Transitioning to eGAINS WELCOME eGAINS Participants Transitioning to eGAINS Information Sessions

Hosts: Futures Industry Association (FIA) Clearing Corporation (CCorp) Markit Group Participants: eGAINS Users (London, New York, Chicago)

Presentation Schedule (via WebEx) On-Site Training Schedule – London 3:30 – 4:30 p.m. (London time) Agreements: Transition EGUS to eGAINS (Thursday, April 3; Tuesday, April 8) Trade Processing: Trade Flow, Layout, Reports (Thursday, April 10; Tuesday, April 15) Banking: Billing Cycle and Money Flow (Thursday, April 17; Tuesday, April 22) Iterations: Implementation Feedback and Enhancements (Thursday, May 1) On-Site Training Schedule – London User training sessions shall be conducted in London June 9-13 Details regarding time and location to follow

I. Agreements   Purpose Transition and Validate EGUS Agreements and Rates to eGAINS Fundamental Issue/Question How does EGUS talk to eGAINS? Agenda Thursday, April 3 Tuesday, April 8 3:30 – 4:30 p.m. (London time) EGUS/eGAINS Agreement and Rate Uploads (FIA) Electronic Manual Participant Set-up Rate Verification One-to-One Link: Agreement/Account #/Rate eGAINS Overview (FIA, Markit) Role of Systems Providers Participating Exchanges Settlement Currency System Access Exhibit Review Data Mapping (CCorp) Learning Environment Access (CCorp) Testing Module (CCorp) Trade Load Auto Upload Individualized Testing: Phases 1-3 (CCorp) Resource Links Contacts II. Trade Processing Examine Exchange Trade Flow, Data Layout and Position Posting and Report Generation How can I validate my trade data? Thursday, April 10 Tuesday, April 15 Exchange Trade Flow and System Requirements (CCorp) Overview: How does eGAINS work Trade Mapping Exchange Codes Product Codes Platform Transaction Source Codes Deadlines (Agreement Changes and Maintenance) Record Layout–Output Review (CCorp) Detailed Character Layout Month-End Cycle (FIA) Trade Processing (FIA) Rates Position Reconciliation Pay/Collect Reconciliation Outputs: Reports, T+1 and Month-end (CCorp) Confirmation / Change Processing On-line Data Files and Downloads III. Banking Review Month-End Adjustments, Billing Cycle, and Money Flow How are pay/collects managed? Thursday, April 17 Tuesday, April 22 Participant Banking Instructions and Maintenance (FIA) Banking Overview and System Functionality (FIA) Confirmation of Banking Instructions (mechanics and deadlines) Changing Banking Instructions Month-End Processing Deadlines (FIA) Third Party Billing Reports (CCorp) Managing Accruals (FIA) Systems Testing (CCorp) Help Desk IV. Next Iteration Review Implementation Feedback and Systems Enhancements What is the next step? Thursday, May 1 Feedback – A Formal Checkpoint Testing Systems Launch Review Participant Wish List Procedure for adding (new) FX Settlements (FIA) Other Exchange Participants (FIA) Reducing the Credit Window (FIA)

Housekeeping – Addendum to Initial Presentation (April 10) Within your firm, please appoint an eGAINS Training Contact and forward the details (firm name, training contact name, telephone number, email address) to David Adam (dadam@futuresindustry.org, 312.786.3821) In EGUS, Admin, Search Institution and Parties, Maintain Parties: Populate Exchange / Firm Code

Session 2. Trade Processing: Exchange Trade Flow, Data Layout, Position Posting and Report Generation Purpose Review Exchange (Eurex, ICE, Liffe) transmission of give-up trade data to eGAINS.   Fundamental Issue/Question How can I validate my trade data? 

Session 2. Trade Processing: Trade Posting and Validation Agenda  Exchange Trade Flow and System Requirements (CCorp) Overview: How does eGAINS work? Trade Mapping Exchange codes Product codes Platform Transaction source codes Deadlines (Agreement Changes and Maintenance) Record Layout – Output Review (CCorp) Detailed Character Layout

Session 2. Trade Processing: Trade Posting and Validation Agenda Continued   Month-End Cycle (FIA) Trade Processing (FIA) Rates Position reconciliation Pay/Collect reconciliation Outputs: Reports, T+1 and Month-end (CCorp) Confirmation / Change Processing On-line Data Files and downloads Resource Links Contacts

Exchange Trade Flow and System Requirements (FIA) Continued Overview: How does eGAINS work? Given a completed give-up agreement and rate schedule in EGUS, the eGAINS system shall:   Obtain give-up agreement and rate from EGUS (daily download from EGUS to eGAINS). Receive the end-of-day give-up transaction file from the participating exchange(s). Look up the execution agreement, account, rate, and calculate the give-up transaction fees. Provide the participants T+1 reports and end-of-month preliminary and final reports. Allow participants to review trade details, modify transactions, resolve discrepancies, and confirm or reject trade changes. Complete the billing cycle, eGAINS automatically debits and credits the clearing and execution participants respectively.

