23512555 Trade Life Cycle

Life Cycle of a Trade

Training Academy

Introduction  Facilitator  Self  Course Outline  Break Timings

 15 mins – Forenoon  45 mins – Lunch  15 mins – Afternoon

 Expectations

Page 2

Expectations Static data How trade is booked Settlement and before settlement Trade booking and settlement Impact of incorrect settlement Pre-matching before a settlement Entire life of a trade

Front office & middle office How trade is entered and how it is booked Page 3

What is your Idea of Life Cycle of a trade ??

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Section One The Market Participants

The Market Participants - Facilitators Brokers Dealers Investment Banks Stock Exchanges Agents Securities Trading Organisations Custodians

Clearing Banks Regulators Page 6

The Market Participants - Investors Institutional Investors Mutual Funds (Unit Trusts) Pension Funds Insurance Companies Hedge Funds Charities Individual Investors

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The Marketplace INVESTORS

ISSUERS

AGENTS

Securities Trading House

Exchanges

AGENTS

INVESTORS

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AGENTS

INVESTORS

Securities

Securities

ISSUERS

Markets & Stock Exchanges A Market is an environment in which securities are bought and sold. Central to some market places is the Stock Exchange. Trades executed over an Exchange are executed “OnExchange” or “Exchange Traded”

Other trades executed over the telephone are “OTC” (Over the Counter) or Non-Exchange Traded Each securities market has an associated and recognisable place to effect settlement

 E.g. French Government Bonds traded on the Paris Bourse settle in Euroclear

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Stock Exchanges Region

Country

Financial Centre

Stock Exchange

Europe

UK

London

London Stock Exchange (LSE) London Metal Exchange London International Financial Futures & Options Exchange (LIFFE)

Germany

Frankfurt

Deutsche Bourse

Spain

Madrid

Bolsa de Madrid

China

Hong Kong

Stock Exchange of Hong Kong Hong Kong Futures Exchange

China

Shenzhen Shanghai

Shenzhen Stock Exchange Shanghai Stock Exchange

Japan

Tokyo

Tokyo Stock Exchange Tokyo International Financial Futures Exchange (TIFFE)

Singapore

Singapore

Stock Exchange of Singapore Singapore International Monetary Exchange (SIMEX)

Australia

Sydney

Australian Stock Exchange (ASX)

USA

New York Chicago

New York Stock Exchange (NYSE) Chicago Stock Exchange

Asia Pacific

America

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Other Market Participants Salespeople Data Providers Registrars Coupon Paying Agents Trade Matching Services Settlement Instruction Communication Mechanisms

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Market Participants - Issuers Organisations occasionally need to raise cash/capital to expand their businesses by:

 Selling part ownership issuing shares or equity  Borrowing cash from investors issuing debt in the form of bonds

Type of Issuer

Example

Corporations

Vodafone (UK)

Sovereign Entities

Kingdom of Denmark

Local Governments

City of London

Government Agencies

Federal National Mortgage Association

Supranational Organisations

International Bank for Reconstruction & Development (World Bank – IBRD)

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Where does Deutsche Bank fit? Deutsche covers multiple functions: Broker Dealer Fund/Asset Manager Investment Bank Issuer Global Custodian

Retail Bank

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So far Covered I.

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Market Participants

Section Two Static Data

What is Static Data? Static Data is the common term to describe the store of information used to determine the appropriate actions required for successful processing of each trade. For Example: Trading Entities

Trading Books within each entity Counterparties Instruments Currencies Prices Page 16

Sources of Static Data Where possible, financial institutions try and create a core of “Golden Source” static data to avoid data conflicts in inter-dependent systems Companies specialise in gathering and distributing financial data to institutions via:

 Electronic File Feeds  Internet  Through on site terminals.

