FI Rule Book

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FIT Rule Book Trading

Trading Proceduresand Guidelines V1.8



Fixed Income Trading

Rule Book

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CONTENTS

INTRODUCTION 3 ROLES AND RESPONSIBILITIES 3 PRICE TAKER RULES 5 PRICE TAKER OPERATIONAL RESPONSIBILITIES 5 PRICE MAKER RULES 7 PRICE MAKER OPERATIONAL RESPONSIBILITIES 7 REUTERS CENTRAL TREASURY ADMINISTRATION 8 TRADING RULES 8 MARKET CONVENTIONS 12 INTEREST RATE SWAPS / OVERNIGHT INDEX SWAPS PRICE CONVENTIONS............................................................12 DAY COUNT CONVENTIONS 12 PRICE MAKERS WILL SUPPLY ALL DAY COUNT CONVENTIONS FOR CLICK AND TRADE TRADING TO THOMSON

REUTERS AS PART OF THE ON-BOARDING PROCESS. .................................................... ..................................12 THOMSON REUTERS WILL SUPPLY A LIST OF DAY COUNT CONVENTIONS WHICH CAN BE SELECTED FOR

REQUEST FOR QUOTE TRADING FROM THE PRICE REQUEST TICKET............................................................12 COMPLIANCE WITH REGULATORY REQUIREMENTS12 SECURITY 12 ADDRESSING ISSUES AND CHANGES 13 GLOSSARY OF TERMS 14




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INTRODUCTION

All activity on Fixed Income Trading is subject tothe rules contained in this Rule Book. As acondition of your Organisation’s contract withThomson Reuters, you need to be familiar withthese Rules and comply with them.

This Rule Book applies to all trading when usingFixed Income Trading. Certain rules or parts ofrules apply only to, Cash Bond trading, InterestRate Swap trading or Overnight Index Swap tradingor, for Price Makers or Price Takers. These rulesare designated accordingly. Rules not specificallydesignated will apply to all trading and parties.

Thomson Reuters may amend, add or delete rulesin the Rule Book from time to time, and will notifyyou of such changes. Rules may be changed totake account of changes to the system, changes inresponsibilities or workflow, and changes toachieve regulatory compliance. The Rule Bookrules are in addition to any specific regulatoryrequirements with which your Organisation or you,as a User, must comply.

The trading platform connects Price Takers fromThomson Reuters information products (e.g.

3000Xtra) to Cash Bond, Interest Rate Swap andOvernight Index Swap Price Makers globally.

Fixed Income Trading provides a Price Taker withaccess to over 15,000 securities (acrossGovernment Bonds, UST’s, Eurobonds, AsianBonds & Emerging Markets), Interest Rate Swapsand Overnight Index Swaps with a variety of flexibleelectronic trading models. The service combines anumber of best of breed components: Efficient and comprehensive price discovery,

embedded in the trading applet. Automated Dealing Technologies (ADT)

delivering bilateral and multi bank trading

models for seamless execution Price Makers executable pricing providing

breadth and depth of real time prices with deepliquidity and increased price transparency

Trading service availability

Fixed Income Trading will be available Monday toFriday between the following times opening hours:00:00-22:00 GMT.

Planned maintenance will be scheduled outside of

these hours. Emergency maintenance may beperformed during these hours if deemed necessaryby Thomson Reuters.

Help Desks

The term “Help Desk” is a generic term that refersto a Thomson Reuters-staffed department that canrespond to your questions concerning systemoperation; the conditions under which you mayneed Help Desk assistance are specified in theRule Book. Although the term “Help Desk” is usedthroughout the Rule Book, for other purposes someof the Help Desks may have other names.

You will be able to contact the Help Desk using the“Help”, “Contact Us” option on the trading applet,the “contact us” options in Reuters 3000 Xtra andReuters Trader, by telephoning the Help Desknumber, by e-mailing the Help Desk or by usingyour Dealing 3000 keystation.

Telephone conversations with help desk staffmay be recorded.

