Create SERVER for Federated setup issue...help needed

Hi all,

I am having problem creating "SERVER" for DB2 federated replication and I have some questions about the create server parameters. Please note my questions followed by the SQL that I am using and the error message that I received.
My questions are:

(a) Is it absolutely required that "AUTHORIZATION" and "PASSWORD" be specified to be able to create a DB2 SERVER for federated replication?

(b) Is the "AUTHORIZATION" and "PASSWORD"  information to come from the mainframe, as in our case, or is it to come from the client/server side?

Any help will be highly appreciated...
-- ---------------------------
-- DDL Statements for WRAPPER
-- ---------------------------

CREATE WRAPPER "DBTWRP"

   LIBRARY 'libdb2drda.a'

   OPTIONS (DB2_FENCED  'N'

     );

 -- ---------------------------

-- DDL Statements for SERVER

-- ---------------------------

CREATE SERVER "NMA1DB2T"

   TYPE DB2/390

   VERSION '7'

   WRAPPER "DBTWRP"

   OPTIONS

     (DBNAME  'NMA1DB2T'

     ,PASSWORD  'Y'

     );

 
------------------------------------

CREATE SERVER "NMA1DB2T" TYPE DB2/390 VERSION '7' WRAPPER "DBTWRP" OPTIONS (DBNAME  'NMA1DB2T' ,PASSWORD  'Y' )

DB21034E  The command was processed as an SQL statement because it was not a
valid Command Line Processor command.  During SQL processing it returned:
SQL1822N  Unexpected error code "Remote authid/password missing" received from
data source "". Associated text and tokens are "".