1. Bloomberg Fixed Income Issuance and Trading BALKAN REGION
Robert Cutler
Debt Market Trading Products
Dubrovnik, Croatia
12 May 2007
Multi-Dealer RFQ Firm Anonymous Orders Voice Trade Reporting No Transaction Fees
Market Activity Displays STP Features Counterparty Credit Logic Market Oversight Tools

2. Bloomberg Bloomberg Overview Primary Markets Bloomberg Fixed Income
Trading Platform
Analytics
Secondary Markets

3. 46% subscription base INCREASE in Croatia, for 2006
Bloomberg Overview
Subscription base
Growth in Local Markets, %
46% subscription base INCREASE in Croatia, for 2006
Fixed Income Volumes, 2006 – EMEA
Volume Market Share
Euro Govies bn 37%
Credits bn 81%
IRS bn 79%

4. Primary Markets Bloomberg Bond Auction System
20 State Ministries/Treasuries use the Bond Auction System to
Auction their Government Bills or Bonds
Australia Belgium Czechoslovakia
Netherlands Finland Iceland
Ireland Israel Croatia
Portugal South Africa Slovenia
United Kingdom

5. Primary Markets Key Benefits Efficiency Transparency Robust Technology
Time to release results to market dramatically
reduced
Transparency
Robust Technology
Plug & Play, Easy Deployment
Free

6. Primary Markets
Bloomberg’s Primary market Auction System automates all elements of the auction process. The system gathers and manages primary dealer bids and automated, instantanous allocation via the BLOOMBERG PROFESSIONAL service
Auction result are
transmitted to dealers and
secondary markets
worldwide via the
Bloomberg’s secure private
network.
The Bloomberg Auction
System is used by central
banks, Ministries of Finance
and Corporate issuers
globally.
Users have complete
control over access and
allocation

7. Primary Markets The Primary Dealer bids for a new bond by simply
choosing the auction, then
entering on the bid entry
page.
The auctions are run in
Thousands (M),
millions (MM), and
Billions (B)

8. Primary Markets Once the bid entry ticket has been filled by the
Primary Dealer and the
auction has been closed,
the Ministry of Finance
will run their Algorithm
and the auction results
will be issues

9. Bid submission on behalf of participants
Issuers can enter bids on behalf of participants should a participant have a technical problem. (optional)
The bid appears in the participants BLOT. The trade detail shows how enter the bid for the participant.

10. New Bid Ticket

11. New Bid Ticket Clearer layout – easier to use
Submit firm’s current position in security
Update all prices at in one go with a price change function
Display which clients participants are bidding on behalf of
Submit button to simplify the bid submission
Scroll bar if there are more bids than can be displayed on one page.
Per User Ticket – only displays bids the user has entered
Ticket entry error messages appear in pop-ups making their display much clearer.

12. Bid parameters Per user limits User can setup up limits for Size Price
That get applied in the bid ticket. This gives the primary dealer a safety net when using an electronic system.

13. Separate client lists
Issuers can now setup separate participant lists for individual tenders
Participants will only have access to bidding, be notified and receive banners for auctions that are run in sectors they are enabled for.

14. Tender results summary

15. Fixed Income Electronic Trading Platform
Key Asset Classes
Governments, Credit, Convertibles, Swaps,
Credit Default Swaps, ECP, Repos,
Structured Products
Dealing Methods
Click & Deal
Request for Quote

16. Government Bonds
Ability to view curve, see depth of market and click and deal

17. Government & Credit Bonds Click & Deal

18. Government & Credit Bonds Request for Quote

19. TRADE GOVT SWITCHES MRFQ UPTO 5 DEALERS IN COMPETITION FROM BBT<GO> OR SST<GO>

20. BRANDING + PRICING

21. Analytics
Runs Manager
Axes
Message Mining

23. Analytics BQ <GO> Ability to see the depth of market in a bond
Click & Deal
RFQ
Analytics
Axes
Runs Message Mining
BQ <GO>

