FISD General Membership Meeting

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• FISD General Membership Meeting
• June 22, 2006
• New York City

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Notice to Members of the Media Please be
advised that quotation or attribution of any
speaker must be granted directly by an individual
speaker. Because companies operate with
potentially different policies, and to give
presenters the freedom to speak candidly, we
assure them that presentations and comments are
off-the-record unless express permission is
granted by an individual to use information from
a presentation or a quote from this conference.

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Overview of Program

• Report to Membership Operations and Governance
• Tom Davin, Managing Director, FISD
• Advancing International Regulatory
  CooperationSherman Boone, Assistant Director,
  Office of International Affairs, Securities
  Exchange Commission
• Direct Billing InitiativeBill Lee, Morgan
  Stanley
• Report to Membership Business Issues Agenda
• Your Risk Appetite Best Practices Strategies
  for Securing Profitable ERMBill Hobbib, Vice
  President Marketing, StreamBase
• Report to the Membership Security Processing
  Automation
• James Hartley, Chief Technologist, FISD
• MDDL Open for BusinessJames Hartley, Chief
  Technologist, FISD
• Constituency Group Meetings
• Networking Reception

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New FISD Members

• Mellon Financial Corp.
• ABN Amro
• Knowledge Technolgy Solutions
• Cantor Market Data
• SEI Investments
• OMX AB
• Infrasoft Technologies
• Borsa Italiana

• SunGard Data Mgmt Solutions
• Deutsche Bank
• NASD
• The Roberts Group
• Dun and Bradstreet - ERC Solutions
• Bombay Stock Exchange
• Screen InfoMatch
• EBS Dealing Resources
• Societe Generale
• Business Intelligence Solutions

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2006-07 FISD Schedule

• June 22 NYC General Meeting (in conjunction
  with SIA)
• September 14 London General Membership Meeting
• October 18 19 Singapore Asia Financial
  Information Summit (with IMD)
• November North America Issue Brief
• December 5 - London Issue Brief and Holiday
  Party
• December 14 - NYC General Membership Meeting and
  Holiday Party
• 2007
• February North America Issue Brief
• March Europe General Membership Meeting
• May - North America One-day Conference

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FISD Executive Committee Elections

• Revised By-Laws (approved June 2005) provided for
  election of Executive Committee to two year terms
• 27 seats on EC
• 12 members will serve through EOY 2006
• 12 members chosen via Nov 2005 election
• Three seats picked by EC in Dec 2005
• FISD Member Leadership
• Chair Sara Banerjee Telekurs
• Vice-Chair Niel Siekerka Reuters

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Membership Survey

• Follow-up to 2005 survey
• Administered online 79 respondents
• Overall satisfaction increased
• Top two box score (Satisfied/Very Satisfied) 52
  -gt 82
• Validated that FISD agenda are all relevant and
  valuable
• Business Issues
• Securities Processing Automation
• Government Affairs
• New initiatives seemed to be well received.
• Monthly member newsletter
• Renewal of constituent groups

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MiFID Joint Working GroupReal-time Market Data

• MiFID requires Investment Firms to publish their
  pre- and post-trade information to the market
• FISD Sponsors Real-time Market Data Subject Group
• Level 2 Directive and Regulation published 6
  February
• Real-time Market Data Emphasis
• Data quality and timeliness
• Publication facilitates consolidation
• Non-discriminatory commercial terms
• Reasonable cost
• Real-time Market Data Subject Group White Paper
• What post-MiFID world will, could and should look
  like
• Resource for all parties
• To be updated to include pre-trade transparency
  and emphasis on importance of standards focus
  on dealing with duplicate data and identification
  of subject securities and Investment Firms
• Future potential issues
• Standardized commercial terms and contracts
• Traffic and Capacity
• Standard practices for consolidation of data from
  multiple sources

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• FISD General Membership Meeting
• 22 June 2006, New York City
• Sherman Boone
• Assistant Director, Office of International
  Affairs
• Securities Exchange Commission

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• FISD General Membership Meeting
• 22 June 2006, New York City
• Bill Lee
• Morgan Stanley

