CME Canadian Trade Repository (CTR)...CME Group is the world’s leading and most diver se derivatives exchange. It’s where companies, It’s where companies, institutions and individuals

CME Canadian Trade Repository (CTR)

CME Global Repository Services

May 2014

http://www.cmegroup.com

© 2014 CME Group. All rights reserved.

• CME Group & Global Repository Services Overview

• Timeline

• CME Canadian Trade Repository Introduction

• Reporting Obligation Summary

• User Interface & Submission Methods

• Identifiers

• Data Confirmation

• Reporting Fall Back Provision

• Fee Schedule

• Onboarding

• Resources

2

Agenda


CME Group is the world’s leading and most diverse derivatives exchange. It’s where companies, institutions and individuals from around the globe come to manage their business risks, hedge against fluctuations and protect themselves against price volatility.

CME Group: Who We Are

Our Global Reach

ACCESS IN

150 Countries

CONNECTIONS THROUGH

11 Global Hubs

RELATIONSHIPS WITH

12 PartnerExchanges

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CME CLEARING US

ETD: CME MARKETS (CME, CBOT, NYMEX)

OTC: Commodities, IRS, CDS, FX

CLEARING MEMBER (FCM/DCM)

US or Non-US CLIENT

CLEARING MEMBER (Broker/Bank)

US Law / DFA Compliant Structure

Agency/FCM Model

Clearing

Execution

Client

Clearing Member

OTC*: Commodities, IRS, CDS, FX

European or Non-US CLIENT

English Law / EMIR Compliant Structure

ETD: CME Europe (Pending regulatory Approval)

Principal Model

CME CLEARING Europe**

Choice based on customer demand

CME Group’s Global Clearing and Service Capabilities

* OTC Commodities and IRS are currently live. OTC Financials roll out planned with OTC FX in 2014, followed by OTC CDS

**Clearinghouse providing Delegated Reporting Services

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Over 435 global market participants have now cleared more than $21.5 trillion in our OTC clearing solution, including:

• 150+ Hedge Funds

• 100+ Asset Managers

• 60+ Regional Banks

• 35+ Registered Swap Dealers

• 30+ Insurance Companies

• 20+ REITs

• 10+ GSEsOther clients include Pension Funds, Endowments, Sovereign Wealth Funds, Corporations, and Proprietary Trading Firms

Client Demand Drives Open Interest

Open interest continues to trend upward, from $3 trillion in June to $11.8 trillion in February with market share increasing from 28% to 53% during this same period

OTC IRS Open Interest*

Globally, CME Group has more than 30,000 interest rate swap accounts with more than 400 clients

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0%

10%

20%

30%

40%

50%

60%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Market Share$ OI (trillions)

Open Interest Market Share

*Data through April 22nd, 2014


Several market leading affirmation platforms and Swap Execution Facilities are directly connected to CME Clearing

Connectivity Partners

Platforms Connected to CME Clearing

CM

E C

lear

ing

OTC Clearing Members

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Only operator of execution, clearing and reporting services in major derivative asset classes in multiple major markets

► Serving US, EU, and Canadian markets

► Proven reporting systems stability and operational flexibility

► World class customer service

► Simplified and low cost fee models

► Leveraging global network of connected entities to CME Clearing

► Messaging efficiency: one message; multiple post-trade services

CME Global Repository Services

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© 2014 CME Group. All rights reserved. 8

CME Global Repository Service

Transactions reportedacross multi-asset classes

45+ MillionGlobal Customers

1500+Accepts:Exchange TradedCleared OTCBilateral OTC

Hour Access

24Real-time Technology

Simple. Experienced. Responsive. Diverse.

Multi-Jurisdiction


Coverage • Covering Credit, Rates, FX, Commodities and Equities; both cleared and non-cleared markets

Legal Structure• Application under CME Inc. (US based); same entity operating CFTC registered SDR

Operating Structure• Systems hosted in Chicago (primary) and New York (back-up). Business, product and client

service staff across Chicago, New York and London.

