Home

PDF - Municipalnets

1. 56 ProGedures E E 56 Contribution Categorization of Research for Multex oooocoocccnnccconocnnoccccnncnnnnnnnoncncnnnnnnnnnncnnnnns 56 Autor oIa 1g 10111 REEL PEEL 56 Manual Contribution sosro epe nt ede nr eaa el ae ER D eR Ver PAD guo geek un 56 Establishing Research Documentation Standards sss 57 Entititlement Process for RES arch 0 ccceececneeeeceeeee eee ceeeeeeeeeeeeeeeaaeeeeaeeesaeeeeaeeeeeeeeee 57 APPENDIX A dm 1 APPENDIX B Dealer User Ammendment Form eeeeeseeesseeeeseeenennn eren nnn 3 APPENDIX C Client Authorization Form eeseeeeeeeeesieeeeeenn nenne eh nnn nnne n nnn nn nnne 5 Market Axess Dealer Operations Manual 4SYSTEM REQUIREMENTS DRAFT 5 20 2001 List of Figures Fig re 1 Gotiniectlor SCEO e it bee em ia bte cete 12 Figure 1 Login Screen eed ode ag Eee Du dag EO i deo e deg Di dee Di dde du 17 Figure 2 Legal Disclosure Screen oooooccccconccnconononnnonnnnnncnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnrnnnnnnnannnnnns 18 Figure 3 Home Screen oie ee piedi dioe hag Died e Deve cag DOR a de dane deg doe ede De cre DOR 19 Figure 4 Overall Primary Issuance Process sssssseeeeee eme mener 22 Figure 5 Step by Step Bond Issuance and Pricing sessse 24 Figure 6 Drafts as they appear on the calendar
2. sssseseeee ee 28 Figure 7 Creating a New Issue Draft ssssssesssseeee eee Henne nnne 30 Figure 8 Save Draft Confirmation eresia iin a e emen 30 Fig re 9sIssue Deltalls ie ot As iia 31 Figure 10 Click Book from the Calendar Screen to Announce the Deal sss 33 Figure 11 Announce Deal from the Issue Book SCreen ceseceeceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeneees 34 Figure 12 Announce Deal Confirmation eessssssessseeeeeeeee emen 34 Figure 13 Launched Issue Verified by Investor ssss He 37 Figure 14 Indication History Screen sssssssseeeee mene emen nnne nnne 38 Figure 15 2101 Detail SCreem i ito tet to ee Ete ce ied Het core ete EE EO eet Eae elut rodeada 39 Figure 16 Allocation of Bonds ssssssseeseeeee ee mene n nne hh nn eene nnn 41 Figure 17 What the dealer sees when an allocation is confirmed eeesssesssss 42 Figure 18 Invoking Final Pricing Screen sssssssseee Hee 43 Figure 19 Pricing the Deal 5 i deep eie due dag E i eo dee Di da Die dae du 44 Figure 20 You Have Confirmed Your Price ccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeaeeeeeeeaes 44 Figure 21 Inventory Screen scenei eeii irida A a a E N aa 50 Figure 22 Security Detail Screen eerie iaa kea EET AE AEAEE AAEE AE en ennt nnne nnn 52 Figure 23 Add Item Screens iai t
3. Select the industry you want to filter by here Mi arrow and select a filter YT 1111111131313 Page Navigation Connected ET Figure 21 Inventory Screen Filtering the securities on this screen On the upper left of the screen click the dropdown arrows to filter by bids or offers or by sector Navigating The Inventory Click the Prev or Next to navigate through the pages Table 6 Inventory Main Screen Fields and Buttons On System Toolbar Home Navigates to the Home or main page of Market Axess System Primary Navigates to the Primary Issuance Module The is the same as the New Issue Trading button on the Home screen Figure 3 Secondary Navigates to the Inventory Module Because in this case this is the current screen this button will be is a lighter color Research Navigates to the Research Module Clicking this button causes your internet browser to launch and Navigates to the Inventory web page Notices Navigates to the notices area Market Axess Dealer Operations Manual Application Programming Interface Specifications 50 Filters First box type filter Second box Book m button Mode edit or view Columns SZ 000 Rating Ticker Cpn Coupon Maturity Sprd Spread Benchmark Updt Update Security Details DRAFT 5 20 2001 When you click the dropdown arrow on the field to the left you can select from All Bids Offers Priority to filter listings
4. Market Axess Dealer Operations Manual 3SYSTEM REQUIREMENTS DRAFT 5 20 2001 Accessing Historical Data 5d t eit te ab ae 46 SII eee 46 Disaster Recovery rect a e RaT AN E Nn A R EAE EATER EA aa KA ERRE 46 IOI Information on Dealers side sss esee nennen 46 IOI Information on Investor s side ccccec cece ce eeee ae eeee eee sa eeeeaeeeseeeesaeeeeaeeesaeeeeaeeeeeeeees 46 SECONDARY TRADING INVENTORY SYSTEM DEALER eene nnn 47 Application Programming Interface Specifications sesseee 47 What is the Market Axess API ssssssssssssssssssssesee esee hene hene rn ne hene r nennen 47 ARI Gharacteristics e ee Ee ERE Re ER Seeds Pace eae a 47 APP Components nia 48 Recovery from API downtime eese enne nennen enne ener nnne 48 Inventory Daily Procedura ossaa a aa eene mene nene nnne n hhh nnn hh nennen rn nennen 49 Logging Into the Inventory System aisance ii nennen 49 About the Inventory Screen ooocccccooocccccononnncnnnnnncnnnonencnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnananenns 49 SOCUMTY DOtallS ee 51 Creating amp Editing Inventories oooonccccconncoccconocincnnnaccnnnnnncennnnnncnnnnnnncrnnnnnnnrnnnnnncrnnnnnnnnns 52 Adding ari Inventory lenin ii ei cee 52 Editing an Inventory ltem esssssssssseeeee eene nne mener n nnne AN 54 RESEARCH pe
5. Sun Microsystems SUN Solaris 2 5 1 Market Axess Dealer Operations Manual Hardware 8 DRAFT 5 20 2001 Ultra 5 32Mb RAM Graphics SVGA 1024 768 resolution 56Kbps network access Application requires 5Mb disk space Requirements for research contribution are Dealers contribute research through Multex application Windows 98 or Windows NT 4 Pentium class 32 Mb RAM Disk Space 5Mb installed CONNECTIVITY Dealers may also develop automated interfaces to Market Axess using Market Axess API Market Axess provides a DTD XML based for the interface and a communications protocol In addition Market Axess provides and supports a reference implementation of the API The minimum requirements for the API are Solaris 2 5 1 Ultra 5 128Mb RAM 100 T network access C Compiler 4 2 Dealers will provide network connectivity from their trading desk to Market Axess data center Current requirements are a failover pair of T1 lines NETWORK SECURITY Important Dealer Requirements e Dealers will take reasonable and customary measures to secure access to the Market Axess network e Dealers will implement a firewall that restricts network access to only authorized users Firewall Proxy Server Considerations The Market Axess software supports SSL Secure Sockets Layer tunneling for firewalls The software requests permission from the HTTP server to establish an encrypted session using port 443 the default SSL port Upon approval the
6. Size lOls Size Min Max Avg Sprd bp Dollar 2 20 000 oji 2 ooo jf of RN Closed Page 1 of 1 10 000 MERITO k D Launch 1 Type in the size allocated to this client based on the client s amount requirements Click the box an the left to confirm the allocation 2 Click the Report Allocations button to report the allacation to the investor Connected 7 Figure 16 Allocation of Bonds Step 5a Allocation confirmation The investor confirms the allocation or has the option to cancel the IOI and the dealer views the confirmed allocations Below is an example of what the investor sees when the dealer reports an allocation The Allocation is available please verify notification displays beneath the bond title To the right the Verify Allocation button appears The issue is shaded in orange The Investor clicks on the Verify Allocation button and the blue confirmation screen appears The investor will then click Yes to verify the allocation This does not yet mean that he has accepted the deal because the issue has not yet been priced Market Axess Dealer Operations Manual Procedures 41 DRAFT 5 20 2001 Market Axess H nl x File Go Bookmarks Options Help The client clicks to verify allocation DJ World 6 66 Allocation is a 4 D AON None CMB i Wall Mart Stores inc 6 875 500 000 000 Please r e final price and confirm 10 000 10 000 50 0 n Ati y gt Wall Mart Stores inc 6 875 600
7. Maturity The date that the bond will mature This data can take various forms It could be a year or an actual date as MM DD YY In the early stages of the bond definition this can be an approximate number and be defined as just the year Bookrunner Dealer s who will allocate the new issue lead or one of the joint leads Issue Clicking on issue causes Issue Detail screen to display Book Button Navigates to the Issue Book screen from which the deal is announced launched closed etc E File Go Bookmarks Options Help al 9 6 2 Al Page 1 of 1 mmm Click the title of the draft to go to the Modify Issue screen 130 000 01 01 Pine Webber NEW JERSEY HOU Merrill L PORT OF SEATTL Sterne 2 255 Lucent 7 5 10 year APP Tn2r12 DJ World 1 11 2 oa T Drafts appear on the dealer s screen MEM demarked by asterisks Wall Mart Stores inc 6 875 50 re aug 01 Lucent 7 5 Paine webber 5 555 Mv Connected 3 7 Figure 6 Drafts as they appear on the calendar Market Axess Dealer Operations Manual Procedures 28 DRAFT 5 20 2001 About the Create Issue Screen The Create Issue screen Figure 7 enables a dealer to enter a new issue into the syndicate primary issuance system When a dealer has the minimum amount of required information about the bond regardless if it is actual or approximate a draft of that new issue can be saved The minimum amount of required information includes Issuer T
8. a limit level Indicates the spread and price of the new issue after it has been priced Indicates the status of the issue book pre announced announced launched closed re opened priced Each IOI has a line number associated with it for easy location Indicates the size of the IOI in 000s Used to allocated bonds at the appropriate time in the deal not active in this image Indicates the action that was just executed on that particular IOI D dealer I Investor D Launch dealer launched the deal I LaunchzInvestor has confirmed the launch etc Indicates the market limit level at which the IOI has been submitted Indicates the amount of the IOI Indicates the type of payment the client wishes to use for this deal Indicates whether the client selected to receive allocations from pot or retention Indicates if the client elected to auto verify their IOI at launch Indicates the date time the last action on this IOI was taken Indicates which account has submitted the IOI Bottom right of the screen enables navigation through the pages of new issues In bottom left of screen is indicated the number of viewable issues Enables dealer to download the list of IOls to an Excel spreadsheet Enables dealer to announce the new issue to clients thus advancing the deal from a pre announced state to an announced state lOls are submitted into the system before launching the deal The dealer can review lOls submitted by investors by