ROLES AND RESPONSIBILITIES

Role types

Fixed Income Trading will have the following roles: Price Taker organisation Price Taker-trading user Authorised Price Taker coordinator Price Maker organisation Price Maker order view user Authorised Price Maker coordinator Central Treasury Administrator

Operational responsibilities

Operational responsibilities by Role Type aresummarised below:




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Role ResponsibilitiesPrice TakerOrganisation

Nominating authorised Price Taker coordinator to represent Price Taker organisation

Authorised PriceTaker Coordinator

Advising Central Treasury Administrator of all trading accounts and their settlementvenue details

Advising Central Treasury Administrator of new Price Taker-trading users and theirauthorisation profile

Requesting Price Maker relationships to be approved (via Central TreasuryAdministrator)

Advising Central Treasury Administrator of required changes to user trading profiles Advising Central Treasury Administrator of Price Taker users that should no longer

have system access e.g. have left their organisation

Price Takertrading user

Selecting correct instrument to trade Specifying correct trading account, settlement venue, and quantity for each order Printing order ticket and passing order to settlement function Defining “best price” rule settings

Price MakerOrganisation

Nominating authorised Price Maker coordinator to represent Price Maker organisation Maintain price contributions for Fixed Income CPI (Trading API) connection and

Interest Rate CPI (Trading API) connection. Credit checking of orders Responding to Price Taker orders and RFQ’s Settlement of filled orders

Authorised Price

MakerCoordinator

Advising Central Treasury Administrator of trading defaults, currencies and limits for

Interest Rate Swap and Overnight index Swap trading Advising Central Treasury Administrator of new Price Maker order view users Advising Central Treasury Administrator of Price Maker users that should no longer

have system access e.g. have left their organisation Advising Thomson Reuters of Price Taker users and trading accounts approved to

trade Advising Thomson Reuters of changes to Price Taker user profiles

Price Maker orderview user

No specific responsibilities

Central TreasuryAdministrator

Implementing Price Taker configuration parameters, Price Maker configurationparameters, and approved trading relationships as instructed by authorised Price

Taker and Price Maker coordinators




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PRICE TAKER RULES

Fixed Income Trading agreement

The Price Taker organisation must sign the relevantagreement with Thomson Reuters for the FixedIncome Trading service before live trading for itsorganisation can commence.

Authorised Price Taker coordinators

A Price Taker organisation must appoint one ormore authorised Price Taker coordinators that areauthorised to act on behalf of the Price Taker

organisation.

Settlement of trades

A Price Taker organisation must determine andcommunicate its internal settlement policy for FixedIncome Trading to its authorised Price Takercoordinator and Price Taker-trading users.

Compliance with the “Rule Book”

A Price Taker organisation is responsible forensuring that all of its users have received,

understood and agreed to comply with the termsand conditions set out in the Rule Book.

Reporting of issues

A Price Taker organisation must ensure anyproblems and issues arising for its organisation arereported to Thomson Reuters in accordance withthe Rule Book.

PRICE TAKER OPERATIONAL

RESPONSIBILITIES

Authorised Price Taker coordinator

Accuracy and completeness of information

An authorised Price Taker coordinator isresponsible for the accuracy and completeness ofall information supplied to Thomson Reuters andPrice Makers.

Trading accounts

An authorised Price Taker coordinator isresponsible for sending requests to the CentralTreasury Administrator, using the “Price Takerconfiguration form”, authorising:

Addition of new trading accounts Amendments to existing trading accounts Removal of existing trading accounts Definition of settlement venues for each trading

account

Price Taker-trading user

An authorised Price Taker coordinator isresponsible for sending requests to the CentralTreasury Administrator, using the “Price Taker

configuration” form, authorising: Addition of new trading users Amendment of existing trading users Disabling of existing trading users Removal of existing trading users Definition of permissioned trading accounts for

each trading user Definition of permissioned bond classifications

for each trading user Changes to permissioned trading accounts for

a trading user Changes to permissioned bond classifications

for a trading user

Price Maker trading relationships

An authorised Price Taker coordinator isresponsible for sending requests for approval for atrading relationship with a Price Maker bankincluding details of Price Taker-trading accountsand Price Taker-trading users. Requests must bemade sending a “Price Taker to Price Maker tradingrelationship request” form to the Central TreasuryAdministrator.

Price Taker to Price Maker trading agreements

The authorised Price Taker coordinator mustensure that a trading agreement is in place with aPrice Maker before making a request for approvalfor a Price Maker trading relationship to the CentralTreasury Administrator. If a relationship does notcurrently exist, the authorised Price Takercoordinator can request that a relationship be setup via the Central Treasury Administrator.

