Trading and Settlement Overview

7/31/2019 Trading and Settlement Overview

1/21

Quick Search Page:

Trading / Trade Confirmation / Clearing / Settlement /Payments / Custody

Powered by Translate

Price Discovery, Instrument Trading, Trade Confirmation, Clearing, Settlement,Position Mananagement, Funds Transfer and Custody must be completed fromeverything such as overnight fed funds to long-term capital market securitiesissues. Every financial transaction needs to be recorded so that all partiesperform as expected and that all parties are within regulatory compliance.

Secondly, banks and non-bank financial institutions must also have a Payment System that providesinterbank electronic access and funds credit / debit transfer services, clearing services, andsettlement services.

All of these systems are networks of servers, work stations, desktop monitors, software anddedicated, secure digital or telephonic communications links are combined into anECN (ElectronicCommunications Network)that transfer data (not the actual money or securities) of financialtransactions across the world.

Trading systemsare the hardware and software infrastructure (platforms) for the trading ofcommodities, securities, derivatives, foreign exchange, electrical power and carbon caps (andconnect to midlle and back-endClearing and Settlement Systems for trading and securities).

Payment systemsare the large central bank / interbank payment and messaging networks such asFedwire Funds Service, TARGET,APACS, SWIFT, BOJ-NETand CHIPS.

Electronic Funds Transfernetworks are the hardware and software infrastructure (platforms) forATM, debit card and credit card transaction processing.

Credit Issue:Due to the diversity of market participants, the range of financial products, market

globalization and the value and volume of transactions processed by payment andsettlement systems, a failure of payment and settlement systems to function smoothlycould have a widespread adverse impact on the overall economic activity.

Trading systems must be secure, reliable and have very low latency so that there is confidence in order execution.

Markets

A market is a location where a Seller and a Purchaser can come together to complete a transaction.In the past, a market has usually been a physical location where the actual goods being offered forsale were brought so that potential purchasers could examine and evaluate them for quality andquantity.
http://translate.google.com/http://www.credfinrisk.com/clearing.html#ecn%23ecnhttp://www.credfinrisk.com/clearing.html#ecn%23ecnhttp://www.credfinrisk.com/clearing.html#ecn%23ecnhttp://www.credfinrisk.com/clearing.html#ecn%23ecnhttp://www.credfinrisk.com/clearing.html#trading%23tradinghttp://www.credfinrisk.com/clearing.html#trading%23tradinghttp://www.credfinrisk.com/clearing.html#clear%23clearhttp://www.credfinrisk.com/clearing.html#clear%23clearhttp://www.credfinrisk.com/clearing.html#payment%23paymenthttp://www.credfinrisk.com/clearing.html#payment%23paymenthttp://www.credfinrisk.com/clearing.html#fedwire%23fedwirehttp://www.credfinrisk.com/clearing.html#target%23targethttp://www.credfinrisk.com/clearing.html#target%23targethttp://www.credfinrisk.com/clearing.html#apacs%23apacshttp://www.credfinrisk.com/clearing.html#swift%23swifthttp://www.credfinrisk.com/clearing.html#bojnet%23bojnethttp://www.credfinrisk.com/clearing.html#bojnet%23bojnethttp://www.credfinrisk.com/clearing.html#chips%23chipshttp://www.credfinrisk.com/clearing.html#eft%23efthttp://www.credfinrisk.com/clearing.html#eft%23efthttp://www.addthis.com/bookmark.phphttp://www.credfinrisk.com/clearing.html#ecn%23ecnhttp://www.credfinrisk.com/clearing.html#ecn%23ecnhttp://www.credfinrisk.com/clearing.html#trading%23tradinghttp://www.credfinrisk.com/clearing.html#clear%23clearhttp://www.credfinrisk.com/clearing.html#payment%23paymenthttp://www.credfinrisk.com/clearing.html#fedwire%23fedwirehttp://www.credfinrisk.com/clearing.html#target%23targethttp://www.credfinrisk.com/clearing.html#apacs%23apacshttp://www.credfinrisk.com/clearing.html#swift%23swifthttp://www.credfinrisk.com/clearing.html#bojnet%23bojnethttp://www.credfinrisk.com/clearing.html#chips%23chipshttp://www.credfinrisk.com/clearing.html#eft%23efthttp://translate.google.com/


2/21

The pricing for any good or service is influenced by the abundance or scarcity of the commodity,which are a reflection of the conditions necessary to, and ability to, produce the commodity, and theneed / demand (or even desire) for the commodity. The interaction of Sellers and Purchaserscompeting with each other to sell (offer) or evaluate and purchase (bid) a specific commodityessentially create the "market price" for the commodity. Price Discovery is the determinationwhether a commodity is abundant or scarce, and what the demand is for it: what one or manySellers will sell the product for and just how much one or many Purchasers will pay for it (a

Purchaser may immediately become a Seller after purchasing the commodity). In an "efficientmarket" there is no pre-existing relationship between the Seller and the Purchaser, and there is nofixed, minimum or maximum price for a commodity: the sales volume of a commodity will stall at acertain price and the abundance / volume of the commodity will be cleared at a certain price,essentially reaching a price equilibrium where Sellers and Purchasers are receiving and payingexactly what they want or what they need.

The purpose of a financial market is to either promote trade, raise capital or transfer risk.

The market transaction can be for either the immediate sale, purchase and delivery of thecommodity (cash or spot price / market) or for the sale, purchase and delivery at a later date(futures contract / market).

The transaction can be completed on an exchange, which has, and the participants agree to abide

by, a formal set of rules and regulations that govern the quality, quantity, pricing, sale and deliveryof the commodity or service (the exchange monitors and manages the transaction).

The transaction can be "Over-the-Counter" (OTC), which is a semi-private transaction with somerules and regulations but much less oversight compared to a formal and managed exchange(usually the Seller and the Purchaser are the only market participants in the transaction).

The formal and managed exchange can still be a physical location where non-professionals (cashmarket) or professionals (cash and futures market) stand face-to-face to complete a markettransaction (market participants).

The formal and managed exchange can also be an electronically-linked network where non-professional and professional market participants communicate information about the quality,quantity, pricing, sale and delivery of the commodity or service through telecommunications and/orcomputer-based network.

Please also see the separate page forCash / Spot Price Markets

Exchanges

There are exchanges for the:Sale and purchase of stock / equities (capital market)Sale and purchase of debt securities / bonds (capital market)Sale and purchase of currencies (Forex market for futures and options; there is no

exchange for spot transactions)Sale and purchase of bank loansAgricultural (soft) commodities (futures and options)Base metals and precious metals (hard) commodities (futures and options)Energy-related commodities (petroleum, refined petroleum, natural gas, coal,

electricity)Plastics and polymersFinancial insturments futures and options (derivatives market on stock prices, bond

prices, exchange indices, currency rates, interest rates) (risk transfer)Weather or catastrophe risk
http://www.credfinrisk.com/commarket.html#cashhttp://www.credfinrisk.com/commarket.html#cashhttp://www.credfinrisk.com/commarket.html#cash


3/21

As indicated above, an exchange (market) can be either a physical location or a computer-basedelectronic network, and offer for sale and purchase either for immediate delivery or trade (sell)futures contracts and options. One must be a member of the exchange or has trading privileges onthe exchange, or is employed by a company that is a member, or has an account with a company orindividual who is a securities broker, futures commission merchant (FCM) or an introducing broker(IB) that is an exchange member in order to access the exchange. All exchanges are regulatedentities, and exchange participants are regulated by the Securities & Exchange Commission (SEC),

the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA); in theUnited Kingdom, the Financial Services Authority (FSA); in Japan, the Financial Services Agency(FSA).

