MarkitWire Trader User Guide

9 November 2015

Confidential \ Copyright © 2015 Markit Group Limited

MarkitWire Trader User Guide

Table of Contents
1 Introduction ................................................................................................................................ 1
1.1 MarkitWire Trader Overview ............................................................................................................... 1
1.2 Deal Templates .................................................................................................................................. 1
1.3 Deal Identifiers.................................................................................................................................... 3
1.4 Document Overview ........................................................................................................................... 3
2 MarkitWire Deal States .............................................................................................................. 5
2.1 Standard Booking States and Transitions .......................................................................................... 5
2.2 MarkitWire Booking States ................................................................................................................. 6
2.3 Participant Internal System Booking States ........................................................................................ 6
3 MarkitWire Contract States ........................................................................................................ 8
3.1.1 Matching Contract States ...............................................................................................................................9
4 Getting Started ......................................................................................................................... 10
4.1 Logging into MarkitWire Trader ........................................................................................................ 10
4.2 Using MarkitWire Trader ................................................................................................................... 11
4.3 Menus ............................................................................................................................................... 12
4.3.1 File Menu .....................................................................................................................................................12
4.3.2 Edit Menu.....................................................................................................................................................12
4.3.3 Deal Menu ...................................................................................................................................................12
4.3.4 View Menu ...................................................................................................................................................16
4.3.5 Tools Menu ..................................................................................................................................................17
4.3.6 Help Menu ...................................................................................................................................................17
4.4 Onscreen Icons ................................................................................................................................ 17
4.4.1 MarkitWire Trader Main Window ..................................................................................................................17
4.4.2 Compose New Deal Window ........................................................................................................................18
4.5 Deal Folders ..................................................................................................................................... 19
4.6 Predefined Searches ........................................................................................................................ 20
4.7 MarkitWire Trader Main Window ...................................................................................................... 21
4.7.1 Deals List .....................................................................................................................................................21
4.7.2 Deal Details .................................................................................................................................................21
4.7.3 Deal History/Progress ..................................................................................................................................22
4.8 Changing Your MarkitWire Password ............................................................................................... 23
4.9 Logging Out of MarkitWire Trader .................................................................................................... 23
5 Direct Deals ............................................................................................................................. 24
5.1 Dealer to Dealer/End User Process.................................................................................................. 24
5.2 Composing a New Direct Deal ......................................................................................................... 25
5.2.1 Completing Internal Data..............................................................................................................................29
5.2.2 Single-Sided Deals ......................................................................................................................................30
5.2.3 Composing CDS, Equity and Variance Swap Deals .....................................................................................32
5.3 Composing A Duplicate Deal ............................................................................................................ 34
5.4 Picking Up a Deal ............................................................................................................................. 36
5.5 Rejecting a Deal ............................................................................................................................... 38
5.6 Reverting Your Changes to a Deal ................................................................................................... 38
5.7 Affirming a Deal ................................................................................................................................ 39
5.8 Bulk Affirming Deals ......................................................................................................................... 40
5.9 Transferring a Deal ........................................................................................................................... 40
5.10 Pulling a Deal ................................................................................................................................... 41
5.11 Withdrawing/Withdrawing from a Picked Up Deal ............................................................................ 42
5.12 Releasing a Deal .............................................................................................................................. 43
5.13 Deleting a Draft Deal ........................................................................................................................ 43
6 Brokered Deals ........................................................................................................................ 44
6.1 Brokered Deal Process ..................................................................................................................... 44
6.2 Picking up a Brokered Deal .............................................................................................................. 45
6.3 Rejecting a Brokered Deal ................................................................................................................ 46
6.4 Requesting Revision of a Brokered Deal .......................................................................................... 46
6.5 Accepting a Brokered Deal ............................................................................................................... 47

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6.6 Accepting/Affirming Pre-Accepted Brokered Deals .......................................................................... 48

6.7 Affirming a Brokered Deal ................................................................................................................ 49
6.8 Pulling a Brokered Deal .................................................................................................................... 49
6.9 Releasing a Brokered Deal ............................................................................................................... 49
6.10 Transferring a Brokered Deal ........................................................................................................... 49
6.11 Broker Withdrawal of a Deal ............................................................................................................. 50
6.12 Broker Termination of a Deal ............................................................................................................ 51
6.13 Swap Execution Facility (SEF) Deals ............................................................................................... 52
7 Allocations ............................................................................................................................... 53
7.1 Allocation Block Deals ...................................................................................................................... 53
7.2 Allocation Splits ................................................................................................................................ 53
7.3 Adding Allocation Splits to a Deal ..................................................................................................... 55
7.4 Allocations to Follow ......................................................................................................................... 58
7.5 Viewing the New Allocation Deals .................................................................................................... 59
8 Amortising/Accreting Swaps .................................................................................................... 61
8.1 Amortising, Accreting and Rollercoaster Swaps ............................................................................... 61
8.2 Fixed Rate Schedules ...................................................................................................................... 61
8.3 Composing an IRS Amortising Deal ................................................................................................. 62
8.4 Amending IRS Amortising Deals ...................................................................................................... 63
8.5 Novating IRS Amortising Deals ........................................................................................................ 63
9 Searching for Deals ................................................................................................................. 64
9.1 Searching for a Deal ......................................................................................................................... 64
9.2 Saving a Search ............................................................................................................................... 65
9.3 Deleting a Saved Search .................................................................................................................. 66
9.4 Filtering a Search ............................................................................................................................. 67
9.4.1 Removing a Filter .........................................................................................................................................68
9.5 Viewing the Deal Ticket .................................................................................................................... 69
9.6 Adding/Removing Onscreen Columns.............................................................................................. 70
9.7 Viewing a Deal’s History ................................................................................................................... 70
10 Amendments and Cancellations .............................................................................................. 71
10.1 Changing a Deal’s Post-Release Booking State .............................................................................. 71
10.2 Amending Your Private Data on a Deal ............................................................................................ 72
10.3 Amending a Deal Rejected by the Clearing House........................................................................... 75
10.4 Assigning a Batch ID to a Deal ......................................................................................................... 75
10.5 Amending a Deal Bilaterally with Your Counterparty ........................................................................ 76
10.6 Increasing and Decreasing Equity Options ....................................................................................... 79
10.7 Corporate Actions on Equity Share Options ..................................................................................... 81
10.8 Exiting a Deal ................................................................................................................................... 83
10.9 Cancelling a Deal ............................................................................................................................. 85
10.10 Performing a Block Cancellation....................................................................................................... 89
11 Exercising Options ................................................................................................................... 92
11.1 Exercising a Swaption (Cash Settlement) ........................................................................................ 92
11.2 Exercising a Swaption (Physical Settlement) ................................................................................... 96
11.2.1 Creating the Underlying Interest Rate Swap .................................................................................................99
11.3 Exercising an Equity Option ........................................................................................................... 101
12 Novations ............................................................................................................................... 103
12.1 Novation Process ........................................................................................................................... 103
12.1.1 Novation Process: Stage I .......................................................................................................................... 104
12.1.2 Novation Process: Stage II ......................................................................................................................... 105
12.2 Partial Novations ............................................................................................................................ 105
12.3 Four-Way Novations ....................................................................................................................... 106
12.4 Outside Novations .......................................................................................................................... 106
12.5 Novating an Existing Deal .............................................................................................................. 107
12.6 Composing an Outside Novation Deal............................................................................................ 111
12.6.1 Outside Novation Tab ................................................................................................................................ 115
12.7 Composing a New Novation Consent Deal .................................................................................... 116

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12.7.1 Deemed Novation Consent Requests ........................................................................................................ 122

12.7.2 Expired Novation Consent Requests .......................................................................................................... 122
12.7.3 Disputing a Novation Consent Request ...................................................................................................... 122
13 Prime Brokerage .................................................................................................................... 123
13.1 Prime Brokerage Process ............................................................................................................... 123
13.2 Composing a New Prime Brokered Deal ........................................................................................ 125
13.3 Adding a Prime Broker to an Existing Deal ..................................................................................... 129
14 Clearing.................................................................................................................................. 132
14.1 Clearing Houses in MarkitWire ....................................................................................................... 132
14.2 Eligibility for Clearing ...................................................................................................................... 133
14.2.1 Clearing Tab .............................................................................................................................................. 134
14.2.2 Clearing Eligibility Tab................................................................................................................................ 137
14.2.3 Allocations Clearing ................................................................................................................................... 139
14.2.4 Deal Parameter Checks ............................................................................................................................. 140
14.3 Clearing Pending Deals .................................................................................................................. 140
14.4 Composing a New Client Clearing Deal ......................................................................................... 141
14.4.1 Allocations Block Deal................................................................................................................................ 145
14.4.2 New-Allocation Deal ................................................................................................................................... 146
14.4.3 Brokered Client Clearing Deals .................................................................................................................. 146
14.4.4 Client View of a Client Clearing Deal .......................................................................................................... 147
14.4.5 Auto-Sending a Deal for Clearing ............................................................................................................... 148
14.4.6 Searching for Client Clearing Deals............................................................................................................ 149
14.5 Clearing Broker Take Up Service ................................................................................................... 150
14.5.1 Accepting a Clearing Take Up Deal............................................................................................................ 151
14.5.2 Rejecting a Clearing Take Up Deal ............................................................................................................ 152
14.5.3 Counterparties on a Clearing Take Up Deal ............................................................................................... 152
14.5.4 Example Clearing Take Up Search ............................................................................................................ 153
15 Regulatory Reporting ............................................................................................................. 154
15.1 CFTC Report Types ....................................................................................................................... 154
15.2 ESMA, JFSA, HKMA, ASIC and MAS Report Types ...................................................................... 154
15.3 Reporting Fields ............................................................................................................................. 155
15.3.1 Upper Regulatory Reporting Tab Fields ..................................................................................................... 156
15.3.2 Lower Regulatory Reporting Tab Fields ..................................................................................................... 159
15.4 USI/UTI Generation ........................................................................................................................ 161
15.5 Viewing a Deal’s Reporting History ................................................................................................ 162
16 Matching ................................................................................................................................ 163
16.1 Matching Process ........................................................................................................................... 163
16.2 Composing a New Matching Deal .................................................................................................. 164
16.3 Matching a Deal to an Existing Deal ............................................................................................... 166
16.4 Amending an Unmatched Deal ....................................................................................................... 168
16.5 Withdrawing an Unmatched Deal ................................................................................................... 168
16.6 Submitting a Cancelled-Match Deal ............................................................................................... 168
16.7 Example Matching Searches .......................................................................................................... 168
17 Chat ....................................................................................................................................... 169
17.1 Sending a Chat to a Counterparty .................................................................................................. 169
17.2 Viewing a Chat from a Counterparty............................................................................................... 170
18 Customising MarkitWire Trader ............................................................................................. 171
18.1 Adding/Removing Onscreen Columns............................................................................................ 171
18.1.1 Moving Columns to the Left and Right ........................................................................................................ 171
18.2 Changing Your Default Field Indicators .......................................................................................... 172
18.3 Setting Your Default Book .............................................................................................................. 173
18.4 Setting Your Default Legal Entity .................................................................................................... 174
18.5 Defining Duplication Settings .......................................................................................................... 175
18.6 Setting Deals to Auto-Release ....................................................................................................... 180
18.7 Customising Your Sound Alerts ...................................................................................................... 181
19 Password Reset ..................................................................................................................... 182
19.1 Unlocking Your Account Using the Password Reset Request Portal.............................................. 182
19.2 Resetting Auto-Login Enabled Passwords ..................................................................................... 183
19.3 Disabling MarkitWire Trader Auto-Login ......................................................................................... 184
19.3.1 Disabling MarkitWire Trader Shortcut Auto-Login ....................................................................................... 185