Providing cover for the authorised Price Takercoordinator role

The authorised Price Taker coordinator isresponsible for ensuring continuity of cover byappointing one or more representatives to take overtheir responsibilities in their absence.




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The authorised Price Taker coordinator mustensure cover is provided for anticipated hours of

trading for their organisation.


The authorised Price Taker coordinator isresponsible for ensuring that all Price Taker-tradingusers have received, understood and agreed tocomply with the terms and conditions defined in theRule Book.

Price Taker-trading user

Gaining access to the Fixed Income Trading

A Price Taker-trading user must request access tothe Fixed Income trading system via theirdesignated authorised Price Taker coordinatorwithin their organisation.

Permissioned user profile

A Price Taker-trading user will be assigned ageneric profile of trading permissions that willdetermine which trading accounts the user cantrade on behalf of, which classifications of bondsthe user can trade and whether the user can trade

Interest Rate Swaps and Overnight Index Swaps.This generic profile is determined by the authorisedPrice Taker coordinator.

In addition, a Price Taker user may be approved totrade by one or more Price Maker banks. A PriceMaker bank may approve all of the generic tradingprofile, or a subset of trading accounts, bondclassifications, Interest Rate Swap and OvernightIndex Swap currencies, tenors and notionalamounts that a user may trade. This bank approvedtrading profile may be different between banks foran individual Price Taker-trading user.

A Price Taker-trading user will not be able to tradewith a Price Maker bank until their trading profilehas been approved by that bank.

Trading accounts

Trading accounts within a Price Taker organisationrepresent legal trading entities approved to trade bythat Price Taker organisation. A Price Takerorganisation will have at least one trading accountdefined. A Price Taker-trading user must always bepermissioned to trade by the Price Takerorganisation and approved to trade by one or more

banks in order to trade on behalf of a tradingaccount.

Each trading account must have one or moresettlement venues defined.

The Price Taker-trading user is responsible forselecting the correct trading account and settlementvenue.

Setting “best price” rule for Cash Bond trading

When operating in markets providing CompetitiveRequest for Quote functionality a Price Taker-trading user is responsible for setting the best pricerule in the trading applet “settings” panel, whichapplies to competitive request for quote orders.

This setting will be used to determine which PriceMaker’s price is highlighted as the “best price” inthe event of two or more Price Makers tying jointfirst with their quotes.

Settlement of completed orders

A Price Taker-trading user is responsible forpassing a trade to their settlement function for tradesettlement. This can be achieved by printing a tradeticket or exporting a group of trades into anapplication. The exact method will be determinedby the Price Taker organisation.

Limitations on desktop access to Fixed IncomeTrading

Thomson Reuters does not restrict trading accessto individual desktops.

Requesting trading relationships with Price Makers

A Price Taker-trading user can request a tradingrelationship from within the trading applet“relationships” panel, found within the “settings”panel. The Central Treasury Administrator willreceive requests made. The request will be referredto the authorised Price Taker coordinator in orderthat they may make a formal application.




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PRICE MAKER RULES

Fixed Income Trading Agreement

The Price Maker organisation must sign therelevant agreement with Thomson Reuters for theFixed Income Trading service before live trading forits organisation can commence.

Authorised Price Maker coordinators

A Price Maker organisation must appoint one ormore authorised Price Maker coordinators that areauthorised to act on behalf of the Price Maker

organisation.

Price contributions and trading connections

A Price Maker organisation must maintain andmonitor price contribution feed and tradingconnections to Fixed Income Trading.

Contributed prices are assumed to be tradableprices unless specifically marked as indicativeprices.

The Fixed Income CPI Interface used to make trading connections shall be used for the sole purpose of

implementing a Fixed Income CPI Trading Connection and using Fixed Income Trading in accordance with the Agreement

Responding to Price Taker orders

A Price Maker organisation must ensure that autotrading engines / manual traders are available toservice Price Taker orders and RFQ’s whilst thePrice Maker organisation is connected to the FixedIncome Trading.

Please note that a system timer is applied. When

this preset time expires the order is automaticallycancelled by the Fixed Income Trading system.

Credit checking Price Taker orders

A Price Maker organisation is responsible forperforming any credit checks and other requiredchecks against a Price Taker order or RFQ.