Please also see the separate page for U.S. and International Commodities and FuturesMarket Exchanges

Please also see the separate page for U.S. and International Stock Exchanges

Please also see the separate page for U.S. and International Electric Power Exchanges

Electronic Communications Network (ECN)

Electronic Communications Network (ECN) are the secure computer network infrastructureover which trading is conducted either directly with / through the exchange by participants who arenot physically located at the exchange (or the exchange has no floor trading and is electronic only infunction and design), or with other interbank participants, or with other institutions such as banktrading departments, hedge funds, commodity pools, securities firms (any entity that has a tradingdepartment or capability). An ECN allows the trader to trade directly with market participants whoare providing the actual price quotes in the market, there is no intermediary price markup. TheECN's book data allows one to see all the bids & asks on the associated ECNs order book.

ECNS exist for equity and debt securities, forex, commodities, electricity and derivatives products(futures, options, swaps). ECNs developed to increase the speed and transparency of a financialtransaction and to avoid the actual physical movement of cash and securities documents andcertificates. The ECN structure also reduces the cost to trade because it eleiminates the need forreal estate to house an exchange and matches buy and sell orders automatically without theintervention of a human broker or marketmaker. The key to this situation is that the system haslow-latency: only mili-seconds difference between the actual quote on the exchange and the displayon the participant's screen, and only mili-seconds between "clicking" a market order and acutalorder execution. Payments are transferred and trades are settled and cleared electronically(securities ownership is completed by book-entry accounting system). Both ACH (AutomatedClearing House) and EFT (Electronic Funds Transfer) networks are are also ECNs.

As an example of the relationship between exchanges and ECNs, the CME Group, which is one ofthe largest commodities / derivatives exchange in the world, and includes the Chicago MercantileExchange, the Chicago Board of Trade, and NYMEX (along with its COMEX division) maintains floortrading / open outcry operations daily during business hours and electronic trading on its GlobexECN.

Equity market ECNs are designed to eliminate the need for an intermediary broker, specialist orfloor traders by allowing market makers (large institutions with sufficient capital to purchase andhold an inventory of shares) to directly deal with participants. For instance, there are severalhundred market makers on NASDAQ.

No ECN is outside the oversight of national and professional regulatory agencies and organizations.
http://www.credfinrisk.com/exchanges.htmlhttp://www.credfinrisk.com/exchanges.htmlhttp://www.credfinrisk.com/equity.html#exchangeshttp://www.credfinrisk.com/electric.html#exchangeshttp://www.credfinrisk.com/clearing.html#ach%23achhttp://www.credfinrisk.com/clearing.html#eft%23efthttp://www.credfinrisk.com/exchanges.htmlhttp://www.credfinrisk.com/exchanges.htmlhttp://www.credfinrisk.com/equity.html#exchangeshttp://www.credfinrisk.com/electric.html#exchangeshttp://www.credfinrisk.com/clearing.html#ach%23achhttp://www.credfinrisk.com/clearing.html#eft%23eft


4/21

Alternative Trading Systems (ATS)

ATS (Alternative Trading System) are non-traditional, electronic-based markets for professionalsand institutions trading securities and derivatives, which matches buy and sell orders automaticallywithout the intervention of a human broker or marketmaker, or by using one of the largeexchanges. An ATS is essentially an ECN (as per SEC Rule 300a) and primarily associated withequities trading (sometimes often referred to as a Multilateral Trading Facility / MTF). Again theseare trading platforms not accessed by retail shareholders but are utilized by institutional investors,and include:

Alpha ATS (Canada)BATS EuropeBATS Exchange (USA)Chi-X Europe (London)Burgundy (Sweden)Direct EdgeEquiduct Trading (Brse Berlin)NYSE Euronext ArcaOmega ATS (Canada)Quote MTF (Hungary)Xetra International (Deutsche Brse)

These exchanges make markets in the most liquid of stocks listed on the large exchanges, execute

orders faster, and have a lower overhead so they can compete on price compared to older,established exchanges.

There are also a group of equity-related ATS known as Dark Pools(or dark liquidity pools).

Trading Systems / Trading Platforms

These are software and screen and keyboard-based electronic trading systems / trading platformsused to directly access exchanges and the inter-bank / institutional / corporate treasury (wholesale)

market (market makers). There are also a number of companies who are primary market datavendors for the exchanges and provide intra-day and end-of-day data to subscribers and/or forintegration into other software packages. Straight Through Processing (STP) refers to softwarepacakges that can handle pre-trade analytics / front-end to trade execution / position managmentto back office (confirmation, clearing, settlement, portfolio accounting and reporting). In developinga straight through system an institution must make a "Buy or Build" software decision or anintegration of both components, and make an investment in hardware such as dedicated T1 cablelines and UNIX, LINUX or Windows servers, with either J2EE or .NET environments. Softwareapplications, which includes front-office trading applications, mid or back office systems andexchanges, need to be compliant with the industry-standard Financial Information eXchange(FIX) messaging protocol (versions 4.2, 4.3 and 4.4).

There are trading platforms for the trading of equity and debt securities, forex (spot and futures),commodities, electricity and derivatives products (futures, options, swaps). All electroniccommunication networks / electronic trading systems are dependent upon third-party vendors fornetwork, access / connectivity, trading platform access, market data distribution and back officereconciliation.

The trading platform includes one or more software applications installed either on the server of thefinancial institution and / or the desktop computer at the employee's or trader's desk. The softwareapplication provides the front-end, graphic user interface (GUI) for the trader (usually multi-window) and the coding that actually transfers the digital data. The application may be the onlyinterface the trader uses (integrated platform) or they may use a web browser-based (MSWindowns Internet Explorer, Mozilla) to access the ECN exchange or the inter-bank market (a webbrowser-based trading platform is often used by unregistered and unlicensed retail traders; a web
http://www.credfinrisk.com/equity.html#darkpoolhttp://www.credfinrisk.com/equity.html#darkpoolhttp://www.credfinrisk.com/equity.html#darkpool


5/21

browser-based trading platform is seconds slower than an ECN direct access integrated applicationhowever, it does not require downloading an application). The applicaion may also allow for dual /multi-monitor configurations.

The trading platform provides real time quotes for the bid (purchase) and ask (sale) price for theproduct, and also should provide a data feed of information relevant to the market (previous pricingdata, economic news releases and analysis).

There are four sources for a front-end trading platform:Download an application provided by a broker, data center, proprietary trading group.Lease / license from an independent software vendor.Develop a proprietary application.Download an application provided by an exchange.

There is a substantial difference between institutional ECN connection / trading platform and retailaccount connection / trading application (professionals / non-professionals who trade from a homeoffice through a retail broker). The institution can afford the higher-quality hardware and directaccess. The retail client is using an off-the-shelf desktop computer and an installed softwareapplication (download or disk), and usually accessing the market or exchange through an accountthat is accessed through a web browser. If the retail client does not have a broadband connectionand a direct access ECN connection then they cannot effectively compete. In some instances, the

retail client will actually just be trading with the broker and not actually with the exchange and / ormarketmakers (although it will be an ECN-like environment).