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Appendix A: Search Parameters .................................................................................................. 186

Appendix B: Additional Documentation ........................................................................................ 192
MarkitWire Provisions and Annexes .......................................................................................................... 192
MarkitWire Business Processes and Flows ............................................................................................... 192
MarkitWire Regulatory Reporting Documentation...................................................................................... 192
MarkitWire Quick Reference Guides ......................................................................................................... 193
MarkitWire User Guides and Cookbooks ................................................................................................... 194
Appendix C: Contacting Markit Support ....................................................................................... 195
Markit Client Services ................................................................................................................................ 195

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1 Introduction
MarkitWire is an electronic trade confirmation platform for capturing deals through the generation
of same-day legal confirmations and straight-through-processing.

1.1 MarkitWire Trader Overview

MarkitWire Trader supports the complete trade life-cycle from booking to automated confirmation
and reconciliation, clearing and regulatory reporting to multiple regimes. The life-cycle of a
MarkitWire deal (transaction) spans the agreement and recording of deal details in MarkitWire
and ultimately supports the booking process for new business in a participant’s internal systems.
Deals can either be entered as a direct deal (dealer to dealer or dealer to end user), or be
submitted by brokers and swap execution facilities (SEFs) (to multiple dealers or to a dealer and
an end user) using the MarkitWire Broker Load Services or the Pre-Accepted Broker Trade
Services.
Dealers/brokers interested in striking a deal enter into a private negotiation based around a
structured deal template provided by MarkitWire. Successful negotiations lead to the capture of
an executed deal. MarkitWire also allows dealers to receive deals from brokers when the
counterparty is not connected to MarkitWire (known as single-sided deals). This allows them to
take advantage of electronic straight-through-booking regardless of counterparty.
Electronic affirmation replaces the traditional bilateral confirmation, allowing deals to be legally
confirmed as part of the deal capture process, removing the need for operations staff to
generate paper confirmations.
All deals captured on the trading floor and executed through MarkitWire are given digital
signatures that can assure the integrity of the data feeds. Deals are legally confirmed as part of
the deal-capture process. MarkitWire maintains a central record of these deal transactions and
provides an automatic downstream feed of completed deals to the respective party’s back office
systems (with middle and back office personnel possessing the ability to monitor the flow of
deals through the system).
Note: All dealers and end users that enter into a deal on MarkitWire can be referred to as a
party to the deal and agree that the terms of that deal are subject to the terms of the
“MarkitWire Provisions”.

1.2 Deal Templates

MarkitWire supports all key OTC derivatives products and trade life-cycle events. Most of the
parameters required to fully document a transaction are standard values recognised by the
industry (for example, day count conventions, number of fixing holidays, etc. do not have to be
specified when executing a deal).
To facilitate entering a deal in MarkitWire, input in MarkitWire Trader is based on product
specific templates. Consequently, MarkitWire holds a complete set of market-standard defaults
for every transaction type supported.
The templates not only specify the data required for a given combination of product and
currency, but also the business validation rules for each field and hold counterparty specific
information such as early termination dates. However, you can override the defaults as required.
This means that for a standard deal, only a few key parameters such as rate, notional, etc. have
to be specified, resulting in quick and easy-to-use deal input. Some parameters are marked as
mandatory, consequently deals may not be affirmed until all mandatory parameters have been
provided (see “Deal Details” on page 21 for more information).
Thus the templates provide the benefits of standardisation and the flexibility of OTC products. As
a result, the recipient on MarkitWire a deal can see which parameters are standard and which
have been changed.

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Deal templates are available for the following interest rates, credit and equity products:
 IRS
 Cross currency IRS
 OIS
 FRA
 Swaption
 Cap and floor
 Basis Swap
 Cross currency basis swap
 Zero coupon inflation swap
 CDS
 CDS checkout
 CDS index
 CDS index checkout
 CDS master
 CDS matrix
 Equity index option
 Equity index option universal
 Equity index swap
 Equity share option
 Equity share option universal
 Equity share swap
 Equity index swap
 Dispersion variance swap
 Index dividend swap
 Index variance option
 Index variance swap
 Share dividend swap
 Share variance option
 Share variance swap
 Offline trade credit
 Offline trade credit summary
 Offline trade rates
 Commodity forward
 Commodity swap
 Commodity spread
 Commodity option
 FX spot/forward
 Generic product
Note: Detailed information on the fields available on each tab for a selected product can be
found in the relevant Annex to the MarkitWire Provisions (see "Appendix B: Additional
Documentation" for more information).

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1.3 Deal Identifiers

Each deal entered into MarkitWire is given a unique MarkitWire reference number. This
reference number is fixed for the life of the deal and cannot be reused once the deal matures.
From a participant’s point of view, consecutive deals may not be numbered continuously.
For example:
 Trade ID 2443257 contract version 1 is a new deal
 Trade ID 2443257 contract version 2 is an amendment to the deal
 Trade ID 2443257 contract version 3 is a later amendment to the deal
The latest contract version affirmed by both parties is the legal representation of that deal. When
talking about Trade ID 2443257, this would refer to contract version 3 as the latest bilaterally
affirmed version of the deal.
Alongside the bilaterally negotiated economic terms of a deal, you can record private reference
data. This also increments according to changes in private data or private process states. For
each deal, each party’s private data is numbered independently (see “Completing Internal Data”
on page 29 for more information).

1.4 Document Overview

This document provides a comprehensive guide to the functionality of MarkitWire Trader and
includes information covering the following areas:
 MarkitWire Deal States
This section covers the standard booking states and transitions, the different MarkitWire and
participant internal system booking states and the contract states used in MarkitWire (see
page 5 for more information).
 Getting Started
This section covers how to log into and out of MarkitWire Trader and provides an overview of
the general functionality including the menus, onscreen icons, deal folders, predefined
searches, the functions of the MarkitWire Trader main window and how to change your
MarkitWire password (see page 10 for more information).
 Direct Deals
This section covers the dealer to dealer/end user process, including how to compose a new
direct deal, compose a duplicate of an existing deal, pick up, reject, revert changes to, affirm,
bulk affirm, transfer, pull, withdraw from and release a direct deal and delete a draft deal (see
page 24 for more information).
 Brokered Deals
This section covers the broker to dealer/end user process, including how to pick up, reject,
request revision of, accept, affirm, pull, release and transfer a brokered deal and broker
withdrawal and termination of a deal and swap execution facility deals (see page 44 for more
information).
 Allocations
This section covers the allocations process, including allocation block deals, allocation splits,
how to add allocation splits to a deal, allocations to follow and view the new allocation deals
(see page 53 for more information).
 Amortising/Accreting Swaps
This section covers amortising, accreting and rollercoaster swaps, including fixed rate
schedules and how to compose, amend and novate an IRS amortising deal (see page 61 for
more information).
 Searching for Deals
This section covers how to search for existing deals in the MarkitWire system, save a search,
delete a saved search, filter a search, view the MarkitWire deal ticket, add/remove onscreen
columns and view a deal’s history (see page 64 for more information).