Exchange Trade Flow and System Requirements (FIA) Continued At launch, eGAINS will support cleared futures and options give-up transactions executed on Eurex, ICE, and Liffe. Exchange product codes contained on the trade records are passed-thru to the eGAINS users. In the event of differences between commodity codes/ticker symbols/product designations, eGAINS defers to the Exchange code supplied on the trade record. eGAINS will support eleven currency types (at launch). These include: CHF, EUR, GBP, ISK, JPY, NOK, PLN, SEK, TRY, USD, and ZAR. With respect to banking, FIA Tech is working with a global financial institution to process month-end settlements (i.e., transmit and receive give-up payments). Settlement accounts at the financial institution reside in London for non-USD payments and New York for USD payments. eGAINS recognizes the following participant types: Executing Firm, Clearing Firm, and Third-Party. Since participating Exchanges agree to transmit give-up trade data only to the degree that the counterparties are eGAINS participants, please meet with your counterparties regarding eGAINS participation. Permission agreements, authorizing the Exchange to forward give-up trade data to eGAINS, must be completed in advance of eGAINS participation and filed with FIA Tech.

Exchange Trade Flow and System Requirements (FIA) Continued eGAINS Participant ID provides user access to view or update the trade records. eGAINS Participant IDs are based on exchange clearing relationships and the maximum number of IDs is contingent on the number of firm mnemonics at the exchange. For instance, if an institution has two clearing firm affiliates at a respective exchange, eGAINS may crate two user IDs. Even though eGAINS can create distinct IDs per relationship , it is not necessary to create an ID per relationship since the institution may want to group all trade activity under one ID - see below illustrations. Complete the eGAINS Participant – User Set-Up Information form to establish a firm profile. Contact FIA Tech with set-up questions.

Exchange Trade Flow and System Requirements (CCorp) Continued

Exchange Trade Flow and System Requirements (CCorp) Continued

Exchange Trade Flow and System Requirements (CCorp) Continued Trade Mapping CCorp worked closely (and continues to interface) with the Exchanges’ IT teams to receive test trade files, unpack the trade data and create templates for eGAINS data integration. Record layouts and field parameters have been defined and daily transmission of Exchange production data is scheduled for mid-May. Following May’s receipt of production data, CCorp shall distribute a detailed, full-scale testing schedule (Phases 1-3). Exchange Codes Eurex: XEUR ICE: ICE Liffe: LIFFE Exchange codes, received by the participating Exchanges, are synched to related EGUS designations and populated into eGAINS. Product Codes The Exchanges use unique identifiers or strings of data to differentiate exchange, product, and class. This allows for standardization across trading systems, among service providers and with member firms. Communication therefore, with respect to product, is standardized and consistent.

Exchange Trade Flow and System Requirements (CCorp) Continued Liffe, for instance, constructs product codes by combining a description of exchange, derivative or product type, and contract name. For example: Currency Derivatives Product Code Designation: LFED and LOED  L= Market code for London Financial Exchange F = Product type for futures (or O for Options product type) ED = Product code for Eurodollar (i.e. the underlying asset the derivative is based on)   Conversely EGUS/eGAINS does not display product codes but rather product groups and their codes. CCorp is working with the Exchanges and Markit to synch codes where required.

Exchange Trade Flow and System Requirements (CCorp) Continued Platform Multiple trading venues or platforms (i.e. Liffe’s BClear and Connect) contain identifiers on the Exchange’s trade records that are passed-thru to eGAINS. Therefore, for the sake of differentiating like products traded through different venues, eGAINS recognizes one exchange (as opposed to separating platforms into exchanges) with multiple platforms (characterizing BClear as a separate platform not exchange). Transaction (Trans) Source Codes Method of execution, or transaction source (client or desk), is defined in EGUS. With respect to populating rates into EGUS as well as retaining the rates in the firm’s back-office, the specific cost of execution is known. That said however, it is not certain if the Exchanges are able to capture and pass-thru to eGAINS a method of execution indicator. Firms developed creative work-arounds (current practice) to distinguish method of execution (adding a character to the account number, i.e., tilde “~”) so as to reconcile exchange data to their books. Although functional, the work-around solution is not systematically practical for all participants. CCorp is working closely with the Exchanges to create a similar logic stream so as to capture the