Trading Platforms

Bloomberg SwapTrader is a multi-dealer swaps trading platform delivered via the BloombergProfessional service.

BT Radianz is an Internet Protocol (IP)-based network provider (connectivity and hosting) that linksa number of market participants, trading platforms and exchanges.

Calypso provides straight through processing products for interest rate derivatives, creditderivatives, risk analysis and back-office processing.

CME Globex is the electronic platform for trading futures and options on the Chicago MercatileExchange (CME). Globex Trader is the front end trading application that connects a user eitherdirectly or via the Internet to CME Globex.

COMTEX is a news consolidator that provides financial news from multiple sources and includeseconomic, corporate, and legislative, corporate announcements for US-based publically tradedcompanies, Reuters, Dow Jones, and Associated Press news reports, SEC public company filinginformation.

CQG Trader and CQG Integrated Client are 2 front-end trading platforms that routes orders toseveral of the the major futures and options exchanges. CQG Integrated Client provides moredetailed market data, analytics, and order routing. CQG Trader is an order entry and accountmanagement interface without the analytics.

Deutsche Bank dbFX is a platform for trading foreign exchange in more than 20 major currencypairs. FXSelect is a currency management platform.

EBS / Electronic Broking Services trading platforms for foreign currency trading includes EBS Spot,EBS Prime and EBS Market Data. EBS Metals is a trading platform for trade execution for preciousmetals on the EBS Spot system. EBS was acquired by ICAP (see below) in 2006.


6/21

e-cbot is the electronic trading platform (LIFFE-CONNECT) for the Chicago Board of Trade (CBOT).Connectivity to the system is also available through Bloomberg, CQG, Inc., EasyScreen, eSpeed,FfastTrade, GL TRADE, NYFIX, Rolfe & Nolan, Townsend Analytics, Ltd., Trading Technologies, 7Ticks, RTS Realtime Systems Group and Cunningham Trading System (CTS).

eSignal provides Trade Manager and Account Manager.

eSpeed is a multi-product (US treasuries, European government bonds, futures and foreignexchange) trading platform with middle and back office applications that support clearance,settlement, tracking and reporting of trades, and provide links to outside entities such as theGovernment Securities Clearance Corp., National Securities Clearance Corp., and most other globalclearing organizations. Originally operated by Cantor Fitzgerald, eSpeed merged with BGC Partners(April 2008) which had separated from Cantor Fitzgerald in 2004.

EuroLight is APX Groups trading platform for the APX Power NL / APX Gas NL and the APX Power UK/ APX Gas UK energy exchanges. APX Translator will make EuroLight compatible with TrayportGlobalVision Trading Gateway.

Genesis Securities, LLC, provides the front-end Laser trading platform for equities trading anddisplays all of the real-time Level I and Level II information for the quote, ECN books and Time &Sale Prints, together with tick charts and minute charts. The application provides direct orderrouting to all major ECNs, NASDAQ Super Montage and NYSE DOT. Order types include limit,market, reserve, stop market and stop limit.

GL TRADE provides straight through processing products GL STREAM, GL WIN, GL RUBYX, GLCLEARSTREAM, GL SETTLE US, GL RIMS, GL TXPRESS for trading futures and options on a numberof exchanges.

ICAP is provides voice and electronic front-end trading of of inter-dealer OTC financial products andservices in energy, foreign exchange, interest rates, credit and equity markets, as well as data,commentary and indices.

Interactive Data Corporation (IDC) provides of financial market data and analytics on varioussecurities. Operations include Interactive Data Pricing and Reference Data, Interactive Data Real-

Time Services, Interactive Data Fixed Income Analytics, and eSignal.

Lava Trading, Inc. (owned by Citigroup), provides the LavaFX trading platform and sell sideplatforms (Lava ColorBook, Lava Trading Floor, Lava ColorPalette) and LavaX, a neutral, multi-broker platform for the buyside.

Marco Polo Network is a front-end platform for emerging markets listed equities and equitiesderivatives. Provides cross-border, direct market access (DMA) to linked axchanges.

MetaTrader 4 from MetaQuotes Software Corp., provides a retail platform for futures, options andforex trading, and is used by several retail brokers including FXDD, ODL Securities, PFGBEST, UWC(United World Capital).

Misys Opics Plus is a front-end platform for derivatives, fixed income, equity and treasury trades.Misys Summit is a multi-product, multi-function front-end to back-end platform that can tradetreasury, derivative, fixed income and commercial loan products, perform trade confirmation andsettlement, collateral management, and accounting and reporting.

Murex provides straight through processing products as part of the MX.3 platform.

NASDAQ PORTAL Market is used by broker-dealers, qualified institutional buyers (QIBs) and privateand public companies from around the world to negotiate and trade 144A Securities (unregisteredequity, derivative and debt securities).


7/21

NSC (Nouveau Systme de Cotation) is used by broker-dealers on Euronext.

Numerix provides pricing and risk analytics for fixed income, credit, foreign exchange, hybrids,cross currency, inflation rate and equity derivatives.

NYMEX ClearPort is the internet-based electronic platform for trading and clearing futures andoptions on the New York Mercantile Exchange (NYMEX) energy, metals and soft commoditycontracts.

Oak Systems OAK and OAK II are front-end live bid and offer price platforms for electronic trading(the OAK platform interfaces directly with the electronic order routing systems adopted by thefutures and options exchanges) and will also route orders to a specific exchange for pit traded oropen cry markets trades.

Omgeo LLC (a joint venture of the Depository Trust & Clearing Corporation / DTCC and ThomsonFinancial) provides post-trade, pre-settlement products.

OpenLink Financial provides a group of Straight Through Processing products such as Findur andEndur.

Reuters Data Feeds, Work Station and DataScope products provide news and pricing information onvarious markets and products. Reuters 3000 Xtra is a high-speed, integrated information andtransaction service.

Reuters Kondor Trade Processing (KTP) provides back-office products for processing, delivery,confirmations, payments, collateralisation and accounting across all instruments.

Reuters Trading for Foreign Exchange platform allows participants to trade FX from their Reutersterminal.

Rolfe & Nolan provide Straight Through Processing platforms for futures and options trading. Front-end products include Edge (which can route orders to electronic and floor-based exchanges), QST,RANorder (which utilizes HTML and Windows front-end interfaces for order entry and accountaccess). Middle office products include Fees Direct and Margin Direct. Back office products areRANsys or RISC.

SmartStream Technologies provides middle and back office products.

STAR, Sucden Financial's in-house developed futures and options trading platform, provides accessto many of the world's major exchanges. Sucden FX Trader Pro and Currenex are desktop platformsfor forex trading.

SunGard provides an extensive group of Straight Through Processing products.

Swapstream sPro and sDealer platforms are front-end trading systems specifically designed formedium- and long-term interest rate swaps.

SwapsWire (owned by 21 major banks / investment banks) provides trade capture, brokerconfirmation and counterparty confirmation for multiple OTC derivatives products including interestrate swaps, forward rate agreements, overnight index swaps, caps, floors, swaptions, credit defaultswaps and equity options.

