Introduction to the Thomson Reuters EU Commitment :

Extended RIC License(ERL)

Prior to the ERL

Many financial institutions have been aware for sometime that switching to an alternative market data vendor could provide them with big savings on their market data costs but it involved re-engineering their downstream applications to switch to a new symbology; which in turn meant significant cost and effort. And so they stayed with the same vendor, year after year, because a switch just wasn’t economically viable.

Until now …

Advent of the ERL

The introduction of the ERL allows existing TR real time data feed customers to use the RIC to subscribe to other market data vendors data feeds, enabling them to switch to other consolidated-feed data vendors without any re-coding or re-configuration of their subscribing applications. It provides the ability to achieve significant cost savings without incurring prohibitive project costs or disruption to trading operations.

ERL Timeline• November 2009 : The European Commission (EC) start an

investigation on the use of Reuters Instrument Codes (RICs).

• December 2012 : Thomson Reuters voluntarily commit to offer a license to customers to enable them to use RICs for the purposes of switching and for ongoing use in their real time applications.

• June 2013 : Thomson Reuters launch ERL and provide the associated RIC Maintenance Service (RMS)

• June 2013 : The 1st Tier 1 Bank adopts ERL

• June 2013 : The first 3rd Party offering a RIC Mapping Service adopts the DRL (a version of the ERL specifically for developers)

• January 2014 : The 1st Bank goes live with ERL – They use an alternate data vendor for Cash and Derivative instruments traded on US and European exchanges.

• June 2018 : The option to take out ERL will expire. Any TR RDF customer not already an ERL holder will not be entitled to obtain the RIC license.

ERL Benefits

• Existing TR real time data feed customers are able to switch alternative consolidated data vendors without any recoding or reconfiguring of their RMDS subscribing applications.

• ERL may also be used to provide fail-over to alternate data vendors for data resiliency purposes.

• ERL is ongoing and as such will cover eligible newly issued RICs - even after the data vendor switch-over is completed.

• RMS provides a means of obtaining the cross referencing information needed to facilitate RIC mapping at a nominal cost ( a fraction of the cost of Datascope cross referencing)

• ERL is a GLOBAL license - Thomson Reuters consolidated real time data feed clients within the European Union or Switzerland are eligible to apply for an ERL. Once obtained, clients may use their ERL license globally.

• Using ERL it is possible to realise data cost savings rapidly - within months rather than years

ERL / RMS Costs• The ERL is a fee paid monthly to Thomson Reuters• It is a License fee to use the RIC on non TR real-time data feeds• The Base price of $750 pcm is license to use 100K RIC’s a month• There after there is a sliding scale of cost / RIC mapped

Number of unique RICs per month (counted as per RT Service)

Incremental charge per unique RIC per month (USD)

1 – 50,000 0.010

50,001 – 500,000 0.005

500,001 – 3,000,000 0.002

3,000,001 – no limit 0.001

Summary of ERL Conditions• ERL is only available to existing TR Consolidated Real-Time

Data feed Service customers with genuine business operations in the EEA or Switzerland.

• Mapping of RICs to alternate symbols cannot be provided directly by other data vendors.

• Combinations of direct feed data may also be delivered on the RIC, but only where the data is normalised, is subject to a common symbology and / or the data has been enriched  e.g.Wombat , Activ, IDC

• Tagging of the alternate data with the RIC must occur on the ERL clients site; meaning that clients must map RICs in-house or employ a 3rd party to provide the maps.

• Some RICs are exempt from the ERL. *

• There are restrictions relating to the types of applications permitted to subscribe to alternate data via the RIC. *

* Please refer to the full EU commitment for further information

Next Steps

• Compare data coverage & costs of various data vendors to evaluate the level of potential savings.

• Consider a hybrid solution, with a gradual switch over that is based on specific Exchanges and Asset Categories.

• Identify a pilot project e.g. switching data for all Options on OPRA to an alternate source.

Further Information

For Further information on the ‘TR EU Commitment : Extended RIC License’ please refer to the following resources :-

• Thomson Reuters Full Commitment to the EC• Commitment Addendum• Monitoring Trustee Contact Details

These documents can be downloaded from :-

http://www.magtia.com/about-erl

These documents along with ERL application forms may also be obtained directly from Thomson Reuters via your TR Account Manager.