Reuters and LME data

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• Reuters and LME data
• A real time window on the world of metals

Jae B Hur Chief Correspondent, Commodities -
Asia September 2003
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Introduction

• Thank you for your attendance at this event.
• Thank you also to the LME for their kind
  invitation to speak I hope you find my talk
  interesting and informative. Ill be happy to
  answer any questions at the end or privately
  during the scheduled breaks.
• Reuters are pleased to be here and be one of the
  sponsors involved in what we believe will be an
  interesting, informative and useful event.

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Todays Objectives

• Market information, the meaning and value of
  real-time!
• To bring clarity in a complex market
• To outline the structure, breadth and importance
  of the LME feed
• Explain who Reuters are and the part we play at
  the LME and in the market in general

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Market Information - Knowledge can be a powerful
tool
Very few industries have trading vehicles
tailored specifically to meet their needs

• In todays markets, a lack of knowledge or
  understanding is a competitive disadvantage
• The reliability of the source and timeliness of
  the information is often as important as the
  information itself
• The ability to manage risk in an efficient,
  secure and regulated environment is key
• Very few industries have a trading vehicles
  structured to meet their needs the LME is
  unique in providing such targeted vehicles,
  supported by a global physical delivery network
• Liquidity, fungibility, standardisation and
  global access are key attributes that will help
  you manage risk
• The underlying support of a well recognised
  clearing house (LCH) provides a secure and
  guaranteed hedging vehicle

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Clarity not complication
A uniquely structured market!

• A complex market?
• Yes, if you dont know what is important or how
  the market views the information
• There are thousands of items or displays of
  information available (within the Reuters
  environment) all are easily accessed and clearly
  presented
• all major carries or out-rights such as cash to
  3s, 3s, 15, 27 and 60 months forward (and all
  those in between)
• official prices (second RING close)
• evening evaluations
• warehouse stocks (by metal and warehouse
  location)
• fundamental supply/demand statistics (unique to
  Reuters)
• FX spot and forwards
• All of this information is available to those
  subscribing to receive LME data in real-time
• as soon as a price changes at source or if a news
  story is published, the user will immediately
  (i.e. within one second) receive the update on
  their PC without any action
• delayed feeds are also available

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The complete picture
No one else offers the complete picture no
other vendor is so committed to this market

• There are approx 48 vendors that provide
  different levels of access to the LME exchange
  feed
• None cover the same level of depth as Reuters
  we cover over 95 of all information that is
  available our nearest competition falls well
  short of this mark
• This is an important factor you need to know
  the full facts in order to manage your risk
  efficiently
• Very few are able to combine an editorial
  operation with the provision of numerical
  information none have the Reuters global
  editorial network to call on the largest
  editorial operation in the world
• We combine real-time (streaming), historical and
  fundamental supply and demand information into
  one desktop
• We consider our position as one of a partner with
  the market rather than simply a supplier
• Some examples of how LME information looks
  follow -

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Metals Production Database (MPD)
The MPD an example of a deep dataset
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Reuters partnership with the LME
We continue to play an integrated and important
role
LME Select
We cover more LME information than any other
vendor by far!
Back to Reuters other vendors
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Reuters Today Facts and Figures

• The worlds premier information provider
• data from over 244 exchanges and OTC markets
  world-wide
• Real-time quotes on over 960,000 instruments
• historical information on 40,000 companies
• more than 200 million data records maintained and
  updated, containing over 3,000 billion discrete
  data points
• At peak times, our network will disseminate up to
  30,000 updates per second
• The worlds largest news and television agency
• 2,400 editorial staff in 197 bureaux, including
  over 150 dedicated commodity and energy
  specialists
• approx 30,000 headlines, and over eight million
  words published daily in over 26 languages
• 20 years experience in electronic transactions
  through our forex trading services and Instinet
  electronic broking

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Reuters - Global Reach

• Largest provider of news/information to the Web
• We are the most read source of news on the
  Internet reaching millions in their homes,
  offices or via their PDAs
• Over 458,000 professional users in 52,900 client
  locations
• Connecting over 250,000 financial professionals
  via Reuters Messaging, our instant messaging
  service
• Worlds largest private information network
• Over 16,000 employees in 220 cities in 94
  countries

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Our role in the market
We perform a unique function - we are proud to do
so

• We do not trade - we do not have or take a
  position - we have no conflict of interest
• We are a neutral, independent, unbiased, factual
  and timely distributor of news and market
  information
• We report fact, confirmed at source or by the
  relevant market participants
• An integral part of the market
• Market makers and brokers use our service to
  contribute/publish their indicative prices to the
  market
• We provide this information directly to the LME
  for incorporation into their Exchange Feed
• We disseminate this information to many thousands
  of organisations across the globe in real-time
• We support the desktop for many users of LME
  trading vehicles
• A communication and sales channel
• The Reuters desktop is accessed by more metals
  participants than any other vendor
• Reuters Messaging now available
• A unique source of knowledge

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And tomorrow?
We have been committed to the LME since its
inception in 1877 our position hasnt changed!

• We will continue to work closely with the LME and
  its members and customers
• We will continue to improve the services we offer
  our customers
• We will broaden the tools offered based on the
  requirements of the market
• Transactions
• Extreme charting
• Post trade tools
• Risk Management
• Whatever is requested by the market
• Our goal is to be the markets partner -
  providing total customer satisfaction.

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In Summary
Others have come and gone - We are here for the
duration

• We want to continue to partner with the LME, its
  members and their customers
• We aim to provide services that meet your needs
  implementing or developing the necessary
  technologies
• We will continue to focus on customer service and
  commit to improving your Reuters experience
• We have worked with and supported this market for
  many years. During difficult times others have
  come and gone - We are here for the duration!
• Please visit our small stand where we will be
  pleased to give you some hands on examples of
  what we do.