TradeStation (TradeStation Securities) is a trading platofrm for stocks, options, futures or forex.The TradeStation Network delivers real-time (for an additional fee) and delayed (free) index, equityand equity options, forex, and futures and futures options data, as well as foreign market data,market news feeds and free fundamental data.


8/21

TradeWeb is a fixed-income securities and deriviatives trading platform that provides live auctionpricing / quotes and trade execution. (indirect subsidiary of Thomson Financial)

Traiana (owned by ICAP) provides the back office Harmony system (for foreign exchange electronictrading). NetLink is also a post trade netting service for the foreign exchange market.

Trayport GlobalVision Exchange Trading System and Trading Gateway are front end products forfutures and options and will connect to existing mid and back office platforms to facilitate STP usingXML-based APIs.

Trepp CMBS Analytics on Bloomberg provides a trading platform for the CMBS secondary market.

Vision Financial Markets provides the Vision Advantage (powered by Rolfe & Nolan) and the VisionXpress front-end, futures trading platforms.

Securities Identification Protocols

ISO Standards International Securities Identification Number (ISIN) (ISO 6166); was devisedby Association of National Numbering Agencies (ANNA) and is a 12 character code (2character alphabetical country code, 9 digit National Securities Identification Number, 1digit Check Digit) that is issued by the local National Numbering Agency (NNA) to identifysecurities issued internationally.

BIC (ISO 9632) Market Identifier Code (MIC) (ISO 10383); code consists of four contiguous

characters, which identifies stock markets / commofities & derivatives exchanges . Thefirst character should be an X. CFI (ISO 10692); a six digit code maintained by the ANA used to describe financialinstruments by Category (equity, fixed income), Group (shares, preferred shares), andAttributes (voting rights).

SEDOL is a 7 character alphanumeric code administered by the London Stock Exchange andincorporates MIC / ISO 10383 to identify securities (similar to CUSIP).

CUSIP is a 9 digit identification code for securities (debt and equity) issued in the United Statesadministered by Standard & Poor's who is responsible for the compilation and publication of theCUSIP Directory; CINS (CUSIP International Numbering System) number are for internationalsecurities.

The International Securities Association for Institutional Trade Communication (ISITC), an industryassociation, facilitates straight-through processing and other electronic trade and communicationsprocedures / standards among custodian banks, investment managers, and broker/dealers. TheISO20022 Working Group provides the financial industry with a common platform for thedevelopment of messages in a standardized XML syntax.

Clearing and Settlement

Clearing is the transfer and confirmation of information between the payer (sending financial institution) and payee (receiving financial institution).

Settlement is the actual transfer of funds between the payers financial institution and the payees financial institution.


9/21

Settlement discharges the obligation of the payer financial institution to the payee financial institution with respect to the payment order.

Final settlement is irrevocable and unconditional.

Clearing Houses are normally affiliated with a particular exchange and are authorized to settle thecontracts of that exchange. Normally, the two parties to a trade are members of the exchange andits affiliated clearing operation. The two members enter into a contract and enter the details into the

electronic trading system so that the trade can be matched between the two parties. The clearinghouse assumes a contractual obligation in the transaction by functioning as the intermediarybetween the transaction: the clearing house assumes financial risk by functioning the counterpartyfor both parties. In this manner each party is protected from the default of either party as theclearing house functions as the buyer and seller of the contract. In order to cover its obligations theclearing house maintains its own capital base, bank facility guarantees, and collects member marginpayments.

Settlement of an exchange monitored or OTC transaction irrevocable cash payment for a currency,commodity, security or derivative contract premium may be conducted several ways (Bond andRepo clearing is slightly different process):

One-way cash payment, made electronically or physicallyPayment of one currency for the receipt of another currencyDelivery vs payment, or the simultaneous exchange of cash for a security

Settlement Instructions must at a minimum include:Name of InstitutionName of clearing bank and ABA routing Number (if applicable)Account NumberSWIFT Address

Multilateral Netting Settlement System allows 2 counterparties with numerous transactions betweenthem to sum the total due to eachother and settle through a single payment / receipt by just payingthe difference between the two amounts to the party that has the net due amount. This situationrequires that the 2 parties execute a bilateral Netting Agreement prior to entering into anytransactions.

ACT

The Automated Confirmation Transaction (ACT) service is the clearing and reconcilliation electronicsystem for trades completed through NASDAQ trading services and the OTC Bulletin Board.

CDCC

Canadian Derivatives Clearing Corporation (CDCC) is the issuer, clearinghouse, and guarantor ofequity, index and interest rate financial derivative contracts traded on the Montral Exchange. CDCCalso provides clearing, settlement and administrative services to the Winnipeg Commodity Exchangeand the WCE Clearing Corporation.

Bourse de Montral Inc. is the sole holder of the shares of CDCC. In order to align itself to thechange to a for-profit status of its parent company, CDCC has received regulatory approval ofamendments to its by-laws that allow it to also become a for-profit organization.

It is the only clearinghouse to offer clearing services on both options and futures products.


10/21

Clearing & Depository Services (CDS)

The Clearing & Depository Services (CDS) is Canada's national securities depository, clearing(domestic Canada and international) and settlement operation, and the CDS supports Canada'sequity, fixed income and money markets. The CDS is owned by major Canadian banks and themembers of the Toronto Stock Exchange and the Investment Dealers Association of Canada (IDA)(who utilize the CDS's clearing and depository services). The CDS provides its customers with

custody and movement of securities, record-keeping, the processing of post-trade transactions, andthe collection and distribution of entitlements relating to the securities that have been deposited bycustomers. The CDS also provides customers with physical and electronic facilities to deposit andwithdraw depository-eligible securities and manage their related ledger positions (securitiesaccounts).

Clearstram

Clearstram (formerly known as CEDEL / Centrale de Livraison de Valeurs Mobilieres, which wasmerged with Deutsche Brse Clearing in January 2000) is a wholly-owned by Deutsche Brse and

provides securities clearing and settlement, and post-trading services.

Depository Trust Clearing Corporation (DTCC)

The Depository Trust Clearing Corporation (DTCC; established in 1999) is the holding companyparent of its 2 wholly-owned subsidiaries, which are the Depository Trust Company (DTC) and theNational Securities Clearing Corporation (NSCC). The DTC (established in 1973) is the largestdepository and clearinghouse in the world for securities trading settlement. The NSCC (establishedin 1976) provides clearance and settlement services primarily for broker-to-broker securitiestransactions. Combined, the DTC and the NSCC conduct most of the daily clearance, settlement andcustody services for equity, corporate debt and municipal bond transactions in the United States.The customers of both entities include boker / dealers, securities exchanges, issuers, banks, paying

agents, mututal fund companies and insurance companies. Again, combined, the DTC and NSCCsettle millions of transactions every day valued in trillions of dollars annually. In addition, the DTCCis also the parent corporation of the Fixed Income Clearing Corporation (FICC, which was created bythe merger of the MBS Clearing Corporation / MBSCC and the Government Securities ClearingCorporation / GSCC), and the Emerging Markets Clearing Corporation (EMCC).