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Security Data Providers or Data Vendors  Reuters  Bloomberg

 Telekurs  Rolfe & Nolan  SWIFT  DTCC  Alert Direct/OMGEO  Standard and Poors  Euroclear  Wallstreet  SIAC  NSCC Page 18

Counterparty Static Data  Name, Address & Contact Details  Authorized Credit Limits  Related Companies  Standard Settlement Instructions  Date of account set up

 Type of Institution  Documentation signed  Tax Status  Registered Representative  Confirmation Details

 Fax, Telex, Electronic Trade Confirmation, SWIFT, Email

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Instrument Static Data Type of instrument

 Equity, Bond, Warrant, Derivative, Commodity

Issue

 Short Name, Long Name, Size, Denomination, Issuer

Coupon Dates

 Coupon Rate, Payment Characteristics - 30/360, A/360 etc

Alternative/External References,

 ISIN, Common Code, RIC, Quick Code, Cusip etc

Exchange Currency Maturity Date Factors Page 20

Maintaining Static Data Incorrect static data causes many processing errors: Delayed Confirmations Unmatched Transactions Settlement Failure Incorrect Fee calculations Incorrect Profit & Loss Calculation Poor Reporting (Regulatory & risk impact)

Increased cost per transaction due to reduced STP Incorrect static data leads to reduced service and dissatisfied customers. Page 21

Static Data Summary Bad Static Data results in reduced service levels to clients due to processing hold-ups and possible trade failure

Bad Static Data impacts operational risk and increases the cost per trade processed Bad Static Data contributes to poor internal & external reporting impacting risk & reputation Static Data will continue to be an important dependency on the efficient processing of trades especially as the trade lifecycle window becomes smaller

STATIC DATA

 Must be populated correctly within all of the relevant systems.  Must be obtained from a credible source as timely as possible.

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So far Covered I.

Market Participants

II.

Static Data

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Section Three Trade Execution & Trades Processing

Straight Through Processing Trade Execution

Trade Capture

Trade Enrichment

Trade Processing

Trade Confirmation/Affirmation/Matching

Trade Instruction

Instruction/Agent Matching

Trade Settlement

Fails & Fail Management

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Straight Through Processing (STP)

Position/Inventory management

Securities Lending & Borrowing

Corporate Actions

Cash Funding

Reconciliations

Trade/Position Accounting

Trade Validation

What is a Trade? A legal contract between two „counterparties‟. A seller and a buyer. The SELLER must deliver the commodity he has sold to the buyer. The BUYER must pay the agreed purchase price on the agreed value date.

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The Front Office Trading Sales Broking Corporate Finance Repo Desk

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Why Trade? Speculate

 Profit from price move or increase in value of the asset.

Accumulate

 Benefit from dividend on shares and interest on bonds.

Hedging:

 To speculate and accumulate.  To reduce risk.

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Trade Execution Trade execution tends to operate in one of three ways where sellers and buyers execute trades: Trading Floor

 Traditional method of trading – face to face on the trading floor of a Stock Exchange.

Computerised Exchanges

 Established in the UK as part of the Big Bang in 1986.

This term applied to the liberalization of the London Stock Exchange (LSE) when Trading was automated.

Telephone

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Trade Execution Furthermore Trades can be: Quote Driven

 Market Makers quote prices via computerised screens showing the level at which they are prepared to buy and sell with the intention of attracting business.  NASDAQ (US) SEAQ (UK)

Order Driven

 Orders from sellers are matched with buyers‟ orders electronically.  Xetra (Germany) SETS (UK) SEATS (Australia)

Electronic Communications Networks (ECN)

 ECN‟s operate on an electronic basis only.  Euro-MTS Brokertec Archipelago

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Trade Capture Regardless of the trade execution/origin, all trades must be recorded formally by the market participant.

 To update a trading position for a specific security within a trading book  To update average price of the current trading position to enable the trader to calculate trading profit or loss

 To allow trade detail to be sent through to the Back Office for trade processing and settlement  As part of Market & Regulatory Reporting requirements  To facilitate risk management Traders use complex trading systems to facilitate trading & position management, trade processing is usually done via Back Office processing systems. Page 31

Front Office Trade Detail Trading Book Trade Date Deal Time Value Date Operation (e.g. Buy/Sell, Lend/Borrow, In/Out) Quantity Instrument/Security

Price Counterparty Page 32

Trade Validation  Trade validation occurs to check if the trade information received in the Back office systems corresponds with the Front Office record.