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 Amendments and Cancellations

This section covers how to change a deal’s post-release booking state, amend your private
data on an existing deal, amend a deal rejected by the clearing house, assign a batch ID to a
deal, amend a deal bilaterally, with your counterparty, increase and decrease equity options,
perform corporate actions on equity options, exit a deal from MarkitWire and cancel an
existing deal (see page 71 for more information).
 Exercising Options
This section covers how to exercise a swaption both cash and physical settlement and an
equity option using the MarkitWire Trader (see page 92 for more information).
 Novations
This section covers the novation process, including partial novations, four-way novations,
outside novations, how to novate deals already existing in the MarkitWire system, composing
an outside novation deal and composing a new novation consent deal (see page 103 for more
information).
 Prime Brokerage
This section covers the prime brokerage process, including how to compose a new prime
brokered deal and add a prime broker to an existing deal (see page 123 for more information).
 Clearing
This section covers clearing houses, eligibility for clearing, clearing pending deals, how to
compose a new client clearing deal and the clearing broker take up service (see page 132 for
more information).
 Regulatory Reporting
This section covers regulatory reporting in MarkitWire, including CFTC report types, ESMA,
JFSA, HKMA, ASIC and MAS report types, reporting fields, USI/UTI generation and how to
view a deal’s reporting history (see page 154 for more information).
 Matching
This section covers the matching process, including how to use MarkitWire Matching Engine
to compose new matching deals, match a deal to an existing deal, amend an unmatched deal,
withdraw an unmatched deal, submit a cancelled-match deal and example matching searches
(see page 163 for more information).
 Chat
This section covers how to send a chat to a counterparty and view a chat received from a
counterparty during the deal life-cycle (see page 169 for more information).
 Customising MarkitWire Trader
This section covers how to customise MarkitWire Trader to your own specifications, including
adding/removing columns by product from the MarkitWire Trader window, changing your
default field indicators, setting your default book and legal entity, defining duplication settings,
setting deals to auto-release and customising your sound alerts (see page 171 for more
information).
 Password Reset
This section covers how to unlock your account using the Markit Password Reset Request
Portal, reset auto-login enabled passwords and disable MarkitWire Trader auto-login (see
page 182 for more information).

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2 MarkitWire Deal States

There are a number of technical mechanisms underpinning the life-cycle of a MarkitWire deal.
The deal state indicators are used to electronically recreate the In and Out trays and work
queues that would be used by different departments in a manual workflow.
MarkitWire deals follow a workflow that parallels the life-cycle of a traditional trading
environment. New deals as well as changes to existing deals follow the same route through the
system.

2.1 Standard Booking States and Transitions

A summary of the process illustrating the standard deal booking states and the transitions
between them can be seen in the following diagram.

Pending Withdrawn

Agree the deal

Front Office

Done

Release the deal

Released

Electronic affirmations delivered

to middle office
Middle Office

Received Error

Cleared Validated

Note: Operations are able to preview a deal in all of its stages using MarkitWire Tracker and
can update risk management data to reflect the new exposure.

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2.2 MarkitWire Booking States

The booking state tracks the progress of a deal through its current contract state. The booking
state is private and set automatically as a result of operations in MarkitWire Trader based on
which stage each party is at on the deal (for example, whether a particular party has affirmed or
not) so can be different for both parties.

The MarkitWire booking states for MarkitWire transactions consist of the following:
 Pending
When one party sends a deal to another party (or parties in the case of a novation or prime
brokered deal), the booking state is Pending. The deal stays in this state, even after it has
been picked up, until it is either withdrawn or affirmed. In the case of a brokered deal, the
broker is responsible for entering the terms of the deal. Once the deal is entered, and sent to
the two parties on MarkitWire, the booking state for both dealers is Pending.
 Withdrawn
If either party to a deal withdraws from the deal, the booking state changes to Withdrawn.
 Done
Once the terms of the deal have been agreed between the two parties, the deal is affirmed
and therefore has a booking state of Done. Once a deal is affirmed, each party may
independently add information to their private deal data.
 Released
When deal affirmation and private data enrichment is complete, the deal is released to make it
available for processing and the booking state changes to Released. Once a deal has been
released, the booking state can be used to track a deal’s workflow using either MarkitWire
Tracker or the MarkitWire DealSink API.

2.3 Participant Internal System Booking States

Releasing a deal is equivalent to dropping a completed paper ticket in the front office Out tray for
delivery to Operations. Once a deal has been released, it can be updated in a participant’s post-
deal processing systems to allow middle and back office personnel to monitor the deal’s
progress through the system. Deals delivered to Operations can be organised into different work
queues by changing the booking state indicator in MarkitWire to one of the standard internal
system booking states, Received, Error, Validated and Cleared (see “Changing a Deal’s Post-
Release Booking State” on page 71 for more information).
MarkitWire supports multiple work queues for tracking deals within Operations. Typically,
incoming deals are marked Received and then Validated when booked into in-house systems.
Deals with an Error condition are tracked and put into a repair queue.
MarkitWire enables participants to automatically send deals to the clearing house who notify the
participant whether the deal was successfully accepted by, or if for some reason the deal was
rejected. This enables participants to build fully automated straight-through processing from deal
capture through to clearing deals.
MarkitWire deals may be amended, or undergo other post-deal economic changes (for example,
novations, cancellations, exercises, etc.), with the exception of deals with a booking state of
Cleared. All post-deal economic changes require a re-negotiation of the changes with the
relevant party (or parties), effectively retracing the full deal life-cycle. In MarkitWire, all deal
amendments are made by front office. The amendment of private data (data that is only
pertinent to one participant and therefore non-economic) is unilateral and can be amended and
re-released by middle office personnel.
Note: MarkitWire maintains an archive copy of every single deal that goes through the
MarkitWire system.

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The external system booking states for MarkitWire deals consist of the following:
 Received
Once a released deal has been received into post-release processing, but has not yet been
processed, the booking state can be set to Received. The deal should now be validated.
 Error
Once a released deal has been received into post-release processing, been validated and
found to have errors, the booking state can be set to Error. These errors should be
investigated and resolved.
 Validated
Once a released deal has been received into post-release processing and has been validated
and accepted (possibly after resolving any errors), the booking state can be set to Validated.
No further action on the deal is required.
 Cleared
Once a validated deal has been accepted by the clearing house and it cannot be amended or
cancelled and no further action is required, the booking state can be set to Cleared.
 Expired
Once an unexercised equity option or swaption has expired, the booking state can be set to
Expired to facilitate reconciliation procedures.
 Novated
Once a released deal has been novated, the booking state of the original version of the deal
can be set to Novated.
Note: Although there is a natural ordering between these states, MarkitWire does not enforce
any particular sequence. In general, the Received and Error states indicate conditions
where further processing is required, whereas Validated, Cleared, Novated and Expired
are terminal states.

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3 MarkitWire Contract States

Every transaction in MarkitWire has a contract state. This contract state is associated with the
deal itself and is the same for both parties. Each contract state has many booking states. When
a deal is first submitted it has a contract state of New. It keeps this state until a major action is
performed upon it (for example, the deal is novated, bilaterally amended or cancelled). None of
these actions can take place until the deal has been released by both parties. When one of
these actions is performed a new major version of the deal with an appropriate contract state is
generated.

The contract states used for MarkitWire transactions consist of the following:
 New
All direct and brokered deals begin with a contract state of New. This contract state continues
with any modification of the deal through to release.
 Amended
Released deals that are subsequently revised acquire a contract state of Amended. Further
revision of the deal does not change this contract state.
 Exit
Deals that are no longer live in MarkitWire have a contract state of Exit.
 Cancelled
Deals may be cancelled by mutual agreement at any point resulting in a contract state of
Cancelled.
 Allocated
During the allocation process, a block deal negotiated between the executing dealer and the
customer, in which all the split details are agreed, has a contract state of Allocated. Once the
child (New-Allocation) deals are created, the Allocated deal is effectively cancelled.
 New Allocation
Once a block deal (Allocated) is released, each of the child deals containing the details laid
out in the original block deal are created with a contract state of New-Allocation.
 Amended Allocated
If an allocations block deal is subsequently revised, it acquires a contract state of
AmendedAllocated. Further revision of the deal does not change this contract state.
 Exercised
Once an equity option has been exercised, it has a contract state of Exercised.
 Exercised Cash
Once a swaption has been exercised, it has a contract state of Exercised-Cash to indicate it
has been settled for an amount of money equal to the swaption's market value at maturity.
 Exercised Physical
Once a swaption has been exercised, it has a contract state of Exercised-Physical to indicate
that the underlier is to be physically delivered in exchange for a specified payment.
 Novated
During the first stage of the novation process, the deal created between the outgoing and
remaining parties has a contract state of Novated (effectively cancelled).
 Novated Allocated
During the first stage of the novation process, if the deal created between the outgoing and
remaining parties contains allocations in which all the split details are agreed, it has a contract
state of NovatedAllocated (effectively cancelled).
 New Novated
During the second stage of the novation process, the deal created between the incoming and
remaining parties has a contract state of New-Novated.

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 New Novated Allocated

During the second stage of the novation process, if the deal created between the incoming
and remaining parties contains allocations, each of the child deals containing the details laid
out in the original block deal are created with a contract state of New-NovatedAllocated.
 Novated Partial
During the partial novation process, the deal created between the outgoing and remaining
parties has a contract state of NovatedPartial (effectively cancelled).
 Novated Partial Allocated
During the partial novation process, if the deal created between the outgoing and remaining
parties contains allocations in which all the split details are agreed, it has a contract state of
NovatedAllocated (effectively cancelled).
 New Outside Novation
All new outside novation deals begin with a contract state of New-OutsideNovation. This
contract state continues with any modification of the deal through to release.
 Prime Brokered
During the prime brokered deal process, the original holding deal negotiated between all three
parties has a new contract state of PrimeBrokered.
 New Prime Brokered
Once a prime brokered deal is accepted, a new deal is created automatically from the original
holding deal with a contract state of New-PrimeBrokered.
 Clearing
Once a deal has been sent for clearing, it has a contract state of Clearing.
 Clearing Takeup
All new deals requiring take-up by the clearing broker as part of a client clearing deal, have a
contract state of Clearing-Takeup.

