Cleared OTC Interest Rate Swaps

Security. Neutrality. Transparency.

July 2013

CME Group OTC Clearing

CME Group is the industry leader in OTC Clearing, delivering a broad offering spanning Interest Rates, Credit, FX, Energy, Metals, and Ags

OTC Product Progression

Coal Metals CDS, Ags, Gold Ferrous Metals

2002

2003

2004

2007

2008

2009

2010

2011

2012

ClearPort Established

Natural Gas, Crude

Electricity

IRS, Freight, Iron Ore

FX

CME Group
Founded in 1898 as CME (Chicago Mercantile Exchange) #1 derivatives exchange in the U.S. and globally by volume Global leader in exchange-traded markets with $3B in revenue Leading liquidity / volumes in global benchmarks across all asset classes Extensive and diverse distribution network and customer base International linkages with leading global exchanges
2013 CME Group. All rights reserved

CME ClearPort
Launched in 2002 to provide risk mitigation in energy markets following the Enron collapse Market leading OTC Clearing venue for a diverse range of commodities asset classes 1,700 listed contracts 10,000 registered users around the world 500,000 contracts cleared daily

Multi-Asset Class Solution via One Clearinghouse

Delivering Capital Efficiencies in a Capital Constrained World
CME has worked closely with buy-side and sell-side participants to build a multi-asset class, market leading OTC Clearing Solution Builds on the strength of CME Groups market leading Interest Rate and FX futures and options products In June, over 200 firms cleared trades at CME, comprising a wide array of market participants including asset managers, hedge funds, insurance companies, GSEs, and proprietary trading firms

Portfolio Margining
Allows margin offsets of OTC IRS against Treasury and Eurodollar Futures, with savings up to 90% Launched portfolio margining for house accounts in May and extended this service to customers in November Since the launch of this offering, market participants have seen significant risk reductions that account for margin savings of over $1 billion CME CORE now offers a margin optimization feature allowing firms to run a portfolio margin savings analysis of IRS and Eurodollar and Treasury Futures

Deliverable Swap Futures

Deliverable Swap Futures total volume is over $56.7 billion in notional, with open interest at $5.0 billion in notional since December 2012 launch Offers capital efficiencies through futures-style margining and netting by providing margin offsets against Eurodollar and Treasury Futures All Open Positions are delivered into OTC Cleared IRS Swaps at expiration Clients have taken advantage of the flexible execution through Globex, block trades, and open outcry

Multi-Asset Class
Broadest OTC product scope available to customers with 12 IRS currencies, 56 CDX indices, and 12 FX NDFs Operational efficiencies of a multiasset class solution for IRS, CDS, and FX all in one clearinghouse Simplicity of working with one clearinghouse instead of several as firms work to build out their infrastructure to prepare for OTC Clearing Over $4.7 trillion of notional has cleared and open interest is over $3.0 trillion

Real-Time Clearing
Superior technology enables realtime clearing with straight-through processing and real-time confirmation is sent once the trade is cleared Customers dont have to wait 15 minutes to find out if a trade has been accepted or rejected Negotiate, execute and submit trades through 11 affirmation platforms and SEFs Time lags in the clearing cycle introduces potential credit risk, and with a faster clearing cycle this risk is reduced and leads to more efficient risk management

2013 CME Group. All rights reserved

Solid Momentum with Strong Volume and Increasing Open Interest

$6,150,000

$5,150,000

Notional Value ($Millions)

$4,150,000

$3,150,000

$2,150,000

$1,150,000

$150,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2012 2013

Cumulative Volume

Total Open Interest

Since launch, we have cleared $4.7 trillion with Open Interest growing 45% since the end of May Record volume month in June; a 25% increase over the previous record in May Open Interest is now at $3.0 trillion Volumes and Open Interest continue to increase as we have seen a record number of participants in June In June alone, over 200 firms cleared trades at CME