Settlement of trades / STP

A Price Maker organisation is responsible forpassing completed trades to its internal systems foronward processing and settlement.


A Price Maker organisation is responsible forensuring that all Price Maker users have received,understood and agreed to comply with the termsand conditions defined in the Rule Book.

Reporting of issues

A Price Maker organisation must ensure anyproblem and issue arising for its organisation isreported to Thomson Reuters in accordance with

the Rule Book.

PRICE MAKER OPERATIONAL

RESPONSIBILITIES

Authorised Price Maker coordinator

Accuracy and completeness of information

An authorised Price Maker coordinator isresponsible for the accuracy and completeness of

all information supplied to Thomson Reuters.

Defining configuration settings and tradingpermissions

An authorised Price Maker coordinator isresponsible for sending requests to the CentralTreasury Administrator, using the “Price Makerconfiguration” form, to define or changeconfiguration settings and trading permissions.

Price Maker order view user

An authorised Price Maker coordinator isresponsible for sending requests to the CentralTreasury Administrator, using the “Price Makerconfiguration” form, authorising: Addition of new order view users Disabling of order view users Removal of order view users

Price Taker-trading relationships

An authorised Price Maker coordinator mustapprove or decline part or all of each Price Takerrequest for a trading relationship by completing

each “Price Taker to Price Maker tradingrelationship request” form received and returning tothe Central Treasury Administrator. This will includeapproving Price Taker-trading accounts, Price




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Taker-trading users and their respective tradingprofiles.

An authorised Price Maker coordinator must send arevised “Price Taker to Price Maker tradingrelationship request” form where changes to a PriceTaker’s approved trading accounts, trading user ortrading user trading profile are required.

An authorised Price Maker coordinator mustprovide its internal identifiers (used within the PriceMakers own environment) for a Price Taker’strading accounts and trading users as part of theapproval process.

Price Maker to Price Taker-trading agreements

An authorised Price Maker coordinator must ensurethat a trading agreement is in place with a PriceTaker organisation before sending approval for aPrice Taker-trading relationship to the ReutersCentral Treasury Administrator.

Providing cover for the authorised Price Makercoordinator role

An authorised Price Maker coordinator isresponsible for ensuring continuity of cover byappointing one or more representatives to Takerover their responsibilities in their absence.

An authorised Price Maker coordinator must ensurecover is provided whilst tradable price contributionsare made to the Fixed Income Trading.


An authorised Price Maker coordinator isresponsible for ensuring that all Price Maker usershave received, understood and agreed to complywith the terms and conditions defined in the RuleBook.

Price Maker order view user

Price Maker order view users have no specificresponsibilities.

REUTERS CENTRAL TREASURY

ADMINISTRATION

Price Taker configuration

The Reuters Central Treasury Administrator mustonly implement changes received on “Price Takerconfiguration” forms from the nominated authorisedPrice Taker coordinator to add, amend or remove

trading accounts, users and their respectiveprofiles.

The Reuters Central Treasury Administrator mustadvise a authorised Price Taker coordinator whenrequested changes have been implemented.

Price Maker configuration

The Central Treasury Administrator must onlyimplement changes received on “Price Makerconfiguration” forms from a nominated authorisedPrice Maker coordinator to define or changeconfiguration settings, trading permissions, andorder view users.

The Central Treasury Administrator must advise aauthorised Price Maker coordinator when requestchanges have been implemented.

Price Taker to Price Maker trading relationshiprequests

The Central Treasury Administrator must onlyimplement approval requests received on “PriceTaker to Price Maker trading relationship request”forms from a nominated authorised Price Makercoordinator to permission or de-permission a PriceTaker’s trading accounts, trading users and their

respective trading permissions.The Central Treasury Administrator must adviserelevant Price Taker and authorised Price Makercoordinators when a trading relationship requesthas been actioned.

TRADING RULES

Supported Fixed Income order types

Fixed Income Trading supports the following

outright buy and sell, order types for Cash Bondtrading:

Note some of these order types are restricted toparticular markets.

Single PriceMaker

Order submission

Subject order

Request for quote

Multiple PriceMakers

Competitive request for quote




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Fixed Income Trading supports the following ordertypes for Outright Interest Rate Swap and Outright

Overnight Index Swap trading.