3.1.1 Matching Contract States

The following MarkitWire contract states exist specifically for matching transactions:
 New Match
All new deals entered into the system (including backloaded deals) using a matching account,
have a contract state of New-Match. This contract state continues with any modification of the
deal through to release.
 Amended Match
A private matcher can match against an amendment in MarkitWire. A deal with a contract
state of Amended-Match is matched against a deal with a contract state of Amended.
 Exit Match
A private matcher can match against a deal that is no longer live in MarkitWire. A deal with a
contract state of Exit-Match is matched against a deal with a contract state of Exit.
 Cancelled Match
A private matcher can match against a cancellation in MarkitWire. A deal with a contract state
of CancelledMatch is matched against a deal with a contract state of Cancelled.
 Exercised Cash Match
A private matcher can match against a deal that has been cash exercised in MarkitWire. A
deal with a contract state of Exercised-Cash-Match is matched against a deal with a contract
state of Exercised-Cash.
 Exercised Physical Match
A private matcher can match against a deal that has been physically exercised in MarkitWire.
A deal with a contract state of Exercised-Physical-Match is matched against a deal with a
contract state of Exercised-Physical.
 New Outside Novation Match
All new outside novation deals entered into the system (including backloaded deals) using a
matching account, have a contract state of New-OutsideNovationMatch. This contract state
continues with any modification of the deal through to release

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4 Getting Started
Before you are able to use MarkitWire Trader, you require a MarkitWire Trader login ID and
password. If you do not have any login credentials, contact your internal Helpdesk so that they
can approve your access to the system and request a new user ID for you from the MarkitWire
System Administrator.

4.1 Logging into MarkitWire Trader

Launching MarkitWire Trader may vary for each participant. Contact your internal Helpdesk for
information on how to launch MarkitWire Trader if the process differs from the one detailed
below.
To log into the MarkitWire Trader:
1. Double-click the tc_client.exe file in your MarkitWire directory. The MarkitWire Logon dialog
is displayed.

If the blue connection bar displays Production, UAT1, UAT2, or Training, everything is fine
and you can log into MarkitWire Trader. If the blue connection bar displays Connecting...
onscreen for more than 10-15 seconds (it will eventually time out), there is a problem
connecting to the MarkitWire network. This could mean either a bad .ini file or certificate file,
or a firewall problem. Contact Markit Client Services for assistance.
Note: If you select the Remember my user name and password checkbox, you are
automatically logged in the next time you launch MarkitWire Trader without seeing this
dialog again. To be able to access the MarkitWire Logon dialog again, you have to log
out of MarkitWire Trader (see “Logging Out of MarkitWire Trader” on page 23 for more
information). The current version of MarkitWire Trader and the build date are also
specified on the MarkitWire Logon dialog.
2. Enter your username and password and click OK.

MarkitWire Trader is displayed (see “Using MarkitWire Trader” on page 11 for more information
on the functionality available).
Note: On first log in your password must be changed. The Change Password dialog is
displayed. Enter your current password, your new password (containing a minimum of
eight alphanumeric characters), confirm your new password and click OK (see “Changing
Your MarkitWire Password” on page 23 for more information). You will also have to
change your password after logging in if your password is reset by a MarkitWire
Administrator.

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4.2 Using MarkitWire Trader

MarkitWire Trader features a number of screen features and comprises a number of different
panes and options (depending on your permissions). Each of these areas of MarkitWire Trader
are highlighted in the example below and described in more detail in the following sections.

Menus
Icons

Deals List

Deals Folders

Pre-Defined Searches

Deals Details

Deals Progress

Note: Screenshots may differ slightly in appearance and functionality with different versions of
MarkitWire Trader.

The MarkitWire Trader Navigation pane comprises the deal folders along with the Blotter and
pre-defined search options (see “Deal Folders” on page 19 and “Predefined Searches” on page
20 for more information). The predefined searches that are visible to you are dependent on your
permissions.
The MarkitWire Trader main window comprises the Deals List in the upper pane displaying the
available deals or a particular deal’s progress depending on your selection (see “Deals List” on
page 21 for more information), the Deal Details in the centre main pane displaying the available
tabs for a selected deal (see “Deals Details” on page 21 for more information) and the Deal
History/Progress in the lower pane (see “Deals Progress” on page 22 for more information).

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4.3 Menus
MarkitWire Trader features seven menus (File, Edit, Deal, View, Tools, Window, Help) from
which additional functionality is available. The following sections provide more information on the
functionality available from each of these menus.

4.3.1 File Menu

Selecting File on the menu bar displays the following menu items:
 Logout
Select if you would like to log out of MarkitWire Trader (see "Logging out of MarkitWire
Trader" on page 23 for more information). This option is only displayed if you are logged into
MarkitWire Trader.
 Login
Select if you would like to log into MarkitWire Trader (see "Logging into MarkitWire Trader" on
page 10 for more information). This option is only displayed if you are logged out of
MarkitWire Trader.
 Exit
Select if you would like to close MarkitWire Trader (see "Logging out of MarkitWire Trader" on
page 23 for more information).

4.3.2 Edit Menu

Selecting Edit on the menu bar displays the following menu items:
 Undo
Select if you would like to undo a change you have made.
 Cut
Select if you would like to cut some highlighted text.
 Copy
Select if you would like to copy some highlighted text.
 Paste
Select if you would like to paste some copied text.
 Delete
Select if you would like to delete some highlighted text.
 Select All
Select if you would like to highlight all text in a particular field.

4.3.3 Deal Menu

Selecting Deal on the menu bar displays combination of the following menu items (depending on
the type of deal selected and your permissions):
 New Direct Deal
Select if you would like to compose a new direct deal (see “Composing a New Direct Deal” on
page 25 for more information).
 New Prime Brokered
Select if you would like to compose a new prime brokered deal (see “Composing a New Prime
Broker Deal” on page 125 for more information).
 New Client Clearing Deal
Select if you would like to compose a new client clearing deal (see “Composing a New Client
Clearing Deal” on page 141 for more information).
 New Novation Consent Deal
Select if you would like to compose a new client clearing deal (see “Composing a New
Novation Consent Deal” on page 116 for more information).
 Go To
Select if you would like to go to a particular deal. The Go To Deal dialog is displayed where
you can enter a deal ID to take you directly to that particular deal.

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 Search
Select if you would like to search for a particular deal or set of deals (see “Searching for a
Deal” on page 64 for more information).
 Refresh
Select if you would like to refresh the onscreen data.
 Duplicate
Select if you would like to create a duplicate of the currently selected deal (see “Composing a
Duplicate Deal” on page 32 for more information).
 Transfer
Select if you would like to transfer the currently selected deal to another dealer or interest
group (see “Transferring a Deal” on page 40 for more information).
 Withdraw
Select if you would like to withdraw from the currently selected deal (see “Withdrawing from a
Picked Up Deal” on page 41 for more information).
 Pull Deal
Select if you would like to pull a deal currently in progress back to your side (see “Pulling a
Deal” on page 41 for more information).
 Revert
Select if you would like to undo all changes made to a deal since the it was last affirmed and
revert it to its last saved state (see “Reverting Your Changes to a Deal” on page 38 for more
information).
 Affirm
Select if you would like to affirm the deal with the counterparty (see “Affirming a Deal” on page
39 for more information). This is only available for brokered deals.
 Accept
Select if you would like to accept a deal sent by a broker (see “Accepting a Brokered Deal” on
page 47 for more information).
 Accept/Affirm
Select if you would like to accept a deal sent by a broker and affirm the deal with the
counterparty simultaneously (see “Accepting/Affirming Pre-Accepted Brokered Deals” on
page 48 for more information). This is only available for brokered deals.
 Pick Up
Select if you would like to pick up a received deal in one of your folders (see “Picking Up a
Deal” on page 32 for more information).
 Reject
Select if you would like to reject a deal (see “Rejecting a Deal” on page 38 for more
information).
 Reject DK
Select if you would like to reject a brokered deal (see “Rejecting a Brokered Deal” on page 46
for more information).
 Pls Revise
Select if you want a brokered deal to be amended by the distributing broker deal (see
“Requesting Revision of a Brokered Deal” on page 46 for more information).
 Release
Select if you would like to release a deal currently in progress (see “Releasing a Deal” on
page 43 for more information).
 Clear
Select if you would like to clear a particular deal from a folder that has been withdrawn by the
initiator of the deal.
 Clear All
Select if you would like to clear all deals from a particular folder that have been withdrawn by
the initiator(s) of each deals.

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 Display Ticket
Select if you would like to display the ticket for a particular deal (see “Viewing the Deal Ticket”
on page 69 for more information).
 History
Select if you would like to view the complete history of the selected deal (see “Viewing a
Deal’s History” on page 70 for more information.
 Set Batch ID
Select if you would like to set the batch ID for the selected deal(s). The Set Batch ID dialog is
displayed where the batch ID can be entered (the field holds all entered information in a
dropdown) (see “Assigning a Batch ID to a Deal” on page 75 for more information). Batch ID
is a private field for distinguishing between batches of backloaded deals.
 Booking State
Select if you would like to change the booking state of a released deal (see “Changing a
Deal’s Post-Release Booking State” on page 71 for more information).
 Clearing State
Select if you would like to specify the clearing state for a particular deal. This is only
applicable for deals that are eligible for clearing. If you select Yes from the sub-menu, you are
sending a deal to clear on your side. Once the counterparty clears the deal on their side it is
posted to the clearing house. If you select No from the sub-menu, you are specifying that a
particular deal is not to be cleared.
 Export
See the “Export Sub-Menu” on page 14 for more information.
 Update
See the “Update Sub-Menu” on page 15 for more information.
 Premium Payment
Select if you would like to save a report of premium payments due for a released deal for
either Equity Options or Swaptions as a .csv file.

Export Sub-Menu
Selecting Export in the Deal menu displays the following sub-menu items:
 Search
Select if you would like to search for a deal to save as a .csv file. The Save As dialog is
displayed. Click Save and the Search dialog is displayed (see “Searching for a Deal” on page
64 for more information on searching for deals). Enter your search criteria and click OK to
export all corresponding deals.
 Selected
Select if you would like to export the deal currently selected as a .csv file. The Save As dialog
is displayed allowing you to select the relevant save directory.
 All
Select if you would like to export all deals currently onscreen as a .csv file. The Save As
dialog is displayed allowing you to select the relevant save directory.
 Summary
Select if you would like to export the deal currently selected and all columns available in
MarkitWire Trader as a .csv file. The Save As dialog is displayed allowing you to select the
relevant save directory.
 Summary All
Select if you would like to export all columns available in MarkitWire Trader as a .csv file. The
Save As dialog is displayed allowing you to select the relevant save directory. The .csv file
contains all deal details for each stage of the deal.

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Update Sub-Menu
Selecting Update in the Deal menu displays the following sub-menu items:
 Unilateral Amend
Select if you would like to amend a deal unilaterally (see “Amending Your Private Data on a
Deal Unilaterally” on page 72 for more information).
 Bilateral Amend
Select if you would like to amend a deal bilaterally (see “Amending a Deal Bilaterally With
Your Counterparty” on page 76 for more information).
 Block Cancel
Select if you would like to cancel multiple deals (see “Performing a Block Cancellation” on
page 89 for more information).
 Cancel Deal
Select if you would like to cancel an active deal (see “Cancelling a Deal” on page 85 for more
information).
 Exercise
Select if you would like to exercise an option (see “Exercising Options” on page 92 for more
information). Only American options can be exercised.
 Novate
Select if you would like to novate a deal (see “Novating an Existing Deal” on page 107 for
more information).
 Prime Broker
Select if you would like to compose a new prime brokered deal (see “Composing a New Prime
Brokered Deal” on page 125 for more information.
 Clearing Eligibility
Select if you would like to determine whether a deal is eligible for clearing. If a deal is eligible
for clearing, the Clearing Eligibility flag is set to Yes and if it is not it is set to No (see “Eligibility
for Clearing” on page 133 for more information).

Additional Deal Menu Items for Matching Users

Selecting Deal on the menu bar as a matching user displays the following additional menu items:
 Amend
Select if you would like to amend a matching deal (see “Amending an Unmatched Deal” on
page 168 for more information).
 Withdraw
Select if you would like to withdraw an unmatched deal from MarkitWire Matching Engine (see
“Withdrawing an Unmatched Deal” on page 168 for more information).
 Compare
Select if you would like to compare a particular deal in Unmatched with all unmatched deals.
The Compare window is displayed placing all deals left to right in order of how closely they
match the selected deal (see “Matching a Deal to an Existing Deal” on page 166 for more
information).
 Compare Closest
Select if you would like to compare a particular deal in Unmatched with the three most closely
matching unmatched deals. The Compare window is displayed placing the three closest
matching deals left to right in order of how closely they match the selected deal (see
“Matching a Deal to an Existing Deal” on page 166 for more information).

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4.3.4 View Menu

Selecting View on the menu bar displays the following menu items:
 Columns
Select if you would like to add, remove, or rearrange the columns in MarkitWire Trader (see
“Adding/Removing Onscreen Columns” on page 171 for more information).
 Toolbar
Select if you would like to hide/display the toolbar buttons.
 Header Bar
Select if you would like to view/remove the header section for an onscreen deal.
 Deal Details
Select if you would like to display the details for a selected deal (see “Deal Details” on page
21 for more information).
 Reporting History
Select if you would like to display the details for a selected deal (see “Viewing a Deal’s
Reporting History” on page 162 for more information).
 Deal History
Select if you would like to display the Deal History/Progress pane for the currently selected
deal.
 Status Bar
Select if you would like to hide/display the status bar.
 Set Filter
Select if you would like to set a filter on a search (see “Filtering a Search” on page 67 for
more information).
 Clear Filter
Select if you would like to clear a recently used filter (see “Filtering a Search” on page 67 for
more information).
 Expand Selection
Select if your search for deals has been truncated. All deals corresponding to your search
criteria are displayed onscreen.
 Folder
Select if you would like to open a folder by selecting one of the following sub-menu items (see
"Deal Folders" on page 19 and “Predefined Searches” on page 20 for more information):
o Direct Deals
o Brokered Deals
o Transfers
o Amendments
o Cancellations
o Exercise
o Pre-Accepted Deals
o Allocations
o Intermediated Deals
o Clearing Takeup
o Drafts
o Active Deals
o Novations
o Suggested Matches
o Clearing Eligible
o Clearing Pending
o Clearing Rejected
o Blotter

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4.3.5 Tools Menu

Selecting Tools on the menu bar displays the following menu items:
 Interest Groups
Select if you would like to view, subscribe, or unsubscribe to interest groups. The Interest
Groups dialog is displayed with the available interest groups. Click the checkbox(es) to select
or deselect a particular interest group. If the required interest groups are not displayed,
contact your Internal Helpdesk.
 Change Password
Select if you would like to change your password. The Change Password dialog is displayed
where you can enter and confirm your new password (see “Changing Your MarkitWire
Password” on page 23 for more information).
 PB Eligibility
Select if you would like to change your prime broker eligibility settings. The PB Eligibility
dialog is displayed allowing you to select your role as either the executing broker, customer,
or prime broker and change your settings on a product-by-product basis as applicable.
 Options
Select if you would like to change your default display, book, legal entity and duplication
settings (see “Changing Your Default Field Indicators” on page 171, “Setting Your Default
Book” on page 173, “Setting Your Default Legal Entity” on page 174, “Defining Duplication
Settings” on page 175 and “Customising Your Sound Alerts” on page 181 for more
information).

4.3.6 Help Menu

Selecting Help on the menu bar displays the following menu items:
 Contact Markit
Select if you would like to view contact details for Markit Client Services.
 About
Select if you would like to see which version of MarkitWire you are currently using.

4.4 Onscreen Icons

MarkitWire Trader features a number of icons, both on the main MarkitWire Trader window and
on the compose deal windows, which offer a variety of functionality. The functionality of each of
these icons is detailed in the following sections.

4.4.1 MarkitWire Trader Main Window

MarkitWire Trader main window features the following icons:

Click if you would like to create a new deal. The dropdown allows you to select
one of the following options:
 Direct Deal (see “Composing a New Direct Deal” on page 25 for more
information)
 Prime Brokered Deal (see “Composing a New Prime broker Deal” on page 125
for more information)
 Client Clearing Deal (see “Composing a New Client Clearing Deal” on page
132 for more information)
 Novation Consent Deal (see “Composing a New Novation Consent Deal” on
page 111 for more information)
The Prime Brokered Deal, Client Clearing Deal and Novation Consent Deal
options are only available to users with the relevant permissions.

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Click this icon if you would like to create a duplicate of the selected deal (see
“Duplicating an Existing Deal” on page 32 for more information).

Click this icon if you would like to add, remove, or rearrange the columns in
MarkitWire Trader (see “Adding/Removing Onscreen Columns” on page 171 for
more information). Columns currently onscreen can also be moved by selecting
the column header and dragging with the mouse.

Click this icon if you would like to search for a deal (see “Searching for a Deal” on
page 64 for more information).

Click this icon if you would like to refresh the onscreen data in the Blotter. Only
the deals for the products, books and legal entities for which you are
permissioned are displayed.

Click this icon if you would like to filter the search results (see “Filtering a Search”
on page 66 for more information).

Click this icon if you would like to clear the current filter.

4.4.2 Compose New Deal Window

The Compose New Direct Deal and Compose New Prime Brokered Deal windows feature the
following icons:

Click this icon if you would like to go back to the first screen when composing a
new deal (you will lose any changes made on the current screen).

Click this icon if you would like to affirm the deal and send it to the selected
counterparty to await their acceptance/refusal (see “Affirming a Deal” on page
39 for more information).

Click this icon if you would like to create a duplicate of the deal currently open
onscreen (see “Composing a Duplicate Deal” on page 32 for more
information).

Click this icon if you would like to save and close the deal currently open
onscreen. The draft deal is saved in the Drafts folder.

Click this icon if you would like to transfer the deal currently open onscreen to
another dealer (see “Transferring a Deal” on page 40 for more information).

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4.5 Deal Folders

The deal folders allow you to view the different types of deals that can be received. Which
folders can be viewed is dependent on your user permissions. A number in brackets next to the
folder indicates how many new deals are currently contained within that folder.
Double-clicking a deal displays it in the Deal Details pane (where it can be resized as required)
and the deal progress for that particular deal in the Deals List pane.
The following folders are available:

This folder contains new deals received directly from other dealers on the
MarkitWire system (see “Direct Deals” on page 24 for more information).
This folder contains new deals received from brokers awaiting your
acceptance or rejection (see “Brokered Deals” on page 44 for more
information).
This folder contains all deals that have been transferred to you by other
dealers within your own company (see “Transferring a Deal” on page 40
for more information). Transferred deals are picked up and affirmed in the
same way as deals which have been sent direct to you.