*Data as of 6/30/13
2013 CME Group. All rights reserved

Cleared OTC IRS Product Scope

EXISTING PRODUCTS USD Fixed/Float out to 51 years- 1M, 3M and 6M LIBOR indexes EUR Fixed/Float out to 51 years- 1M, 3M and 6M EURIBOR indexes GBP Fixed/Float out to 51 years- 1M, 3M, 6M LIBOR index CAD Fixed/Float out to 31 years- 3M CDOR index JPY Fixed/Float out to 31 years- 1M, 6M LIBOR index CHF Fixed/Float out to 31 years- 6M LIBOR index AUD Fixed/Float out to 31 years- 3M, 6M BBSW index SEK Fixed/Float out to 31 years- 3M STIBOR index DKK Fixed/Float out to 31 years- 6M CIBOR index NOK Fixed/Float out to 31 years- 6M NIBOR index NZD Fixed/Float out to 15 years- 3M FRA index HKD Fixed/Float out to 15 years- 3M HIBOR index
SEK DKK NOK HKD NZD USD EUR GBP CAD JPY CHF AUD

Zero Coupon Swaps: USD, EUR, GBP out to 50 years Overnight Index Swap (OIS): USD, EUR, GBP, JPY out to 30 years Basis Swaps: USD, EUR, GBP out to 51 years; AUD, JPY out to 31 years Forward Rate Agreements (FRA): USD, EUR, GBP, JPY Variable Notional Swaps (Amortizers)

2H 2013 EXPANSION

July August 12th

Additional Currency: SGD out to 15 years

SGD

Additional Currencies: HUF, CZK, PLN, ZAR out to 11 years

HUF CZK PLN ZAR

ADDITIONAL EXPANSIONS Additional Currencies: MXN, BRL Swaptions Inflation Swaps

MXN BRL

2013 CME Group. All rights reserved

Deliverable Swap Futures

Unique way to gain swap exposure with the benefits of standardized futures
Overview
Created based on strong demand from financial market participants including banks, hedge funds, asset managers and insurers U.S. dollar-denominated quarterly contracts expiring on IMM dates for key benchmark maturities (2, 5, 10, 30 years) At expiration, all open positions will deliver into CME Group Cleared Interest Rate Swaps Complements CME Groups market-leading Interest Rate Futures and Options businesses and Cleared OTC Swap offerings
Key Benefits
Risk offsets with our liquid Eurodollar and Treasury contracts Flexible execution CME Globex, Blocks, EFPs or Open Outcry Trade in an OTC manner block calendar spreads No block surcharges Lower thresholds Longer reporting time Currently have 10 block providers for Deliverable Swap Futures

Product Update

Contract launched on December 3rd, 2012 Seen a wide range of market participants including
banks, hedge funds, asset managers, and proprietary trading firms Have traded over $56.7 billion in notional contracts (567,450 contracts) and Open interest is now over $5.0 billion (50,369 contracts) through Globex, block trades, EFPs, and the pit Markets remain tight, about bp wide in OTC terms, matching the OTC interest rate market

2013 CME Group. All rights reserved

OTC Clearing Checklist

How to Get Ready with CME Group
Critical Items
Affirmation platform selection and testing Account registration for OTC Clearing Finalize legal documents with Clearing Members Select fee program and netting style Clearing Members set up Production accounts that are ready for clearing Execute first cleared trade in Production Execute Production trade with each counterparty Set-up CME secure FTP site for direct access to reporting: Position valuation reports Client account margin reports IRS curve data Hold deep dive meetings with CME Group subject matter experts on products, operations, and risk management Evaluate back-loading alternatives (if applicable)

Useful Information
Run margin simulations with CME CORE Run portfolio margining analysis through CME CORE (if applicable)

2013 CME Group. All rights reserved

Platforms Connected to CME Clearing

Several market leading affirmation platforms and Swap Execution Facilities are directly connected to CME Clearing
Bloomberg ICE Link Javelin MarkitSERV TradeWeb CME ClearPort CDS Migration Utility

CME Clearing
OTC IRS/CDS Clearing Members Bank of America HSBC Bank of Montreal Societe Generale Barclays JPMorgan BNP Paribas Morgan Stanley Crdit Agricole-CIB Wells Fargo Citigroup Nomura Credit Suisse RBS Securities Bank of Nova Scotia Deutsche Bank UBS Royal Bank of Canada Goldman Sachs

Additional OTC IRS Clearing Members

BNY Mellon State Street

Newedge

RBS PLC

Negotiate, execute, and submit trades through multiple venues to CME Clearing Straight through processing and real-time confirmation once the trade is cleared Protects the confidentiality of trading relationships, while enabling customers to terminate positions with any market participant Operational flexibility of a multi asset class solution for IRS, CDS, FX, and Commodities via one clearinghouse

2013 CME Group. All rights reserved

Trade Workflow Mechanics

Straight Through Processing allows for real-time clearing and trade confirmations
1 Dealer and Client agree to trade
Dealer

Client

2 Dealer alleges swap to Client through the Affirmation Platform 3 Client selects Clearing Member and verifies the swap through the Affirmation Platform 4 Affirmation Platform sends the matched trade between Dealer and Client to CME Clearing House 5 CME checks for validation of the product, account and applies credit limits set by Clearing member(s), and then accepts the swap for clearing

Affirmation Platform
4 5

CME Clearing House

Product Account Credit

5 CME sends Cleared notification back to the Affirmation Platform which displays the Cleared Status to each party
Clearing Member (Client) Clearing Member (Dealer)

5 CME sends a Clearing Confirmation to Clearing Member(s) once all is validated

2013 CME Group. All rights reserved

Transparent Valuation and Reporting

Customers have full visibility into CME Groups swap valuations
VALUATION OVERVIEW

USD and CAD IRS positions will be marked to market once per day at 3PM EST EUR, GBP and CHF IRS positions will be marked to market once per day at 11am EST (4PM London) JPY IRS will be marked to market once per day at 2am EST (3PM Tokyo) AUD IRS will be marked once per day at 2:30am EST (4:30PM Sydney) DKK, NOK and SEK IRS position will be marked to market once per day at 10:00 AM EST (4:00 PM Central European) Pricing inputs obtained from wire service feeds CME Group utilizes OIS discounting, log-spline interpolation, and Bootstrap Generator to produce a Zero Coupon curve

PRICING INPUTS

LIBOR: O/N, T/N FRA: 0 x 3 CME Eurodollars first 6 Quarterly Eurodollar contracts, convexity adjusted Par Swap Rates: 2Y 10Y, 12Y, 15Y, 20Y, 30Y, 40Y, 50Y (SA, 3M LIBOR) OIS (Fed Funds to 3M Libor) 3M, 6M, 9M, 1Y, 2Y-7Y, 10Y, 12Y, 15Y, 20Y, 25Y, 30Y Basis Swaps (1M/3M, 3M/6M Libor): 6M, 1Y, 18M, 2Y-7Y, 10Y, 12Y, 15Y, 20Y, 25Y, 30Y

REPORTING

CME Group provides customers with full transparency including direct access to daily reports showing curve inputs, daily discount factors, and valuations for each cleared swap position
10

2013 CME Group. All rights reserved

Details of Customer Reports

Report
Preliminary Trade Register End of Day Trade Register Curve Input Report Discount Factor Report CME Holiday Calendar Price Alignment Interest (PAI) Rate File Client Margin Report

Description
Includes new and open trades as well as corresponding cash flows on positions cleared prior to 4:45pm EST on that day Includes new and open trades as well as corresponding cash flows on positions cleared on that day Contains the curve inputs of the CME Swap Curve Displays the daily discount factor out to 31 years Shows the CME Holiday Calendar Provides the rate used to calculate PAI

Time
4:45pm EST

Available in Testing

Available in Production

8:00pm EST

4:30pm EST

4:30pm EST

3:00pm EST 1:00pm EST

Provides an account by account breakdown of your initial margin requirements across your FCMs

10:00pm EST

The above reports can be accessed through a secure FTP site. Please contact CMEs Onboarding Team at (312) 338-7112 or onboarding@cmegroup.com to gain access.

2013 CME Group. All rights reserved

11

Reporting & Margin Tools

CME Group provides direct access to daily reports through a secure FTP site, which enables customers to fully integrate key OTC data into their internal systems. Position Reporting via the Trade Register
End of day mark to market values for all IRS positions across all clearing members, including existing trades and any new trades cleared that day Available at 4:45pm EST, so customers and their approved administrators/custodians can complete their daily NAV reports

IRS Curve Data

CME offers full transparency into IRS valuation, including a detailed white paper on curve construction, enabling customers to replicate our IRS valuation curve and calculate the value of their IRS positions The secure FTP site provides daily IRS curve data across all currencies, including curve inputs that are used to construct both the forecasting and discounting curves, and the curve outputs like daily forward rates and discount factors Client-Level Margin Files Gives clients access to the exact margin requirements given to the FCMs for their accounts
To set up a secure FTP site for your firm, please contact: CME Onboarding Group at onboarding@cmegroup.com or (312) 338-7112

CME CORE Margin Tool is a web-based tool to calculate initial margins for IRS and CDS portfolios What if analysis shows how margins will change as positions are added or removed from any given portfolio
CME Margin Optimizer Enhancement The CME CORE tool will soon be enhanced to calculate Optimization of IRS Portfolio Margining Clients can upload a portfolio of IRS and Futures, and CORE will generate a report with the ideal allocation of Eurodollar and Treasury Futures to move into the OTC Customer Cleared Swaps account to minimize the portfolio risk, and therefore, reduce margins
For access to: CME CORE: Visit cmegroup.com/core

2013 CME Group. All rights reserved

12

Superior Customer Protections

CME Clearing is the industry leader in mitigating risk for customers through the US FCM clearing model

LSOC Without Netting Variation Margin

In an FCM default, CME Clearing will discontinue netting variation gains and losses within the defaulted FCMs cleared swaps customer account with CME Clearing on a post-default basis By discontinuing Variation Margin netting, CME will better protect non-defaulting customers by helping them keep their positions intact while porting them to another FCM with as much collateral as possible

Client- Specific Excess Margin

LSOC Phase 2 (LSOC with Excess) will launch on Monday, April 22 CME will accept excess customer funds from an FCM. The FCM must submit a daily Collateral
Value Report (CVR) to specify the value of each individual

The CVR given to CME Clearing identifies for each customer the amount of collateral protected
from being used to meet the obligation of another customer

Proposed account structure aims to let end-customers meet their margin obligations at FCMs via
third-party custodial accounts

CME Safekeeping Accounts

Allows end-customers to utilize custodial account arrangements and use assets held in those
accounts to meet margin obligations

CME, an FCM, an end-customer, and a custodian bank will execute a quad-party custody
arrangement to facilitate the CME Safekeeping account transactions

2013 CME Group. All rights reserved

13

Robust Financial Safeguards

CME structured the IRS risk waterfall to protect our customers during times of market stress and mitigate systemic risk

UNFUNDED

SURVIVOR PAYS

General Assessment Powers for IRS1

Additional collateral that can be called upon should all previous layers of the waterfall are exhausted Caps the limited resource waterfall Expected to cover extreme scenarios that are optimally addressed using a mutualized pool rather than margins GF Sizing considerations include risk, capital usage and charges , stakeholders incentives, and portability concerns during periods of default

IRS Non-Defaulting CMs Guaranty Fund

CME Contributed Capital for IRS $100M

DEFAULTER PAYS FUNDED

Contribution set aside by CME to help cure a default prior to dipping into the survivors funds

Defaulting Member IRS Guaranty Fund Liquidity Charge Baseline Initial Margin

Each Members contribution to the GF

Liquidity charge accounts for protecting large concentrated portfolios whose closeout could cost more or take longer than baseline timeframe Initial Margin is used to cover day-to-day P/L moves

The actual amounts will be based on the sum of the third and fourth largest net debtor profiles

2013 CME Group. All rights reserved

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Customer Account Portability

Portability of customer positions and collateral is a cornerstone of CME customer protections

CUSTOMER CONTROLLED PORTABILITY TRANSFERS Establishing and managing accounts at multiple clearing members Clients maintaining accounts at multiple clearing members are able to control the timing and pacing of their porting transactions In the agency model, clients own their positions The agency model supports portability; at CME this is a matter of routine and standard practice

PROVEN SUCCESS IN CUSTOMER PORTABILITY Wholesale porting from stressed to solvent clearing members In September 2008, CME seamlessly ported all $2.2 billion of customer funds and 2.5 million customer positions from Lehman Brothers to a solvent clearing member In wholesale porting transactions, CME balances the need to assure client safety with recalibration of financial safeguards to minimize stress in the financial system

Portability is essential to customer protection, both in times of market stress and during the normal course of business Portability is underpinned by CME Rule 853, governing transfers of trades

2013 CME Group. All rights reserved

15

Portfolio Margining Overview

May 7, 2012
Portfolio Margining Available for House Accounts

Sept. 21, 2012

CME Optimizer

Nov. 19, 2012

Portfolio Margining Available for Customers

February 2013
CME Optimizer integrated with CME CORE

Future Enhancements
Portfolio Margining Available for Deliverable Swap Futures and Cleared IRS*

Creating Solutions for a Capital Constrained World

CME Group has administered a range of cross-margining programs for more than 20 years With market leading Interest Rate products and the launch of Cleared OTC Interest Rate Swaps in 2010, CME is able to offer both customer and house accounts capital efficiencies for Cleared OTC Interest Rate Swaps and Eurodollar and Treasury Futures Since the launch of Portfolio Margining in May 2012, firms are already taking advantage of this service and seeing significant savings and the first customer portfolio margining occurred in March

Unparalleled Capital Efficiencies

The risk reduction achieved by this program has shown capital efficiencies of up to 90% for certain portfolios figures that remain unparalleled in the industry Total risk reductions now account for over $1 billion in initial margin savings Clearing Members can reduce their own regulatory and guaranty fund capital costs by facilitating portfolio margining for clients
*Pending regulatory approval
2013 CME Group. All rights reserved

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Margin Efficiencies
CME Group offers unparalleled capital efficiencies in a capital constrained world Initial Margin Example for Swap Spread Positions
Below is an example of the initial margins for swap spread trades under three different margining scenarios Each scenario has a short position of 1000 CBOT Treasury Futures and a DV01 equivalent receive fixed swap (or
long Deliverable Swap Futures) position Separate Margining at a Competing Clearinghouse Treasury Futures Leg Margin $1,100,000 Swap Leg Margin $3,299,395 CME Group IRS Portfolio Margining Cleared IRS and Treasury Futures margined together CME Group Deliverable Swap Futures Deliverable Swap Futures and Treasury Futures with Spread Credits

Combined Margin $4,399,395

CME Margin $1,905,332

CME Margin $1,181,900

Savings: $2,494,063 (57%)

Savings: $3,217,495 (73%)

CME Groups IRS Portfolio Margining and Deliverable Swap Futures enable clients to achieve 57%-73% margin savings on swap spreads, compared to clearing the Interest Rate Swap at a competing clearinghouse

2013 CME Group. All rights reserved

17

IRS Margin Methodology

Methodology For cross margining Eurodollar and Treasury Futures with IRS, CME will leverage the current multi-currency Historical VaR framework
Margins built to provide 99% coverage over a 5-day closeout period Historical scenarios are: Historical VaR
Generated using a 5-year look back period Synchronized across all observed tenors on the zero curve, across all currencies Scaled using Exponentially Weighted Moving Average (EWMA) based volatility forecasts

Margin is currently the 99.7th % of portfolio changes (loss) across all scenarios

Application

Apply HVaR methodology to Eurodollar and Treasury futures prices Create a rolling time series of returns (prices)

CME uses Treasury Future prices and Eurodollar prices (themselves) as an underlying risk factor, as it accounts for risks including: Reasoning
Switch of the Cheapest-to-Deliver (CTD) (applies Treasury Futures) Delivery timing (applies to Treasury Futures) Changes in the convexity adjustment (applies to Eurodollars) Covers extremely well-hedged portfolios (applies to Eurodollars)

*Customer Portfolio Margining is targeted for 2H 2012 pending regulatory approval.