Single Price Maker Click and trade

Flexible Request for quote

(Single bank RFQ)

The Fixed Income Trading supports the followingorder types for Curve Spread Interest Rate Swaptrading.

Single Price Maker Click and trade

Order type selection by Price Taker-tradingusers

A Price Taker-trading user will select a single PriceMaker order type by double clicking on the bid price(Price Taker sells) or ask price (Price Taker buys)of a Price Maker’s rate from within the FixedIncome Trading Price discovery panels.

In markets where competitive request for quote isprovided a Price Taker-trading user will select acompetitive request for quote by double clicking onthe bid size (Price Taker sells) or ask size (PriceTaker buys) of a Price Maker’s rate from within theFixed Income Trading Price Discover Panels.

A Price Taker-trading user will automatically bedirected to a competitive request for quote wherean un-attributed, indicative price is selected,regardless of the column double clicked.

In markets without competitive RFQ the user isdirected to a selection of price maker prices to

initiate a single dealer trade.

Note:

A Price Taker-trading user will only be able tosubmit an order if they are permissioned to trade bytheir organisation and approved to trade by thechosen Price Maker(s). Definition of single PriceMaker order types

Single Price Maker order types will be determinedaccording to the following rules:




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OrderType

Quantity PriceChanged?

Firm /Indicative

SettlementDate

Ordersubmission

Less than or equal to PriceMaker “size” for price

No F (firm) Standard

Request forquote

Greater than Price Makersize for price

No F (firm) Standard

Less than or equal to PriceMaker “size” for price

Yes F (firm) Standard

Any quantity N/A F (firm) Non standard

Anyquantity

Any quantity N/A I (ind) Standard

Price Maker responses to order types

Price Makers must respond to order types according to the rules below:

Order type Initial responses Final responses

Order submission N/A Fill order, or

Reject order

Subject order N/A Fill order,

Reject order, or

Counter propose

Request for quote Quote, or

Decline to quote

Fill order, or

Reject order

Single Price Maker

Multiple Price Maker Competitive requestfor quote

Quote, or

Decline to quote

Fill order, or

Reject order

Request for quote / counter propose quoteupdates

When a Price Maker chooses to quote or counterpropose an order, the Price Maker will specify atimer period that a quote is good for. The PriceMaker may update its quote before the timer periodfor a previous quote expires. The Price Maker canalso cancel its quote at any time. When a PriceTaker-trading user accepts a quote, it will be the

most recent quote displayed on the users screen.

Users of Fixed Income Trading Applet forInterest Rate Swap/Overnight Index Swaptrading sheet

A Price Taker-trading user can action a Click andTrade order with a single Price Maker by doubleclicking on the bid price (Price Taker receivesFixed) or ask price (Price Taker pays Fixed) of aPrice Makers rate from within the Fixed Income

Trading Price Discovery panel for Interest RateSwaps




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A Price Taker trading user can action a Request forQuote for an Outright Interest Rate Swap from a

single Price Maker by double clicking the currencycolumn of the appropriate tenor.

Order Type Quantity Price Type Settlement Date Payment Frequency

Click andTrade

Between Minimumand Maximumtrading limits

F (firm) Standard Standard

Order Type Quantity Price Type Settlement Date Payment Frequency

FlexibleRequest ForQuote (SingleBank RFQ)

Between Minimumand Maximumtrading limits

Fixed Rate,Spread orUpfrontAmount

Non standard Non standard

Price Maker responses to order types

Price Makers must respond to order types according to the rules below:

Order type Initial responses Final responsesClick and Trade N/A Fill order, or Reject orderSingle Price Maker

Flexible Request forQuote (Single BankRFQ)

Quote, or Decline to quote

Fill order, or Reject order




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Request for quote / counter propose quote

updates

When a Price Maker chooses to quote, the PriceMaker will specify a timer period that a quote isgood for. The Price Maker may update its quotebefore the timer period for a previous quoteexpires. The Price Maker can also cancel its quoteat any time. When a Price Taker-trading useraccepts a quote, it will be the most recent quotedisplayed on the users screen.

Trade completion

A trade is not complete until a Price Maker

successfully confirms that an order is filled.

If the trade confirmation is rejected by the FixedIncome Trading system for any reason then thetrade is cancelled.