Exchange Trade Flow and System Requirements (CCorp) Continued transaction source code on the trade record thereby foregoing the firms’ work-around. Upon completion, firms will need to identify the method of execution on the trade. Deadlines (Agreement Changes and Maintenance) At the end of the trade day, Exchanges transmit the daily give-up trade files to eGAINS. Agreement and rate changes effectuated in EGUS are expected to be applied same day to the eGAINS daily give-up trades received from the Exchanges. CCorp is negotiating the cut-off time (i.e. 4 hours prior to start of the batch cycle; 4:00 p.m. given an 8:00 p.m. batch) for effectuating a same-day change to an EGUS agreement or rate. Further, work in process relative to establishing a schedule for updating the system intra-day (i.e. populate updates hourly).

Record Layout – Output Review (CCorp) Detailed Character Layout Agreement Details EGUS eGAINS EGUS Agreement ID 15033166 15033166 Group ID 15033166 15033166 New or Change New Production or Test Prod Customer Reference John Q. Customer John Q. Customer Agreement Type Standard Creation Date 4/01/2008 Approval Date 4/01/2008 4/01/2008 Update Date 4/01/2008 Effective Date 4/01/2008 4/01/2008 Bill Who Clearing Broker Bill Carry Participant Profit Center 9400 9400

Record Layout – Output Review (CCorp) Continued Detailed Character Layout Parties EGUS eGAINS Party Code 12345 Name ABC Securities Type Clearing Broker Carry Participant Exch Firm Code ABC LIFFE ABC Accounts Clearing Accounts L2400 L2400 Description London AG Effective Date 4/01/2008 Executing Accounts 25001 25001

Record Layout – Output Review (CCorp) Continued Detailed Character Layout Tiers EGUS eGAINS Fut/Opt/Both Fut/Opt/Both Fut/Opt/Both Client Electronic .50 .50 contingent on exchange Client Voice 1.00 1.00 and/or Desk Electronic 1.50 1.50 firm Desk Voice 2.00 2.00 pass-thru trade indicator Product Code / Group ED ED Trade Type all all Spread Y/N Y Y Rate Currency USD USD

Month-End Cycle Management (FIA) Month-end processing deadlines include: Business Day Activity/Deadline 1st Bus. Day Complete prior month trade processing   7th Bus. Day (8 p.m., EST) Deadline for executing firm to correct/adjust trades 15th Bus. Day (8 p.m., EST) Deadline for clearing firm to re-accept or reject trades 16th Bus. Day FIA Tech enters debits into banking system 17th Bus. Day Clearing firms’ accounts are debited; credit float begins Last Bus. Day Deadline for firms to submit bank changes (names, locations, accounts) 60 Bus. Day from debit End of float period (variable)

Trade Processing (FIA) Prior to launch, a detailed comprehensive review or parallel test will be conducted with production data. The test, conducted in three phases, will focus on rates, trades, and monies. Participants shall be advised of timing details and test scripts/scenarios when the schedule is finalized; ETA end of May. Rates  Q. How will rates I enter in EGUS appear in eGAINS?  A. On a nightly basis, eGAINS retrieves all agreement and rate information from EGUS. The rates and trade details are viewable online as it applies to executed give-up trades (Illustration 1 is a typical report capturing daily give-up trades for executing participants).

Trade Processing (FIA) Continued Illustration 1: GNS00001, Daily Report for Executing Participant GNS00001 CLEARING CORPORATION MM/DD/YY GIVE UP AUTOMATED INVOICING SYSTEM (GAINS) HH24:MI:SS TRADE DETAIL DAILY REPORT FOR EXECUTING PARTICIPANTS PAGE: No. EXECUTING PARTICIPANT: XXXXX - XXXXXXXXXXXXXXXXXX ------------------------------------------------------------------------------------------------------------------------------ P O B S TRADE EX CA CNTRCT STRIKE / / ORDER TRADE TR TR AGRMNT / G-U RATE G-U FEE T DATE EX EX COM MON YR PRICE C C NUMBER PRICE SR TY NUMBER CUR QTY S A CARRY PARTICIPANT ID: XXXXXX CARRY ACCOUNT: XXXXX CARRY DISPLAY ACCOUNT: XXXXXX EX ACCT: XXXXXX MM/DD XX XX XXX XX XX XXXXX X X XXXXXXXXXXX XXXXXX XX XX XXXXXXXXXXX XXX XXX X XXXXXX.XXX XXXXXX.XX X SUB TOTAL : XXXX XXXXXXX.XX   CARRY PARTICIPANT ID: XXXXXX CARRY ACCOUNT: XXXXX CARRY DISPLAY ACCOUNT: XXXXX EX ACCT: XXXXXX

