THANK YOU FOR YOUR INTEREST IN THIS REQUIREMENT

AND PARTICIPATING IN THE FOCUS GROUP DISCUSSION