2014 Solutions

Markit Exchange Traded ProductThe most advanced, comprehensive view of the global ETP market, serving all market participants

ETP Multi-Asset Composition Data

ETP Encyclopedia

ETP Analytics

ETP Dividends

ETP PCF Service

ETP iNAV Calculations

Markit provides the most detailed and complete ETP solution available in the marketplace today. The needs of all ETP market participants are met with the unrivaled content and depth of Markit data and research.

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Markit delivers the most advanced, comprehensive view of the global exchange traded product (ETP) market.

The Markit ETP product suite aggregates and generates crucial information, including ETP provider details, daily portfolio composition, dividend forecasts and analytical datasets. Our ETP services power trading systems, support market research, simplify risk management and fuel investment strategies.

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The number of products and assets under management in the global ETP marketplace are approaching record heights. A dynamic regulatory environment, combined with the increasing complexity of product structures, produce a growing need for operational efficiency and transparency.

Markit provides a full suite of ETP products and services specifically designed by leading industry experts to meet the needs of all ETP market participants, from ETP issuers and buyside investors to brokers and marketmakers. The depth of our data, combined with flexible delivery options, provide clients with unique visibility into market activity across the global ETP industry.

ETP Multi-Asset Composition Data

ETP Encyclopedia

ETP Analytics

ETP Dividends

ETP PCF Service

ETP iNAV Calculations

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ETP Lifecycle

IssuanceIssuers leverage our composition data and analytics for research to support ETP construction. Our PCF service delivers constituent data and a target NAV to market participants, while our iNAV service provides independent intraday NAV calculation and distribution.

Creation and RedemptionAuthorised participants (APs) use our composition and reference data to determine their obligations, including delivery of underlying assets and fees, for fulfilling creation and redemption orders.

Investment Decision MakingDaily composition data and derived analytics support research and strategy development. Independent dividend forecasting enables options traders to more accurately price ETP options.

TradingIn addition to iNAV calculation and tracking, our composition data enables hedging activities. Our comprehensive reference data supports trading in each fund.

Post TradeOur composition data enables daily profit and loss calculations to help meet reporting requirements. Our extensive analytics simplify risk management.

Through our comprehensive suite of ETP products and services, we support the complete ETP lifecycle and serve participants across the ETP industry.

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Prospectuses

Issuer websites

Direct queries

Issuer and custodian trade files

Analyse

Cleanse

Validate

Standardise

Classification

Benchmarking

Listing and symbology

Creations and redemptions

Basket constituents

Pricing

Analytics

Web application

Excel add-in

File transfer

Database

API

Research

Issuance

Trade decision

Risk management

Intraday hedging

Compliance

Enhancing operation efficiency

Sourcing Consolidation Distribution Client utilisationData organisation

Methodology

The breadth and depth of our content delivers unique insight into the global ETP marketplace. Flexible distribution options support a range of customer needs.

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ETP Multi-Asset Composition DataMarkit provides daily creation, redemption and tracking basket information for global ETPs across asset classes.

In addition to supporting the calculation and tracking of intraday net asset value (NAV), our composition data indicates what must be delivered to a fund in the event of a creation or redemption order.

We also provide daily NAVs on a per-share and per-creation unit basis. Data is provided in a standardised format. Corporate action and management fee impact are normalised within the estimated cash across ETP issuers. All data is processed and validated ahead of the listing’s local exchange open.

Creation/Redemption

— Basket of securities and cash authorised to be exchanged for a block of ETP shares

Tracking

— Basket that reflects full portfolio composition and can be used to track intraday NAV, with excluded assets displayed to enable more accurate intraday NAV calculations

Collateral

— Basket reflecting collateral held by a fund provider to satisfy the regulatory requirements of synthetic ETPs

ETP EncyclopediaThe Encyclopedia is a single, centralised source of ETP reference data.

It provides normalised and detailed information for every fund listed globally across all asset classes. Data is sourced directly from issuers, prospectuses and exchanges, with all new ETPs and listings added before launch. Our ETP Encyclopedia gives industry participants a mechanism for analysing the topography of the entire ETP landscape, with more than 200 unique data fields managed by our ETP research team.

Data fields encompass the following categories:

— ETP classification system (7 tiers)

— Stated benchmark information

— Listing information and symbology

— Key fund characteristics

— Detailed management fee and expense information

— Creation/redemption data

— Legal structures

Transform your ETP business

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ETP AnalyticsMarkit provides a comprehensive and independent suite of analytics, comprising performance, exposure, liquidity, risk and tracking metrics for the global ETP market.

Analytics are derived from our ETP composition, reference and dividend data. We leverage industry-standard methodologies, enabling customers to select their preferred methodology.