9. made the client or investor will receive a notification asking them to verify that the IOI is correct They can cancel the IOI at this point as well When the verification goes through the dealer gets a code on his screen No Modify Button available As soon as the book is closed the investor can no longer modify lOls into the system Investors may still submit IOls but they are considered Subject Procedures 25 5 Allocate Bonds to Clients 5a After each lead dealer closes their book the lOls that they are managing will have to be allocated issues Dealers allocate bonds manually to each investor according to their requirement and the system performs a check to determine if the allocation is acceptable or has failed to meet investor requirements 6 Price the Bond 6a The dealer prices the bond on line 7 Deal Accepted 7a Once deals are accepted and the syndication process is completed the dealer can review past deals for up to 35 days After that the deals disappear from the screen and are archived by Market Axess Contact Market Axess Client Services at 877 638 0037 if you want to retrieve archived information Market Axess Dealer Operations Manual DRAFT 5 20 2001 Client Verifies Allocations The investor can respond by confirming or declining the price Client Confirms Pricing Each investor can respond by confirming if the price is acceptable if they had not selected Auto Verify Comple
10. the dealer determines which of its products the client trader can access When authorizing clients the dealer determines whether or not the client is a QIB Qualified Institutional Buyer and sets an expiration date on the QIB status See Client Activation for details on activating an investor account CLIENT ACTIVATION 1 Clients will fax the Market Axess Client Activation Form the User Agreement and the Supplemental Account Agreements to the Market Axess Client Service Desk Clients will send the original copies to MA via mail Upon receiving the fax copy of the activation form and agreements from the Client Client Services will generate the Client Authorization form APPENDIX C that will be e mailed to each of the Dealers System Administrators Dealers need to reply by e mail to confirm receipt of the activation form The fax copy of the Supplemental Account Agreement will be e mailed to the Dealer System Administrator Original copies of the Supplemental Account Agreement will be sent to the Dealers via mail when Market Axess Client Services receives them from the Client Dealers will sign the fax copy of the Supplemental Account Agreement and fax it back to Market Axess Dealers will review the Client Authorization form and will indicate on the form either by inputting into the PDF form or by printing and manually completing the form as follows In the Organization Section of the Form enter the following a Whether deal
11. up session IP addresses are written as four sets of numbers separated by periods for example 204 171 64 2 The IP address of the user accessing our system is registered on our authentication servers and used for verification that the request for information comes from a registered and authorized user Secure Encryption The session between you and Market Axess is encrypted point to point using RSA RSA isa highly secure cryptography method by RSA Data Security Inc Redwood City CA www rsa com It uses a two part key The owner keeps the private key the public key is published Specifically Market Axess uses a 1024 bit public private key pair to transmit a 64 bit session key All keys are uniquely created for each user per session providing a high level of security Secure Connection Via the Market Axess Viewer The Market Axess Viewer is a thin client application that establishes a secure point to point outbound connection from your network to Market Axess Distribution Servers Market Axess does not call into your network The RSA encrypted socket connection has been highly optimized to deliver real time interactive contents securely across the public Internet small packets low bandwidth Only update messages specific to the client are transmitted Minimum Resources Required On Your PC The Market Axess software consumes minimal computer and network resources on your local PC Market Axess servers manage all the market in
12. viewers around the same time as the Dealers Any calls regarding installation of the viewers should be redierected to the Market Axess support line Connecting to the Market Axess System To connect to the Market Axess system go to Options Connection on the menu bar to display the connection screen Market Axess Dealer Operations Manual Network Security 1 1 DRAFT 5 20 2001 m Server 1 IP Address trade marketaxess com Port Number 443 m Server 2 IP Address trade marketaxess com Port Number 443 HTTP Proxy Server Enable HTTP Proxy Server Support IP Address Port Number Figure 1 Connection Screen The dealer will provide the investor with specific instructions to connect to the system To connect fill in the data as indicated on Figure 1 Connection Screen You will need the following information Fill in this form to keep this information handy in the event you have to reenter it Table 1 Connection Information Port Number Generally 443 Server 2 IP Address Enter the IP address for server 1 unless a different server is used Port Number Generally 443 HTTP Proxy Server Check this if a proxy server will be used Proxy Port Number Generally 443 After entering the data click the OK button Be sure you restart the viewer after entering or editing this information Market Axess Dealer Operations Manual Network Security 12 DRAFT 5 20 2001 ABO
13. 000 000 You have verified your Allocation of 100 000 000s Are you sure eview the final price and confirm 4000 Market No Housing 10 2 10 years The client is given an opportunity to confirm his verification of the allocation by clicking YES Figure 17 What the dealer sees when an allocation is confirmed How the dealer identifies a confirmed allocation When the Investor verifies the allocation the Dealer will see a change in the Status for that IOI from D Alloc to l Alloc This indicates that now the allocation has been verified and accepted by the investor This process could occur very quickly for all the IOls for the book Step 6 Pricing the bond Pricing Dealer Side Investor Side 6 Price the Bond 6a Client Confirms Pricing The dealer prices the bond on line Each investor can respond by verifying if the price is acceptable if they did not selected AutoVerify Steps to Pricing the Bond To price the bond 1 Click the Report Price button Figure 18 Invoking Final Pricing Screen 2 Enter the price spread and benchmark price in the Final Deal Pricing screen shown on Figure 19 3 Click the Price button and that will return you to the Book screen The status for all lOls will read D Priced Investor The investor will see an orange overlay over the priced security and to alert him to check their IOls The IOl listing will show a Review Pricing Details button The investor will click the Review Pricing D
14. Click the Shift key together with the underlined letter to access that filter via the keyboard When you click the dropdown arrow of the field to the right you can select from All Utilities Bank Finance Short Retailers Energy Manufacturing Consumer Goods Media Telecom Click the Shift key together with the underlined letter to access that filter via the keyboard Click the Go button after you make the Type and Book selections Click on this link to toggle between edit mode and view mode The size of the offering in thousands The means that the security is a dealer priority The security rating Format is Moody s S amp P The ticker symbol Security s coupon payment The date the security matures The spread is the yield differential of the underlying bond at the defined benchmark The spread for the security 120 x 110 for example is expressed in basis points abbreviated as bps A basis point is equivalent to a 01 percentage point or 1 100 of a percent Example The difference between a bond yielding 4 8596 and one yielding 4 96 is 11 basis points The security against which the underlying bond is priced The time the security was updated Note that military time is used when the security is updated during the day Dealers may enter the date as mm dd yyyy if the security was not updated that day Batch uploads of inventory occur at different times during the day Each dealer determines the times for upload M
15. EN CLIENT SCREEN 1 Create a Preannouncement Draft 1a Client does NOT see issue 2 Announce the Bond Issue 2a Client submits IOls 3a Client verifies each change to 3 Eauhen sr Bondissue the issue whenever they are made 4 Close the Book 4a Ols submitted are Subject 5a Client Verifies Allocations 5 Allocate the Bonds to Clients 6 Price the Bonds 6a Client Confirms Pricing end A A PA 7 Deal is accepted and data is 7a Completed deals disappear from investor s screen after a week Rem button can be used to remove deals manually archived Dealers can view past 35 days completed deals Figure 5 Step by Step Bond Issuance and Pricing The following is an explanation of the steps required to create an issue and generate an indication of interest IOI on issues This descriptive information corresponds to the illustration shown on Figure 5 Step by Step Bond Issuance and Pricing Detailed information that includes screen shots follows this description Market Axess Dealer Operations Manual Procedures 24 Table 2 Summary of Steps for Primary Issuance Dealer Screen 1 Create a Pre Announcement Draft 1a A draft of the deal is created with minimum amount of information including the Issuer Title Size and Maturity When the dealer creates the draft it appears on the Dealer calendar screen demarked by three asterisks 2 Announce the Bond Issue 2a When more specifics of the b
