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MIFID II / MIFIR

ICE IMPLEMENTATION UPDATE

JULY, 2017

DISCLAIMER

DISCLAIMER

? 2017 Intercontinental Exchange, Inc. The information and materials contained in this document - including text, graphics, links or other items - are provided "as is" and "as available." ICE and its subsidiaries do not warrant the accuracy, adequacy or completeness of this information and materials and expressly disclaims liability for errors or omissions in this information and materials. This document is provided for information purposes only and in no way constitutes investment advice or a solicitation to purchase investments or market data or otherwise engage in any investment activity. No warranty of any kind, implied, express or statutory, is given in conjunction with the information and materials. The information in this document is liable to change and ICE undertakes no duty to update such information. You should not rely on any information contained in this document without first checking that it is correct and up to date. The content of this document is proprietary to ICE in every respect and is protected by copyright. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of ICE. All third party trademarks are owned by their respective owners and are used with permission.

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MIFID II / MIFIR INTRODUCTION

? Building on existing MiFID I rules, MiFID II / MiFIR's expanded rules extend to a wider range of market participants, execution venues and financial instruments

? Rules aim to improve the functioning of financial markets making them more efficient, resilient and transparent

Market Structure

? Trading obligation ? Organised Trading Facilities ? Data Reporting Service

Providers ? Non discriminatory access ? Clearing STP

Investment Firms

Market Participants 1

Credit Commodity

Institutions

Firms

3rd Country Firms

Execution Venues 2

RM MTF OTF SI

Trading Venues

Transparency

? Pre trade transparency ? Post trade transparency ? Transaction reporting ? Position reporting ? Commitment of traders reports ? Best execution data

Governance & Controls

? Admission, suspension, removal from/to trading

? Authorisation rules ? Position limits ? Maintenance of order data

? Direct Electronic Access ? Clock Synchronisation ? Algo & HFT rules ? Market Making ? Order to Trade Ratio

1. Reduced exemptions vs MiFID I brings additional participants under MiFID II with potential knock on impact of EU Capital rules

INTERCONTINENTAL EXCHANGE 2. RM = Regulated Market; MTF = Multilateral Trading Facility; OTF = Organised Trading Facility; SI = Systematic Internaliser

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MIFID II / MIFIR SCOPE FOR ICE

ICE'S EUROPEAN MARKETS AND PRODUCTS

ICE Futures Europe (IFEU)

ICE Endex (NDEX)

Financials 1 Commodities 1

? Oil (Brent, Gasoil, WTI, HO, RBOB) ? S2F (Oil, NGL/LNG, Freight) ? UK Gas & Power ? Coal ? Emissions ? Softs (Cocoa, Robusta Coffee, White Sugar, Feedwheat)

? EU Gas (Dutch, Belgian, German, Italian) ? EU Power (Dutch, Belgian, German, Italian, French,

Spanish, Nordic)

? STIRs (Euribor, Short Sterling, Euroswiss, Eurodollar, Eonia,

GCF Repo)

? MLTRs (Gilts, Swapnote, ERIS rates, EU Gov Bonds) ? Equity Indices (FTSE, MSCI) ? Single Name Equities

ICE Clear Europe (ICEU) & ICE Clear Netherlands (ICNL)

Out of Scop e

? ICE Futures US2, ICE Futures Canada and ICE Futures Singapore ? ICE Endex Spot markets (TTF, ZTP, OCM) ? UK EUA and EUAA auctions operated by IFEU on behalf of DECC ? Gold Auction operated by ICE Benchmark Administration

1. Product lists are intended to be indicative rather than definitive 2. Possible Transaction Reporting obligation for MiFID investment firms in respect of certain IFUS Index Futures where one or more of the index constituents are traded

on an EU venue

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MIFID II / MIFIR CONSIDERATIONS FOR 3RD COUNTRY FIRMS

MiFID II/MiFIR applies to EU investment firms and EU branches of third-country firms providing investment services or performing investment

activities.

Some requirements will impact all companies trading on markets in the EU, regardless of their location or legal status:

o Position Limits for commodity derivatives o Position reporting (Members of EU trading venues) o Ancillary activity tests as a pre-requisite for hedging

exemption o Additional data for transaction reporting o Greater transparency on prenegotiated trades below

block minimum o Additional controls & testing of algorithms (Members

of EU trading venues) o Unexecuted orders to trades ratio

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