Analytical dataset includes:

— Fund flows and AUM data

— Performance statistics

— Liquidity, such as volumes by venue and bid-ask spread and size

— ETP to benchmark analysis, such as tracking error and correlation

— Regression analysis, such as return series

— Risk analysis, such as beta, alpha and Sharpe/Sortino/Treynor ratio

ETP DividendsMarkit delivers complete historical dividend announcements as well as independent forecasts of dividend amounts, payment schedule and announcements, with up to two years of dividend projections.

As ETP option and derivative trading continues to grow, traders and risk managers require an accurate source of forecast dividend data.

Our dividend forecasts cover 120 of the most liquid US listed ETPs. Information is collected from various sources including exchange filings, ETP providers and our securities finance dataset.

Forecasts are based on a range of factors, including:

— Accrued dividend per share

— Securities lending revenue

— Fund management fees

— Accounting measures for appropriate payment adjustments

— Consensus forecasts

— Industry trends

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ETP PCF ServiceMarkit provides ETP issuers with a robust calculation service and broad distribution channels.

We support the distribution of accurate and timely portfolio composition data by leveraging our established connections to exchanges and APs, many of which are existing Markit clients. In addition to physical and synthetic methodologies, we offer multi-asset class coverage. Constituent data and a target NAV are delivered to the requested market participants hours before the start of daily trading.

Our calculation and distribution services provide:

— Corporate action adjustments off official index methodology

— Calculation of a total and estimated cash component

— Incorporated cash dividends, adjusted for daily management fee impact

— Distribution via our standardised, consolidated XML feed or flat file and email options that meet stock exchange specifications

ETP iNAV CalculationsAs a global leader in daily and intraday pricing across multiple asset classes, Markit provides the calculation expertise and reference data capabilities to calculate any ETP iNAV.

From plain vanilla equities to hard to value loan portfolios, we have the experience and resources to meet our customers’ requirements.

Our iNAV calculation service aggregates pricing and reference data to run the calculations. It also provides connectivity to venues, such as exchanges and data vendors, to support distribution requirements.

Transform your ETP business

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Markit Index ManagementThe Markit Index Management service collates and provides official data on equity indices in a single feed.

Data is sourced directly from index providers and exchanges, and is checked and validated ahead of market open.

Markit iBoxxMarkit iBoxx cash bond indices are designed to replicate investible investment grade and high yield fixed income markets.

Markit Reference DataMarkit supports the credit derivative, bond, equity, syndicated loan and legal entity data needs of the financial markets.

Our broad range of reference data is specifically designed to facilitate securities trading, settlement, risk management and back-office functions, including accounting and client reporting.

Markit Evaluated BondsMarkit provides robust coverage across bonds, CDS and loans pricing, as well as equity volatility data and securities lending data for stocks and bonds

We offer full transparency into our valuations methodology and inputs and apply rigorous cleaning algorithms to our data to ensure quality.

Markit FactorsMarkit delivers valuable investment insights through a comprehensive library of global stock selection and strategy signals.

Markit Factors covers more than 30,000 securities across 80 countries

Markit Transaction Cost AnalysisMarkit Transaction Cost Analysis (TCA) is an independent global equity and FX trading analysis platform for buyside and sellside firms.

It combines execution, algorithmic, venue and smart order router evaluation analytics.

Related products

5,200+ ETPs currently traded

3,300+ indices tracked

150+ clients

These numbers are changing as you read this.

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About Markit

Markit is a leading, global fi nancial information services company with over 3,000 employees.

The company provides independent data, valuations and trade processing across all asset classes in order to enhance transparency, reduce risk and improve operational effi ciency.

Its client base includes the most signifi cant institutional participantsin the fi nancial marketplace.

More Information

For more information on the products and services from Markit, please contact us at sales@markit.com or call one of our regional offi ces:

London +44 20 7260 2000

New York +1 212 931 4900

Amsterdam +31 20 50 25 800

Boulder +1 303 417 9999

Dallas +1 972 560 4420

Frankfurt +49 69 299 868 100

Hong Kong +852 3478 3948

Tokyo +81 3 6402 0130

Toronto +1 416 777 4485

Singapore +65 6922 4200

Sydney +61 2 8076 1100

markit.com

® Markit makes no warranty, expressed or implied, as to accuracy, completeness or timeliness, or as to the results to be obtained by recipients of the products and services described herein, and shall not in any way be liable for any inaccuracies, errors or omissions herein. Copyright © 2014, Markit Group Limited. All rights reserved. Any unauthorised use, disclosure, reproduction or dissemination, in full or in part, in any media or by any means, without the prior written permission of Markit Group Limited is strictly prohibited.

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01/23/2014