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EGUS:ElectronicGive-Up

AgreementSystem

Getting Give-Up

Agreements in Place

Has Never Been Easier

Before EGUS, firms told us that it could take from two weeks to even a year to get an agreement in place. If it was rushed it could be fully executed within a few days. Since EGUS launched in February 2007, the average time it takes to get an agreement in place has dropped from 39 days to two days. That sounds pretty good, but now for some really amazing news—we had an agreement completed between two U.S. brokers and the customer in just 8 minutes and 16 seconds!

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1 EGUS has dramatically reduced the time it takes to execute a give-up agreement—from days, weeks, even months to hours.

2 Customers and traders can execute agreements at no charge (fees apply only to optional storage feature).

3 Give-up agreements executed in EGUS are never lost in transit.

4 The days of wasting valuable staff time finding agreements are over! With the storage option, EGUS gives you instant access to executed agreements and agreements in progress. You can find the latest version of any agreement in seconds including, of course, the latest rate information.

5 EGUS now has 566 broker parties and 1,452 customer/trader parties using the system.

6 EGUS provides a complete transaction history showing when each step of the process was completed, where changes were made and who made them.

7 Adding additional account numbers to existing agreements is painless. EGUS automatically notifies all parties to the agreement when account numbers are added.

8 No more wondering what stage of the process an agreement is in. The status of an agreement is instantly available to all parties to the agreement.

9 EGUS makes it easier to update agreements through the Fast Path Amendment process. No changes can be made without all parties being notified.

10 EGUS facilitates communication among all parties to the agreement. Communication features include a state-of-the art instant messaging tool plus built-in comment fields for each paragraph of the agreement.

11 Contact information is dynamic. Users have the most up-to-date contact details at their fingertips

12 In 2012, we introduced the FIA/ISDA Cleared Derivatives Execution Agreement for OTC business.

12 reasons why you need EGUS

The bottom line: it is cheaper (no more courier fees) and more efficient to use EGUS than the paper alternative. No matter where you are in the world, your agreements are in one place: EGUS.

Monitor Give-Up AgreementsEach firm has a “my queue” screen where system users can view give-up agreement activity.

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Permissioning UsersFIA Tech enables one contact at each institution to serve as the system administrator. This person manages the firm’s contact information and permissions users.

Executing a Give-Up Agreement Online Executing and clearing brokers, traders and customers can now electronically execute the customer and trader versions of the FIA give-up agreements. Any party to the system can initiate a give-up agreement with up to eight parties. Some firms have indicated that they prefer to initiate agreements so the system has a feature that alerts system users when the party they have selected is a “pre-ferred initiator.” The initiator selects from a library of standard give-up agreements or can modify an existing agreement. The initiator can insert a “standard” amendment from the public amendment library, select one from the firm’s private amendment library or customize the text for a particular agreement. The system auto-matically highlights any changes to the text. EGUS also provides a standard rate template which can be attached to the agreement. Any party can input rates on the standard rate template. It is also possible to specify one rate that applies to all transactions.

Multiple rate schedules, identified by executing account numbers, can be attached to an individual agreement. Executing brokers have the opportunity to hide the rate schedule from clearing brokers when the clearing broker is not part of the billing process. The initiator sends the agreement to all counterparties simultaneously. The agreement appears in the counterparties’ queue with an alert that indicates action is required. As counterparties review the agreement, they can comment or request a change. If a change is requested, the initiator reissues the agreement and it progresses through the review and approval stages. The system tracks documents throughout the process.

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Initiate An AgreementFirm “processors” use this screen to initiate a new agreement.

Managing the Process Each system user has its own queue to manage documents. From “my queue,” users can view agreements in progress. The queue shows who has approved the agreement and who has not. The agreement is effective when all parties have approved it. The user also can view account numbers, the history of a document, the effective date, the date it was modified and by whom from the queue. The initiator can also manually enter an effective date. If an agreement sits in a queue for more than 90 days, it automatically moves to a “stale” file. Users can reacti-vate agreements from the “stale” file whenever they like.

Contacting Counterparties EGUS makes available counterparty contact information which includes firm address and billing information in addi-tion to trading and documentation contact names. Contact information for executing and clearing brokers is available to all users of the system; however, each firm has its own data-base of contact details for customers. Brokers cannot see cus-tomer and trader contact information unless the customer or trader has given permission for this information to be visible to a specific broker. Each firm is prompted to keep contact information current.

