eGAINS

eGAINS:ElectronicGive-Up

AutomatedInvoicingSystem

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eGAINS

eGAINS Overview The Futures Industry Association has been working for the last five years to reduce inefficiencies in the give-up process. The most inefficient aspect of the give-up process is the billing and collecting of fees between executing and clearing brokers. eGAINS is the give-up invoicing system licensed by FIA Tech on behalf of participating futures exchange clearing members to facilitate the calculation, invoicing, and payment of firm give-up fees. eGAINS receives give-up data from futures exchange clearing systems and provides previous month and current month-to-date views of clearing firms’ give-up payables and receivables. To facilitate the calculation of give-up fees, eGAINS continuously retrieves give-up agreements from EGUS, which is an industry-wide electronic give-up agreement administration system.

On a nightly basis, eGAINS receives exchange give-up interface files from participating exchanges for all eGAINS participants. Exchanges also transmit files containing current product codes and exchange-firm codes (for eGAINS reference tables). The eGAINS files are prepared by each exchange as a part of their daily clearing cycles. eGAINS reads each give-up transaction as a matched pair; one transaction in eGAINS represents a transaction that was “given-up” by an executing firm and “taken-up” by a clearing firm. eGAINS matches give-up trades to give-up agreements using the executing and carrying exchange firm codes, and executing and carrying account numbers. After a give-up is matched to an agreement, eGAINS finds the appropriate give-up fee for that transaction, using detailed criteria such as futures/options, spread codes and product codes. The following diagrams show a high-level overview of eGains processing.

Exchange to eGAINS Give-Up Data Flow

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EGUS Give-Up Agreement Flow

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EGUS Give-Up Agreement Flow (continued)

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eGAINS Matching Criteria

eGAINS Payment Processing

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eGAINS Trade/Payment Work Flow

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eGAINS Reports Schedule

eGAINS Banking Schedule

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eGAINS

Fee Structure The FIA Tech Board of Directors sets the fees for eGAINS. The fee has been set at USD $0.0125 per matched contract for 2013, and is assessed to both the executing broker and clearing broker on the trade. Firms will receive an eGAINS fee invoice monthly with a line item for their contract volume on the executing side for that month, and a line item for their contract volume on the clearing side for that month. The fee is payable in USD. For 2013, a firm will pay no more than USD $250,000.00 in aggregate eGAINS fees (often referred to as the “annual fee cap”).

eGAINS Firms in ProductionFirms now in production:

1. ABN AMRO2. ADM* 3. Bank of America/Merrill Lynch4. Barclays5. Citigroup6. Credit Suisse7. Daman Quattro*8. Deutsche Bank9. FC Stone*

10. Goldman Sachs11. HSBC12. ICAP US13. JB Drax Honore14. Jefferies Bache15. JP Morgan16. Knight Capital17. Morgan Stanley18. Newedge

19. RJ O’Brien20. Royal Bank of Canada21. Royal Bank of Scotland22. SCS Commodities23. Term Commodities24. UBS25. Vision

Exchanges in production:Eurex ICE Futures Europe ICE Futures U.S. NYSE Liffe Montréal Exchange (TMX) Singapore Exchange (SGX)

As of October 2013

* Denotes limited participation

$0

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2012201120102009

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Brokerage Settled in eGAINS(USD converted)

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System Governance eGAINS is governed by the FIA Tech board of directors. All board members must be either a member of the FIA board of directors or from a supporting FCM. All eGAINS users are invited to participate in a weekly call to discuss the ongoing operation of the system and future enhancements. System users have signifi cant input in the day-to-day operation of the system and provide input for system improvements as well as the fee structure.

Board of Directors(October 2013)

Antoine Babule Newedge

Mike DawleyGoldman Sachs & Co.

John GleasonMorgan Stanley

Jerome KempCitigroup

Paul MaleyDeutsche Bank Securities

Chris MitchellJ.P. Morgan Securities

Supporting FCMs

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eGAINS

FIA Tech Contact Information• Mary Ann Burns, President, 202.772.3000, maburns@futuresindustry.org

• James Woods, Chief Technology Officer, 202.772.3039, jwoods@futuresindustry.org

• George Mohr, Vice President, Enterprise Architecture and Development, 202.772.3067, gmohr@futuresindustry.org

• Glenn Clark, Software Engineer, 202.772.3055, gclark@futuresindustry.org

• Justin Good, Business Development Manager, +65 6549 7336, jgood@futuresindustry.org

• Erin Kairys, Relationship Manager, 202.772.3029, ekairys@futuresindustry.org

• Andrew Lata, Relationship Manager, 202.772.3049, alata@futuresindustry.org

• Justyna Modzelewska, Associate Relationship Manager, 202.772.3058, jmodzelewska@futuresindustry.org

• David Wilson, Technology Project Manager, 202.772.3021, dwilson@futuresindustry.org

eGAINS

FIA Technology Services, Inc.

2001 Pennsylvania Avenue N.W.

Washington, DC 20006

202.772.3000

www.futuresindustry.org