Depository Trust Company (DTC)The company's primary role is transferring ownership of securities between participants by book-entry form and also through physical delivery (custody and safekeeping). The company alsoprovides tax services (reclamation of taxes on dividends withheld on foreign securities), processingof IPOs, and has oversight of dividend and interest payments. The DTC also provides custody andclearing services for securities from many nations in addition to U.S. issued securities (the DTC cansettle in several currencies). The DTC is a member of the Federal Reserve System.

ELX (Electronic Liquidity Exchange)

Investors in this start-up include banks including Bank of America, Barclays Capital, Citigroup,Credit Suisse, Deutsche Bank Securities, JPMorgan, Merrill Lynch and Royal Bank of Scotland; non-bank investors include Chicago-based market making firms Getco, Peak 6 and hedge fund CitadelInvestment Group LLC.


11/21

Euroclear

Euroclear, which is primarily owned by its user members, provides clearing and settlement ofdomestic and international securities transactions (Euroclear Bank SA/NV). The Euroclear group alsoacts as the Central Securities Depository (CSD) for Belgian (Euroclear Belgium), Dutch (EuroclearNederland), French (Euroclear France SA), Irish and UK securities (Euroclear UK & Ireland Limited).On 1 January 2007, EMXCo also became part of the Euroclear group. The EMX Message System isthe de facto standard for fund order routing in the UK and provides order-routing servicesthroughout Europe.

Euroclear UK & Ireland Limited is the former CRESTCo, Ltd. CREST originally commenced operationson July 15, 1996, by replacing the old paper-based Talisman equity share settlement system of theLondon Stock Exchange and converted the old share registrar custody format to an electronicformat (also replaced the Taurus electronic system that had failed to be implemented in March1993).

Fedwire Securities Service

Fedwire Securities Service is a book-entry securities transfer system that provides participants cost-effective safekeeping, transfer and delivery-versus-payment settlement services with flexibleaccount structures and automated claim adjustment features.www.frbservices.org/fedwire/index.html

Fimat / Newedge

Fimat (Fimat International Banque S.A.) is a wholly owned subsidiary of Socit Gnrale Group,and offers straight through clearing and execution services on listed or OTC derivatives and cashproducts such as fixed income, tangible commodities, forex, financial Futures & Options andequities. Fimat is a clearing member of all of the major dirivatives exchanges around the world.Please Note: On August 8, 2007, Calyon and Socit Gnrale signed a joint agreement tocombine their respective global brokerage activities which currently comprise the Fimat and CalyonFinancial groups. The closing of the merger was January 2, 2008, and the new entity will be calledNewedge. At Closing, Socit Gnrale and Calyon will each own 50% of Newedge Group. EffectiveJanuary 2, 2008, Fimat USA, LLC changed its name to Newedge USA, LLC.

Goldman Sachs Derivatives Clearing Services (DCS)

Derivatives Clearing Services (DCS) commenced operations in July 2010, and provides GoldmanSachs' clients with derivatives clearing services.

International Derivatives Clearing Group, LLC (IDCG)
http://www.frbservices.org/fedwire/index.htmlhttp://www.frbservices.org/fedwire/index.html


12/21

Through its subsidiary International Derivatives Clearinghouse, LLC, participants can clear and settlenew and existing OTC U.S. dollar denominated interest rate swap contracts traded bilaterally withdealers. The IDCG is a subsidiary of the NASDAQ OMX Group. The Bank of New York Mellon owns aminority investment in the IDCG, and provides margin and collateral management services to theIDCG.

Japan Bond Settlement Network

The Japan Bond Settlement Network Co., Ltd. (JB Net) operates an online network system whichlinks participants (investors and dealers), registrars and the Bank of Japan for funds transfers,thereby facilitating the transfer of corporate and other registered bonds, including corporate bonds,government-guaranteed bonds and municipal bonds. JB Net functions as the intermediary in thisonline network system. JB Net was established by financial institutions including banks, securitiescompanies, investment companies and insurance companies.

LCH.Clearnet

LCH.Clearnet Group was formed following the merger of the London Clearing House and Clearnet SAin 2003. The London Clearing House clears contracts for the IPE (International Petroleum Exchange,now known as IntercontinentalExchange / ICE Futures), LIFFE (now know as NYSE Liffe) and theLME (London Metals Exchange). Banque Centrale de Compensation SA, which traded as Clearnet,was formed in 1969 to clear contracts traded in Paris commodity markets. LCH.Clearnet also clearsfor ICAP Electronic Brokering Services (EBS), eSpeed, SwapsWire, EDX London. In the 1st Quarter2010, LCH.Clearnet cleared its first credit default swap index contract.

Monte Titoli

Monte Titoli (part of Gruppo Borsa Italiana) was founded in 1978 and since 1986 has been theItalian Central Securities Depository for all Italian financial instruments (including ItalianGovernment bonds). SWIFTNet provider.

National Securities Clearing Corporation (NSCC)

The National Securities Clearing Corporation (NSCC) is a wholly owned subsidiary of The DepositoryTrust & Clearing Corporation (DTCC). The company's primary role is transferring ownership ofsecurities (equities, corporate debt, municipal bonds and unit investment trusts) between broker /dealers. It is also the primary provider of settlement services to mututal fund companies and

insurance / annuity transactions.

Omego OASYS

Many investment managers use the OASYS and OASYS Global (cross-border) trade allocation andconfirmation service (an Electronic Trade Confirmation / ETC) to exchange trade details andallocations automatically with broker / dealers following trade execution of equity, fixed-income and


13/21

foreign exchange transactions (known as trade through or process straight through). The ETCsystems allows the broker to avoid the time delay of either mailing the client a confirmation letter orsending a fax confirmation, and allows for T+1 and T+0 settlement. Additional ETCs include SalerioETC, Sungard Transaction Network, SmartStream. OASYS is owned and operated by Omego (formerThomson Financial ESG).

SWIFT (Society for Worldwide Interbank Financial Telecommunications)

SWIFT (Society for Worldwide Interbank Financial Telecommunications) is an on-line system thatuses standardized message formats in order for counterparties to send settlement instructions.SWIFT is also used to electronically transfer trade confirmation notices. SWIFT PDS (PaymentDelivery System) utilizes a Real Time Gross Settlement (RTGS) platform for continuous fundstransfer without netting for large vlaue payments. The processing chain for payments, securitiesprocessing, treasury operations and real-time gross settlement is handled via SWIFTNet FINmessages. SWIFT's annual technology conference is SIBOS (SWIFT International BankingOperations Seminar).

The Clearing Corporation (TCC)

Founded in 1925 as the Board of Trade Clearing Corporation, The Clearing Corporation was acquiredby ICE on March 6, 2009.

Clearing Houses

Other exchange / professional / national clearing and settlement operations include:

Bombay Stock Exchange Clearing HouseINTERBOLSA (Sociedade Gestora de Sistemas de Liquidao e de Sistemas Centralizados de

Valores Mobilirios, S.A. (Portugal, in cooperation with LCH.Clearnet, SA)Hong Kong Exchanges and Clearing LimitedKELER (Central Clearing House and Depository (Budapest) Ltd.Kansas City Board of Trade Clearing Corp.Merrill Lynch Professional Clearing Corp.'s PEACE Clearing system (clearing agents for

professional trading accounts both on floor market makersand off floor hedge funds)Norwegian Futures and Options Clearinghouse (NOS Clearing ASA)SFE Clearing Corporation Pty. Limited, functions as a central counterparty clearing organization.SFE Austraclear provides depository, clearing and settlement systems, and registry services of a

range of over-the-counter (OTC) products.Japan Securities Clearing Corporation.