In the event of a disputed trade, the Price Takerand / or authorised Price Maker Coordinators onlymay request copies of the electronic logs for theorder from Central Treasury Administration.Thomson Reuters will provide such records and willsupply further information on the trade asrequested by a court or regulatory body.

MARKET CONVENTIONS

Price conventions

Cash Bonds

Thomson Reuters will configure bonds to be quotedin one of the following formats only: Decimal price e.g. 105.125 Fraction price e.g. 105*027

Yield e.g. 3.575%

Minimum quantities and standard increments

Thomson Reuters will configure minimum quantitiesand standard increments for every tradable bondon the service. Thomson Reuters will validatequantities entered by Price Taker-trading users,and will only pass valid order quantities to PriceMakers.

Accrued interest / settlement amount

All prices shown within the Fixed Income Trading

are “clean” prices. Thomson Reuters will provide anestimation of accrued interest and settlementamount. If these figures vary from a Price Maker’s

own values, the Price Maker values takeprecedence over Thomson Reuters values.

Interest Rate Swaps / Overnight Index SwapsPrice conventions

Interest Rate Swaps

Interest Rate Swaps will be quoted as a Yield(Interest Rate) e.g. 3.575%

Curve Spreads will be quoted as Basis Points e.g.23

Overnight Index SwapsOvernight Index Swaps will be quoted as a Yield(Interest Rate) e.g. 3.575%

Day Count Conventions

Price Makers will supply all day count conventionsfor Click and Trade trading to Thomson Reuters aspart of the on-boarding process.

Thomson Reuters will supply a list of day countconventions which can be selected for Request for

quote trading from the price request ticket.

COMPLIANCE WITH REGULATORY

REQUIREMENTS

Fixed Income Trading is regulated in a number of jurisdictions.

Thomson Reuters is responsible for complying withregulatory requirements for the Fixed IncomeTrading.

Price Maker and Price Taker organisations areresponsible for complying with any regulatoryrequirements that apply to their organisation.

SECURITY

User Id, PIN and password security

All users issued with User Ids, PINs and passwordsare responsible for keeping their pin and passwordsecure.

If you suspect that a third party knows your PINand/or password, you must request the PIN and/orpassword is reset immediately via the Help Desk.




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ADDRESSING ISSUES AND CHANGES

Problems with logging in

Any user experiencing problems logging in shouldcall their designated Thomson Reuters Help Desk.The Thomson Reuters Help Desk will arrange forforgotten passwords to be reset.

Price Taker changes to permissions

Requests to add or change or remove Price Takerpermissions must be made using the “Price Takerconfiguration” form and must be sent by the

authorised Price Taker coordinator to the CentralTreasury Administrator electronically.

Price Taker requests for trading relationships withPrice Makers

Requests to add or change or remove a tradingrelationship with a Price Maker must be made usingthe “Price Taker to Price Maker trading relationshiprequest” form and must be sent by the authorisedPrice Taker coordinator to the Central TreasuryAdministrator.

Price Maker issues with contribution or tradingconnections

A member of the Price Maker organisation (ideallythe authorised Price Maker coordinator) should calltheir designated Help Desk.

Price Maker changes to configuration settings

Requests to add or change Price Makerconfiguration settings must be made using the“Price Maker configuration” form and must be sentby the authorised Price Maker coordinator to the

Central Treasury Administrator.

Price Maker approval of Price Taker-tradingrelationships

Request to approve / decline trading relationshipadditions / changes with a Price Taker must bemade using the “Price Taker to Price Maker tradingrelationship request” form and must be sent by theauthorised Price Maker coordinator to the CentralTreasury Administrator.




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GLOSSARY OF TERMS

Term Definition

Accrued interest The interest that has accumulated on a bond since the last coupon interestpayment up to but not including the settlement date.

Best price rule A rule with two settings decided by the Price Taker user that is used todetermine the “best price” when two or more Price Maker prices are tied for bestprices in a competitive request for quote, subject to that market providingCompetitive Request for Quote orders. The settings are: first price bank; orfavourite bank (determined by the order of the banks on the screen with PriceMaker at top of the list being the most favourite).

Bond classifications Thomson Reuters classifies bonds into smaller sets for ease of identification.Bond sets are described by asset class e.g. government, currency e.g. EUR,and market class e.g. Germany.