This folder contains deals that have been bilaterally amended by the
counterparty and are awaiting your acceptance or further amendment
(see “Amending a Deal Bilaterally” on page 75 for more information).
Amended deals are picked up and affirmed in the same way as new
deals.
This folder contains all of your deals that have been cancelled by the
counterparty (see “Cancelling a Deal” on page 85 for more information).
Cancelled deals are picked up and affirmed in the same way as new
deals.
This folder contains swaptions and equity options that have been
exercised by the counterparty and are awaiting your acceptance (see
“Exercising Options” on page 92 for more information). Exercised deals
are picked up and affirmed in the same way as new deals.
This folder contains all brokered deals that do not need to be accepted
and cannot be rejected, but remain to be confirmed with the counterparty.
Generally these deals are submitted by FRA switching services or from
electronic execution platforms (see “Pre-Accepted Deals” on page 48 for
more information).
This folder contains deals that have been amended to become allocation
deals that are awaiting your acceptance (see “Allocations” on page 53 for
more information).
This folder contains deals that are being sent to you from the executing
broker (see “Prime Brokerage” on page 123 for more information).
Intermediated deals are picked up and affirmed in the same way as new
deals.

This folder contains deals requiring take-up by the clearing broker as part
of the client clearing deal flow (see “Clearing Take Up Deals” on page
150 for more information).
This folder contains all deals that you have saved as drafts, but not yet
sent to a counterparty.

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This folder contains all deals that are currently in the process of being
booked. A red highlight icon is displayed against any deal(s) requiring an
action such as accept, affirm, accept/affirm, or release. Once the relevant
action has been taken, the red highlight icon is no longer displayed
against that particular deal.
This folder contains all novated deals that have been sent to you and are
awaiting your acceptance or rejection (see “Novations” on page 103 for
more information).

4.6 Predefined Searches

MarkitWire Trader uses different pre-defined searches to allow you to easily view different deal
states. A number in brackets next to the pre-defined search indicates how many deals are
currently contained within that search.
The following pre-defined searches are available:

The Blotter is the principle means of viewing existing deals in the

MarkitWire system and can be used to search for and display a summary of
deals according to your book and legal entity permissions. The Blotter also
enables you to:
 Search for deals
 View the details of a particular deal in the Deal Details pane
 Sort deals by their column contents
 View MarkitWire deal tickets for completed deals
 Amend existing deals, both bilaterally and unilaterally
 Cancel existing deals
 Duplicate existing deals
 Exercise options
 Novate a deal
 Export deals as .csv format files for import into Microsoft Excel
The Novations Blotter pre-defined search is used to display a summary of
all novations available to you (see “Novations” on page 102 for more
information). This functionality is only available to a user with the
appropriate permissions.
The Unmatched pre-defined search is used to display a summary of
available unmatched deals on the MarkitWire system (see “Matching” on
page 163 for more information). This functionality is only available to a user
with matching permissions.
The Clearing Eligible pre-defined search displays deals that have a deal
process state of Done or Released and are eligible to be sent for clearing
(see “Eligibility for Clearing” on page 133 for more information)..
The Clearing Pending pre-defined search displays deals that have been
sent for clearing, but have not yet been accepted (see “Clearing Pending
Deals” on page 140 for more information).
The Clearing Rejected pre-defined search displays deals that have been
sent for clearing, but have been rejected (see “Amending a Deal Rejected
by the Clearing House” on page 75 for more information).

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4.7 MarkitWire Trader Main Window

The MarkitWire Trader main window is divided into three panes; the Deals List, the Deal Details
and the Deal History/Progress panes and includes a number of button-menus to the right-hand
side (the availability of which is dependent on your selections).

4.7.1 Deals List

The Deals List pane displays all the deals available in a particular folder and the search results
when using the Blotter and pre-determined searches. Deals that have not yet been selected
(acknowledged) are displayed in bold.

Note: The details for the currently selected deal are displayed in the Deal Details pane (see
“Deal Details” on page 21 for more information).

In the case of a deal that has been sent to an interest group, it appears onscreen in the Deals
List pane for all members of that interest group. Once the deal has been picked up, it can only
be viewed by the dealer that picked it up and it disappears from the Deals List pane of all the
other dealers. Once picked up, the deal moves from the original folder to the Active Deals folder.
Note: The Deals List pane can be resized as required by clicking the bottom edge of the pane
and dragging it up or down.

4.7.2 Deal Details

The Deal Details pane displays the deal tabs that contain the economics for a particular deal.
These are displayed by selecting a particular deal in the Deals List.
If the details for a particular deal include non-standard values (values that differ from the
MarkitWire deal defaults), the relevant tab(s) and field(s) are highlighted. The default indicators
used in MarkitWire Trader are:

Missing/Invalid Data Tab Indicator

This indicates that one or more of the mandatory fields on this tab is empty and
must be populated for the deal to be able to progress, or that one of the fields
contains an invalid value (see “Invalid Field Indicator” below for more information).
Non-Standard Tab Indicators
These indicate that a field on this tab is different from the MarkitWire defaults. The
original value has either been altered by the initiator of the deal or during the deal
process. A red exclamation mark indicates that the changes on this tab have not
yet been viewed. Once a tab with a red exclamation mark has been selected, the
exclamation mark changes to blue. It is possible to make viewing the changes
mandatory before affirming.
Deal Change Field Indicators
This indicates a change in value since the last time the deal was viewed. If it has
been changed by you it is highlighted in yellow and if it has been changed by your
counterparty it is highlighted in pink. If the next time the deal is sent, the value is
unchanged, it is highlighted as non-standard (green for both sides).
Non-Standard Field Indicator
This indicates a change in value from the MarkitWire defaults, entered by one of
the parties to the deal, that is unchanged since the last time the deal was affirmed.
It is highlighted in green.

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Mandatory Field Indicator

This indicates a mandatory field that must be completed, or a dropdown from
which a value must be selected, for the deal to be able to progress.
Invalid Field Indicator
This indicates that a field contains a value that is invalid (for example, a legal
entity under which you are not permissioned to trade). Hovering over the cross
icon displays popup text providing information on why the value in that particular
field is invalid.

Note: The Deal Details pane can be resized as required by clicking the top or bottom edge of
the pane and dragging it up or down. The colours and indicators for the non-standard,
mandatory and invalid fields and the amended value indicators can be customised to your
own preferences (see “Changing Your Default Field Indicators” on page 172 for more
information).

4.7.3 Deal History/Progress

The Deal History/Progress pane displays the history/progress for a particular deal when selected
in the Active Deals folder, including each update made to the deal, along with a timestamp.

In the case of brokered deals, the notifications show when each of the parties have accepted the
deal with the broker.

Note: The Deal History/Progress pane can be resized as required by clicking the top edge of
the pane and dragging it up or down. Clicking the to the right of the Deal
History/Progress pane removes the pane. It can be re-displayed by selecting Deal History
from the View menu.

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4.8 Changing Your MarkitWire Password

To change your MarkitWire password:
1. Select Change Password from the Tool s menu. The Change Password dialog is displayed.

2. Enter your old password.

3. Enter and confirm your new password.
Note: All MarkitWire passwords must be at least eight characters and contain both letters and
numbers.
4. Click the Remember my user name and password checkbox if you want MarkitWire Trader
to log you in automatically in future.
5. Click OK.
Your password is updated.

4.9 Logging Out of MarkitWire Trader

There are three ways to log out of MarkitWire Trader:
 Select the File menu and then select Logout. The MarkitWire Trader window remains open,
but you are no longer logged in.
 Select the File menu and then select Exit and then confirm that you would like to close the
session. This logs off your connection and closes MarkitWire Trader.
 Click the Close icon in the top-right corner of MarkitWire Trader. This logs off your connection
and closes MarkitWire Trader.

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5 Direct Deals
Each user that enters a transaction (deal) into MarkitWire is referred to as a party to the
transaction and agrees that the terms of that transaction are subject to the terms of the
MarkitWire Provisions, which may be amended and extended by Markit as applicable. The
MarkitWire Provisions should be read in conjunction with the User Terms which all MarkitWire
users (dealers, brokers and end users) have agreed to and executed.

5.1 Dealer to Dealer/End User Process

When dealing direct, a dealer composes and sends a deal to another dealer/interest group/end
user operating in a different institution (participant). These deals can then be picked up or
rejected. If the deal is picked up, MarkitWire Trader allows the deal to be legally confirmed and
released as part of the direct deal process. An overview of the dealer to dealer/end user process
can be seen in the following diagram.

Dealer A Dealer B/End User

Create Deal

Reject Pick Up

Deal is withdrawn Booking State:

Pending
A deal can be withdrawn by either side after it has been A deal can be
picked up, but before it has been released pulled any time
by the side that
Affirm last affirmed
(with changes)

Affirm
(with changes)

Affirm Affirm
(without changes) (without changes)

Booking State:
Release Release
Done

Booking State:
Released

Note: A deal can be transferred by either party to any other users within their own participant at
any point prior to release (and after the deal has been picked up by counterparty). Also,
for end users, the deal is released automatically after they have affirmed it without
changes.

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5.2 Composing a New Direct Deal

Each transaction entered by a party in MarkitWire Trader is sent as a new deal. This new deal
uses standard templates made up of individual tabs that are dependent on the product selected.
Each tab contains the default terms required to produce a complete transaction. These default
terms represent common terms used within the industry. In addition, in some cases the selection
of a value in a field will cause other fields to be populated. Any changes to default values are
highlighted to your counterparty upon receipt of the submitted deal. Deals submitted by brokers
and by MarkitWire Dealer API users operate in exactly the same way as deals composed by
dealers in MarkitWire Trader.
The default terms are displayed as fields which may be selected from a dropdown, entered as
free form text, or calculated automatically from values contained in other fields. These fields can
be classified as follows:
 Mandatory
This means that the field must be populated in order to contain enough information for the
parties to have a complete transaction.
 Conditional Mandatory
This means the requirement to populate the field is dependent upon the completion of another
field.
 Optional
This means the field does not require population in order to create a complete transaction.
 Calculated
This means that the field is automatically populated and derived from information elsewhere in
the relevant template.
Note: Before composing a new deal in MarkitWire Trader, Markit recommend familiarising
yourself with the terminology and meaning of each of the different fields used on the
various Compose New Deal screen tabs for that particular product. This information can
be found in the relevant product annex to the “MarkitWire Provisions”.