2013 CME Group. All rights reserved

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Portfolio Margining Examples

Portfolio Portfolio Details Margin Savings
Max* 2Y Invoice Spread 5Y Invoice Spread 10Y Invoice Spread 30Y Invoice Spread 2Y Swap vs ED Hedge 5Y Swap vs ED Hedge 10Y Swap vs ED Hedge 30Y Swap vs ED Hedge 2Y Treasury Note Futures vs Equivalent Invoice Swap 5Y Treasury Note Futures vs Equivalent Invoice Swap 10Y Treasury Note Futures vs Equivalent Invoice Swap Treasury Bond Futures vs Equivalent Invoice Swap 2Y IRS vs Weighted Eurodollar 2Y Strip 5Y IRS vs Weighted Eurodollar 5Y Strip 10Y IRS vs Weighted Eurodollar 10Y Strip 30Y IRS vs Weighted Eurodollar 10Y Strip 79% 79% 75% 67% 89% 86% 85% 69% Average* 64% 68% 58% 41% 72% 78% 71% 50%

Margin Savings Details ($M)**

Margined Separately .8M 1.9M 4.9M 6.5M 100K 230K 420K 890K Margined Together .2M .4M 1.2M 2.1M 10K 30K 60K 280K

Maximum savings is up to 89%, based on back testing of portfolios from 2006 to 2011.
* Savings = [Gross Margin Net Margin] / Gross Margin, where Gross Margin is the outright swap HVaR margin plus the futures SPAN margin (no offset benefit) and Net Margin is margining both swaps and futures in HVaR (with offset benefit).

** Values are rounded to nearest hundred thousand or ten thousand Dollars. These values do not include transaction costs and are subject to change, depending on market volatility.

2013 CME Group. All rights reserved

19

CME CORE
Transparency through an interactive Margin Calculator
Interactive Margin Calculator to view initial margins and calculate portfolio margining savings CME CORE Overview What if analysis shows how margins will change as positions are added or removed from any given portfolio Choose from multiple upload options or manually import your portfolio Easily export margin results into Microsoft Excel or Adobe PDF formats

Current Product Offered in CORE

OTC IRS (USD,GBP,EUR, AUD,JPY,CHF,CAD, SEK, DKK, NOK ) OTC CDS OTC FX Eurodollar and Treasury Futures Delta Laddering Basis Swaps, FRAs, Zero Coupons

CORE supports margin optimization, which calculates the ideal allocation of futures to move into an
OTC account to minimize portfolio risk, and in turn, minimize IRS margin requirements. Margin Optimization

Portfolio margining savings of Cleared OTC IRS and Interest Rate Futures with savings up to 90%
Calculates IRS portfolio margins for Clearing Members clients, as well as their own proprietary accounts

To learn more about CME CORE and gain access to this tool: Visit www.cmegroup.com/core

2013 CME Group. All rights reserved

20

Flexible Collateral for Initial Margin

CME Clearing accepts a broad array of collateral for the Customer OTC Account Class
Collateral US Cash Non-US Cash (EUR, GBP, CAD, AUD, JPY, CHF)* Sovereign Debt of UK, Germany, France, Canada, Japan, and Sweden US Treasury Debt US Agency Debt US Agency Mortgage Backed Securities Corporate Bonds (IEF4) Money Market Mutual Fund (IEF2) Bank Deposit Program (IEF5) Haircut None 5%** 5%-10.5% (maturity based) Additional 1.5% for off-the-runs 0.5%-11% (maturity based) Additional 1.5% for off-the-runs 3.5%-7% (maturity based) Additional 1.5% for off-the-runs 11% 20% 3% None

*The last three currencies are available for IRS only. ** Haircut is only applied when cash is used to meet a margin requirement based in a different currency.

2013 CME Group. All rights reserved

21

Corporate Bond Collateral Program

Clearing Members can transfer securities into a tri-party account controlled by CME at either bank* as a term pledge to receive initial margin credit
Overview Allows corporates bonds to be pledged as initial margin collateral for both Cleared IRS and futures Reduces costs of clearing for customers and creates further efficiencies for Clearing Members Bond Requirements High quality bonds, at least A- rating by NRSO USD denominated, both domestic and global issuances Vanilla Bonds (Fixed rate bullet, callable, or putable) Over $300M in principal outstanding TRACE eligible

Program Parameters Haircut: (20%) Concentration Limits: The lesser of 5% per issuance and 5% per issuer or $200M Level II industry diversification (up to 25%) Eligible CUSIP List CME Clearing will publish a list of eligible CUSIPs at the beginning of each month CUSIP list will likely remain static except bonds that mature, and bonds that are deemed ineligible due to changes (i.e. rating downgrade, distress, etc)

*The Corporates Collateral Program, IEF4, is supported by a partnership with Bank of New York and JPMorgan Chase
2013 CME Group. All rights reserved

22

Customer On-boarding Resources

CME CORE Margin Tool
Web-based margin tool that enables customers to generate initial margins for IRS and CDS portfolios CME CORE can be accessed by doing the following: Visit http://www.cmegroup.com/clearing/cme-core-cme-clearing-online-risk-engine.html Create a CME SMART Click ID Once a SMART Click ID is attained, please email cme.core@cmegroup.com to request entitlements to CME CORE. Specifically, in an email please provide the user ID and specify the request for the IRS/CDS asset classes. Please ensure your desktop is equipped with a recent version of Microsoft Silverlight (MS Add On): http://www.microsoft.com/getsilverlight/Get-Started/Install/Default.aspx

CME On-boarding Team

Team of on-boarding experts who work with buy side clients to help them prepare to clear IRS and CDS, and engage in testing the clearing process Extensive work with the affirmation platforms, and ability to connect customers to the right resources at those firms The team can be reached at (312) 338-7112 and onboarding@cmegroup.com

2013 CME Group. All rights reserved

23

Legal Documentation
Documentation between CME Group and Customer There is no longer a legal document, but by registering with CME, you are agreeing to the rules, policies, and procedures of CME and, as applicable, participating exchanges The registration documents can be found at: http://www.cmegroup.com/trading/otc/files/otc-registrationforms.xls

Documentation between Clearing Member and Customer Clearing Member Futures Account Agreement (FCM Agreement) Clearing Member OTC Addendum

2013 CME Group. All rights reserved

24

Next Steps and Contact Us

Establish a relationship with a participating CME IRS Clearing Member

Select affirmation platform and work with Clearing Member throughout testing cycles Complete required Clearing Member Customer Documentation Begin clearing trades

For any questions regarding On-Boarding and Testing, please contact : On-boarding Team 312 338 7112 onboarding@cmegroup.com

For general information, please contact: Jack Callahan Steve Dayon Europe David Coombs Jaki Walsh Asia Louis Chong +65 6593 5588 louis.chong@cmegroup.com +44 20 3379 3703 david.coombs@cmegroup.com +44 20 3379 3858 jaki.walsh@cmegroup.com 312 454 8312 312 466 4447 jack.callahan@cmegroup.com steven.dayon@cmegroup.com

2013 CME Group. All rights reserved

25

Cleared OTC IRS Clearing Firm Contacts

Firm
Bank of America Merrill Lynch Barclays Bank of Montreal Bank of Nova Scotia BNP Paribas BNY Mellon Crdit Agricole-CIB Citigroup Credit Suisse Deutsche Bank Goldman Sachs HSBC JPMorgan Morgan Stanley Newedge Nomura RBS Royal Bank of Canada State Street Societe Generale UBS Wells Fargo