16. Ete ter et Lebe re Es Cod eunte e o te Ee Co brete 53 Figure 24 Inventory Edit Mode Area ssssssseeeee mee nenne nnne hne 54 Figure 25 Edit Item Sorgen onera a AA aKa e N a A nnn n enne nn nnne 55 List of Tables Table 1 Connection Information essssssssseeeee eene mene nme nnne nnne nnn 12 Table 2 Summary of Steps for Primary ISSUANCe ococcononnccccnnnoccccnnnnccnnnnnccnnnnnncnnnnnnncnnnnnancnnnns 25 Table 3 Calendar Field and Button Definitions ocoooonnccccnnnnccccnnnnccnnnnnnccnnnnnnccnnnnnnccnnnnancncnns 27 Table 4 Create Issue Screen Fields and BUttONS cococccocononcccnccnnonononenacaninnnononononannncnnnanonnns 29 Table 5 Issue Book Fields and Buttons ocoooonccccnonocccononoccnnnnnnccnnnnnnccnnnnnnccnnnnnncrnnnnnncncnnnanccnnns 35 Table 6 Inventory Main Screen Fields and Buttons On System Toolbar 50 Market Axess Dealer Operations Manual 5SYSTEM REQUIREMENTS DRAFT 5 20 2001 Preface This document provides an overview of procedures to be followed by dealers who are participating in the Market Axess service Sections regarding use of Market Axess Research and Secondary Trading are forthcoming Copies of this document may obtained from Market Axess by calling 877 638 0037 or it can be downloaded from www marketaxess com via the Online Axess link Document Feedback Please email any documentation feedback to dfrawley marketaxess com M
17. Market A ess P he Online Gateway ro Markets MARKET AXESS DEALER OPERATIONS MANUAL DRAFT 5 20 2001 Disclaimer Market Axess Corporation Market Axess has developed the Market Axess Dealer Operating Procedure DOP for the purpose of providing relevant technical information and requirements to Participating Dealers of the Market Axess service which subject to the execution of the dealer agreement with Market Axess would enable participating dealers to provide the various services through Market Axess The Documentation is and contains information that is proprietary to Market Axess and is confidential You may use the Documentation solely for your internal use for the purpose of evaluating or using the system You shall not copy or redistribute all or any of the Documentation without Market Axess prior written permission except you may make copies for internal use solely for the purpose stated above Market Axess owns all intellectual property rights in the Documentation and it shall at all times be and remain the sole and exclusive property of Market Axess THE DOCUMENTATION IS BEING PROVIDED TO YOU ON AN AS IS BASIS WITHOUT WARRANTY OF ANY KIND BY Market Axess OR ITS AFFILIATES INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY FITNESS FOR A PARTICULAR PURPOSE TITLE AND NON INFRINGEMENT Market Axess CORPORATION AND ITS AFFILIATES SHALL NOT BE LIABLE FOR ANY LOSS OF PROFITS LOSS OF USE L
18. OSS OF COST OR SAVINGS OR DAMAGE SUFFERED OR COSTS AND EXPENSES INCURRED BY YOU OF ANY NATURE OR FROM ANY CAUSE WHATSOEVER WHETHER DIRECT SPECIAL INCIDENTAL OR CONSEQUENTIAL ARISING OUT OF THE FURNISHING PERFORMANCE OR USE CF OR INABILITY TO USE THE DOCUMENTATION Microsoft MS DOS Windows Windows NT and Internet Explorer are registered trademarks of Microsoft Corporation in the United States and or other countries Netscape and Netscape Communicator are registered trademarks of Netscape Corporation RSA is a registered trademark of RSA Security Corporation Market Axess Dealer Operations Manual 2SYSTEM REQUIREMENTS DRAFT 5 20 2001 Table Of Contents Prefacexs o EM IE re RR 6 Document Feedback 1 dee ette tette Lebe tu e tet Pet kae tete eH Pel aet Ete Ra Eo Pet Kan 6 SYSTEM REQUIREMENTS iecur ico inet erai ii ida 8 About THIS SESO iaa dit 8 Summary of RequirementS occccoconncnccconoccncncnnnncnnnnnnncnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnaneninns 8 RO 8 COME ica 9 nel esr tet gi 9 Important Dealer Requirements cccceeececeeeeeeeceeeeeeeceeeeeeeceaaeeeeceaaeeeeaaaaeeeeaaaaeeeeaaaa ness 9 Firewall Proxy Server Considerations ssssssesseseseem m eene 9 Market Axess Software Security eeesssssessssssssssesseee esee nennen nnne hen nnns 10 Downloading the Market Axess Viewer ssssssseeeee eee
19. UT THIS SECTION This section describes the administrative functions required of the dealers that will host the Market Axess System Dealers are responsible for authorizing clients to access the system CONTACT INFORMATION If you have any questions about the Market Axess system here is how to contact us Client Service Desk 877 638 0037 E mail clientservices marketaxess com Each Dealer will be requested to provide Market Axess with a list of key contact names that will be provided to clients and may be displayed on the web site The contact names should include staff responsible for documentation trade confirmation and general inquiries OPERATING HOURS The Market Axess system operates between 7 30 a m to 5 00 p m eastern standard time Trade information placed after hours is saved by the system and executed only during active trading hours DEALER ACCOUNT ACTIVATION New Users A Dealer System Administrator should be assigned for each participating dealer to handle all the user administrative issues To activate new users on the Market Axess system dealers will need to follow the procedures detailed below 1 Determine Role For new users the Dealer System Administrator must determine the role for the user on the Market Axess System from the Roles and Responsibilities Matrix see Appendix A Market Axess Dealer Operations Manual Dealer Account Activation 13 DRAFT 5 20 2001 Complete User Add Amend form The Dealer Sy
20. access the IOI Detail Screen click the DET button in the Issue Book screen as shown on Figure 13 The IOI detail screen provides the dealer with detailed information about the particular Indication of Interest This screen takes the form of a small pop up window which overlays the main screen There are no scroll buttons You can minimize this screen by clicking the box on the upper right Market Axess Dealer Operations Manual Procedures 38 DRAFT 5 20 2001 10 x Price Size LS Size Mm Max Avg _ Sprd bp Dollar ENNNE YY 8 A Page 1 of 1 J8 jkavulich Account jkavulich IOI Quantity 10 000 All or None Pay Method Cash Auto verify N Alloc Pref Pot Level Market Click the DET button to Time 08 08 2000 09 44 50 A Joint Lead Y 101 632 Figure 15 IOI Detail screen Step 4 Closing the book Closing the Book Dealers Side 4 Closing the book 4a Once the book is closed any lOls submitted will be considered Subject Dealers could reopen the book if necessary Steps to closing the book To close the book follow these steps Market Axess Dealer Operations Manual Connected EN a Investor Side No Modify Button available As soon as the book is closed the investor can no longer modify lOls into the system Investors may still submit IOls but they are considered Subject Procedures 39 DRAFT 5 20 2001 1 Access the book for the specific bond
21. anual edits are inputted continuously during the trading day To get details about each security click on the line item anywhere between the ratings and the maturity columns This brings up a pop up screen as displayed below Market Axess Dealer Operations Manual Application Programming Interface Specifications 51 DRAFT 5 20 2001 PEN YA rket A ducat inl xj a el 8 aj M Edit mode Page 1 of 1 150 000 001 150 000 000 Next call date Next put date Figure 22 Security Detail Screen To enlarge the pop up screen click on the edge of the window and drag while holding the left mouse button CREATING amp EDITING INVENTORIES This section is for dealers who need to enter new inventory items edit existing inventories or cancel existing inventories The section provides the step by step instructions in one convenient section referring to the screens in subsequent section Sections following the step by step instructions provide details about each screen Adding an Inventory Item To add an item to the inventory follow these steps 1 Click the Add button located on the lower left of the Inventory Screen Figure 21 to display the Add Item screen shown on Figure 23 2 Enter the ticker number into the Ticker field and click the Search button to display the list of available securities Market Axess Dealer Operations Manual Creating amp Editing Inventories 52 DRAFT 5 20 2001 3 Enter the required d
22. arket Axess Dealer Operations Manual 6SYSTEM REQUIREMENTS DRAFT 5 20 2001 Market Axess Dealer Operations Manual About This Section 7 DRAFT 5 20 2001 ABOUT THIS SECTION The following section covers the general Market Axess system requirements and the security issues SUMMARY OF REQUIREMENTS The following are the minimum technical requirements necessary to use Market Axess service An Internet connection either a dedicated or a dial up Internet connection Reliability and performance will depend on a number of factors including the speed of your Internet connection and the reliability of your Internet servi ce provider Vi The Market Axess Viewer which is software similar to a browser that provides the user interface to the trading system The viewer can be downloaded from www marketaxess com via the Online Axess link M A Netscape or Microsoft Internet Explorer browser version 4 0 or greater this browser is used to deliver all non trading services such as Research and administrative functions vi A workstation as described below HARDWARE Dealers will provide all hardware related to the use of Market Axess application in their environment The minimum requirements for a Market Axess Syndicate or Secondary Trading Application user are Microsoft Intel Windows 98 or Windows NT 4 Pentium 32Mb RAM Graphics SVGA 1024 768 resolution 56Kbps network access Application requires 5Mb disk space
23. at immediately upon receipt No processing is required by the dealer s system because the API handles heartbeat receipt and acknowledgement e If the API client fails to acknowledge two successive heartbeats the connection is presumed failed and Market Axess will drop the session e Heartbeat message provides timestamp for clock synchronization Market Axess Dealer Operations Manual Application Programming Interface Specifications 47 DRAFT 5 20 2001 Network e Each dealer has two dedicated T1 lines provided by IXNet Global Crossing e Only one line is active the other serves as backup Security e Market Axess maintains login based restrictions on system privileges in LDAP Therefore when a session is created it embodies the permissions for system access according to the permissions set for the login for which the session was created e 128 bit message encryption using RSA BSAFE Crypto libraries e Firewalls isolate dealer network from Market Axess network e Dedicated frame relay circuits connected via IXNet Global Crossing network terminate on dedicated routers at dealer site no exposure to public internet API Components The API has three protocol components 1 The Communications Protocol which facilitates session and message management 2 The Message Protocol which dictates XML message composition according to the Market Axess provided DTD the section Message Protocol provides details about this topic 3 The Imp