 Trade validation includes the checking of constituent static data information:  Examples include:

 Is the security recognised on the system?  Is the Counterparty account recognised?  Is the Trader allowed to trade on the trading book?  Is the trading book valid to trade security x?  Is the value date a valid settlement date in the location of settlement?  Are the securities restricted?

All detected errors must be investigated and corrected.

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Trade Enrichment Trade enrichment exists to add specific trade data to the basic trade detail to allow downstream processing. This data is not usually held in Front Office Trading systems. This data can be added manually however in the STP environment the aim is to derive this automatically. Examples include:

 Calculation of cash values.  Regulatory Reporting required.  Trade Confirmation requirements.  Selection of custodian details.  Selection of Settlement Instructions and communication method.

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So far Covered I.

Market Participants

II.

Static Data

III. Trade Execution & Trades Processing

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Section Four Trade Confirmation

Trade Confirmation/Agreement Trade Confirmation/Affirmation is an important process required to reduce the risk of the traders P&L. Until the counterparty acknowledges the trade detail the effect on the price or quantity of the trade is subject to change, impacting the traders book.

Trade agreement can be achieved through:

 Sending trade confirmations to the counterparty.  Receiving trade confirmations from the counterparty.  Trade or Contract Matching.  Trade Affirmation.

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Trade Matching Trade Matching generally applies to mandatory electronic matching of trade details. Both parties are required to input details to a central matching facility. Matching results (i.e. matched, unmatched) are provided by the trade matching facility to both parties. Examples include:

 Omgeo Central Trade Manager (CTM).  TRAX (Internationally traded debt & securities).  Depository Trust & Clearing Corporation (DTCC)  National Securities Clearing Corporation‟s Trade Matching Service. (NSCC)

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Trade Affirmation Trade Affirmation relates to the electronic matching of trade details typically between securities institutions and Institutional clients.

 Trade details are input by the securities house and sent to a trade affirmation facility.  The Trade affirmation central hub sends on the message.  The institutional client agrees (affirms) or disagrees and the response is sent back to the securities house.  Both parties must subscribe to the service.  Examples include:

 Omgeo‟s Oasys Global system.  FIX – (Global)  Oasys Domestic - (US)  DTC ID (Institutional Delivery) – (US)

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Summary Basic Principles The longer a trade‟s detail remains unchecked after trade date, the greater the risk of price movement and P&L impact. Trade confirmation/matching messages should be issued as soon as possible after trade validation. Timely and accurate confirmation generation is a major client service consideration.

Prompt actioning of all confirmation discrepancies reduces trade risk.

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So far Covered I.

Market Participants

II.

Static Data

III. Trade Execution & Processing IV. Trade Confirmation

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Section Five Trade Instruction

Settlement Instructions Settlement Instructions are used to communicate the movement of securities and cash to the custodian. Trade Agreement confirms the commercial details of the trade. Settlement Instructions indicate the commercial details of the trade AND the location and account details for the cash and security movements. (Settlement Details).

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Instruction Content Settlement Instructions tell the custodian/Agent to carry out precise commands such as: The quantity of securities to be received or delivered. The net settlement value to be paid or received. From whom securities will be received. To whom payment must be made. From whom payment will be received. To whom securities must be delivered. On which date to carry out these instructions.

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Instruction Communication Methods S.W.I.F.T.

Proprietary Messaging

CREST

CREST

DTC

DTC

Euroclear

Euclid (for Euroclear)

Clearstream

Cedcom (for Clearstream)

Agent Banks Custodians

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So far Covered I.

Market Participants

II.

Static Data

III. Trade Execution & Processing IV. Trade Confirmation V.

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Trade Instruction

Section Six Instruction/Agent Matching

Why do we match instructions? To reduce settlement risk by: Increasing the chances of trade settlement on value date Resolving differences between trades and counterparties Enabling accurate funding of cash in nostro accounts Managing stock inventory in depositories

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Matching at The Settlement Agent Once Instructions have been received at the Custodian, the next lifecycle steps include:

Instruction Matching

 Custodian attempt to match the instruction to the counterparty instruction.