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• Business Issues Report
• Tom Davin

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Business Issues Policy and Practice Standards
(BIPPS)
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BIPPS Issues

• Unit of Count
• Recommendation End-user i.e., person
• Delay Interval
• 20 minutes or less
• Subscriber Agreement
• Incorporate exchange provisions into vendors
  agreement OR
• Consolidated agreements among exchanges
• Derived Data and Non-display Usage
• Standard definitions
• White Paper highlighting disparate views

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Unit of Count

• BIPPS Recommendation
• End-user human being
• Best supports flexible delivery and usage
• European exchange group developed consolidated
  policy statement for seven exchanges
• Based on User ID
• Content Providers asked to adopt one of the two
  policies
• European policy not viewed as optimal but
  adoption would increase global standardization on
  this issue

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Subscriber Agreement

• Most exchanges globally do not require separate
  subscriber agreements
• Vendor protections are adequate
• Global Subscriber Agreement
• Exchanges seeking consolidated language
• Limited number of exchanges involved to date
• Now available to broad exchange community

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Derived Data/Non-Display Usage

• Definitions completed
• White Paper
• Point/Counter-point examination of conflicting
  views on these issues not a consensus
• Inform Content Providers thinking as they
  grapple with these issues
• Seeking broader review and comment on both
  definitions and White Paper

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DD/ND White PaperSome Issues

• Ownership of derived data
• Direct contractual relationships between Content
  Providers and data recipients
• Consistent transparent policy interpretations
• Policies - ease of use issues
• Pre-approvals of usage
• Admin burden amount of paperwork etc.

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Billing and Invoice Working Group

• Roundtable group for industrys billing managers
• Main focus ID best practices
• Description of best practices
• Billing Data Model what data elements are
  desirable?
• Review versions of both items completed
• Group will be seeking feedback from broader
  audience especially among consumers

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Questions/Comments?
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• FISD General Membership Meeting
• 22 June 2006, New York City
• Bill Hobbib
• Vice President, Marketing
• StreamBase

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Constituent Groups

• Exchanges/Markets
• Consumers
• Banks
• Brokerages
• Buy-side
• Vendors

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Reg NMS Update

• Tom Jordan
• Jordan Jordan

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Regulation NMS Background

• Components of Reg NMS
• Order Protection Rule - provides intermarket
  price priority for displayed and accessible
  quotations (Rule 611)
• Access Rule - addresses access to markets (Rule
  610)
• Sub-Penny Rule - establishes minimum pricing
  increments (Rule 612)
• Market Data Rules include
• Allocation amendment institutes a new Market
  Data Revenue Allocation Formula
• Governance amendment creates advisory
  committees
• Distribution and Display Rules governing market
  data (Rule 600, 601 603)
• Firms Affected
• SROs/Exchanges
• ECNs and other executing broker-dealers (e.g.,
  market makers, block positioners)
• Broker-dealers routing ISOs

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Phased-in Compliance Dates

• On May 18, 2006, the SEC published new dates for
  compliance with Regulation NMS (See extending
  release at http//www.sec.gov/spotlight/regnms.htm
  ), the implementation milestones are as follows
• Oct. 16, 2006 (Specifications Date) Final date
  for publication of final technical specifications
  for the Regulation NMS-compliant trading systems
  of all automated trading centers that intend to
  qualify their quotations for trade-through
  protection
• Feb. 5, 2007 (Trading Phase Date) Final date for
  full operation of Regulation NMS-compliant
  trading systems of all automated trading centers
  intending to qualify their quotations for
  trade-through protection
• April 1, 2007 (Allocation Amendment) Market Data
  Revenue Formula will go into effect. Automated
  trading centers will be eligible for market data
  quote credits.
• May 21, 2007 (Pilot Stocks Phase Date) Start of
  full industry compliance for 250 NMS stocks (100
  NYSE stocks, 100 Nasdaq stocks, and 50 Amex
  stocks).
• July 9, 2007 (All Stocks Phase Date) Start of
  full industry compliance.
• Oct. 8, 2007 (Completion Date) Completion of
  phased-in compliance with Rule 610 and Rule 611.