24. ata and click the Add button Click Cancel to ignore any information typed in and return to the listing screen About the Add Item Screen The Add Item Screen has two sections e The data table portion on the upper section is a listing of the available bond issues that the dealers can add to their inventory The bond issues list appears when the dealer enters a ticker search The issues that appear on the listing box are extracted from the Market Axess reference database e The edit fields on the lower part of the screen Here the dealer can input the Spread Size Benchmark and Book information to the selected security They also have the option of clicking the Priority box to mark the security as a priority item Note It has been agreed that dealers participating in the Market Axess system should mark no more than 10 of the inventory items as priority items ini x File Go Options Help el gt l8 Al Page 1 of 2 01 2 07 15 02 Click to view details setae A iq Click move to about the highlighted HEM CO f 4 017 5054 previous or nex security Default sort is by maturity bps bps ESTEE 3 625 07 15 2002 y 10 000 000s S Thr facturing 4 hd Connected EN Figure 23 Add Item Screen Market Axess Dealer Operations Manual Creating amp Editing Inventories 53 DRAFT 5 20 2001 Editing an Inventory Item To edit an item in the inventory follow these steps 1 Click the Edit option on t
25. bout the Issue Book Screen The Issue Book screen is a control panel for the particular issue stated at the top of the screen in yellow From this screen a dealer will announce and launch close and or reopen the issue book and see all details of each indication of interest IOI submitted from a client Market Axess Dealer Operations Manual Procedures 34 DRAFT 5 20 2001 Table 5 Issue Book Fields and Buttons Home Button Notices Button Calendar Button Create Issue Button Issuer yellow All amounts in 000s Total Book Market Book Limit Book Price Status Message Column Size Column Alloc Column Status Column Level Column Amt Column Pymt Column Pot Column Avf Column Time Column Account Column Prev Next Buttons Number of Issues Download Button Announce Deal Button Reviewing IOls Navigates to the Market Axess System Main Menu Navigates to important legal notices about syndication issues Navigates to Calendar of new issues viewable by the Dealer Navigates to the Create Issue screen where a dealer can establish a new issue on the system Issuer Name Indicates that all sizes are in thousands Indicates the total number of lOls size and allocation if available at any given point Indicates the total number and size of those lOls submitted with a market level Indicates the total number size and minimum maximum and average spread of those lOls submitted with
26. clicking the Book button Market Axess Dealer Operations Manual Procedures 35 DRAFT 5 20 2001 Step 3 Launching the Deal Launching Dealer Side Investor Side 3 Launch of Bond Issue 3a Client verifies the IOI The dealers formally launch the bond Whenever a change to the new issue is issue and the interested parties who made while the book is open the client or have requested manual verification investor will receive a notification asking will have to manually verify that they them to verify that the IOI is correct They are interested in this bond issue and can cancel the IOI at this point as well reverify if any changes to the issue When the verification goes through the have been made Once the issue is dealer gets a code on his screen launched additional lOls can be submitted Steps to Launching the Deal To launch a deal follow these steps 1 Click the Book button for the security you want to launch on the same line as the title of the draft issue Figure 10 2 Click the Launch button on the Book screen to display the Launched Issue screen Figure 13 3 From the Issue screen you can access the History and Details of the launch Note that the Status column reads D Launch The Investor will now be alerted via a color change on his screen and will take appropriate action to respond to the launch The dealer may continue modifying the bond issue as more information comes in The investor will be alerted via a col
27. client software initiates an SSL connection to Market Axess The Market Axess software also supports proxy authentication Refer to the document nstalling the Market Axess Viewer for details about proxy authentication settings The document is available at http www marketaxess com Market Axess Dealer Operations Manual Network Security 9 DRAFT 5 20 2001 Market Axess Software Security Your Unique Username and Password Each Market Axess user is assigned a unique user name and password You can change your password any time for added security To change your user name and password 1 Log into the system your user name and password 2 Click the Change Password button on the Home page Permissioning Each participating dealer controls the user authorization for electronic trading privileges for their firm Dealers and Investors have unique permission to access the system Permissions are based on the user name Investors and dealers using the system will be allowed to access only the functions you have been authorized to use Verification of The Source of the Request by IP Only authorized users from known IP addresses will be allowed into the system The IP or Internet Protocol address is a unique address of a computer attached to a TCP IP or Internet network Every client and server station must have a unique IP address Client workstations have either a permanent address or one that is dynamically assigned to them each dial
28. e client D ALLOC is the message the dealers will see when they allocate shares to a client Once dealer sets a price they should verify it with the client if the system goes down D PRICE is the message the dealer will see once they have sent pricing details to the client Therefore if the API goes down at any stage of the syndication process the dealer should verify the most recent details of the transaction with the client Market Axess Dealer Operations Manual Recovery Procedures After System Failure 45 DRAFT 5 20 2001 HISTORICAL DATA STORAGE AND ACCESS Archiving Historical Data The system displays the historical trading data for seven days on the investor side and 45 days on the dealer side Afterwards the data is archived by Market Axess and kept for a period of seven years Accessing Historical Data The data stored by Market Axess has the same level of permissioning as the data accessed during trading Dealers accessing the data can only see those trades managed by them Future Data is going to be available on request or via the web so that dealers can request records for the prior fiscal year for example Security Physically the data is secured at the Market Axess site Anyone accessing the data will require proper on line permissioning Disaster Recovery For information about Disaster Recovery procedures contact the Market Axess information desk IOI Information on Dealer s side The IOI info
29. eleted through the dealer API e Data sent through the API will reflect on the system instantaneously Requirements e Dealer submits data through API e Data submitted should contain either the Cusip or ISIN e All securities should be issued in US dollars When data is rejected by the database 1 Areport will be generated for the dealer A report will produced within Market Axess This report will be used by a MAX officer to determine the reason the data has been rejected If we determine the data should be part of our database we will add it The dealer is responsible for providing details Cusip maturity issue date and coupon of securities not available through our vendors Logging Into the Inventory System Follow the procedures described in Steps to Logging Into the Market Axess System page 3 In the Home Screen click on the Secondary Inventory button to display the Inventory Screen Figure 21 About the Inventory Screen The inventory of bond issues is displayed in Figure 21 Inventory Screen below Note that the default sort of this screen is by Maturity Following the figure is a detailed description of all of the features of the Inventory screen Market Axess Dealer Operations Manual Application Programming Interface Specifications 49 DRAFT 5 20 2001 Y Market Axess lol xj File Go Options Help viewer Toolbar Button Tookbar a el gt ls Al E EM MM Edit mode Page 1 of 4 Click to go to edit mode
30. er approves the client as a QIB b The QIB expiration date The client s account number at the dealer The client s salesperson at the dealer e Credit limits single deal 1 day aggregate 3 day aggregate Market Axess Dealer Operations Manual Client Activation 15 DRAFT 5 20 2001 In the Trader Authorization Section of the Form enter the following a The products that the trader is authorized to trade b The salesperson at the dealer responsible for each product to which the trader is authorized Items in italics are mandatory the remaining may be filled in at the option of the dealer 7 After completion of the above details the System Administrator at the dealer must print and sign the Form and fax it back to Market Axess Client Services 8 Atthis point Market Axess will authorize the Client s Users on the system and advise them of their user names and passwords 9 The original copy of the Client Authorization form from the dealers will be mailed to Market Axess Client Services STEPS TO LOGGING INTO THE MARKET AXESS SYSTEM 1 Run the Market Axess viewer to display Figure 1 Login Screen 2 Enter your designated user name and password Note that it is your user name and password that identifies you to the system as either a dealer or an investor Click the Logon button Figure 1 to display Figure 2 Legal Disclosure Screen Click Accept to display Figure 3 Home Screen About The Login Screen Figure 1 provid