Searching the System Documents are stored on the system and users can search by counterparty, executing or clearing account number, effec-tive date, agreement ID, agreement type and status. All agree-ments can be printed or emailed.

Getting Users Onboard All system users are required to sign an adherence agree-ment and click through a system user agreement in order to gain access to the system. The EGUS Adherence Agreement is the mechanism by which new participants enter into a common understanding of the terms governing our internationally diverse EGUS user base. These terms and conditions were designed to eliminate some business uncertainties which may be created by different national laws. For example, the Adherence Agreement addresses the valid-ity of electronic signatures. It does so by requiring a “real” signa-ture on a tangible document establishing, at a minimum, each participant’s intent to use and accept electronic signatures within the system. FIA Tech does not give access to system users until an adherence agreement is received. The system user agreements spell out the terms by which participants can use the system.

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5,000

10,000

15,000

20,000

25,000

30,000

35,000

201220112010200920082007

Give-Up? Get EGUS.To find out how to sign up for EGUS,

email Toni Vitale Chan at tvitale-chan@futuresindustry.org

or phone U.S. 312.636.2919.

Administering Access Once an Adherence Agreement is received, a firm admin-istrator is given access to the system. The firm administrator determines who at the firm has access to the system and what type of access each user is given: processing, approval or view only. The administrator fills in contact details for processors, approvers and billing. Customer and trader administrators per-mission which brokers can have access to its contact informa-tion. All parties have the option to require multiple approvers to “sign off” on the document before approval is final.

Onboarding Legacy Documents PDFs of executed agreements can be uploaded to the system and stored. Only one party to the agreement needs to upload a legacy agreement.

Getting Information To and From EGUS EGUS users can easily upload internally-maintained rate schedules via an API into the EGUS library where they can be attached to agreements. The API provides the web services capability to connect and send an XML message from an EGUS institution’s internal interface to EGUS. The rate schedule data in the XML message will be validated and loaded into the Library. Rate schedules can also be updated using the EGUS Upload API. Users can also download data from EGUS. Agreement details such as counterparties and rate information, agreement updates, exchange references, exchange product group referenc-es, party references and exchange firm references are available through the EGUS download API.

Number of Agreements Executed in EGUS Grows Since the system launched in February 2007, more than 145,000 agreements have been executed using the system. This includes over 43,000 legacy agreements that firms have upload-ed for easy search capability. These documents can also be used as the basis to start new documents, creating an audit trail of agreements with a particular customer.

EGUS Pricing Structure The EGUS pricing system consists of two components: a Per-Agreement fee for each agreement executed in EGUS, and a quarterly Storage fee for maintaining all past executed agree-ments in the system. All institutions containing at least one broker party are required to have Storage, but only executing brokers and deal-ers will be charged the Per-Agreement fee. Institutions contain-ing only customer/trader parties have the option of maintaining Storage of EGUS agreements. Customers/traders that choose not to store documents in EGUS will have execution only access at absolutely no cost, and will have seven days after execution to print or email the agreement.

2013 EGUS Fee Schedule *Please note* Legacy uploaded agreements will be charged the Per-Agreement fee to the Institution that uploaded the agreement regardless of its role on the agreement. All institutions that wish to initiate agreements and/or upload Legacy agreements are required to have Storage.

2013 Per-Agreement Fees

Number of Fee per Agreements Executed Agreement

0-25 $55.00 26-100 $70.00 101-250 $60.00 251-500 $50.00 501-750 $40.00 751-1,000 $35.00 1,001-2,000 $25.00 More than 2,000 $20.00

2013 Quarterly Storage Fees

Number of Fee per Agreements Stored Quarter

0-50 $125.00 51-500 $325.00 501-1,000 $600.00 1,001-2,000 $1,000.00 2,001-5,000 $1,500.00 5,001-10,000 $4,000.00 10,001-20,000 $5,000.00 20,001-40,000 $6,000.00 40,001-60,000 $7,500.00 More than 60,000 $9,000.00

EGUS Executed Agreements Volume

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Executing and Clearing Brokers (as of August 2013)

ABGABNADGADM Investor Services

Inc.Advantage Futures LLCAllstonAltura MarketsApplegate CommoditiesAQXArb OilArianArmajaroAtlasAttain Capital

Management LLCAviate GlobalAvitusAvondale FuturesB.T.U.BAADERBallistaBanca AkrosBanca IMIBanco Bilbao Vizcaya