ConfirmHub, LLC

ConfirmHub provides confirmation processing of brokered, exchange-traded, and bilateraltransactions in the energy trading markets. ConfirmHub allows energy traders and back offices toreceive their NYMEX brokered and bilateral OTC cleared trades, as well as their futures and OTCtrades, on a single confirmation platform.


14/21

Swiss Emissions Trading Registry

The Swiss Emissions Trading Registry is operated and managed by the Federal Office for theEnvironment (FOEN) in Switzerland and is an online accounting system, which ensures that theissuance, holding, transfer, acquisition, cancellation and surrender of emission credits are accuratelyrecorded. The credits exist only in an electronic form. Every Registry transaction is verified andapproved by a central authority (Climate Change Secretariat, UNFCCC) via the InternationalTransaction Log (ITL). www.national-registry.ch/

Payment Systems

Payment Services are provided by various kinds of institutions including banks and non-bankfinancial institutions. All interbank obligations resulting from retail payment such as checks and

electronic funds transfers are cleared on a multilateral net basis by the ACH (Automated ClearingHouse). The payment and settlement arrangements have been changing significantly in recentyears. Payment arrangements previously based almost exclusively on cash and paper-basedpayment instruments have been changing to electronic payment arrangements at a rapid rate.

Fedwire Funds Service

Fedwire is the U.S. Federal Reserve System's nationwide real-time gross settlement (RTGS) systemfor the United States (large-value, domestic, funds transfer payment orders; Fedwire also providessafekeeping and transfer services for U.S. government and agency securities, and mortgage-backedsecurities). All banks / financial institutions approved to participate in the system have a specificidentification number and maintain an account with a Reserve Bank. Fedwire is a credit transfersystem, and each funds transfer is settled individually against an institutions reserve or clearingaccount on the books of the Federal Reserve as it is processed and is considered a final andirrevocable payment. www.frbservices.org/fedwire/index.html

The Fedwire Funds Service operates 21.5 hours each business day from 9:00 p.m. EST on thepreceding calendar day to 6:30 p.m. EST.

National Settlement Service

The National Settlement Service is a multilateral settlement service owned and operated by the U.S.Federal Reserve Banks. The service is offered to depository institutions that settle for participants inclearinghouses, financial exchanges and other clearing and settlement groups.

Federal Reserve Banks Check Services

National electronic and paper check processing service. www.frbservices.org/check/index.html
https://www.national-registry.ch/http://www.frbservices.org/fedwire/index.htmlhttp://www.frbservices.org/check/index.htmlhttps://www.national-registry.ch/http://www.frbservices.org/fedwire/index.htmlhttp://www.frbservices.org/check/index.html


15/21

CHIPS (Clearing House Interbank Payment System)

CHIPS (Clearing House Interbank Payment System) is a privately owned on-line system used inNew York to settle forex spot transactions that are required to settle within two business days.

Bank of Japan Financial Network System (BOJ-NET)

Bank of Japan Financial Network System (BOJ-NET) is the Bank of Japan's real-time grosssettlement (RTGS) system for payments and for transferring Japanese government securities(includes a delivery-versus-payment mechanism for securities). Within Japan, there are two majorprivate-sector payment systems used for settling the yen leg of foreign exchange transactions:FXYCS and the Continuous Linked Settlement (CLS). FXYCS is operated by the Tokyo BankersAssociation (TBA) and processes yen payments resulting from cross-border financial transactions,including foreign exchange transactions. CLS is a multicurrency settlement system that settles thetwo legs of a foreign exchange transaction on a payment-versus-payment basis. The Zengin DataTelecommunication System (Zengin System) is an interbank clearing system for retail credittransfers, operated by the Tokyo Bankers Aassociation. The Tokyo Clearing House (TCH) is thelargest bill and check clearing system in Japan. interbank ATM network systems such as the Banks

Cash Service (BANCS) and the Multi Integrated Cash Service (MICS) are also managed by the TBA(the largest of Japans 72 regional bankers associations).www.boj.or.jp/en/theme/psys_seibi/index.htm

TARGET (Trans-European Automated Real-time Gross settlement Express Transfersystem)

TARGET is the interbank RTGS payments system (real-time gross settlement system) for the euro,offered by the decentralized payment system of Eurosystem and It is used for the settlement ofcentral bank operations, large-value euro interbank transfers as well as other europayments.TARGET consists of fifteen national RTGS systems and the payment mechanism (EPM) ofthe European Central Bank (ECB), all of which are interlinked. The RTGS systems of non-

participating member states may also connect to TARGET as long as those non-member RTGSsystems comply with the minimum common features of the system.www.ecb.int/ecb/legal/pdf/l_01820060123en00010017.pdf (.pdf format)

ARTIS (Austrian Real-Time Interbank Settlement system) - Oesterreichische NationalbankRTGSplus - Deutsche BundesbankELLIPS (Electronic Large-value Interbank Payment System) - Nationale Bank vanBelgi/Banque Nationale de BelgiqueKRONOS - Danmarks NationalbankBoF-RTGS (Bank of Finland Interbank Funds Transfer System) - Suomen Pankki Finlands BankPOPS (Pankkien On-line Pikasiirrot ja Sekit-jrjestelm) - Suomen Pankki Finlands BankSLBE (Servicio de Liquidacin del Banco de Espaa) - Banco de EspaaSPI (Servicio de Pagos Interbancarios) - Banco de Espaa

TBF (Transferts Banque de France) - Banque de FrancePNS - Banque de FranceIRIS (Irish Real-time Interbank Settlement system) - Central Bank and Financial ServicesAuthority of IrelandHERMES (Hellenic Real-time Money transfer Express System) - Bank of GreeceLIPS-Gross (Luxembourg Interbank Payment System/Gross settlement) - Banque centraledu LuxembourgBIREL (Banca dItalia Regolamento Lordo / Sistema di regolamento lordo) - Banca dItaliaTOP - De Nederlandsche BankSPGT (Sistema de Pagamentos de Grandes Transaccoes) - Banco de PortugalRIX - Sveriges Riksbank
http://www.boj.or.jp/en/theme/psys_seibi/index.htmhttp://www.ecb.int/ecb/legal/pdf/l_01820060123en00010017.pdfhttp://www.ecb.int/ecb/legal/pdf/l_01820060123en00010017.pdfhttp://www.boj.or.jp/en/theme/psys_seibi/index.htmhttp://www.ecb.int/ecb/legal/pdf/l_01820060123en00010017.pdf


16/21

euro CHAPS (Clearing House Automated Payment System) - Bank of EnglandEPM (European Payment Mechanism) - European Central Bank

As of November 17, 2007, TARGET was replaced by TARGET2, characterized by a single technicalplatform called the Single Shared Platform (SSP), which is an attempt to harmonize the different,national RTGS systems.http://www.dnb.nl/dnb/home/file/EN_GUI_tcm47-155886.pdf (.pdf format)

TARGET / Euro Large-Value Payaments Systems statisticswww.ecb.int/stats/payments/payments/html/index.en.html

APACS (Association for Payment Clearing Services)

APACS manages the main clearing networks in the United Kingdom, which allow UK banks andbuilding societies to exchange payments.

