MarkitSERV DSMatch

& DTCC Trade

Information Warehouse

Q2 2012

Agenda
What is DSMatch?

Process
Eligible Credit Default Swaps
Workflow
Reports

What is Trade Information Warehouse?

Whats New
Getting Started
Helpful Information
Web GUI Screens

What is DSMatch?
Real time matching and confirmation
Credit Default Swaps Single Name
Credit Default Swap Index
Credit Default Swap Index Tranche

Provides straight through processing

New Trades
Post Trade Transactions

Integrated with Trade Information Warehouse

Maintenance of up-to-date status of credit derivatives contracts
Payments/Cashflows

Process
Connects to most major dealers globally and over 2,200 buy-side firms
using mainframe-to-mainframe real time messaging and secured internet
access via a browser-based screen
Compares both sides of transactions and provides best possible
matches and confirmed trade status
Trade affirmation and validation provides ability to review and submit
transactions
Automatically updates TIW with current state of trades for accurate
processing of payments, events, net settlement and subsequent post
trade transactions

Product Eligibility
DSMatch and the Trade Information Warehouse are fully-integrated for
the following credit products
CDS Short (Single Name CDS)

Asset Backed Index (ABX)

CDS Index

Commercial Mortgage Backed Index (CMBX)

CDS Index Tranche

CDS on Residential Mortgage-Backed Securities (RMBS) and

LCDX Tranches

CDS on Loans

CDS on Commercial Mortgage-Backed Securities (CMBS)

LCDX new Master Confirmation Transaction type for Index

Non-Eligible
Collateralized Debt Obligations (CDO)
Credit Linked Notes (CLN)

Workflow

Search for transactions using web interface

Input transactions manually or via upload facility
View transaction details and status
Review transaction history
Modify or cancel transactions
Validate trade information
Perform post trade transactions
Retrieve Reports

Reports
GUI: Reports Ad-Hoc Reports

Report Name

Content

Delivery

Unconfirmed
Transactions

All Unconfirmed transactions as of the time

report is requested by the participant

On request,
real-time

Alleged
Transactions

All transactions alleged by counterparties as of

the time report is requested by the participant

On request,
real-time

Daily Activity

All transactions processed on the date

specified by the participant

On request,
real-time

Daily Reject

All transactions that were rejected on the date

specified by the participant. Includes records
that would be displayed on the GUI on the
Search and Transaction History screen

On request,
real-time

What is Trade Information Warehouse?

A central and secure global infrastructure providing a comprehensive central
trade database containing the most up-to-date record of each credit
derivatives contract
Fully integrated with DSMatch to automate and standardize post-trade
processes
Contract Maintenance
Store and maintain the official legal record of credit derivatives contracts

Payment Processing
For official legal records maintained in the warehouse (payment
matching/affirmation for contracts with economic records only)
Automated feeds to multi-currency central settlement service

Event Processing
Credit Events
Successor Events

Central Settlement
For all official legal records maintained in the warehouse
Automated feeds to central multi-currency settlement service

Trade Maintenance - Gold Records

The Warehouse contains the golden copy of the trade
Once fully-registered and assigned a DTCC TRI, becomes an up-to-date trade
record
Represents the primary record of the trade the official legal record - over and
above any records held by the parties to the trade
In the event of a dispute, it is the golden copy which defines the state of the
contract at any point in time

Ongoing maintenance of Warehouse positions

Warehouse records are updated by assignment, termination, increase, and
amendment records
Notional amounts are tracked for all TIW downstream processes

All firms must ensure that all records are kept up to date so that accurate
positions are held
Ensure all subsequent post-trade events are submitted to DSMatch for
electronic matching
Periodically reconcile Warehouse positions with internal positions

Besides the legal implications, downstream processes, such as payment

calculation and settlement, will be accurate only if Warehouse records are
kept gold and constantly up-to-date

Whats New DSMatch Credit v.10 revision 1

Global Trade Repository (GTR)
One of the key aims of this release is to send trades down to the Global Trade Repository
(GTR).*
The GTR is a trade repository with the primary function to provide an information depot to be
able to disseminate information to the Regulators, Dealers, Brokers and Market Participants.
The GTR is also a data repository and can support multiple reporting regimes. It can accept
messages for Dodd-Frank Reporting, EMIR, or Asian regulations such as HKMA, MAS. The
same trade repository can facilitate different regulatory requirements.