Status Update

 Attachment of the current status of the instruction. (matched/unmatched/unknown).

Unmatched Resolution

 Investigation and resolution of non-matching instructions.

Trade Settlement

 Updating the current status within the securities trading organisation‟s books and records.

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Instructions Matching: Example CSD or ICSD Instruction Comparison 1

1 Settlement Instruction

Securities Trading House

Securities House

4

1 2 3 4 Page 50

Settlement Instruction

2

Status Matched or Unmatched

Counterparty

Counterparty Status

3

Status

Status Matched or Unmatched

4

Instructions sent in by Securities House and Counterparty. Instruction matching occurs. Status is recorded. Instruction Status (Matched/Unmatched) is sent back to both parties.

So far Covered I.

Market Participants

II.

Static Data

III. Trade Execution & Processing IV. Trade Confirmation V.

Trade Instruction

VI. Instruction / Agent Matching

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Section Seven Trade Settlement

Settlement Terminology Trade settlement is the act of exchanging securities and cash between buyer and seller. Value Date / Contractual Settlement Date. Actual Settlement Value Date and Settlement Date will be the same in the majority of trade settlement cases. A percentage of trades fail to settle on value date and will settle on another date referred to as the actual settlement date.

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Settlement Considerations How to ensure trade settlement Ensure the seller holds the required level of securities at the correct custodian.

 Some securities can settle at more than one location.

Ensure the purchaser has sufficient cash to make the payment.

 The purchaser may aggregate balances over a number of accounts, the total amount must cover the amount required. (Funding).  The purchaser may have a credit agreement with the custodian who will cover the cash shortfall. (Secured credit line/Overdraft).  The purchaser may have a collateral agreement whereby collateral is held in the account to offset any non return of funds. (Margin)

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Types of Settlement Full Settlement Partial Settlement Securities Only Cash Only Cross Currency Settlement Net Settlement

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Summary Timely settlement of trades is an important part of the Trade Lifecycle with implications across the following areas: Inventory Management Cash Management

Settlement Risk Cost Management Firm Reputation

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So far Covered I.

Market Participants

II.

Static Data

III. Trade Execution & Processing IV. Trade Confirmation V.

Trade Instruction

VI. Instruction / Agent Matching VII. Trade Settlement

Page 57

Section Eight Position/Inventory Management

Inventory Management Management of the stock holding is an integral part of trade settlement: Inventory Management ensures:

 The correct amount of securities (nominal) are available  At the correct location (depot).  At the correct time (on value date).

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Methods of Inventory Management If securities are unavailable we can consider the following: Internal Book Transfer.

 Borrow securities from another firm account same depot.

Realignment.

 Borrow securities from another firm account different depot.

Stock Borrow Loan Trade.

 Borrow the securities from the market.

Autoborrow.

 Borrow the securities from the custodian/central depository.

Execute a Repurchase Agreement (Repo) Do nothing and let the trade fail. Page 60

Inventory & Funding Management Transmit Settlement Instruction

Match Settlement Instruction at Custodian

Settle at Custodian

AutoBorrow

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Lend

Securities

Cash

Choices

Choices

Do Nothing

Repo

Borrow via Repo

Do Nothing

Borrow Unsecured

Automated Lending & Borrowing Service provided by large Custodians and Central Security Depositories: Borrowers

 Borrow required securities automatically.  Borrow certain types of security automatically i.e. Spanish Bonds.  Borrow upon request.  Sometimes used as a last resort due to the cost.

Lenders

 Lend all securities automatically.  Lend certain types of security automatically.  Lend upon request.

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How do Trades & Positions get updated? Automated Updates

 Instruction statuses are sent in by the custodian (fully settled, partially settled, failed etc).  The Securities Trading House automatically loads this information into the settlements systems.  The system attempts to locate the relevant trade in its internal books and records.  Once found it records the status update against the transaction.  It will also automatically update the relevant security positions and balances reflecting the delivery or receipts.