BACS

BACS is a not-for-profit payment system in the United Kingdom and is owned by 13 banks andbuilding societies (UK and European). The company's two principal electronic payment systems areDirect Debit and Bacs Direct Credit. Ownership financial institutions include:

AbbeyAlliance & Leicester Commercial BankBank of EnglandBarclays BankCoutts & CoClydesdaleDanske BankHBOS (Halifax and Bank of Scotland)HSBC Bank plc

Lloyds TSB BankNationwide Building SocietyNatWestNorthern RockThe Co-operative BankThe Royal Bank of Scotland

CHAPS (Clearing House Automated Payments System)

CHAPS provide same day settlement (RTGS) between financial institutions (interbank) for lowvolume, high value Sterling and Euro transactions within the United Kingdom.

VocaLink

VocaLink (owns the Faster Payments service, which is a GBP / only system) processes paymentsfor the UKs BACS clearing system.
http://www.dnb.nl/dnb/home/file/EN_GUI_tcm47-155886.pdfhttp://www.dnb.nl/dnb/home/file/EN_GUI_tcm47-155886.pdfhttp://www.ecb.int/stats/payments/payments/html/index.en.htmlhttp://www.dnb.nl/dnb/home/file/EN_GUI_tcm47-155886.pdfhttp://www.ecb.int/stats/payments/payments/html/index.en.html


17/21

IBOS (International Banking - One solution / Inter-Bank Online System)

IBOS is a global payments system between member / participating banks that is provided primarilyfor corporate customers who have daily, real-time, multi-currency payment requirements. Memberbank / country coverage is primarily within Western Europe, Central Europe and North America(including the Caribbean region). IBOS was originally a for-profit joint-venture between the RoyalBank of Scotland and Banco Santander.

ACH (Automated Clearing House)

The ACH (Automated Clearing House) is a nationwide electronic payments system amongauthorized participants that processes electronically originated batches of credit and debit transfers.

ACH is utilized for pre-authorized, repetitive payments such as direct deposit of payroll, U.S. government payments such as Social Security and IRS tax refunds. ACH debit transfers includedirect debits of consumer and business accounts for the payment of mortgages, bills, and taxobligations. More recently, the ACH network is being used to convert check payments into ACH debittransfers.

The Federal Reserve Banks are collectively the nation's largest automated clearinghouse operator and process commercial interbank ACH transactions through their FedACH Service todepository institutions. ACH regulation regarding federal government participation (31 CFR 208 and210). www.frbservices.org/fedach/index.html

U.S. Treasury, Guide to Federal ACH Payments and Collections (Green Book) www.fms.treas.gov/greenbook/

Federal Reserve E-Payments Routing Directory www.fededirectory.frb.org/The Electronic Payments Network (EPN) is the only private-sector ACH operator. EPN processes

payments for approximately 1,500 financial institutions (commercial banks, savings bank, savings &loan, credit unions).

There are also 19 regional payments associations in the United States, which provide businesses and financial institutions around the country with ACH information and resources.

NACHA, the National Automated Clearing House Association, is a not-for-profit association that represents financial institutions through direct memberships in the network of regional paymentsassociations, and develops operating rules and business practices for the Automated Clearing House

(ACH) Network and for electronic payments in the areas of Internet commerce, electronic bill andinvoice presentment and payment (EBPP, EIPP), e-checks, financial electronic data interchange(EDI), international payments, and electronic benefits services (EBS). www.nacha.org/

Electronic Funds Transfer (EFT)

Electronic Funds Transfer (EFT) refers to the movement of funds from one bank account to anotherby means of electronically communicated payment instructions (for instance through an ATMnetwork and credit / debit card point of sales systems). To initiate EFT, a company must enter intoan agreement with a financial institution capable of originating these transactions. The companyneeds to obtain written authorization from its customers and suppliers allowing for deposits orcharges to their accounts. Initiated through electronic terminal, automated teller machine, computerterminal, and the WWW. Functionally, EFTs include two principal categories: credit transfers and

debit transfers. A credit transfer is one in which the originator instructs its bank (via a paymentorder) to transfer funds belonging to the originator for credit to the beneficiarys account i.e., theinstruction to pay is given by the person making the payment. A debit transfer is one in which theoriginator instructs its bank (via a payment order) to collect funds on behalf of the originator bydebiting another partys account at the other partys bank i.e., the instruction is given by theperson receiving payment. Please see the separate page on Credit Card, Debit Card and ATMNetwork operations.
http://www.frbservices.org/fedach/index.htmlhttp://www.frbservices.org/fedach/index.htmlhttp://www.fms.treas.gov/greenbook/http://www.fededirectory.frb.org/http://www.nacha.org/http://www.credfinrisk.com/ecash.html#creditcardhttp://www.credfinrisk.com/ecash.html#creditcardhttp://www.frbservices.org/fedach/index.htmlhttp://www.fms.treas.gov/greenbook/http://www.fededirectory.frb.org/http://www.nacha.org/http://www.credfinrisk.com/ecash.html#creditcardhttp://www.credfinrisk.com/ecash.html#creditcard


18/21

Customer Information Transfer systems

ACATS (Automated Customer Account Transfer System)

ACATS (Automated Customer Account Transfer System) is the system managed by the NSCC

(National Securities Clearing Corporation) to allow for the timely transfer of a customer accountinformation between brokerage firms when the customer decides to close out the account /relationship with a broker and request the opening of an account with the new, competing firm. Theadvising client provides the new brokerage with basic information:

Account Number (with the existing broker to be transferred)Tax ID or Social Security NumberAccount Registration (name of the beneficial owner or owners)Type of account (cash, margin)

The system is designed to allow for the transfer of both cash and securities (so the securitiesportfolio does not have to be liquidated). At the start of the process, the new brokerage requeststhe transfer of assets and the old brokerage calculates the net asset value of the cash and securitiesportfolio and transfers the cash surrender value (less any fees owed by the customer) to the new

brokerage. Once the actual securities are transferred the new brokerage returns the cash equivalentof the value of the securities back to the old brokerage. These transfer transactions are settledthrough the NSCC's Continuous Net Settlement (CNS) system (as long as the asset is CNS eligible;open-end mutual fund assets are settled through ACATS Fund/SERV).

Markets in Financial Instruments Directive (MiFID)

MiFID was authorized European Commission and adopted within the EU in order to bring greatertransparency to regulated markets, which includes exchange traded and OTC traded transactions,broker/dealers, investment banks, portfolio managers, corporate finance operations, retail banks.The set of regulations became effective November 1, 2007. MiFID is a major part of the European

Unions Financial Services Action Plan (FSAP), which is designed to help integrate Europe's financialmarkets. MiFID updates the Investment Services Directive (ISD).

MiFID requires that firms executing orders, or who place orders with other entities for executionwhen providing the service of portfolio management, or who transmit orders to other entities forexecution when providing the service of reception and transmission of orders, must havearrangements in place to take all reasonable steps to obtain the 'best possible result' for theirclients. The best possible result should be determined with regard to the following executionfactors: price, costs, speed, likelihood of execution and settlement, size, nature or any otherconsideration relevant to the execution of an order. (MiFID Level 1 Directive , Article 21; Level 2Directive, Articles 44, 45 and 46).