31. es a window that displays messages from the system and a space to input your user name and password Notice that the phone numbers for technical support are available on this screen Market Axess Dealer Operations Manual Steps to Logging Into the Market Axess System 16 P Market Axess File Go Options Help DRAFT 5 20 2001 inl xl Market Axess Enter user id and password here and press logon Password Logon Current Dealers Business Partners Figure 1 Login Screen The Online Gateway TO Markels You will see system messages here periodically Client Service 1077 639 007 z clientservices marketaxess com General Info Info marketaxess com Web Page www MarketAxess com Online Adminstration ABN Amro Bear Stearns Chase Deutschl Bank JPMorgan UBS Warburg MoneyLine Bloomberg US Fixed Income Data contributed by Bridge Copyright 2000 Market Axess Inc Market Axess Dealer Operations Manual Steps to Logging Into the Market Axess System 17 DRAFT 5 20 2001 About The Legal Disclosure Screen The legal disclosure screen provides an important legal agreement relevant to the trading system In order to move on to your next screen you have to click ACCEPT each time you log in Market Axess i nix File Go Options Help The Online Galeway TO Markers Please read carefully the Legal Disclosures below which has been revised July 28 2000 The Disclosures include Disclaimers of Liability and other
32. etails button review and click to accept the price Before they confirm the price the user will see this confirmation screen Figure 20 You Have Confirmed Your Price Market Axess Dealer Operations Manual Procedures 42 DRAFT 5 20 2001 Pmarketavess 2 lol File Go Options Help al amp 2l amp Al 10 000 10 000 Page 1 of 1 After allocation is made click Report Price Connected IB Figure 18 Invoking Final Pricing Screen Market Axess Dealer Operations Manual Procedures 43 DRAFT 5 20 2001 Ini xj File Go Options Help al e e m Final Deal Pricing EST OC Compan Mi ABC Company 6 25 10 Year Joint Lead Yes N ger Bear Bookrunner ala Coupon Maturity 000s Announce Date Cpn Type Fixed y Sched Pricing Date Cpn Freq S Pricing Time Firs Co o Settlement Date M Pricing Benchmark IOI Increment fi Launch Sprd E vice dbenchma ee Road Show MENHEENE A A E a a T Price Ti Day Count Basis Spread MN h Price of Benchmark at Pricing Connected Click PRICE to price the deal The system will alert you if details are missing Figure 19 Pricing the Deal Please note that placing an indication of interest is not a guarantee of receiving any allocation The underwriter and issuer are not obligated to allocate any of the securities to you Please see Notices for more information about the new issue allocation process I have received the most recent preliminary prospectus f
33. he main screen Figure 21 This will display the listing in Edit mode as shown on Figure 24 Notice that on the right of that screen there is a box that is labeled View Mode 2 Click the box to return to the view mode About the Edit Mode Area This screen is almost identical in format as the screen shown on Figure 21 Inventory Screen The following is a list of editing functionality available in this screen e The size of issue can be edited on screen e The spread can be edited on screen e You can click the edit button to the right of each issue line to edit the inventory entry e You can delete an inventory entry by clicking delete next to the edit button There is no UNDO for this deletion action but the system will provide a confirmation screen before deletion takes place iol File Go Options Help al e s amp al Mode Mw mode Page 1 of 4 y ei eoo ce here Click inside the box o I 1 eI ce D a re e m fam Kam Kam ad Ea ofofo ella offering here Click L inside the box ce ce xe ce ce a 4 j a a arg alololololcoh e e o poo oO oo oo oiofofo ella OOO gt Jus Y O A Y aaa aa aa A Y A TA y n 3 A RU ei e Oa os cs E E E on gp on E on on m po O O OOOO O OOOO Connected m 7 Figure 24 Inventory Edit Mode Area Market Axess Dealer Operati
34. he primary issuance process and the step by step procedures for creating and pricing issues on the system PROCEDURES Overview of The Indication of Interest Process Model The following is a brief overview of Primary Issuance process model implemented by the Market Axess System See Summary of The Steps for Creating and Pricing Issues on the Market Axess System for details regarding how to create an issue step by step using the system The Primary Axess System implements the Indication of Interest used by investors to convey interest in new issues to Dealers The principal states of this process as implemented are as follows Market Axess Dealer Operations Manual Procedures 21 DRAFT 5 20 2001 Figure 4 Overall Primary Issuance Process Announcement Dealers announce an issue on the system by placing it on the Market Axess Calendar viewed by the investors Once announced investors are permitted to submit IOls to participating Dealer underwriters Launch As the new issue progress moves forward and adequate initial interest is indicated the bookrunner of the issue will launch the issue Launch causes re verification messages to flow to all investors with outstanding IOls on that issue Investors can verify continued interest or cancel their IOI Book Close The book is closed and investors are no longer allowed to modify their Ols before securities can be allocated Allocation Once the bookrunner has dete
35. ion of the dealer new account forms to clients as requested Through regular contact between Market Axess Sales Staff and the Dealer Sales Managers it is anticipated that Dealers will be aware of target clients before those clients complete the documentation It is anticipated that in future a set of standard dealer new account documentation will be available which clients could obtain through the Market Axess web site On a monthly basis Market Axess will provided the participating dealers with a list of all new clients unless the client has specifically requested that their name not be provided to all dealers Market Axess Dealer Operations Manual Client Permissioning 14 DRAFT 5 20 2001 Required Documentation T The Market Axess User Agreement which is signed between the client and Market Axess The Market Axess Supplemental Account Agreement which is signed between the client and Dealer Market Axess will obtain a Supplemental Account Agreement from each client on behalf of the dealer and forward it to the dealer The Client Activation form which provides Market Axess with the necessary information to set up the client and their users Dealer Authorization of Client 1 Clients only have access to conduct trades with a dealer or to view the dealers inventory and research once the dealer has authorized them Dealers authorize the client overall as well as the client traders When authorizing the client s traders
36. itle Size and Maturity indicated by a red asterisk at the end of the field If a dealer enters at least the minimum amount of required information and clicks the Save Draft Button the new issue will be available in the Syndicate system to the dealer only This is indicated by three asterisks around the title title of the new issue on the New Issue Calendar screen The new issue will be available to clients only when the dealer has announced the new issue See Step 2 Announcing the Issue page 32 Table 4 Create Issue Screen Fields and Buttons Home Button Notices Button Calendar Button Create Issue Button Issuer Title Joint Leads Managers Bookrunners Coupon Cpn Type Cpn Freq First Coupon Maturity Announce Date Scheduled Pricing Date Scheduled Pricing Time Settlement Date Pricing Benchmark POT Moody s S amp P Fitch IBCA Market Axess Dealer Operations Manual Navigates to the Market Axess System Main Menu Viewer Home Page Navigates to important legal notices about syndication issues Navigates to Calendar of new issues viewable by the dealer current page Navigates to the Create Issue screen where a dealer can establish a new issue on the system Issuer Name Title of new bond issue If there are Joint Leads the dealer can select the yes radio button and then choose among the listed dealers If no Joint Leads dealer chooses the no radio button Managers and Co manager
37. lementation Protocol which utilizes a call level interface that abstracts details that are not pertinent to business functionality for example encryption heartbeat connection management have been abstracted to calls through the API Recovery from API downtime If the API goes down the result will be as follows e The dealers second T1 line will become active If both lines are down e Prices on the inventory system will become stale e Trades on both the dealer and client side will not be possible Actions to take if the API goes down e Notify the participating dealers e Senior management within MA will be notified e Dealer will contact any clients they are trading with How will the secondary trading system respond when the API goes down e Once a client enters details of the trade including the spread all of the data pertaining to that trade will be saved e When the system is brought back up the details of that trade will become retrievable e If the system goes down prior to the client entering the spread all data entered to that point will be lost Market Axess Dealer Operations Manual Application Programming Interface Specifications 48 DRAFT 5 20 2001 e The trade will need to be rebuilt once the system is functioning properly Inventory Daily Procedure e We recommend that inventory is updated throughout the day to ensure up to date prices e Inventory and prices will be held on the system indefinitely e Items will be d
38. m via the Internet as follows 1 Individuals responsible for submitting documents into the system access the software fill in the relevant content information associated with each report Please refer to the attached Multex document Maximizing the Usage And Visibility of Your Research Documents 2 The software submits the reports and the relevant cataloguing information Market Axess Dealer Operations Manual Procedures 56 DRAFT 5 20 2001 Establishing Research Documentation Standards Both the auto contribution and manual methods require that standards be established by your research department for applying relevant content information tags to the various types of reports that are to be published to Market Axess Entititlement Process for Research Each participating dealer currently has the ability to tier client entitlements into two different groups 1 US QIB and 2 NON US INSTITUTION Research published for U S institutional distribution is commonly also appropriate for distribution to non U S institutions However some research produced outside of the U S cannot be distributed to U S institutions When publishing a research report to Market Axess it must be tagged for distribution to either one or both of these entitlement groups By default Market Axess clients are not provided with access to research unless they are entitled by a dealer through our Client Authorization process Entitlements are implemented at the indi
39. mation with the abbreviations expanded e ssuer Title Joint Leads Managers Bookrunner Coupon Size Coupon Type Coupon Frequency First Coupon POT Step 2 Announcing the Issue Announcement Dealer System 2 Announce the Bond Issue 2a When more specifics of the bond are known and inputted into the system the bond issue is formally announced on the Dealer system This action makes the bond information immediately available on the investor s calendar window At this point investor may begin submitting lOls Steps to Issue Announcement To announce a bond issue follow these steps e Indicated Prc e Marketing e Road Show e Prospectus e Maturity e Announce Date e Scheduled Pricing Date e Scheduled Pricing Time e Settlement Date e Pricing Benchmark 5 e Moody s e S amp P e Fitch IBCA e Duff amp Phelps e Minimum Size of IOl e lOl Increment required Investor System Client submits lOls During the period between the announcements of the offering to just before the book is closed investors review the status of their lOls and review any changes to the information concerning an lOl e g allocation and pricing information Any change to the details concerning an offering requires the investor to verify or cancel their IOI based on the new information 1 Click the Book button on the same line as the title of the draft issue Figure 10 Click the Announce button at
40. matters of interest to users By pressing D the Accept button you accept the terms and conditions set forth By pressing Decline you will be returned to the Market Axess Viewer home page Note You must scroll down and click the Accept button at the bottom of this agreement to continue By accessing the information materials and services available through the System you agree to the following Any information and services available through the System are available only to clients of Participating Dealers who are authorized by each Participating Dealer to make use of the System Users and who have completed the Market Axess Client Activation Form and been issued authorized access Please refer to the Market Axess User Agreement for further information regarding the terms and conditions applicable to you lt NEEDDN Copyright 2000 Market Axess Inc Connected EN Figure 2 Legal Disclosure Screen Market Axess Dealer Operations Manual Steps to Logging Into the Market Axess System 18 DRAFT 5 20 2001 About The Home Screen The Market Axess home screen provides buttons to access the various Market Axess modules including M The New Issue Trading button navigates to the primary issuance system sometimes referred to as the syndication system The Primary Issuance system allows dealers to create new issues request and review Indications of Interest lOls and allocate issues to interested investors For m
41. nemen 11 Installing the Market Axess Viewer sessssseee eee nnnm 11 Software e Bore to nm 11 Connecting to the Market Axess System ssssssssssssssee emen mener 11 ADMINISTRATION coccion ideada nenita 13 About This Secho iii a vee ene 13 Contact InformatiOn seccion terna ie ku ERE MER REED US RR tar noia 13 uso lacs Il 13 Dealer Account Activations oco iet eneeo ia 13 A CE 13 Amended Deleted Users eeeeessessseessesssee esee enne hn ennn nnn hen nnn tn enne nnne nennen nnn 14 Client Permissionirig econtra n eet eee n Ee euge 14 Dealer Account Relationships cccooonnccccnononnconononnncnnnnnnnnnnnnnnnnnnnnnnnnnnncnnnnnanarnnnnancnnnnnns 14 Required Documenttation eerie te tae er Eni Ova a erre Eee PU B e ER a aan 15 Dealer Authorization of Client eesssssesssessseseseeeen nennen enne entere nnn 15 iege X L 15 Steps to Logging Into the Market Axess System ssssssseee me 16 About The Login SCre6ri cio secet tet LE BEER RE Dota EOD HERE REI ended 16 About The Legal Disclosure Screen ooooooccccnonnccccnnnnccnnnnnnccnnnnnnccnnnnnncnnnnnnnccnnnnnnccnnnnanccnnns 18 About The Home Screen u ce rbd ERE qe Ee BERE pde PER arf 19 Start End of Day PEOCeQUtGS 2i iecece t cote toi batte bct ie Su eodd ni abra Pole b Cin e Markl BA IDEE ns 20 Failure Restar
42. ocument Market Axess Dealer User Manual Research CONTRIBUTION CATEGORIZATION OF RESEARCH FOR MULTEX There are 2 methods for delivering research to Market Axess via Multex e An automated process using Multex Auto Contribution e A manual process using Multex publishing software Auto Contribution The auto contribution method is recommended for broker dealers who have a centralized database of research documents which are tagged with content subjects such as analyst sector product type company region type of analysis etc The process of preparing a document for uploading into the Multex system involves the following 1 Preparing a header file using the format explained in the Multex Auto Contribution Document attached This header file provides the required cataloguing information for the document file and it refers to the document file name 2 Uploading the header file and the document to the Market Axess Research system via FTP Some companies may create an automatic system of creating the header file from their own catalog data and uploading the documents to the Market Axess system Manual Contribution The manual contribution method is recommended for companies that do not have an established internal database of documents To post documents manually to the Market Axess Research system the Multex publishing software is installed on the user s computer This program allows users to submit new documents to the syste
43. ond are known and inputted into the system the bond issue is formally announced on the Dealer system This action makes the bond information immediately available on the investor s calendar window At this point investor may begin submitting IOls 3 Launch of Bond Issue 3a The dealers formally launch the bond issue and the interested parties who have requested manual verification will have to manually verify that they are interested in this bond issue and reverify if any changes to the issue have been made Once the issue is launched additional lOls can be submitted 4 Closing the book Once the book is closed any lOls submitted will be considered Subject Dealers could reopen the book if necessary 4a Market Axess Dealer Operations Manual DRAFT 5 20 2001 Investor Response Client does NOT see issue The bond issue does NOT yet appear in the Investor s screen and No lOls Indication of Interest documents can formally be submitted through the system Client submits lOls During the period between the announcements of the offering to just before the book is closed investors review the status of their lOls and review any changes to the information concerning an lOl e g allocation and pricing information Any change to the details concerning an offering requires the investor to verify or cancel their IOI based on the new information Client verifies the IOI Whenever a change to the new issue is
44. ons Manual Creating amp Editing Inventories 54 DRAFT 5 20 2001 About the Edit Item Screen To edit an existing inventory entry go to the Inventory Edit Mode Form See Figure 24 Or if you are in the View screen click the Edit mode You can enter data directly on the Size and Spread fields light background Click the Edit button to the right of the inventory entry to bring up the Edit Item screen nl xi Fla Go Optore Hep aj 3918 7 3 Home Primary gt Inventory Edit Item X o uui 1065 Baa2 BBE GENERAL CINEMA H 8 875 06 01 22 41163GAD Spread to Spread Gbps 21 ees ELL ae 7 250 08 15 2022 size o 000s Book Priority E Connected eth Figure 25 Edit Item Screen Change the entries as desired Notice that the entry formats are identical to the Add Entry screen The only difference is that this screen has the Apply benchmark to all bonds in this book function that allows you to change the benchmark for all of the entries in the particular book at once Under the Bid and Offers columns enter the total size of the offering and the spread Click the drop down arrows to select the Spread to Benchmark Book and Priority options Market Axess Dealer Operations Manual Creating amp Editing Inventories 55 DRAFT 5 20 2001 PROCEDURES For a user manual that details procedures on the Research System from the point of view of the investor refer to the attached d
45. or change when changes are made to the bond issue and will submit a verification that they are still in on the deal The dealer will know that the investor has verified the IOI by the status code which will change from D Launch to FLaunch when the investor presses the Verify IOI button Market Axess Dealer Operations Manual Procedures 36 DRAFT 5 20 2001 P Market Axess E ial xl File Go Options Help al lo 8 Al Total Book Market Book E lOls Size When the investor verifies the change in the bond issue they press a verify Click HIS to go to the button and the status column changes lia from D launch to kLaunch i Click DET to get the details Connected ET Figure 13 Launched Issue Verified by Investor Market Axess Dealer Operations Manual Procedures 37 DRAFT 5 20 2001 About the Indication History Screen The Indication History screen summarizes the history of actions on a particular IOI It records the time and date of each of the stages of the history from start to end To access the History screen click the His button on the Issue Book screen Figure 13 This will display the Indications History screen shown below 10 x File Go Options Help _ el gt ls A _ Home Notices Calendar Createlssue Indication History Launched Account jrucker Page 1 of 1 l Autovfy Subrnit Connected B Figure 14 Indication History Screen IOI Detail Screen To
46. or this offering and understand that the offering terms may change before the issue is cleared for final sale You have confirmed your Price Are you sure Accept and Yes No Figure 20 You Have Confirmed Your Price Market Axess Dealer Operations Manual Procedures 44 Step 7 Deal Accepted and price confirmed Deal Accepted 7a Once deals are accepted and the syndication process is completed the dealer can review past deals for up to 35 days After that the deals disappear from the screen and are archived by Market Axess Contact Market Axess Client Services at 877 638 0037 if you want to retrieve archived information DATA UPLOADS AND DOWNLOADS RESPONSIBILITIES DRAFT 5 20 2001 Completed deals disappear from client s screen The completed deals remain viewable by investors for one week Investors can use the REM Remove button to delete lOls RECOVERY PROCEDURES AFTER SYSTEM FAILURE To ensure that data is not lost during a system outage dealers should contact clients to confirm that their most recent correspondence had been received If the client has submitted an IOI it is the dealers responsibility to respond to the IOI In the case of a system outage the dealer should verify the IOI details verbally D LAUNCH indicates to the dealer that IOI verification has been sent to the client If the dealer does their allocation and the system goes down the dealer should verify the allocation with th
47. ore details about this system refer to the document Dealer Operating Procedures M The Secondary Inventory button navigates to the Inventory system The Inventory System allows users to view and search through an available inventory of bond products and allows dealers to enter and manage their inventories The Inventory System for the dealer is discussed in this document v The Launch Research button which launches your Internet browser to display the Market Axess Research login screen The research system allows investors and dealers to search through dealer research documents M Notices Market Axess 3 ini x File Go Options Help The Online Gateway TO Markels US High Grade Corporate Secondary Inventory Launch Research Client Service 1 877 638 0037 Web Page www MarketAxess com Password Change Copyright O 2000 Market Axess Inc Connected SR 7 Figure 3 Home Screen Market Axess Dealer Operations Manual Start End of Day Procedures 19 DRAFT 5 20 2001 START END OF DAY PROCEDURES This section is forthcoming FAILURE RESTART PROCEDURES This section is forthcoming NEW RELEASES Testing Policies This section is forthcoming Installing upgrades This section is forthcoming Market Axess Dealer Operations Manual new releases 20 DRAFT 5 20 2001 ABOUT THIS SECTION This section deals with the Primary Issuance System sometimes referred to as the Syndication System It covers t
48. raft Confirmation Market Axess Dealer Operations Manual Procedures 30 DRAFT 5 20 2001 Steps to Modifying The Draft The draft can only be modified by the dealer that initially created it To modify a draft follow these steps 1 From the Calendar screen Figure 6 click the issue title This will display the Modify Issue screen 2 Make necessary modifications and click Save Draft The Modify Issue Screen The Modify Issue screen is used to add delete or modify information about the particular issue noted on the top of the screen in yellow To access the Modify Issue screen click the title of the New Issue Calendar screen All issues can be modified until the price has been sent to clients for confirmation The modify issue screen is similar to the Create Issue screen except that the buttons on the bottom allow you to Save Delete and Cancel Reviewing Issue Details The calendar screen provides only a summary of the bond issues Details about each issue can be accessed by clicking on the issue title as shown on Figure 6 to display the Issue Detail screen shown below io x Fie Go Options Help al 9 8 7 A Home Notices Calendar Issue Detail www marketaxess com www marketaxess com Connected SB 7 Figure 9 Issue Details Market Axess Dealer Operations Manual Procedures 31 DRAFT 5 20 2001 The fields and information on this screen are defined in Table 4 on page 29 Below is a listing of the infor
49. re 6 About the New Issue Calendar Screen The New Issue Calendar screen Figure 6 is the home page of the Primary Issuance System It lists all of the new issues in which the dealer has a position lead manager bookrunner etc All new issues will be kept on this screen until 35 days after pricing The table below defines each of the columns in the calendar screen Table 3 Calendar Field and Button Definitions Home Button Navigates to the Market Axess System Main Menu Notices Button Navigates to important legal notices about syndication issues Calendar Button Navigates to Calendar of new issues viewable by the dealer Page 1 of X Top right of the screen indicates which page is being viewed of the total number of pages Market Axess Dealer Operations Manual Procedures 27 Prev Next Buttons Create Issue Button DRAFT 5 20 2001 Bottom right of the screen enables navigation through the pages of new issues Navigates to the Create Issue screen where a dealer can establish a new issue on the system Number of On bottom left of screen is indicated the number of viewable issues Issues Title The title of the security in BLUE font Generally not always the title takes this form Company Coupon Size of offering in thousands Clicking on the title displays the Issue Details AnDt The Announce Date of the bond PrcDt The Pricing Date is the date that the bond will price Sz The Size of Offering in thousands
50. rmation is left on line for 45 days and then it is only available on request Note that since investors will not see the IOI data after the first week dealers may receive requests from investors to verify data which is available for the 45 days after the transaction was completed IOI Information on Investor s side Investors see IOI data for seven days after the transaction is complete and then it is only available on request Market Axess Dealer Operations Manual Historical Data Storage and Access 46 DRAFT 5 20 2001 APPLICATION PROGRAMMING INTERFACE SPECIFICATIONS What is the Market Axess API The Market Axess API allows participating dealers to connect their proprietary or in house inventory systems to the Market Axess system in order to e Send inventory contribution information to Market Axess e Receive trade confirmations from Market Axess e Support the Market Axess trading system protocol See the Market Axess API documentation for additional technical details about the API API Characteristics Messaging e XML is the message format Market Axess provides to DTD e TCP IP is the communications protocol e Messaging is asynchronous e Message receipt must be acknowledged by recipient e Sequence numbers facilitate message tracking and retransmission requests Session e Heartbeat generated by Market Axess every thirty seconds during inactive periods e The API client on the dealer side acknowledges the heartbe
51. rmined the quantities of the new issue that they are willing to make available to each investor who has submitted an IOI they can then transmit Allocation messages to the investors These messages provide the details on the allocation made available and require the investor to verify continued interest or cancel their IOI Market Axess Dealer Operations Manual Procedures 22 DRAFT 5 20 2001 Pricing Once the Allocation process is complete the bookrunner will price the issue The terms of pricing are transmitted to all investors who have verified continued interest post allocation Investors are presented with a Final Pricing Screen where they must review the details of the new issue and their IOI They can then accept or decline the terms offered Summary of The Steps for Creating and Pricing Issues on the Market Axess System The following is a step by step description of how to create and price a new issue on the Market Axess Dealer system Notice here that there are more steps involved than the five steps described in the process model The steps in the diagram below correspond to the actual steps required to create and price an issue on the on line trading system The explanation includes both what the dealer has to do and what the investor sees and how he or she must respond A more detailed explanation of these steps is presented in Market Axess Dealer Operations Manual Procedures 23 DRAFT 5 20 2001 Table 2 DEALER SCRE
52. s of issue Lead s of the new issue Non Market Axess leads would be listed here also Coupon for the issue if one is available Characteristics of coupon such as Fixed or Floating basis Characteristics of coupon such as Annual or Semi annual Date of first cash flow if information available Maturity date or in early stages approximate maturity date Announcement date of the new issue Scheduled pricing date of the new issue Scheduled pricing time of the new issue Settlement date of the new issue US Treasury against which the new issue is being priced Percentage of the deal that will be sold to investors directly as opposed to Retention Moody s rating S amp P rating Fitch IBCA rating Procedures 29 DRAFT 5 20 2001 Duff amp Phelps Duff amp Phelps rating Min Size IOI Minimum quantity acceptable for indications of interest IOI Increment Acceptable incremental quantities that can be added to minimum Indicated Price Indicated pricing of issue used after launch to indicate launch spread Pre marketing Indicated pricing of issue used before launch as pre marketing guidance Roadshow url of the roadshow Prospectus url of the prospectus 101 x P Market Axess File Go Options Help 9 8 Al Yo Pot Launch Sprd Pre Marketing Road Show url Prospectus url Connected E Figure 7 Creating a New Issue Draft AE Save draft NN Figure 8 Save D