Manual Updates

 In some cases it may be necessary to settle trade manually and a settlements specialist may manually record the update against the trade record.

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So far Covered I.

Market Participants

II.

Static Data

III. Trade Execution & Processing IV. Trade Confirmation V.

Trade Instruction

VI. Instruction / Agent Matching VII. Trade Settlement

VIII. Position / Inventory Management

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Section Nine Fails & Fail Management

Failing Trades and their Impact A failed trade is any securities transaction that does not settle on value date. The buyer and seller are impacted by settlement failure:

 Unable to use the cash to fund other security purchases.  Unable to lend on money markets and earn credit interest on cash.  Unable to pay off existing overdraft/debt.  Unable to use securities required for an onward delivery causing a break in the chain.  Risk impact due to movement in the market causing a change in the value of securities. (mark to market)

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Why Trades Fail Instructions not received by custodian Instructions remain unmatched on value date Insufficient cash, collateral, credit line Insufficient securities

Page 67

The Importance of Managing Fails Fails will have cash implications

 Interest claims on fails to receive.  Interest expense on fails to deliver.

Fails make the reconciliation of corporate actions difficult which can lead to material losses

Regulatory Impact - In some markets fines are imposed for late trade settlement

 Australia – Fines are imposed daily from value date to settlement date for trades executed on the Australian Stock Exchange.  UK - Fines are imposed by CREST from a member‟s failure to achieve pre-defined settlement targets.

Page 68

Interest Claims An interest claim is compensation from the failing party to for the loss of cash interest or use of securities.

 Failed trades are monitored to determine the reason for failure and

enable the interest claim to be executed against the counterparty.  Some marketplaces (e.g. ISMA) have minimum claimable interest recommendations and deadlines by which claims must be issued.  Back Office Settlements add immense value by actively monitoring instruction statuses and helping to accurately fund cash shortfalls or short positions.  In some Securities Trading Houses, if the Firm Trader is at fault then the cost of the fail can be directly attributed to their book, impacting their P&L.

Page 69

So far Covered I.

Market Participants

II.

Static Data

III. Trade Execution & Processing IV. Trade Confirmation V.

Trade Instruction

VI. Instruction / Agent Matching VII. Trade Settlement

VIII. Position / Inventory Management IX. Fails & Fail Management Page 70

Section Ten Reconciliations

What are Reconciliations Reconciliations exist to check the accuracy of the firms books and records:

 Internally between systems and departments  Externally where securities and cash are held.

A Reconciliation Break is a discrepancy between one record and another  All breaks should be investigated, accounted for and corrected to ensure continued integrity Automation of reconciliation reporting facilitates timely investigation and resolution of breaks on a daily basis

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Why do we monitor reconciliations? Regulatory Managing Risk Corporate Actions

Types of Reconciliations Position Reconciliations Trade Reconciliations System Reconciliations

Page 73

So far Covered I.

Market Participants

II.

Static Data

III. Trade Execution & Processing IV. Trade Confirmation V.

Trade Instruction

VI. Instruction / Agent Matching VII. Trade Settlement VIII. Position / Inventory Management IX. Fails & Fail Management X. Page 74

Reconciliations

Section Eleven Clearing and Custody

Types of Custodian 1 Term

Description

Example

Custodian

An organisation that holds securities and cash on its clients’ behalf and may effect trade settlement on its clients’ behalf.

Deutsche Bank Domestic Custody Services

Global Custodian

As per custodian, but has a network of local (or sub-custodians) that hold securities and cash and effect trade settlement on behalf of the global custodian.

State Street

A custodian that operates within a specific financial centre.

Credit Lyonnais Paris

A custodian within a Global Custodian’s network of custodians.

Citibank Milan

Local Custodian

Sub-Custodian

Page 76

Citigroup

BoNY Paribas Banco Espirito Santo Lisboa Citibank Madrid

Types of Custodian 2 Term

Description

Examples

Central Securities Depository (CSD).