* Existing positions have been backloaded into the GTR by DTCC

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Whats New DSMatch Credit v.10 revision 1

The GTR has three states:
Submit:
Acknowledge:
Error:

Message has been submitted to the GTR

Message successfully received by the GTR
Submission failed the GTR validation stages and resulted in an error

The GTR status is sent back to DSMatch with a Delivered (acknowledged ack) or Error (not acknowledged nack) message/status for participants on version 10 of MQ Messaging.
However, (for users not on v.10 messaging) the GTR status can also be viewed in the GUI under the Reporting
Summary of a confirmed trade details.

Reporting Summary on a confirmed trade

Trade details provide a Reporting Summary of report information including several defaulted fields.

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Whats New DSMatch Credit v.10 revision 1

GTR Reporting
This release includes approximately 40% of additional reporting fields required for the Dodd Frank go live
release expected in July 2012.
Therefore, for this release, all of these
reporting fields are optional. DSMatch auto
populates Defaulted Reporting Fields.
Reporting fields can also be uploaded post
trade (csv and MQ). Please see the
Spreadsheet Upload Template for further
information.

GTR Error Report

The report displays trades returning from the GTR with an Error status. It is accessed from the Reports menu /
Ad-hoc Reports within DSMatch.
DSMatch imposes similar validations to the GTR as part of the confirmation
process. No errors are expected to be received from the GTR in phase 1 since any
errors should be identified in DSMatch. For phase 1, please contact MarkitSERV
Client Services (support@markitserv.com) to identify any errors if they occur.
For phase 2, comprehensive error reporting and GTR status filtering/search
functionality is scheduled to be provided.
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Getting Started Prerequisites

ISDA Master
Agreement
(or other
Master
Agreement)

MCA- Executed
Bilaterally

DTCC Master

Master Confirmation Agrmt. Date

Single Name CDS January 1, 2001
DJ CDX Index January 1, 2001

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ISDA
Settlement
Matrix (single
name Credit
Default Swaps)

Standard
Terms
Supplement

Access and Data Submission

Automated FpML Messaging
Via T1 Line using Computer-to-Computer connections
MQ real time messaging

Spreadsheet Upload
Manual upload of csv file using web user interface

Transaction Form
Manual data entry via web user interface

Affirmation

Most common method for firms to process transactions

Firms review trades/transactions submitted by counterparty
Firms validate transaction information
Firms completely approve counterparty submission or submit changes

DSMatch Transaction Types

New Trade
The original entry of the deal into DSMatch

Amendment
A transaction to change the terms of a deal except the parties to the trade (see
Assignment) or to the trade reference numbers

Assignment
One of the parties to an existing derivative contract transfers all/part of its rights and
obligations under the contract to a third party, with the approval of all three parties
involved

Termination
An agreement to reduce the notional amount or number of options of a trade, usually
involving a payment from one party to the other. Also called a partial unwind

Increases
An agreement to augment the notional amount or number of options of a trade,
usually involving a payment from one party to the other. More common for equity
derivatives

Exits from DTCC

Removes a confirmed trade from the DTCC system. All parties must agree to exit the
transaction. Used when a trade needs to be processed outside of the DTCC system

DSMatch Transaction Status Descriptions

Confirmed
Pertains to a trade/event record that has been fully-matched and deemed legally
confirmed

Unconfirmed
Pertains to a trade/event record you submitted that has not been fully-matched or
affirmed by the counterparty

Alleged
Pertains to a trade/event records alleged by a counterparty for which you have no
matching record

Cancelled
An unconfirmed transaction that has been cancelled by the originating party