Trade Processing (FIA) Continued Q. How does e-GAINS match rates on my trades? Exchange trade data contains counterparty, account numbers, and commodity codes which are cross-referenced against eGAINS account and rate information (uploaded daily from EGUS and/or input direct into eGAINS by the user). In the event a match is not found, users will receive an exception report indicating "no match" or unlinked trade. Q. Can you override a rate for a specific trade? For instance, on a one-off basis, I may choose to reduce my execution fee due to the size of the transaction.  A. No. Rates cannot be overridden however the total give-up fee or charge for the transaction may be modified. The change, initiated by the executing firm, shall appear on the daily and monthly give-up reports.

Trade Processing (FIA) Continued Q. Will I be able to identify which rates originated from EGUS agreements vs. which originated from non-EGUS agreements?  A. Yes. There is an indicator in the Rate Offload File for firms to identify EGUS rates from non-EGUS rates.   Q. What happens if I add or change an agreement in eGAINS that already exists in EGUS? A. When the next EGUS agreement extract runs, the agreements/rates will be replaced with the corresponding EGUS agreement. The rate changes, added direct to eGAINS, will be lost. The best solution for managing rates is to modify EGUS.

Trade Processing (FIA) Continued Position Reconciliation Position match-off between the participant’s internal ledger (books) to eGAINS is the responsibility of the participant. eGAINS provides no position or rate reconciliation tool to facilitate an automated comparison. That said, firms are encouraged to manage eGAINS position details daily. In the event you seek to build an internal reconciliation tool, CCorp has defined the necessary record layouts and character parameters. Similarly, services are available for outsourcing the program and database construction (i.e. VVA Systems). eGAINS trades are stored online for 45 days coinciding with the end of the monthly banking cycle. Markit however shall retain the historical files for recall.

Trade Processing (FIA) Continued Pay/Collect Reconciliation Pay/collect match-off between the participant’s internal ledger (books) to eGAINS is the responsibility of the participant. eGAINS provides no position or rate reconciliation tool to facilitate an automated comparison. Q. Does FIA Tech manage eGAINS pays and collects?   A. Yes with respect to providing monthly pay/collect instructions to the banking correspondent. No, with respect to funds movement. The global financial institution processes the funds transfer(s) as instructed by FIA Tech.

Trade Processing (FIA) Continued Q. As an executing and clearing participant, will eGAINS net my pays and collects?   A. No. All payments are gross and viewed as unique and distinct transactions. Further, even though rates within the give-up agreement may be denominated in the same currency at multiple exchanges, clearing participants are debited on the 17th business day and executing participants are credited on the 60th business day following the clearing firm debit. Hence the timing of pay/collects preclude netting.

Output: Reports (CCorp) All end of trade day reports (available T+1) as well as month-end, reports shall be available for online viewing and downloading (ASCII text files). Reports are patterned after GAINS - therefore users, familiar with the former GAINS report (i.e. GNS00001) content and layout, ought be familiar with eGAINS report content and layout. Confirmation / Change Processing In keeping with the monthly eGAINS Payment Schedule, trade record changes (the responsibility of the executing firm) must be complete by the 7th business day. The carry firm (carry firms have reject authority and rejects are typically done due to rate, account, adjustment, trade and/or payment discrepancy) must act on the change request by the 15th business day. It is in the carrying firms best interest to monitor trade status changes (especially as the 7th business day approaches). Changes are reflected in the preliminary monthly data files.

Output: Reports (CCorp) Continued On-line eGAINS provides an interface to query and obtain trade status (reflects daily and month-to-date detail of trade activity).

