Developments in Distributed Ledger Technology: Derivatives Processing November 30, 2017 ANDREW P. CROSS WASHINGTON, D.C.

Overview of Today’s Presentation Introduction to DLT and Blockchain DLT and Derivatives Processing

Introduction to DLT and Blockchain Enter You Tube Video https://www.youtube.com/watch?v=6AbqrkOShkQ Thank You to Laurie Rosini Laurie Rosini Associate Seattle T: 206.359.3052

DLT and Derivatives Processing: ISDA Whitepapers and DLT-Related Developments 8/3/2017 Smart Contracts and Distributed Ledger – Legal Perspectives 9/19/2017 The Foundations of an Efficient Market Infrastructure 10/16/2017 ISDA Common Domain Model Version 1.0 Design Definition Document 10/18/2017 A Blueprint for the Optimal Future State of Collateral Processing* 10/31/2017 ISDA RFQ for Data Analysis and Production of Digital Artefact for ISDA Common Domain Model 11/30/2017 ISDA Conference on Technology & Standards Unlocking Value in Derivatives Markets http://www2.isda.org/functional-areas/infrastructure-management/market-infrastructure-and-technology/ * http://www2.isda.org/functional-areas/infrastructure-management/collateral/

DLT and Derivatives Processing: Major Themes Challenge: Strained infrastructure that is too costly and inefficient to be sustainable Self-governed industry solutions preferred over mandated solutions (i.e., regulations) “Mutualization” of technology and operational processes among financial institutions, end users and regulators All parties will work from a common, shared DLT platform Develop standardized data processing (CDM)

DLT and Derivatives Processing: Common Domain Model Product Data Set Will Represent Any Financial Markets Product or Processes Use Smart Contract Technology to Have Automatable and Enforceable Processes Run Financial Transactions Over a Distributed Ledger DLT Will Allow for Common Services in Respect of Financial Transactions Collateral is specifically mentioned

DLT and Derivatives Processing: Collateral Current State Expensive, Bespoke, Manual and Inefficient Future State Cost-effective, Standardized, Distributed and Efficient Proposed Initiatives Digitized CSAs, Central Trade Valuations, Standard Collateral Eligibility Schedules, Centralized Interest Calculation and Matching, and Adoption of Messaging Standards

Questions? ANDREW P. CROSS 202-654-6379 across@perkinscoie.com