Pending
Any post-trade transaction whereby the underlying trade is still Unconfirmed in
status

Rejected
A transaction that cannot be validated according to the format or business rules

DK
Not strictly a status, this indicates that an alleged counterparty does not recognize
the transaction

Web GUI Screens and Reports

DEMO

GUI Dashboard

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GUI Dashboard
Appears when you first log into DSMatch from the Deriv/SERV portal
Products segregated with current day transaction statistics and chart
Statistics number links provide list of corresponding transactions within
the product
E.g., Credit Unconfirmed number will bring you to the Credit Search page with
the current days unconfirmed transactions

Go to Search button links to landing page of each product

Use Admin link to remove/reinstate products from Dashboard
May also arrange the order of the products in the dashboard
May also use Admin link to change password

GUI Dashboard
The Dashboard will segregate all
the product entitlements for a
digital certificate, and provide
summary statistics for the current
days transactions within the
products.

Click onto number of specified

transactions and go to search
page with corresponding
transactions within the product.

Click onto Go to Search to go to

the corresponding products
Search landing page.

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General Search

General Search navigation to inquire on DSMatch status.

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General Search

Search Trade Warehouse Deals by

unique DTCC Transaction Reference
Identifier (TRI).

Certain
A contract is certain under two conditions.
There are no unconfirmed (in-flight) post-trade events.
The calculated Current Warehouse Notional Amount resulting from all trade life-cycle events is not negative.
Uncertain
A contract is uncertain if a previously certain trade has an in-flight or pending post trade event.

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Search Results Detail

DTCC Trade Reference Identifier

Certain /Uncertain

Automatic Push Your back loaded trade has been automatically sent to the Warehouse because it has fully matched your
counterpartys record AND has also matched the Imputed Trade State derived from the DSMatch system (if it exists there).
Manual Push - Both parties have bilaterally manually pushed matched back loaded trades that do not successfully compare
with the Imputed Trade State.

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Trade Affirmation Details

Input your Trade Reference
Number and Submit to
enter your side of the trade.

User defined Workflow Fields.

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View Confirmed Status

Warehouse Current
State Summary.

Click to view
Transaction History.

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Transaction History
Provides audit trail of
trades and related post
trade transactions.

Provides Warehouse
status and effects of post
trade transactions on
notional amount.

Click to view details of

each transaction activity.

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Post Trade Event Processing

Once a trade is confirmed, you and the counterparty can agree to perform a post-trade
event/transaction.
Transactions you can perform against a confirmed trade are indicated within the dropdown
box.
Initiate transactions by clicking on the transaction type and the Submit button on the lower
right of the confirmed trades View screen.

All post-trade transactions must be bilaterally matched, similar to new trades.

Post-trade transactions can also be done using the affirmation process.

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Assignment Processing
An assignment, or novation, occurs when one of the parties to an existing derivative contract
transfers its rights and obligations under the contract to a third party.
The transaction requires the agreement of all three parties: the transferor, the transferee,
and the remaining party.
To enter an Assignment, from a confirmed view select Transferor Assignment from the
dropdown on the lower right and click Submit.

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Assignment Processing
Assignment Initial Screen requires the following fields to be added prior to moving on to the
detail screen:
Transferee (EE) Stepping-In Party
Reference Number Supplement

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Assignment Processing
The following fields are required to complete the Assignment:
Novation Date, Transferee, Novated Amount and Reference Number Supplement.
Novated amount needs to be less than or equal to the old notional amount.
Supplement needs to be unique for each assignment for specific reference number.

Enter Novated Amount.

If applicable, enter single

Payment Amt info associated
with this post-trade event.

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Spreadsheet Upload
Upload
Supports 1 500 records.
Bulk Upload
Supports 1 10,000 records.

Online validation of Uploaded files records.

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File Submission Report

1 Select desired Batch (es) for

processing download files.
2 Your Spreadsheets are prepared
for Download 15-20 minutes from time
of request and listed for download.
3 Your File Submission Reports are
listed for download.

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