An organisation that hold securities, normally in book entry form; usually the place of settlement, effected through book transfer.

DTC (USA)

A CSD that handles domestic securities of the country in which it is located.

CCASS (HK)

International Central Securities Depository (ICSD)

A CSD that handles domestic and international securities.

Euroclear (Brussels)

Only two organisations are recognised as ICDS’s.

Clearstream (Luxembourg)

Settlement Agent

An organisation that effects the exchange of securities and cash on behalf of its clients; resultant securities and cash balances may or may not be held.

Citibank Milan

National Central Securities Depository (NCSD)

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CREST (UK & Eire) JASDEC (JPY)

Citibank Madrid

So far Covered I.

Market Participants

II.

Static Data

III.

Trade Execution & Processing

IV.

Trade Confirmation

V.

Trade Instruction

VI.

Instruction / Agent Matching

VII. Trade Settlement VIII. Position / Inventory Management IX.

Fails & Fail Management

X.

Reconciliations

XI.

Clearing & Custody

Page 78

What is a Corporate Action? Any action by an Issuer which may affect the investor: The distribution of benefits to existing shareholders or bondholders

 Coupon Payments  Cash Dividends  Stock Dividends

A change in the structure of an existing security

 Stock Split  Bonus Shares

A notification that may or may not require a response from the securities owner

 Annual Meeting  Voting Rights

Page 79

Section Twelve Trade & Position Accounting

Controlling The accounting group within the bank is responsible for correctly recording and monitoring all of the financial transactions occurring within the Securities Trading House: Deutsche Bank Controllers include:

Legal Entity Controller (LEC)

 Responsible for DB Companies.

Business Area Controller (BAC)

 Responsible for product lines and the Business.

Central Functions – Risk Controlling

 Responsible for Managing Risk across the all divisions centrally.

Page 81

Controlling Responsibilities Monitor Stock/Security Positions Monitor Cash Balances Track Firm Books and Records Create Good Processes Create Controls Reconcile Trade Data Reconcile Cash Flow

Reconcile all Journal activity

Page 82

Example Control Reports Reconciliations Profit and Loss Statement (P&L) Balance Sheet Reporting (BS) Buy and Hold Reporting (B&H) Management Information Reporting (MIS) Credit Risk Reporting (CRES)

Page 83

So far Covered I.

Market Participants

II.

Static Data

III.

Trade Execution & Processing

XI.

IV.

Trade Confirmation

V.

Trade Instruction

XII. Trade & Position Accounting

VI.

Instruction / Agent Matching

VII. Trade Settlement VIII. Position / Inventory Management IX.

Fails & Fail Management

X.

Reconciliations

Page 84

Clearing & Custody

Section Thirteen Regulatory & Compliance Responsibilities

Regulators Regulatory authorities exist within the securities industry to ensure: All business undertaken within the marketplace is done in the proper manner To protect investors who are participants within the marketplace Guard the reputation and integrity of the marketplace Monitor activity which fails outside of normal business trading practice

Page 86

Regulator Responsibilities Assessing suitability of securities trading houses to participate within the market place. Monitor the business undertaken by securities trading houses, investment advisors & fund managers. Enforcement of laws and possible prosecution of security law violators.

Page 87

Financial Regulatory Authorities Country

Regulatory Authority

Australia

Australian Securities & Investments Commission Prudential Regulatory Authority

Bahamas

Bahamas Central Bank

France

Commission des Operations de Bourse Banque de France

Hong Kong

Securities & Futures Commission Monetary Authority

Japan

Financial Supervisory Agency Financial Reconstruction Commission

Singapore

Monetary Authority of Singapore

UK

Financial Services Authority (FSA)

USA

Securities & Exchange Commission (SEC) US Commodity Futures Trading Commission National Futures Association

Page 88

Reporting Methods A number of methods exist dependent on how the local Regulator requires reporting to be effected Automatic forwarding of trade details by a computerised exchange requiring no additional reporting Automated message transmission by the member for confirmation/matching/instruction purposes part of which is used to satisfy transaction reporting requirements File feeds produced from Front Office/Back Office/Controlling systems and sent direct to Regulator

Page 89

Compliance Compliance is the Bank’s internal regulator. Responsibilities include: Ensuring compliance to rules of appropriate financial regulatory body Handling confidential information

Ensure that personnel are adequately and properly licensed to operate in the marketplace Managing anti-money laundering regulations

Monitoring Employee Personal Trading

Page 90

So far Covered I.