Output: Reports (CCorp) Continued Data Files and Downloads Users are provided eGAINS detail and summary reports recapping month-to-date executing and carrying firm give-up trades as well as month-end banking pay/collect details. eGAINS output and data files mirror GAINS. The following illustrations provide examples of give-up reports: GNS00002: Trade Detail – Daily Report for Carry Participants GNS00003: Trade Detail – End of Month Report for Executing Participants

Output: Reports (CCorp) Continued GNS00002 CLEARING CORPORATION MM/DD/YY GIVE UP AUTOMATED INVOICING SYSTEM (GAINS) HH24:MI:SS TRADE DETAIL FOR THE DAILY REPORT FOR CARRY PARTICIPANTS PAGE: No. CARRY PARTICIPANT: XXXXX - XXXXXXXXXXXXXXXXXX ------------------------------------------------------------------------------------------------------------------------------ P O B S TRADE EX CA CNTRCT STRIKE / / ORDER TRADE TR TR AGRMNT / G-U RATE G-U FEE T DATE EX EX COM MON YR PRICE C C NUMBER PRICE SR TY NUMBER CUR QTY S A EXECUTING PARTICIPANT ID: XXXXXX EX. ACCOUNT: XXXXX CARRY DISPLAY ACCOUNT: XXXXXX CARRY ACCT: XXXXXX MM/DD XX XX XXX XX XX XXXXX X X XXXXXXXXXXX XXXXXX XX XX XXXXXXXXXXX XXX XXX X XXXXXX.XXX XXXXXX.XX X SUB TOTAL : XXXX XXXXXXX.XX   TOTAL FOR EXECUTING PARTICIPANT : XXXXXX TOTAL REVENUE : XXX LESS REJECTED TRADES : XXX NET REVENUE : XXX COMBINED TOTAL REVENUE : XXX COMBINED TOTAL NET REVENUE : XXX

Output: Reports (CCorp) Continued GNS00003 CLEARING CORPORATION MM/DD/YY GIVE UP AUTOMATED INVOICING SYSTEM (GAINS) HH24:MI:SS TRADE DETAIL END OF MONTH REPORT FOR EXECUTING PARTICIPANTS PAGE: No. EXECUTING PARTICIPANT: XXXXX - XXXXXXXXXXXXXXXXXX ------------------------------------------------------------------------------------------------------------------------------ P O B S TRADE EX CA CNTRCT STRIKE / / ORDER TRADE TR TR AGRMNT / G-U RATE G-U FEE T DATE EX EX COM MON YR PRICE C C NUMBER PRICE SR TY NUMBER CUR QTY S A   CARRY PARTICIPANT ID: XXXXXX CARRY ACCOUNT: XXXXX CARRY DISPLAY ACCOUNT: XXXXXX EX ACCT: XXXXXX MM/DD XX XX XXX XX XX XXXXX X X XXXXXXXXXXX XXXXXX XX XX XXXXXXXXXXX XXX XXX X XXXXXX.XXX XXXXXX.XX X SUB TOTAL : XXXX XXXXXXX.XX TOTALS FOR CARRY PARTICIPANT : XXXXXX TOTAL REVENUE : XXX XXXX XXXXXXX.XX LESS REJECTED TRADES : XXX XXXX XXXXXXX.XX NET REVENUE : XXX XXXX XXXXXXX.XX COMBINED TOTAL REVENUE : XXX XXXX XXXXXXX.XX LESS REJECTED TRADES : XXX XXXX XXXXXXX.XX COMBINED TOTAL NET REVENUE : XXX XXXX XXXXXXX.XX

Resource Links Information, agreements, links and resources will be distributed when complete. These include: Legal Agreement links Timelines Frequently Asked Questions (FAQs) Learning Environment link Spreadsheet for test trade submissions Data Layout Specifications Phase 1-3 Test Plans Report Types and Detail (45 Total)

Contacts FIA Tech Robert Drew, Consultant, 07812991191, rdrew@futuresindustry.org David Adam, Consultant, 312.786.3821, dadam@futuresindustry.org Ron Metcoff, Treasury Consultant, 215.272.6593, rmetcoff@futuresindustry.org Krystal Atha, Relations Manager, 202.466.5460, katha@futuresindustry.org David Wilson, Technology Project Manager, 202.466.5460, dwilson@futuresindustry.org Mary Ann Burns, Executive Vice President Industry Relations, 202.466.5460, maburns@futuresindustry.org CCorp Marc MacQuarrie, Client Services and Support, 312.786.5732, marc.macquarrie@clearingcorp.com James Woods, Vice President, Production Management Group, 312.786.5715, james.woods@clearingcorp.com Markit Tony Murljacic, Director, Head of Trade Processing Connectivity, 917.441.6349, tony.murljacic@markit.com

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