Fixed Income Benefits and Timeline

1
Fixed Income BenefitsandTimeline

• Marketing Focus Group
• FIX Protocol Limited

2
FIX Benefits for Asset Managers

• FIX is the preeminent global protocol for the
  pre-trade, trade, and through settlement of fixed
  income securities
• Leverages open standards embraced by the BMA and
  global fixed income communities for multiple
  security classes
• Provides seamless connectivity to multiple
  counter-parties and enhances price transparency
  and access to liquidity - It is a superior
  solution that reduces reliance on broker and
  vendor proprietary solutions FIX is an open
  standard
• It enables accurate real time updating of
  portfolio and trading management systems for
  pre-trade, trade, and pre-settlement
• The structure of FIX mirrors common business
  practices for the fixed income markets
• The fixed income community will leverage the
  experience of OMS providers, system vendors and
  integrators and developers who have a deep
  knowledge of supporting FIX on the equity side of
  the business
• FIX is supported globally by several committees
  and working groups
• Enables STP

3
FIX Benefits for Brokers and Custodians

• FIX is the preeminent global protocol for the
  pre-trade, trade, through settlement of fixed
  income securities
• Reduces phone, email, and fax communication
• FIX will facilitates accurate real time updating
  of portfolio and trade management systems
• Reduces the need to support multiple in-house and
  proprietary solutions FIX is an open standard
  format once and use anywhere
• Flexible protocol that allows you to be
  responsive to changing customer and market
  demands
• The structure of FIX mirrors common business
  practices for the fixed income markets
• FIX protocol will create electronic connectivity
  to all counter-parties
• The fixed income community will leverage the
  experience of OMS providers, system vendors and
  integrators and developers who have a deep
  knowledge of supporting FIX on the equity side of
  the business
• Scales to handle increasing volumes and
  connections to more customers
• FIX is supported globally by several committees
  and working groups
• Enables STP

4
FIX Benefits for Vendors and Networks

• The securities industry and the BMA have embraced
  the FIX protocol as the preeminent global
  standard for pre-trade, trade, through settlement
  processing
• The fixed income community has a new framework to
  foster standardization
• New business opportunities for STP services and
  solutions
• Accepted open standards meet less buyer
  resistance
• Enabling legacy systems with FIX gives them new
  life
• FIX is a flexible and growing platform that will
  survive the test of time
• FIX is supported globally by several committees
  and working groups

5
Timeline TBMA/FIX Protocols Initiative
TBMA forms focus groups for Treasuries, Agencies,
Corporates and Municipals
TBMA issues RFP for Voluntary Protocols Initiative
FIX 4.3 is released, including new fixed income
standards
TBMA publishes first plain English documents
First successful FIX pilot (Merrill Lynch
Putnam, FIX 4.0)
2000
2001
March
March
May
June
July
August
September
Four tags for fixed income added to FIX 4.2
TradeWeb and Jordan Jordan are hired to assist
in Voluntary Protocols Initiative
FPL SWIFT issue a Statement of Understanding on
ISO 15022
TBMA and FPL merge efforts
6
Timeline TBMA/FIX Protocols Initiative
Merrill Lynch provides real-time High Grade
Offerings to Investment Managers via FIX protocol
Commercial Paper added to Gap Analysis document
FPL Expansion - FIWG elevated to Global Committee
TradeWeb begins FIX-based live execution reporting
Plain English document for TBAs is published
2002
January
February
March
May
June
September
October

O N G O I N G
Plain English documents for European products
under comment, Gap analysis work for TBAs
Fixed Income Working Group (FIWG) creates
Marketing Focus Group
FPL continues efforts on expansion and open
membership
FIX 4.3 gap analysis is completed