Market Participants

II.

Static Data

III.

Trade Execution & Processing

XI.

IV.

Trade Confirmation

V.

Trade Instruction

XII. Trade & Position Accounting

VI.

Instruction / Agent Matching

VII. Trade Settlement VIII. Position / Inventory Management IX.

Fails & Fail Management

X.

Reconciliations

Page 91

Clearing & Custody

XIII. Regulatory & Compliance

Section Fourteen Conclusions

Conclusions  Reduce Settlement Cycles  Increase Straight Through Processing for trades  Increase use of central Counterparties  Increase use of “Golden Source” static data  Active management of collateral

 Minimise Risk  Minimise Operational Cost  Offer increased service to clients  Manage increasing volumes  Maximise internal efficiency

Page 93

Section Fifteen References

Recommended Reading  Michael Simmons

 Securities Operations – A Guide to Trade & Position Management

 Stephen Valdez

 An Introduction to Western Financial Markets

 David Dasey

 An Introduction to Equity Markets

 Moorad Choudhry

 An Introduction to Repo Markets

 Robert Hudsen

 Treasury Management

 Financial Engineering

 The Handbook of Equity Derivatives

 Oxford paperbacks

 Dictionary of Finance & Banking

Page 95

Industry Websites  http://www.crestco.co.uk/

CREST

 http://www.dtcc.com/

Depository Trust & Clearing Corporation

 http://www.euroclear.com/

Euroclear

 http://www.jasdaq.co.jp/index_en.jsp Japanese Securities Depository Centre  http://www.isma.org/home.html

International Securities Market Associations

 http://www.bankofengland.co.uk/Links/setframe.html

Bank of England

 http://www.fsa.gov.uk/

Financial Services Authority

 http://www.sec.gov/

Securities Exchange Commission

 http://www.nasdaq.com/

National Association of Securities Dealers Automated Quotations.

 http://www.amex.com/

American Stock Exchange

 http://www.londonstockexchange.com/London Stock Exchange

 http://www.lchclearnet.com/

London Clearing House

 http://www.liffe.com/

International Financial Futures & Options Exchange

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Industry Websites  http://www.iosco.org/iosco.html

International Organ Securities Commission

 http://www.ipma.org.uk/

International Primary Market Association

 http://www.isda.org/index.html

International Swaps & Derivatives Association

 http://www.isla.co.uk/

International Securities Lending Association

 http://www.isma.com/home.html

International Securities Market Association

 http://www.liba.org.uk/

London Investment Bank Association

 http://www.lsta.org/

Loan Syndic Trading Association

 http://www.sia.com/

Securities Industry Association

 http://www.securities-institute.org.uk Securities Institute  http://dspace.dial.pipex.com/jhalsey/ Compliance Exchange  http://www.world-exchanges.org/

Federation of Exchanges

 http://www.trioptima.com/tri/

OTC Derivatives termination service

 http://www.finanz-adressen.de/WE-fin-regulatory.html Financial Regulatory Authorities Page 97

Industry Websites  http://www.exchange-handbook.co.uk/Exchange Handbook  http://www.investorwords.com/

Glossary

 http://www.stpforum.com/

STP Forum

 http://www.stpinfo.com/

STP Info

 http://www.afponline.org/

Association for Financial Professionals

 http://www.calpers.ca.gov/index.jsp?bc=/investments/straightthrough.xml Virtual Matching Utilities (VMUs);  http://www.omgeo.com/

OMGEO

 http://www.sungard.com/

Sungard Systems

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