September 2010 Reporting of Complex & Bespoke Derivatives Progress Update and Forward Perspectives February 12, 2013

Meeting Agenda The implementation approach to comply with CFTC Part 43 and Part 45 for bespoke and complex products by June 30, 2013 The path forward to further standardize the data representation for OTC derivatives

Complying with CFTC Part 43 and Part 45 FpML released in January the initial draft of the 5.5 version which, among others, will provide the ability for reporting participants to fully comply with the CFTC reporting rules. Required Data Implementation Approach Part 43 - Specified fields that were missing from the FpML generic product representation The FpML generic product representation has been expanded to add the 6 missing attributes as part of the 5.5 version of the standard. (See appendix for details.) Part 45 - Specified fields that were missing from the FpML generic product representation The FpML generic product representation has been expanded to add the missing attributes as part of the 5.5 version of the standard: 2 attributes for credit and equity swaps, 1 attribute for FX, 8 attributes for interest rate swaps, 13 attributes for commodity swaps. (See appendix for details.) Part 45 - Any other term(s) of the swap matched or affirmed by the counterparties in verifying the swap Insert the termsheet required by §23.431(a) as part of the disclosure of material information for non-SD/MSP counterparties, as a searchable document. In the case of SDs and MSPs counterparties, insert the trade confirmation as a searchable document. Part 45 – Confirmation terms Insert the trade confirmation as a searchable document. Unique Product Identifier FpML already supports the ability to associate a product identifier to a trade. The product taxonomy will continue to be used as a proxy for the UPI until such time that we define an alternative workable solution jointly with prudential regulators. 1

Standardization – The Path Forward Bespoke & Complex Products currently represent a limited part of the derivatives landscape In August 2012, bespoke and complex products were estimated to represent, on average across asset classes, less than 5% of outstanding notional Credit: 4.96% (TIW data) Rates: 1.79% (Q4 2011 ISDA standardization data) FX: ~2% (based upon information collected from 2 dealers) Equities: 19.46%, with 9.39% for the G14 dealer population (Q4 2011 ISDA standardization data) The enactment of Dodd-Frank provisions introduces several standardization drivers The requirement to execute trade confirmations within strict timelines will lead to a further development of electronic confirmations, which will in turn imply standardization of the legal terms and data representation The CFTC has a role to play to further facilitate this standardization process The industry infrastructure is in place to support such evolution (ISDA product groups, Global FX Division Market Architecture Group, FpML working groups, …). The CFTC also can play a role by engaging market participants and industry organizations if, as a result of the data derived from the reporting mandate, they see volume increasing for certain bespoke swaps and they wish to see terms reported as part of the encoded term sheet or confirmation documents standardized. Bespoke & complex product definition for the purpose of the DMO time-limited no-action relief: not listed for trading on a designated contract market; not available to be traded on a swap execution facility; not eligible to be cleared by a derivatives clearing organization; not eligible to be confirmed through an electronic matching confirmation system; and not represented in Financial products Markup Language (“FpML”)   

Appendix – FpML Generic Product Extensions Part 43 Public Price Transparency Fields FpML XPath Day count convention publicExecutionRecord/trade/genericProduct/dayCountFraction Payment frequency publicExecutionRecord/trade/genericProduct/paymentFrequency Reset frequency publicExecutionRecord/trade/genericProduct/resetFrequency Option Strike Price publicExecutionRecord/trade/genericProduct/strike Option Family publicExecutionRecord/trade/genericProduct/exerciseStyle Option lockout period publicExecutionRecord/trade/genericProduct/commencementDate

Appendix – FpML Generic Product Extensions Part 45 PET Fields for Credit & Equity Swaps FpML XPath Payment frequency of the reporting counterparty nonpublicExecutionRecord/trade/genericProduct/paymentFrequency/payerPartyReference Payment frequency of the non-reporting counterparty Any other term(s) of the swap matched or affirmed by the counterparties in verifying the swap nonpublicExecutionRecord/trade/documentation/attachment with <resourceType>TermSheet</resourceType> with <resourceType>Confirmation</resourceType> Part 45 PET Fields for FX FpML XPath Delivery type nonpublicExecutionRecord/trade/genericProduct/settlementType Any other term(s) of the swap matched or affirmed by the counterparties in verifying the swap nonpublicExecutionRecord/trade/documentation/attachment with <resourceType>TermSheet</resourceType> with <resourceType>Confirmation</resourceType>

Appendix – FpML Generic Product Extensions Part 45 PET Fields for Interest Rate Swaps FpML XPath Day count convention nonpublicExecutionRecord/trade/genericProduct/dayCountFraction Payer (fixed rate) nonpublicExecutionRecord/trade/genericProduct/underlyer/fixedRate nonpublicExecutionRecord/trade/genericProduct/underlyer/payerPartyReference Payer (floating rate leg 1) nonpublicExecutionRecord/trade/genericProduct/underlyer/floatingRate Payer (floating rate leg 2) Direction Swaps: implied by the above Options: nonpublicExecutionRecord/trade/genericProduct/buyerPartyReference nonpublicExecutionRecord/trade/genericProduct/sellerPartyReference Fixed rate day count fraction nonpublicExecutionRecord/trade/genericProduct/dayCountConvention/underlyerReference/underlyer/dayCountFraction Floating rate payment frequency nonpublicExecutionRecord/trade/genericProduct/paymentFrequency/periodMultiplier nonpublicExecutionRecord/trade/genericProduct/paymentFrequency/period nonpublicExecutionRecord/trade/genericProduct/paymentFrequency/underlyerReference  underlyer/floatingRate Floating rate reset frequency nonpublicExecutionRecord/trade/genericProduct/resetFrequency/periodMultiplier nonpublicExecutionRecord/trade/genericProduct/resetFrequency/period nonpublicExecutionRecord/trade/genericProduct/resetFrequency/underlyerReference  underlyer/floatingRate Any other term(s) of the swap matched or affirmed by the counterparties in verifying the swap nonpublicExecutionRecord/trade/documentation/attachment with <resourceType>TermSheet</resourceType> with <resourceType>Confirmation</resourceType>

Appendix – FpML Generic Product Extensions Part 45 PET Fields for Commodity Swaps FpML XPath Quantity nonpublicExecutionRecord/trade/genericProduct/quantity Quantity frequency nonpublicExecutionRecord/trade/genericProduct/quantityFrequency Total quantity nonpublicExecutionRecord/trade/genericProduct/notional/units nonpublicExecutionRecord/trade/genericProduct/notional/amount Settlement method nonpublicExecutionRecord/trade/genericProduct/settlementType Buyer pay index nonpublicExecutionRecord/trade/genericProduct/underlyer/commodity/instrumentId nonpublicExecutionRecord/trade/genericProduct/underlyer/receiverPartyReference, or nonpublicExecutionRecord/trade/genericProduct/underlyer/buyerPartyReference Buyer pay averaging method nonpublicExecutionRecord/trade/genericProduct/underlyer/averagingMethod Seller pay index nonpublicExecutionRecord/trade/genericProduct/underlyer/payerPartyReference, or nonpublicExecutionRecord/trade/genericProduct/underlyer/sellerPartyReference Seller pay averaging method Option style nonpublicExecutionRecord/trade/genericProduct/exerciseStyle Hours from through nonpublicExecutionRecord/trade/genericProduct/settlementPeriod/startTime/time/hourMinuteTime nonpublicExecutionRecord/trade/genericProduct/settlementPeriod/endTime/time/hourMinuteTime Hours from through time zone nonpublicExecutionRecord/trade/genericProduct/settlementPeriod/startTime/time/location nonpublicExecutionRecord/trade/genericProduct/settlementPeriod/endTime/time/location Days of week nonpublicExecutionRecord/trade/genericProduct/settlementPeriod/applicableDay Load type nonpublicExecutionRecord/trade/genericProduct/grade Any other term(s) of the swap matched or affirmed by the counterparties in verifying the swap nonpublicExecutionRecord/trade/documentation/attachment with <resourceType>TermSheet</resourceType> with <resourceType>Confirmation</resourceType>