• Common technology foundation across CME trade repositories; segregated database for Canadian TR

• Multijurisdictional trades are replicated for each regional TR and use the same unique trade/swap identifier

Technology • CSV or FiXML format submissions via manual upload, sFTP or HTTPS web services API

• Real-time trade registration for trade submission processing and ad-hoc report access

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CME CTR Overview


• June 15, 2014 CME CTR will be ready to accept registrations/User Agreements

• July 15, 2014 New Release (Test) Environment ready

• August 1, 2014 Production Environment ready

• October 31, 2014 Reporting obligation in effect for transactions that involve at least one Derivatives Dealers or Clearing Agencies

• April 30, 2015 Public Dissemination requirement in effect

Reporting obligation in effect for Pre-Existing Transactions that involve at least one Derivatives Dealers or Clearing Agencies

• June 30, 2015 Reporting obligation in effect for transactions between two Non-Derivatives Dealers

• December 31, 2015 Reporting obligation in effect for Pre-Existing Transactions between two Non-Derivatives Dealers

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Timeline for CME Canadian Trade Repository (CTR)


Reporting Scope OTC Derivative creation data, life cycle event data, valuation/collateral data, errors and omission in Rates,Credit, FX, Commodities, and Equities asset classes

Creation data: Reportable in “real-time” or as soon as technologically practicable but no later than the end of T+1 business day

Lifecycle event data: Reportable by COB on the day the life-cycle event occurs, but no later than end of T+1 business day

Valuation data: Derivatives dealer or clearing agency reports daily and non-dealers report quarterly(based on industry accepted valuation standards)

Non-cleared Markets Derivatives involving at least one local counterparty are subject to the reporting requirements.: Each derivatives dealer, if the transaction is between two derivatives dealers A derivatives dealer, if the transaction is between a derivatives dealer and a non-derivatives dealer Each local counterparty, if the transaction is between two local counterparties that are non-

derivatives dealers

*Although the reporting obligations may fall on both counterparties, one or both parties may delegate to the other or 3rd party

Cleared Markets Only the registered or exempt clearing agency

TimingOSC has not yet confirmed allowing for phased approach on data fields, but market is expecting this announcement shortly

October 31, 2014 Derivative Dealers or Recognized or Exempted Clearing Agencies.(Day 1 working assumption, pending OSC guidance, is to report same data fields asmandated under CFTC Part 45)

March 2015 Phase 2 will be to add additional fields specifically mandated by the Canadianregulators

June 30,, 2015 Non-Derivative Dealers

Back Reporting For clearing agency or dealer - transactions open on 10/31/14 need to be reported by 4/30/15For non-dealers - transactions open on 06/30/2015 need to be reported by 12/31/15

Reporting Summary

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CME CTR User InterfaceClient friendly navigation and customisable functionality

• Facilitates upload of CSV files to CME CTR to comply with all reporting obligations

• Ad hoc flexible reporting downloading capabilities

• Supports cleared and bilateral transactions

• Customize and save queries for streamlined access

• CME SDR Demo video (highly similar to CME CTR) – www.cmegroup.com/repositorydemo

Canadian Trade Repository


CTR Connectivity

Submission Formats CSV (asset class specific templates) FiXML

Submission Entry Points Website manual upload Secure FTP (sFTP) HTTPS web services API Leveraging ClearPort APIs and deploying Universal, DFA and EMIR native operations

Report Access Customizable reports, by any attribute (i.e. product, LEI, date) Available ad hoc or end of day; exportable to CSV or PDF

Documentation

- Technical materials mirror those for Dodd-Frank reporting available at www.cmegroup.com/sdr


Reporting IdentifiersEntity Codes – LEI

A unique identifier that will ID reporting & non reporting counterparties, reporting agents, clearing agencies, clearing members, brokers and electronic trading venue

Substitute LEI – The Pre-LEI system can be used until the Global LEI system is available. The substitute LEI and LEI could be identical. Endorsed Interim LEI providers found at: www.leiroc.org/publications/gls/lou_20131003_2.pdf

Trade Codes – UTI

Created and assigned by the designated trade repository; unless a submission is received with a submitter generated UTI

CME Clearing will generate the UTI for cleared transactions; including on clearing/TR confirmation messages and daily trade registers

CME CTR will generate the UTI for any trade report submissions absent a UTI and include in the confirmation message(s)

Product Codes – UPI

A single field identifier created and assigned by the reporting counterparty

CME Clearing will generate the UPI for cleared transactions using CME Clearing Codes; to be included on clearing/TR confirmation messages and daily trade registers

CME CTR will accept any UPI value reported


CME CTR has a requirement to confirm with each counterparty to a transaction (including clearing agencies that are the reporting counterparties for cleared transactions) that the derivatives data it receives is accurate.