Contact Name
Todd DAgosta (US) Samantha Page (EMEA) Sandy Fleischman Patrick Corrigan Livio Bencich Kirk McMillan Li He Ira Rudman Gavin Dixon John Guthrie Vipul Pal Marc Konigsberg Karen Orczyk Chris Perkins Mariam Rafi Neil Burke John Dlubac Elliot Barr Piers Murray Mike Dawley Jack McCabe Julianna Salazar Nick Marcelle Tom Alterson Jason Swankoski Mark Bortnik John Wilson Michael O'Connell Sandeep Kohli Stephen Scalzo Brian Halligan (RBS SI) Madlen Dorosh (RBS SI) Alex Palese Stephen Chmil Elizabeth James Giovanna Carraro Shahab Amin Ed Pla Reinhardt Olsen Jeff G. Gore George Simonetti

Email
merrill.otc.clearing@baml.com sandy.fleischman@barcap.com patrick.corrigan@barcap.com livio.bencich@bmo.com kirk.mcmillan@bmonb.com li.he@scotiabank.com Ira.rudman@us.bnpparibas.com gavin.dixon@americas.bnpparibas.com john.guthrie@bnymellon.com vipul.pal@bnymellon.com marc.konigsberg@ca-cib.com karen.orczyk@ca-cib.com christopher.perkins@citi.com mariam.rafi@citi.com neil.burke@credit-suisse.com john.dlubac@credit-suisse.com elliot.barr@db.com piers.murray@db.com michael.dawley@gs.com jack.mccabe@gs.com julianna.x.salazar@us.hsbc.com nick.marcelle@hsbcib.com thomas.p.alterson@jpmorgan.com jason.swankoski@morganstanley.com mark.bortnik@morganstanley.com john.d.wilson@newedge.com Michael.OConnell@newedge.com sandeep.kohli@nomura.com stephen.scalzo@nomura.com brian.halligan@rbs.com madlen.dorosh@rbs.com alex.palese@rbccm.com schmil@statestreet.com ejames@statestreet.com giovanna.carraro@sgcib.com shahab.amin@sgcib.com edward.pla@ubs.com reinhardt.olsen@ubs.com jeffrey.gore@wellsfargo.com George.simonetti@wellsfargo.com

Phone Number
646 855 9813 44 20 7995 3955 212 526 6548 212 526 7101 416 359 6395 416 359 4603 212 225 5283 212 841 2768 44 20 7595 8417 212 635 6718 212 635 8359 212 261 7234 212 261 3998 212 723 5943 212 723 4074 212 538 0761 212 325 3977 212 250 9831 212 250 9253 212 902 7582 212 902 3037 212 525 2353 44 20 7991 9132 212 622 0335 212 761 5206 44 20 7677 9685 +44 20 767 68913 646 557 8602 212 667 2037 212 667 8981 203 897 2504 203 897 9869 212 618 3369 212 259 3120 212 259 3022 44 20 7676 7170 212 278 5970 203 719 2602 203 719 3408 704 715 0528 704 715 1134

2013 CME Group. All rights reserved

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Disclaimer
Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contracts value is required to trade, it is possible to lose more than the amount of money deposited for a futures 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. All references to options refer to options on futures. CME Group is a trademark of CME Group Inc. The Globe Logo, CME, and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX is a registered trademark of the New York Mercantile Exchange, Inc. All other trademarks are the property of their respective owners. The information within this brochure has been compiled by CME Group for general purposes only. CME Group assumes no responsibility for any errors or omissions. Additionally, all examples in this brochure are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. All matters pertaining to rules and specifications herein are made subject to and are superseded by official CME, CBOT and NYMEX rules. Current rules should be consulted in all cases concerning contract specifications. Copyright 2013 CME Group. All rights reserved.

2013 CME Group. All rights reserved

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