Clean price The price quoted for a bond excluding accrued interest.

Click and Trade A method of trading from the Interest Rate Swap/Overnight Index Swap tradingsheet where you double click on the Yield (interest rate) of your selectedinstrument to launch a trading ticket.

Competitive request forquote

An order type where a Price Taker submits the same request for quote to up tofive Price Makers simultaneously. Competitive Request for Quote workflow isonly available in certain markets.

Counter propose A Price Maker response with alternate terms (e.g. price / yield) if the terms of anorder can no longer be met. This could be due to a price being stale by the timeit reached a Price Maker, or due to a Price Taker asking for a non-standard priceor quantity.

Fixed Income CPI Thomson Reuters name for the Price Maker fixed income trading API(application program interface).

Flexible Request For Quote A request to the Price Maker to price an Interest Rate Swap where theircontributed price is not firm or to price an Interest Rate Swap of non standardsettlement or structure.

Minimum quantity Some bonds are issued for a nominal amount greater than one e.g. one bondcertificate may be for $10,000. The minimum quantity validates that a specifiedquantity is greater than or equal to the nominal amount of the lowestdenomination for a bond.

Order submission An order type where a Price Taker submits an order for a standard (published)firm price / yield for a quantity less than or equal to the published maximum sizeand for a standard settlement date.

PIN An alphanumeric value that is concatenated with a user id to enhance the level




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Term Definitionof security.

Price contributions Prices contributed to Fixed Income Trading by Price Makers and as described inits relevant agreement with Thomson Reuters.

Price Maker configuration A term that describes Price Maker settings within the system.

Price Taker configuration A term that describes Price Taker settings within the system.

Request For Quote (RFQ) An order type that is sent to a Price Maker if their contributed price is not firm, orif the order is for a non-standard settlement date. The Price Maker will then

quote a firm price that the Price Taker can accept or reject.

3000 Xtra Thomson Reuters premium information desk top service.

Fixed Income Trading Thomson Reuters trading capability to Price Takers, delivered via ThomsonReuters information desk top service that connects to multiple Price Makers.

Rule Book A combination of role definitions, responsibilities, assumptions and rules thatPrice Takers, Price Makers and Thomson Reuters agree to comply with inrespect to Fixed Income Trading.

Settlement The process used to describe the delivery of a bond from one party to another inreturn for a cash amount agreed on a given date as agreed at the time of atrade.

Settlement amount The aggregate of the trade quantity at the agreed trade price and any accruedinterest amount.

Settlement policy A policy determined by a Price Taker or Price Maker that describes itssettlement process and procedures.

Settlement venue A third party through which delivery of a bond and the resultant cash payment

will be made by the Price Taker and Price Maker parties.

Standard increment Where bonds are issued for a nominal amount greater than one e.g. one bondcertificate may be for $10,000, the specified quantity for an order must be awhole multiple of the bond denomination.

STP Straight through processing: an industry term used to describes the automationof settlement process flows between systems and parties.

Subject order An order type where a Price Taker submits an order for a standard settlementdate, but for a non-standard price (where the published price is firm), or for a

quantity greater than the published maximum size.

Trading Account A legal trading entity of the Price Taker.




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Term Definition

Trading agreement An agreement to trade between a Price Taker and a Price Maker.

Trading API See Fixed Income CPI

Trading connection This refers to the Price Maker’s Fixed Income CPI (trading API) connection.

Trading relationship A relationship between Price Maker and a Price Taker where both parties havea trading agreement, a Price Taker has requested a trading relationship, and thePrice Maker has approved the Price Taker for trading.

© Thomson Reuters 2009. All rights reserved. Thomson Reuters and the sphere logo are thetrademarks or registered trademarks of the Thomson Reuters group of companies around the world.

Published by Thomson Reuters Limited, The Thomson Reuters Building, South Colonnade, CanaryWharf, London E14 5EPUnited Kingdom Tel:+44 20 7250 1122

21-August-2009

This Trading Procedures and Guidelines document is made available solely for the use and reference ofcurrent Fixed Income Trading subscribers only and must not be accessed by anyone else. By accessing

this Trading Procedures and Guidelines, you represent to Thomson Reuters that you are a current FITRule Book subscriber.

For further information about Thomson Reuters visit us online at www.thomsonreuters.com

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