24. EBND <GO> Key Benefits 1) UNIFICATION OF VARIOUS SOURCES
OF LIQUIDITY
2) IMPROVED PRICE DISCOVERY
3) EASIER AND MORE EFFICIENT
TRADE EXECUTION
5) STP PROCESSING TO SETTLEMENT
AND CLEARING
6) LOW OVERALL COST AND NO FEES
7) MORE EFFICIENT MARKET OVERSIGHT
CAPACITY

25. EBND<GO> Intro Key Features
All you need is your Bloomberg (no additional hardware or software required)
No additional charges/costs
Integration/connectivity available to other systems –
‘straight-through-processing’ of trades
Market information reporting available – e.g. SGSM<GO>
Ability to submit 2-way request-for-quote to dealers
Dealers have access/enablement controls for counterparties
Ability for aggressor to trade on all prices received back in any inquiry
Ability to enter firm, anonymous orders (where enabled) as well as counterparty credit limits
Ability to handle more complex order types such as ‘iceberg’, ‘all-or-nothing’ etc
Ability to receive requests-for-quote when not quoting on a bond
Intro
EBND<GO>

26. EBND<GO> Benchmark bonds all listed down centre of screen
Dealers can control who sees/can trade on their prices
Depth of market from every available dealer available for each traded bond
Simple controls – ‘point-and-click’, and red mouse buttons at top of screen for other options
Note red ‘SUSPEND QUOTES’ button at the top of the screen – ‘Panic Button’ for dealers

27. EBND<GO> Click on a bid or offer price to launch a trade ticket
2 modes: ‘Order’, ‘Inquiry’
Inquiry: Select up to 5 dealers from list, send ‘RFQ’ – receive up to 5 prices back – trade
Order: Anonymous or ‘name-giveup’ – click and trade on price. Live credit checking feature for counterparties trading anonymous orders

28. EBND<GO>
Dealer responds to inquiry within same screen – Note new inquiry message in pink at bottom of screen
Dealer can set alerts for bid/offer spread tolerance to warn of incorrect pricing – Note alert in red ‘spread tolerance exceeded’
Dealer can see how many other dealers involved in competition for the request-for-quote – Note (2) in light blue strip at the top of inquiry response popup: this indicates 2 other dealers in competition

29. EBND<GO>
Inquiry: Aggressor receives responses from dealers – clicks ‘SELL’, ‘BUY’, or ‘PASS’
Aggressor may trade on as many as all 5 prices received back from dealers. Trade completed when all 5 prices either traded or passed – or when ‘FINISHED’ button at top of screen is clicked

30. EBND<GO>
Dealer able to re-quote or suspend quote given to aggressor before his price is accepted – Note red ‘suspend’ button in dealer popup

31. EBND<GO>
Example of aggressor’s price blotter showing dealer suspended quote during inquiry

32. EBND<GO> All trade details are recorded automatically
Trade details can be passed automatically to other internal/settlement systems on completion of a trade (‘Straight-through- processing’)

33. EBND<GO>
Automatic logging of entire trade negotiation – Bloomberg ‘Transaction History’ screen

34. EBND<GO>
Counterparty credit limit management tools to allow a dealer to create limits for anonymous order trading for each counterparty

35. EBND<GO>
Data from trading on the EBND platform can be provided to the market – Here we see intraday volumes and trading statistics for each bond traded on the Singapore EBND platform. This aids market transparency and development

36. What is Bloomberg’s Goal?
Central place for all market liquidity
Benchmark system for all market data
in established and local markets
Facilitate efficiency and transparency
in local markets
Make Bloomberg the preferred solution
in Primary & Secondary Bond Markets

37. Contacts: Robert Cutler - +44 20 7330 7494
Ebru Boysan
Bloomberg Help Desk
Bloomberg Electronic Trading Team: