December 2013

Triparty Collateral Management Service (CmaX)

Product Guide

Triparty Collateral Management Service (CmaX) Product Guide

December 2013

Document number: 6390

This document is the property of Clearstream Banking S.A. (Clearstream Banking). No part of this document may bereproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, forany purpose without the express written consent of Clearstream Banking. Information in this document is subject to changewithout notice and does not represent a commitment on the part of Clearstream Banking, or any other entity belonging toClearstream International S.A.

Copyright Clearstream International S.A. (2013). All rights reserved.

Clearstream is a registered trademark of Clearstream International S.A. S.W.I.F.T. is a registered trademark of the Societyfor Worldwide Interbank Financial Telecommunication. Euroclear is a registered trademark of Euroclear Bank, operator ofthe Euroclear system. Clearstream International S.A. is a Deutsche Brse Group company.

Foreword

Clearstream Banking launched the world's first multi-currency Triparty Repo Service in September 1992 and has continued to launch innovative collateral management products and services to address the financing and secured investment needs of international traders and investors.

The range of customers using these services continues to grow and includes central and sovereign banks, securities lenders and borrowers, custodians, commercial banks, international broker-dealers and assets managers.

Clearstream Banking's knowledge, experience and innovation is increasingly sought by major domestic institutions throughout the world to guide them in the development of similar products to serve their local markets.

This Product Guide contains information organised in the following chapters:

1. Overview on page 1-1;

2. Products and services on page 2-1;

3. Getting started on page 3-1;

4. Transaction life cycle on page 4-1;

5. Collateral reuse on page 5-1;

6. Collateral eligibility, price selection process, valuation and ratings on page 6-1;

7. Custody events and corporate actions on page 7-1;

8. Connectivity and customer reporting on page 8-1;

9. Event of Default on page 9-1;

10. Billing on page 10-1.

A Glossary of terms is included at the end of this Guide.

Customer service

The daily administration and operational aspects of Clearstream Bankings Collateral Management Services are handled by a dedicated Collateral Management Services team in Luxembourg.

Assistance is directly available from the Collateral Management Desk, as follows:

Group telephone: +352-243-38113Group fax: +352-243-38262Group email: cmax@clearstream.comSWIFT address: CEDELULL

Contact Global Securities Financing services

If you are interested in further information about any of our Global Securities Financing solutions, please contact our dedicated GSF team.

Luxembourg +352-243-36868Frankfurt +49-(0)69-2 11-1 27 57London +44-(0)20-7862-7626Singapore +65-6597-1622Clearstream Banking SA December 2013CmaX Product Guide i

gsf@clearstream.comwww.clearstream.com

Hong Kong +852-2530-7411Dubai +971-4-331-0644New York +1-212-309-8882

CmaXThis page has intentionally been left blank.December 2013 Clearstream Banking SAii CmaX Product Guide

Contents

Foreword................................................................................................................... iCustomer service ......................................................................................................................... i

Figures ...................................................................................................................... v1. Overview ............................................................................................................ 11

Collateral management umbrella ............................................................................................... 11Benefits and features of CmaX .................................................................................................... 12Role of Clearstream Banking ...................................................................................................... 13

2. Products and services........................................................................................ 21Triparty Repo Service (TRS) ......................................................................................................... 21

Floating rate repo .............................................................................................................. 22Flexible interest payments ................................................................................................ 22

Triparty Securities Lending Services (TSLS) ............................................................................... 23Triparty Securities Lending Service 1 (TSLS1).................................................................. 23Triparty Securities Lending Service 2 (TSLS2).................................................................. 24Triparty Collateral Management Service (TCMS).............................................................. 24

General Collateral (GC) services ................................................................................................. 26GC Pooling ......................................................................................................................... 26LCH.Clearnet GC service ................................................................................................. 27

Collateral pledge to central banks .............................................................................................. 29Collateral pledge to the Deutsche Bundesbank ............................................................... 29Collateral pledge to the Banque centrale du Luxembourg............................................... 210Collateral pledge to the U.S. Federal Reserve.................................................................. 211

3. Getting started................................................................................................... 31Documentation............................................................................................................................. 31

Legal agreements.............................................................................................................. 31Principal agreements .................................................................................................................. 32Account structure ........................................................................................................................ 33

Flexible account setup for Collateral Receivers ............................................................... 33Multiple collateral source account option for Collateral Givers....................................... 34Liquidity Hub Connect ....................................................................................................... 35

Specific collateral source account structure for Collateral Givers ............................................ 35Cash management options for Collateral Receivers .................................................................. 36Cash shaping functionality........................................................................................................... 36

Umbrella credit and collateral facilities............................................................................ 37Collateral allocation options for Collateral Givers...................................................................... 38

AutoAssign (AA) mode ....................................................................................................... 38Manual collateral selection mode..................................................................................... 313

4. Transaction life cycle......................................................................................... 41Loan/exposure initiation .............................................................................................................. 41

Triparty Repo Service (TRS)............................................................................................... 41Triparty Securities Lending Service 1 (TSLS1).................................................................. 41Triparty Securities Lending Service 2 (TSLS2 and TCMS)) ............................................... 41

Margin calls.................................................................................................................................. 43Margin deficit ..................................................................................................................... 43Margin excess .................................................................................................................... 44

Substitutions ................................................................................................................................ 44Adjusting the terms of the trade.................................................................................................. 45Loan/exposure termination ......................................................................................................... 45

Triparty Repo Service (TRS)............................................................................................... 45Triparty Securities Lending Service 1 (TSLS1).................................................