- Only applies to customers of CME CTR- CME discussing provision with OSC

In order to facilitate this confirmation upon receiving a report, CME CTR will provide notification to each counterparty to the trade (so long as it is a registered participant of CME CTR). The notification shall include a link to view the trade details. Each counterparty has 48 hours to dispute trade terms and if no such response is received within 48 hours, the trade is deemed to be confirmed.

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CME CTR Data Confirmation Requirements


This provision requires that in the case where the local counterparty is the non-reporting counterparty, and the reporting counterparty fails to report within 2 business days, the local counterparty must do so. The local counterparty is notified that reporting has occurred if it receives a confirmation from the reporting counterparty or from the CTR (if it has a connection to such CTR).

This provision has been effectively removed by OSC, MSC, and AMF

For non-cleared trades, this removal ensures that the reporting counterparty has the obligation to report and there is no additional undue burden to the CTR or the non-reporting counterparty.

For cleared trades, where CME Clearing is the reporting counterparty, the reporting obligation will solely rest on CME to report the trade to the CTR

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Fall Back Provision Removal


Fee Schedule

CME (Exempt) Clearing Agencies No fees to Canadian local counterparties for reporting on CME cleared (US or EU)

markets

Direct Reporting to CME Canadian TR Fees are pending OSC review Simplified model

No fees for view only access (includes data extracting) One-time per UTI fee per side charge (discount for non-cleared delegated reporting) No maintenance or lifecycle event fees Annual fee caps De minimis monthly minimum (includes monthly reported trade allowance) Master account structure (will allowance for aggregated sub-accounts towards reporting

fees and caps) No additional onboarding or administrative fees


CTR Registration Steps

1. Obtain a LEI via Local Operating Units (list of LOUs found at LEIROC.ORG)

2. Complete User registration form at www.cmegroup.com/ctr

3. Test on our test environment for trade submission and output report generation

4. Report


Canadian TR Resources

Business Team: [email protected] Team: [email protected]

General Website: www.cmegroup.com/ctr


Disclaimer

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CME Group”, “CME Europe”, “CME Global Repository Services”, “CME European Trade Repository” and “CME Clearing Europe” are brands of CME Group Inc. and its subsidiaries, members of which include Chicago Mercantile Exchange Inc., CME Europe Limited, CME Clearing Europe Limited, CME Trade Repository Limited and CME Marketing Europe Limited.

Futures and swaps trading is not suitable for all investors, and involves the risk of loss. Futures and swaps are leveraged investments, and because only a percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money initially deposited for a futures and a swap position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade.

CME Group is the trademark of CME Group, Inc. The Globe logo, Globex® and CME® are trademarks of Chicago Mercantile Exchange, Inc. CBOT® is the trademark of the Board of Trade of the City of Chicago Inc. NYMEX, New York Mercantile Exchange, and ClearPort are trademarks of New York Mercantile Exchange Inc. COMEX is a trademark of Commodity Exchange Inc. All other trademarks are the property of their respective owners.

The information within this presentation has been compiled by CME Group for general purposes only. Although every attempt has been made to ensure the accuracy of the information within this presentation, CME Group assumes no responsibility for any errors or omissions. Additionally, all examples in this presentation are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or necessarily the results of actual market experience. All data is sourced by CME Group unless otherwise stated.This communication does not constitute a Prospectus, nor is it a recommendation to buy, sell or retain any specific investment or to utilise or refrain from utilising any particular service.

CME Europe Limited will be a Recognised Investment Exchange (RIE) subject to a pending application to the Financial Conduct Authority.CME Clearing Europe Limited is a Recognised Clearing House (“RCH”) recognised by the Bank of England. CME Trade Repository Limited (“CME European Trade Repository”) has applied to the European Securities and Markets Authority (“ESMA”) for registration under EMIR as a registered trade repository. CME European Trade Repository will not conduct business as a trade repository until this registration has been granted by ESMA.

Chicago Mercantile Exchange Inc. is a Recognised Overseas Clearing House (ROCH) recognised by the Bank of England. Chicago Mercantile Exchange Inc., Board of Trade of the City of Chicago and the New York Mercantile Exchange are Recognised Overseas Investment Exchanges (ROIE’s) recognised by the Financial Conduct Authority.Issued by CME Marketing Europe Limited. CME Marketing Europe Limited (FRN: 220523) is authorised and regulated by the FinancialConduct Authority in the United Kingdom.

Documents

CME Canadian Trade Repository (CTR)...CME Group is the world’s leading and most diver se derivatives exchange. It’s where companies, It’s where companies, institutions and individuals