ArgentariaBanco SantanderBank of America /

Merrill LynchBank of MontrealBarclaysBastion CapitalBayerischeBBSPBell PotterBerkeleyBGCBlueCrest CapitalBMO Capital MarketsBMO NesbittBNP ParibasBNY MellonBNYMBolt MarketsBrown Mac Energy LLCBTIGBTIG AustraliaBTIG LTDBungeCaceis BankCadentCalyon Credit Agricole

CIBCanadian ImperialCapstoneCARAXCargill IB LLCCC Trading CoChambers CommoditiesCHS Hedging IncCitigroupCLSACollins StewartCommerzbank AGCornerstone Global

CommoditiesCredit Agricole CIBCredit SuisseCrosslandCRT AdvisorsCRWCunningham

Commodities LLC

DaiwaDaman QuattroDanske Bank A/SDe RivaDeutsche Bank AGDNB NorDormanDresdner KleinwortDSF MarketsDunn CapitalDZ BankEagleEagle CommoditiesEBrokersEclipse InternationalED&F ManElevationEnergexEnvex ServiceEurotradingEvli Bank PlcExecutionFC StoneFinexFixi PlcFort PittForteForward Insight

CommoditiesFriedberg MercantileFriedman Billings Ramsey

InternationalFrontier FuturesGA GlobalGainGFIGH FinancialsGleacher & Company

Securities, Inc.Global Electronic

Trading Company (GETCO)

Global EquitiesGMGGoldman SachsGPRGrupo CIMDHeat FuturesHPCHQ TradingHSBCHurricaneICAPIndigo SecuritiesInstitutional LiquidityInterdin BolsaInvestecISI GroupIsraelITGIWBJB DRAXJefferies BacheJefferies FinancialJitneytradeJK BrokersJoh. Berenberg, Gossler

& Co. KGJoseph CingariJPMorganJPSJump Operations, LLC

Kansas City Trading Group

Keshena Asset Management

KGIKnightKnight CapitalKoch Metals Trading LtdKottkeKreissparkasse KolnKyte Group LimitedLakeviewLakeview CapitalLibertyLiquid Capital SecuritiesLiquidity EnergyLouis CapitalLXM FinanceMacquarie EquitiesMacquarie FuturesMainFirst BankMakoMakorMarex FinancialMarianaMcNamaraMEBMediobanca - Banca di

Credito FinanziarioMetdist TradingMF Global Inc.Michael J. NugentMilleniumMitsubishi UFJMitsuiMizuhoMKM PartnersMKWMOAB Oil Inc.Molton Street CapitalMorgan StanleyMorgan Stanley Smith

BarneyMPS GlobalMPS Global Securities

(Europe)NatixisNatixis North AmericaNewedge GroupNomuraOccamOne ExchangeOng FirstoptionsXpressOTC EuropeOTC Global HoldingsParityPeregrinePhillip FuturesPhillip Futures Inc.PhoenixPine PointPioneer FuturesPohjola BankPotenPVMQANTEXR.J. O’Brien &

AssociatesRand Financial Services,

Inc.RBS Greenwich FuturesROBINSON MULDER

RoninRosenblatt SecuritiesRosenthal Collins Group,

LLCRoyal Bank of CanadaSberbank CIBSchneider TradingScotiaSCS CommoditiesSG SecuritiesShorcanSigma BrokingSkandinaviska Enskilda

BankenSociete GeneraleSoloSouthern Trust SecuritiesSquare GlobalSSBSSGMStandard BankStandard Chartered BankStarsupplyStraits FinancialStrikepointSucdenSun Hung KaiSunriseSvenskaSweet FuturesTacirlerTaviraTCTTD SecuritiesTerm CommoditiesTerra InvestimentosTFSTJM Institutional

ServicesTNT EnergyTowerTradelinkTraderightTradeStationTraditionTres EnergyTridentTriland MetalsTriland USATrinityTullett PrebonTullett Prebon (Hong

Kong) LimitedUBS AGUlyssesUnicreditValburyVantageVarnerVisionVTBWeeden & Co.Wells Fargo SecuritiesWestpointWoodlawnXBZ LimitedXconnect

Supporting FCMsThe following firms provided

funding for the development of the FIA electronic give-up agreement system:

FIA Technology Services, Inc.

2001 Pennsylvania Avenue N.W.

Washington, DC 20006

202.772.3000

www.futuresindustry.org