MONITORING COUNTERPARTY RISK // EMIR BLOOMBERG SOLUTIONS OCT // 2013 FIXED INCOME APPLICATION SPECIALIST

EMIR AT A GLANCE G-20 commitment after Pittsburgh summit (Sep. 2009): “All standardised OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end 2012 at the latest. OTC derivative contracts should be reported to trade repositories.” EMIR REPORTING CLEARINGEXECUTION

EMIR KEY REQUIREMENTS STANDARDISED OTC DERIVATIVES  Execution on an exchange or an electronic trading platform  Clearing through a CCP  Mandatory reporting to Trade Repositories  Systematic collateralisation NON STANDARDISED OTC DERIVATIVES  Risk mitigation initiatives  Valuation by both parties  Mandatory reporting to Trade Repositories  Systematic collateralisation

AGENDA »EXECUTION »REPORTING »CLEARING »VALUATION »COLLATERALISATION

MONITORING COUNTERPARTY RISK // EXECUTION BLOOMBERG SEF – TIMELINE (DODD FRANK) STEPDATEDONE Provisional Registration filedJune 1, 2013 Provisional Registration obtainedAugust 5, 2013 Bloomberg SEF liveOctober 2, 2013 Made Available to Trade (MAT)From Dec 2013 FOR REFERENCE ONLY, THIS IS EXPLICITLY NOT RELATED TO EMIR

MONITORING COUNTERPARTY RISK // EXECUTION BLOOMBERG SEF – TRADE WORKFLOW SD Hedge Funds MSPs Banks Fund Managers SEF Environment Landing screen RFQ Order Book Clearing & Reporting CCP SDR FOR REFERENCE ONLY, THIS IS EXPLICITLY NOT RELATED TO EMIR

MONITORING COUNTERPARTY RISK // EXECUTION BLOOMBERG SEF – LANDING SCREEN Participants navigate trading between different asset classes Access to Rule Books, participation agreements FOR REFERENCE ONLY, THIS IS EXPLICITLY NOT RELATED TO EMIR

MONITORING COUNTERPARTY RISK // EXECUTION BLOOMBERG SEF – ORDER BOOK & RFQ FOR REFERENCE ONLY, THIS IS EXPLICITLY NOT RELATED TO EMIR

MONITORING COUNTERPARTY RISK // CLEARING D.F.: March 11 (cat. 1); June 12 (cat. 2), Sep 9 (cat. 3) EMIR – Second Half 2014 (est.) SWPM LCH IM calculation for clients SWPM LCH IM calculation for members Available soon:  LCH IM calculation for a portfolio of derivative transactions  Additional CCPs

MONITORING COUNTERPARTY RISK // CLEARING – BLOOMBERG ELECTRONIC PLATFORM WORKFLOW BBTI Multi-Dealer RFQ Select Bid or Ask of swap tenor Enter swap notional Select Margin Select LCH for CCP Launches LCH Margin tool within SWPM SWPM Pre-trade analytics Assess margin requirements

REPORTING SDR for raw data SDRV for analysis Dodd Frank – Jan 1 st 2013 EMIR – July 1 st 2014 (est.)

VALUATION SWPM Pricer for Interest Rate Derivatives MARS Multi Asset Risk System

VALUATION - BVAL DERIVATIVES BVIP BVAL - Independent Valuation for Derivatives & Structured Notes

COLLATERALISATION