53. stem Administrator must complete the Dealer User Amendment Form see APPENDIX B Dealer User Ammendment Form The System Administrator must sign the form Fax form to Market Axess The Dealer must fax the completed form to Market Axess Operations Market Axess Operations will update the Market Axess Trading System permissioning module with the level of access consistent with the role defined by the Dealer Market Axess Operations will advise new users by phone of their user names and passwords Amended Deleted Users The Dealer Amendment Form in APPENDIX B must be completed as indicated above clearly indicating that the form refers to amendments for or deletion of an existing user and be faxed to Market Axess Market Axess Operations will make changes and confirm by e mail to the Dealer System Administrator CLIENT PERMISSIONING For an investor client to be activated on the Market Axess system they must 1 2 3 Have an existing or open a new account relationship with the participating dealers Complete the required Market Axess documentation Be activated by each of the participating dealers Further details on how each of these requirements impact participating dealers are given below Dealer Account Relationships 1 At dealer s discretion any clients who do not already have an existing relationship may be required to complete the dealers standard new account documentation Market Axess will facilitate distribut
54. t Procedures esesssesssssssessseseeee nennen enne n enne Anitai a nennen 20 AAA PUT 20 Testing Polici8s 2 OO 20 Installing Upgrades LI E 20 PRIMARY ISSUANGE ioo enia paea rares iaa ean cce ere sa eee e crei zc e so uie aua Eee Doni ede ae rer roue ec cats 21 About THIS SOCON O ON 21 POCO US P 21 Overview of The Indication of Interest Process Model ssesemm 21 Summary of The Steps for Creating and Pricing Issues on the Market Axess System 23 Step 1 Creating and Modifying a Draft 27 Step 2 Announcing the Issue cece eecceeceee AaS PEENE ASAR EENAA EEIE 32 Step 3 Launching the Deal iuo beet ine ee ite booth oot abe Ie RE EE dae ERR E EL RE En ES 36 Step 4 Closing the BOOK iere aiii AAA en n Ee TR oue AER 39 A BOridss need eene ce ERR sagaddinestancnucs chads deitaniadiagayes CU ERES 40 Step 6 Pricing the DOnld i iecit ce in dee bx iei o AAA S TRE CE ERE ERE EL LAE OC OE RS 42 Step 7 Deal Accepted and price confirmed sssssesee 45 Data Uploads and Downloads ssssssssssseee eene mene mene nnn enne nnne nns 45 ResponsibilitiSS coca LA rre PERA ep AAt re INR ea ANAA ea TANIA ELD 45 Recovery Procedures After System Failure ooooocccononcccccnoncccnonnncccnonnnncnnnnnnnnn cnn emen 45 Historical Data Storage and Access ssssssssessee e eee mene nennen 46 Archiving Historical Data occ eee c e Eder ie a 46
55. tant Syndicate Desk Support Contact Trading Support Compliance Officer System Administrator Sales People Relationship Manager Sales Manager Sales Person Sales Assistant Desk For Traders and Support Contacts Only peu cuc Research No Research US QIB Non US Institu Authorized By System Administrator Date Appendix 3 DRAFT 5 20 2001 Appendix 4 DRAFT 5 20 2001 Market The Core CESSAT MORES 15 Broad Eae Moe work HY 10005 877 630 1087 Organization Please provide the following information about your client Upon completion please fax all pages of this form to 212 238 0647 Red fields are mandatary OIB Credit Limits fin USD 000 Be SS Expiration Dabs Single Day aa AA Account Number 1 Day Aggregate E o Yd Default amp alesperean 3 Day Aggregate Note Field 1 Completed By Note Field 2 Completed ay Ld Hote Field 3 Completed my Ll Auibhornaed By Plesse continue an next page Appendix 5 DRAFT 5 20 2001 Appendix 6
56. ted deals disappear from client s screen The completed deals remain viewable by investors for one week Investors can use the REM Remove button to delete lOls Procedures 26 Step 1 Creating and Modifying a Draft Creating the Draft Dealer Screen 1 Create a Pre Announcement Draft 1a A draft of the deal is created with minimum amount of information including the Issuer Title Size and Maturity When the dealer creates the draft it appears on the Dealer calendar screen demarked by three asterisks Steps for Creating a Draft Issue To create a new issue draft follow these steps DRAFT 5 20 2001 Investor Response Client does NOT see issue The bond issue does NOT yet appear in the Investor s screen and No lOls Indication of Interest documents can formally be submitted through the system 1 From the Calendar screen Figure 6 click the Create Issue button on the top toolbar to display the Create Issue screen Figure 7 Fill in the data with the information described in Table 3 Calendar Field and Button Definitions Click the Save Draft button on the bottom of the Create Issue screen If you want to cancel the draft click the Cancel button Note the draft will appear on the screens of other lead dealers However it can only be modified by the dealer that created the issue Click the Yes button on Save Draft confirmation screen shown Figure 8 View the new draft in the calendar Figu
57. telligence centrally including authentication Market Axess Dealer Operations Manual Network Security 10 DRAFT 5 20 2001 permissions navigation calculation screens price updates and transaction flows More importantly Market Axess can add content and capabilities without impacting your desktop or internal computer systems Downloading the Market Axess Viewer The Market Axess Viewer for Windows and Unix platforms can be downloaded from www marketaxess com via the Online Axess link The Online Axess pages require a user name and password for access You can obtain these by contacting Market Axess at 877 638 0037 Installing the Market Axess Viewer Instructions for installing the Viewer are provided on the Online Axess download page If you need to configure the Viewer for proxy authentication see below If your Market Axess viewer does not appear with a login screen please call the Market Axess Client Service Desk at 877 638 0037 Software Upgrades From time to time Market Axess will provide Dealers with software upgrades for Market Axess Viewer It is important that the dealer take the steps to install the upgrades as soon as possible Occasionally dealers may be required to run Beta tests of the software upgrade before installing the software on their user s equipment Notifications will be sent regarding any testing procedures that mght be required of dealers Subscribed investors will also be receiving upgrades of
58. the bottom of the book screen Figure 11 Click Yes on the Announce Deal confirmation screen Figure 12 Note that the button on the bottom has changed to Launch Deal Market Axess Dealer Operations Manual Procedures 32 DRAFT 5 20 2001 4 Click the Calendar button on the upper toolbar to verify that your bond issue has been announced and that the asterisks have disappeared from the listing Tk iBix File Go Bookmarks Options Help al amp el amp l Al EMERY UNIVERSITY ATLANTA 130 000 NEW JERSEY HOUSING 110 000 PORT OF SEATTLE 370 000 Sterns 3 333 Lucent 7 5 10 year APP Fn zr12 DJ World 1 11 DJ World 7 79 Lucent 7 5 This is the draft that you cermin vantto announce Clicking Paine webber on this line brings up the Wall Mart Stores inc Modify Screen Page 1 of 1 DO 01 01 01 To announce the bond E issue click on the Book gbutton on the line of the draft you want to announce Connected a y Figure 10 Click Book from the Calendar Screen to Announce the Deal See About the New Issue Calendar Screen for more information on the Calendar screen Market Axess Dealer Operations Manual Procedures 33 DRAFT 5 20 2001 P Market Axess nl x Fie Go Options Help a eels al Home Notices o Calendar Createlssue Issue Book Pre Announced Connected Sy 7 Announce Deal ma pim Figure 12 Announce Deal Confirmation A
59. vidual user level The entitlement rights granted to the user will determine which documents they will be able to access on Market Axess While the Research department is responsible for tagging the documents for the appropriate entitlement groups an administrative contact at each dealer is responsible for assigning entitlements on the client level Example A European credit research report is tagged for distribution to only the Non US Institution group while a U S credit research report is tagged for distribution to both the US QIB and Non US Institution groups A client who has entitlement rights for the US QIB group will have access only to the U S credit research report while a client who has rights for Non US Institution group will have access to both the U S and European credit research report Market Axess Dealer Operations Manual Contribution Categorization of Research for Multex 57 DRAFT 5 20 2001 Market Axess Dealer Operations Manual Contribution Categorization of Research for Multex 58 DRAFT 5 20 2001 Forthcoming Appendix 1 DRAFT 5 20 2001 Appendix 2 DRAFT 5 20 2001 Dealer User Amendment Form Dealer Name ABN Amro Deutsche Bank Chase Manhattan Bank Bear Stearns JP Morgan UBS Warburg Please select Add Edit Delete Name Title First Name Middle Initial Last Name Phone Fax E Mail Please select Role and Position Role Position Trader Trading Manager Trader Trader Assis
60. you want to close by clicking the Book button on the calendar screen Figure 6 2 Click the Close Book button at the bottom of the book see Figure 13 Note that the Close Book button appears only after a bond has been launched Step 5 Allocation of Bonds Allocation Detail Dealer Side Investor Side 5 Allocate Bonds to Clients 5a Client Verifies Allocations After each lead dealer closes their The investor can respond by confirming or book the lOls that they are declining the price managing will have to be allocated issues Dealers allocate bonds manually to each investor according to their requirement and the system performs a check to determine if the allocation is acceptable or has failed to meet investor requirements Steps to Allocating Bonds To allocate bonds follow these steps 1 Form the Issue Book screen Figure 16 click in the Alloc box and enter the number of bonds allocated to the client Click the Report Price button to determine if the allocation meets client requirements Adjust the allocations as required to meet the requirements of the clients When you are satisfied with the allocation click the check box to the left of the allocation amount field 5 Click the Report Allocations button to report the allocation to the investor Market Axess Dealer Operations Manual Procedures 40 DRAFT 5 20 2001 A 11x File Go Options Help A amp 2 amp la Price Ols Size Alloc flOls

PDF - Municipalnets

Contents

Download Pdf Manuals

Related Search

Related Contents