To compose a new direct deal:

1. Click the New Deal icon (or select New Direct Deal from the Deal menu). The Compose
New Deal window is displayed.

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2. Click the To button. The Select Addresses dialog is displayed with a list of participants in the
left-hand pane.

Note: You can search for a participant by entering the name in the Participant field at the top of
the dialog to display all matching participants. The list can also be filtered using the radio
buttons to show only dealers, end users or single-sided participants. Non-MarkitWire
participant names are followed by (Single Sided Participant) (see “Composing Single-
Sided Deals” on page 30 for more information).
3. Select the relevant participant. The addressees for that participant are displayed in the right-
hand pane.

Note: You can search for an addressee by entering the name in the Addressee field at the top
of the dialog to display all matching dealers or interest groups. Multiple addresses can be
selected by holding the Shift or Ctrl keys.
4. Select the relevant addressee(s) and click OK.
5. Enter any deal-relevant information in the Message field.
Note: A history of all messages attached to a deal is retained. This can be used later by
operations teams in downstream systems.

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6. Select the relevant options from the Product, Currency, Tenor and Supplement (if
applicable) dropdowns.
Note: When selecting certain CDS, equity and variance swap products, additional functionality
is featured (see “Composing CDS, Equity and Variance Swap Deals” on page 29 for
more information).
7. Click the Next icon. The Main tab is displayed.

The Main tab specifies the principle MarkitWire template for the transaction, with certain
fields automatically populated by MarkitWire. These fields are calculated based on formulas
that either draw from related fields populated by you or your counterparty during the
transaction, related fields found on another tab of the deal, or information previously
provided to the system administrator as being applicable for all transactions of the
designated type on MarkitWire. The content of some fields, although automatically
populated, can still be edited. These fields do not delete or alter any of the terms of the deal.
Note: If you have previously sent a deal to a particular counterparty, you can add their address
by clicking the address field and selecting them from the list. For further information on
the meaning and functionality of the different fields used on the Compose New Deal
screen tabs and the Blotter search parameters, see the relevant annex to the “MarkitWire
Provisions”.

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8. Complete all required fields on all highlighted tabs (see “Deal Details” on page 21 for more
information on the required fields) and perform any additional changes to the default
settings as required. Each tab containing content which has been updated is highlighted
with a .

Note: It is possible for deals to be sent to clearing through MarkitWire by front and middle
Office. A MarkitWire dealer can determine if a deal is to be sent to clearing on the
Clearing tab (see “Eligibility For Clearing” on page 133 for more information).
9. Add the allocation splits if required (see “Adding Allocation Splits to a Deal” on page 55 for
more information on adding allocations to a deal).
10. Provide your required regulatory reporting details (see “Regulatory Reporting” on page 154
for more information on the different report types and the meaning of each regulatory
reporting field to be completed for each reporting jurisdiction).
11. Complete all required private data on the Internal Data tab (see “Completing Internal Data”
on page 29 for more information).

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12. If you are sure the details of the deal are correct, click the Affirm icon (or click the Save &
Close icon to save the deal to the Drafts folder).
The deal appears in your counterparty’s Direct Deals folder and is listed in your Active Deals
folder.
Note: You can also create a new prime broker deal (see “Creating a New Prime Broker Deal”
on page 125 for more information).

5.2.1 Completing Internal Data

Internal data is private for each participant and used for internal records only. Your counterparty
on the deal is unable to access this information, other than the MarkitWire deal ID. To complete
internal data, select the Internal Data tab.

This data can be completed at any time either on the deal screen before release or by unilateral
amendment after release. However, the Book field is mandatory for completion of the deal. This
field is also available on the Main tab. It is possible to set a default value for this field (see
“Setting a Default Book” on page 173 for more information).
Note: The Additional Fields numbered one to five can be renamed by each participant (there
are a maximum of forty available fields that can be added). If you would like to change
these fields please contact your internal helpdesk who can raise the relevant call with
MarkitWire Administration.

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5.2.2 Single-Sided Deals

Single-sided deals allow MarkitWire participants to book deals with counterparties not
subscribed to the MarkitWire system. This allows dealers to have a consistent capture
mechanism regardless of counterparty. Single-sided deals can be received from brokers, or be
entered directly into the system (see “Composing a New Direct Deal” on page 25 for more
information on how to compose a single-sided deal).
After selecting a single-sided participant, MarkitWire Trader recognises that the counterparty is a
non-MarkitWire counterparty and displays Single Sided Deal highlighted in blue on the Main tab.

On a single-sided deal, the Manual Confirmation field on the Processing tab can be set to Yes if
the parties have agreed that a manual confirmation must be created and executed in respect of
the transaction. This indicates that the deal has been recorded on the system and is a single-
sided deal. As such, MarkitWire sets the value of this field to Yes, otherwise it is set to No (you
do not have the ability to amend this value), and the system regards it as a dealer-to-dealer
single-sided deal.

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Once you affirm the deal, MarkitWire Trader recognises that the counterparty is a non-
MarkitWire counterparty and automatically affirms the deal. The deal is displayed in the Deals
List pane with the Single sided deal captured notification and displays Single Sided Deal
highlighted in blue on the Main tab.

However, completion of a single-sided deal is not actually a legal confirmation and consequently
the deal is marked as requiring post-trade confirmation. Where Manual Confirm is specified as
Yes, the electronic record of the transaction is treated as being for information purposes only
and normal post-trade confirmation procedures should be applied. As such, the electronic record
of the transaction does not constitute a confirmation. This also allows downstream systems to
recognise that a deal confirmation must be manually generated.
The completed single-sided deal can now be released in the same way as a standard direct deal
(see “Releasing a Deal” on page 43 for more information).
Note: In the case of a single-sided deal received from a broker, the deal is accepted and
affirmed in the same way as a standard brokered deal (see “Accepting a Brokered Deal”
on page 47 and “Affirming a Brokered Deal” on page 49 for more information).

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5.2.3 Composing CDS, Equity and Variance Swap Deals

When creating a new deal for CDS, equity and variance swap products, additional functionality is
available on the Compose New Deal screen.
To compose a CDS, equity, or variance swap deal:
1. Select one of the CDS, equity, or variance swap options from the Product dropdown. The
Compose New Deal screen is displayed with an additional Search button.

2. Click the Search button. The Find dialog for the selected product is displayed.

Note: The example above is for a CDS Index product. The Find dialog fields are dependent on
the type of product selected.

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3. Enter the search criteria and select a search source (MEDTestIndex or RED Index) from the
Search Sources dropdown.
4. Click the Search button. The matching reference data for the selected for CDS, equity and
variance swap product is populated in the lower pane.

5. Select the relevant reference data in the lower pane and click OK. The fields on the
Compose New Deal screen are populated.

The process for completing a CDS, equity, or variance swap deal is exactly the same as for a
standard direct deal (see “Composing a New Direct Deal” on page 25 for more information).

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5.3 Composing A Duplicate Deal

To save time when composing a new deal, an existing deal that matches some or all of the
criteria of the deal that you would like to compose can be duplicated. Also, you can specify your
duplication settings on a number of tabs for a particular product (see “Defining Duplication
Settings” on page 175 for more information).
To duplicate an existing deal:
1. Search for the deal that you would like to duplicate (see “Searching for a Deal” on page 64
for more information).
2. Click the Duplicate icon. The Compose New Deal screen is displayed with the information
from the original deal populating the fields.

3. Enter a book and make any other necessary changes.

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4. Click the To button. The Select Addresses dialog is displayed.

Note: You can search for a participant by entering the name in the Participant field at the top of
the dialog to display all matching participants. The list can also be filtered using the radio
buttons to show only dealers, end users or single-sided participants.
5. Select the relevant participant. The addressees for that participant are displayed in the right-
hand pane.

Note: You can search for an addressee by entering the name in the Addressee field at the top
of the dialog to display all matching dealers or interest groups. Multiple addresses can be
selected by holding the Shift or Ctrl keys.
6. Select the relevant addressee(s) and click OK.
Note: You can search for an addressee by entering the name in the Addressee field at the top
of the dialog. All matching dealers or interest groups are displayed. Multiple addresses
can be selected by holding the Shift or Ctrl keys.

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7. Enter any deal-relevant information in the Message field.

8. Add the allocation splits if required (see “Adding Allocation Splits to a Deal” on page 55 for
more information on adding allocations to a deal).
9. Provide your required regulatory reporting details (see “Regulatory Reporting” on page 154
for more information on the different report types and the meaning of each regulatory
reporting field to be completed for each reporting jurisdiction).
10. Enter your internal data on the Internal Data tab (see “Completing Internal Data” on page 29
for more information).
11. If you are sure the details of the deal are correct, click the Affirm button (or click the Save &
Close icon to save the deal to the Drafts folder).
The process for a duplicate deal follows the same process as for composing a new direct deal.
Duplicate deals are affirmed and released in exactly the same way a new deal (see “Affirming a
Deal” on page 39 and “Releasing a Deal” on page 43 for more information).

5.4 Picking Up a Deal

Deals sent to more than one user are shown in the relevant folder for every recipient. However,
only one dealer can pick up the deal. When a deal is picked up, it moves from the Direct Deals
folder to your Active Deals folder and is removed from all of the other dealers’ screens.
To pick up a deal:
1. Open the relevant folder. The available deals are displayed in the Deals List pane.