On Demand Market and General News Aggregators & Search (Data Vendors& Databases)

These entities provide breaking market news and international news to desktop screens on either aproprietary basis or by subscription to the service. These entities include ACN Newswire, ActionEconomics, Acquire Media, AP Financial News, Atos Origin, Bloomberg, Bridge, Business Wire, CEPNews Pro, Comtex, Dialog Proquest, Dow Jones Newswire, Ecovision, Factiva (Dow Jones &Reuters), Factset, Fides, Financial Content, Financial Times Global Service, Fininfo, Genios, GINGlobal Information Network, GlobeNewswire, Grab Networks (Voxant), Hugin, Infobolsa, Investnet,


19/21

JCN Network, LexisNexis, LexisNexis ABIX, MarketWatch, Markit, Newstex Finance Newsfeed,Newstex Public Companies Newsfeed, Proquest, Relegence, Reuters, Telerate, TrackData, ThomsonGale, Thomson Financial, YellowBrix.

Trading, Clearing & Settlement Information Resources

Association for Payment Clearing Services (APACS) www.apacs.org.uk/

Australian Payments Clearing Association (APCA) www.apca.com.au/

Canadian Depository for Securities www.cds.ca/

Canadian Derivatives Clearing corp. www.cdcc.ca/index_pc.php

Canadian Payments Association (CPA / lAssociation canadienne des paiements) www.cdnpay.ca/(Franais / English)

Clearing Corporation www.clearingcorp.com/

Clearing House Interbank Payments System (CHIPS) www.chips.org

Clearstream www.clearstream.com/Settlement and custody for the Deutsche Brse.

CLS (Continuing Linked Settlement) Bank www.cls-services.com/

Companhia Brasileira de Liquidao e Custdia / CBLC (Brazil) www.cblc.com.br/cblc/Default.asp(Portugus / English)

Depository Trust Company www.dtc.org/

Depository Trust & Clearing Corporation www.dtcc.com/

Electronic Clearing House (ECHO) www.echo-inc.com/(Originally an interbank FX settlement system, now provides commercial credit/debit card, papercheck and bank payment processing services)

Electronic Payment Services (Hong Kong) www.eps.com.hk/

Emerging Markets Clearing Corporation www.e-m-c-c.com/

EUREX www.eurexchange.com/Clears EURO denominated derivative contracts (interest rate, equity, equity index) for the Deutsche

Brse and the Swiss Exchange (SWX).

Euroclear www.euroclear.com/

European Central Securities Depositories Association www.ecsda.com/

European Commodity Clearing AG (ECC) www.ecc.de/

Fixed Income Clearing Corporation (FICC / DTCC) www.ficc.com/
http://www.apacs.org.uk/http://www.apca.com.au/http://www.cds.ca/http://www.cdcc.ca/index_pc.phphttp://www.cdnpay.ca/http://www.clearingcorp.com/http://www.chips.org/http://www.clearstream.com/http://www.cls-services.com/http://www.cblc.com.br/cblc/Default.asphttp://www.cblc.com.br/cblc/Default.asphttp://www.dtc.org/dtcpublic/html/http://www.dtcc.com/http://www.echo-inc.com/http://www.eps.com.hk/http://www.e-m-c-c.com/http://www.eurexchange.com/http://www.euroclear.com/http://www.ecsda.com/portal/http://www.ecc.de/http://www.ficc.com/http://www.apacs.org.uk/http://www.apca.com.au/http://www.cds.ca/http://www.cdcc.ca/index_pc.phphttp://www.cdnpay.ca/http://www.clearingcorp.com/http://www.chips.org/http://www.clearstream.com/http://www.cls-services.com/http://www.cblc.com.br/cblc/Default.asphttp://www.dtc.org/dtcpublic/html/http://www.dtcc.com/http://www.echo-inc.com/http://www.eps.com.hk/http://www.e-m-c-c.com/http://www.eurexchange.com/http://www.euroclear.com/http://www.ecsda.com/portal/http://www.ecc.de/http://www.ficc.com/


20/21

Global Banking & Securities Transactions (GBST / Australia) www.gbst.com/

Hong Kong Exchange and Clearing, Ltd. www.hkex.com.hk/

IberClear (El Depositario Central de Valores de Espaa)

IBOS (Inter-Bank Online Systems) www.ibosassociation.com/

International Derivatives Clearing Group, LLC (IDCG) www.idcg.com/

Korea Securities Depository www.ksd.or.kr/Eng/index.jsp (Korean / English)

LCH.Clearnet www.lchclearnet.com/(Formed by the merger of the London Clearing House and Clearnet SA); Clears contracts (financial,equities, energy, non-ferrous metals and commodities) for the International Petroleum Exchange(IPE), Euronext / LIFFE, London Metal Exchange (LME), The London Stock Exchange (LSE), Endex,virt-x, Powernext.

Monte Titoli www.montetitoli.it/

National Automated Clearing House Association (NACHA) nacha.org/

National Securities Clearing Corporation www.nscc.com/

OASYS / OASYS Global / ALERT (Omego) http://www.omgeo.com/

Options Clearing Corp. (OCC) www.optionsclearing.com/

SFE Clearing / Australclear www.sfe.com.au/

SIS SegaInterSettle AG www.sec.sisclear.com/sec/cm/index.htm

Society for Worldwide Interbank Financial Telecommunications (SWIFT) www.swift.com/

Swiss Interbank Clearing www.sic.ch/

UN/CEFACT United Nations Centre for Trade Facilitation and Electronic Business www.tbg5-finance.org/

Verbrfaskrning slands (Icelandic Securities Depository) www.vbsi.is/

Return to Main Page

Copyright 2011 Credit and Finance Risk Analysis. All Rights Reserved.All corporate names and product names are the trademarks and/or registered trademarks of their respective

owners.
http://www.gbst.com/http://www.hkex.com.hk/http://www.ibosassociation.com/http://www.idcg.com/http://www.ksd.or.kr/Eng/index.jsphttp://www.lchclearnet.com/http://www.montetitoli.it/http://nacha.org/http://www.nscc.com/http://www.omgeo.com/http://www.optionsclearing.com/http://www.sfe.com.au/https://www.sec.sisclear.com/sec/cm/index.htmhttp://www.swift.com/http://www.sic.ch/http://www.tbg5-finance.org/http://www.tbg5-finance.org/http://www.vbsi.is/http://www.credfinrisk.com/index.htmlhttp://www.addthis.com/bookmark.phphttp://www.gbst.com/http://www.hkex.com.hk/http://www.ibosassociation.com/http://www.idcg.com/http://www.ksd.or.kr/Eng/index.jsphttp://www.lchclearnet.com/http://www.montetitoli.it/http://nacha.org/http://www.nscc.com/http://www.omgeo.com/http://www.optionsclearing.com/http://www.sfe.com.au/https://www.sec.sisclear.com/sec/cm/index.htmhttp://www.swift.com/http://www.sic.ch/http://www.tbg5-finance.org/http://www.tbg5-finance.org/http://www.vbsi.is/http://www.credfinrisk.com/index.html


21/21

Trading and Settlement Overview

Documents

Transcript of Trading and Settlement Overview