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2. Select the relevant deal. It is displayed in the Deal Details pane and the buttons are
activated on the right-hand side.

Certain fields are automatically populated by MarkitWire. These fields are calculated based
on formulas that either draw from related fields populated by you or your counterparty
during the transaction, related fields found on another tab of the deal, or information
previously provided to the system administrator as being applicable for all transactions of
the designated type on MarkitWire. The content of some fields, although automatically
populated, can still be edited. These fields do not delete or alter any of the terms of the deal.
3. Check the deal tabs to ensure that you are happy with the basic economics of the deal.
4. Select a book from the Book dropdown on the Main tab.
5. Click the Pick Up button (or double-click the deal in the Deals List pane).
The initiator of the deal receives a message confirming that the deal has been picked up. If the
deal was sent to an interest group, it disappears from the folder (or Deal Details pane if already
opened) of the other members of that interest group.
You can now make the relevant changes to the deal economics, or if you are happy with the
economics you can affirm the deal (see “Affirming a Deal” on page 39 for more information).
Note: It is possible to pick up and affirm a pre-accepted deal in one step by clicking the
Pickup/Affirm button (see “Accepting/Affirming Pre-Accepted Brokered Deals” on page 48
for more information). If you pick up a deal by mistake, it is possible to transfer the deal to
another user or interest group, as long as they are logged into MarkitWire (see
“Transferring a Deal” on page 40 for more information).

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5.5 Rejecting a Deal

Once you have picked up a deal, should you realise that the deal is not for you, it can be
transferred to another dealer (see “Transferring a Deal” on page 40 for more information).
However should the deal not be relevant for your participant, you can reject it.
To reject a deal:
1. Click the Reject button. The Reject dialog is displayed.

2. Enter a reason for rejecting the deal (if required) and click OK.
The deal disappears from your screen and your reason for your rejection is displayed on the
screen of the deal’s initiator.

5.6 Reverting Your Changes to a Deal

While you are in control of a deal you can revert any changes you have made to a deal’s
economics, rather than update each field that was changed. If you affirm the deal before
reverting, you no longer have control and need to pull the deal to regain control (see “Pulling a
Deal” on page 41 for more information). However, once the deal has been pulled you can no
longer revert your changes and must change each field manually.
To revert your deal changes:
1. Select the deal which has the changes you would like to revert.

2. Click the Revert button.

Your changes are removed and the deal returns to its previous state.

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5.7 Affirming a Deal

When affirming a deal, you can either agree to the deal economics or make further amendments
and send the deal back for review by your counterparty. The Affirm button is only available for
the dealer currently in control of the deal. However, if you no longer have control of the deal you
can pull the deal to regain control (see “Pulling a Deal” on page 41 for more information).
Note: It is also possible to affirm a deal without first picking it up. This allows you to perform
multiple deal actions in a single action. However, although this give the impression of
jumping steps in the life-cycle of a MarkitWire deal, in fact the required steps are being
performed in the background by MarkitWire Trader. Consequently, clicking Affirm on a
deal in the Direct Deals folder first picks up the deal and then affirms it.

To affirm a deal:
1. Display a deal that you have already picked up.
2. Make any relevant changes to the deal economics.
3. Provide your required regulatory reporting details (see “Regulatory Reporting” on page 154
for more information on the different report types and the meaning of each regulatory
reporting field to be completed for each reporting jurisdiction).
4. Enter your internal data on the Internal Data tab (see “Completing Internal Data” on page 29
for more information).
5. Click the Affirm button.
Once the deal has been affirmed without changes by both parties, the status of the deal changes
to Done and MarkitWire generates an electronic record of the terms of the deal. This record is
called the trade affirmation. An affirmation is sent to the parties to the deal and constitutes a
confirmation for the purposes of the applicable master agreement. The Done notification is
displayed in the Deals List pane.

Once a deal has reached a status of Done, the Release button is activated and it is now possible
to release the deal (see “Releasing a Deal” on page 43 for more information).

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5.8 Bulk Affirming Deals

You can also bulk affirm multiple deals by holding the Shift or Ctrl keys when selecting the deals
in the Deals List and clicking the Affirm button. A confirmation prompt is displayed.

If you are sure that you would like to bulk affirm the selected deals, click Yes.
Once the deals have been affirmed without changes by both parties, the status of the deals
changes to Done and MarkitWire generates an electronic record of the terms of the deal. This
record is called the trade affirmation. An affirmation is sent to the parties to the deal and
constitutes a confirmation for the purposes of the applicable master agreement. The Done
notification is displayed in the Deals List pane (see “Affirming a Deal” on page 39 for more
information).
Once the deals have reached a status of Done, the Release button is activated and it is now
possible to release the deals (see “Releasing a Deal” on page 43 for more information).

5.9 Transferring a Deal

A deal can be transferred to another user within the same participant at any time after it has
been picked up and before it has been released.
To transfer a deal:
1. Select the relevant deal from the Active Deals folder to display it in the Deal Details pane.
2. Click the Transfer button. The Transfer Deal dialog is displayed showing a list of all dealers
and interest groups that exist within your participant.

Note: You can search for an addressee by entering the name in the Transfer to field to display
all matching dealers or interest groups. It is not possible to transfer a deal to a dealer or
interest group that exists outside your participant.
3. Select the relevant dealer(s) and/or interest group(s). Multiple dealers/interest groups can
be selected by holding the Shift or Ctrl keys.
Note: A dealer/interest group can be deleted from the To field by selecting the relevant
dealer/interest group and clicking the icon.

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4. Enter a message for the recipient(s) of the transfer, if applicable.

5. Click OK.
The deal disappears from your screen. Your counterparty is not notified that you have
transferred the deal or to whom it has been transferred.
Note: You can also bulk transfer deals by selecting multiple deals and clicking the Transfer
button. However, only deals that are eligible can be transferred. The deals can be
transferred to a single user or to an interest group. The same validations are applied to
each deal selected as if it is a single deal transfer.

5.10 Pulling a Deal

If you realise the deal you have just sent contains incorrect information in the deal economics, it
is possible to prevent your counterparty from affirming the deal by pulling it back to your side.
To pull a deal:
1. Select the relevant deal from the Active Deals folder to display it in the Deal Details pane.
2. Click the Pull Deal button. The deal is pulled back to your side and a Deal Pulled notification
is displayed in the Deals List pane.

At this stage only you have access to the deal. You can now make the necessary changes and
click Affirm to resend the deal to your counterparty (see “Affirming a Deal” on page 39 for more
information).

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5.11 Withdrawing/Withdrawing from a Picked Up Deal

You can cancel your interest in a picked up deal by withdrawing from it. This is only possible
when the deal has not been affirmed by both sides.
To withdraw from a deal:
1. Select the relevant deal from the Active Deals folder to display it in the Deal Details pane.
2. Click the Withdraw button (or select Withdraw from the Deal menu). A prompt is displayed
confirming that you would like to withdraw from the deal.

Note: Click the Don’t ask this question again checkbox if you do not want to see this prompt
when withdrawing a deal in the future.
3. If you are sure that you would like to withdraw/withdraw from the deal, click Yes.

The deal is removed from the screen of the party that withdraws/withdraws from the deal. The
Withdrawn notification is displayed in the Deals List and Deal History/Progress panes of the non-
withdrawing party to confirm that their counterparty has withdrawn/withdrawn from the deal.

Click Close to remove the withdrawn deal from the screen.

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5.12 Releasing a Deal

Once a deal has been affirmed without changes and has a status of Done, it can be released.
To release a deal, select the relevant deal and click the Release button. The deal is removed
from the screen and can now only be viewed through the Blotter (see “Searching for Deals” on
page 53 for more information) or in MarkitWire Tracker (see the “MarkitWire Tracker User Guide”
for more information).
Note: You can also bulk release deals by selecting multiple deals and clicking the Release
button. However, only deals that are eligible can be released (for example, if ten deals
are selected and only eight are eligible, then the eight eligible deals are released and the
remaining two are not).

5.13 Deleting a Draft Deal

You can delete the deals that you have saved as drafts, but have not yet sent to a counterparty,
if they are no longer required.
To delete a draft deal:
1. Select the Drafts folder to display your draft deals.

2. Select the relevant deal in the Deals List folder to display it in the Deal Details pane.
3. Click the Delete button. A confirmation prompt is displayed.

4. If you are sure that you would like to withdraw from the deal, click Yes.
The deal is deleted from the Drafts folder and removed from MarkitWire.

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6 Brokered Deals
Brokered deals are first sent from a broker to two dealers/interest groups operating in different
institutions. These deals can then be picked up or rejected. If the deal is picked up (the dealers
can agree to the deal by clicking Accept/Affirm, or by clicking Accept and then Affirm separately
if they intend to change the details of the deal after signalling acceptance to the broker).
Note: MarkitWire Trader allows the deal to be legally confirmed and released as part of the
brokered deal process.

6.1 Brokered Deal Process

An overview of the broker to dealer/end user deal process can be seen in the following diagram.

Broker Dealer A Dealer B/End User

Create Deal

Reject Pick Up Reject Pick Up

Booking State:

Resubmit
Pending
A deal can be
Terminate pulled by the
Accept broker or the
dealer that last
Accept
affirmed and
rejected by
either dealer
any time after it
Affirm
has been
(with changes)
accepted
A deal can be withdrawn
Affirm by either side after it has
(with changes) been picked up, but before
it has been released

Affirm Affirm
(without changes) (without changes)

Booking State:
Release Release
Done

Booking State:
Released

Note: A broker can terminate a deal at any time after it has been rejected, or readdress the deal
to a different set of dealers from the same participants selected in the original deal and
resubmit (but not to dealers from different participants).

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6.2 Picking up a Brokered Deal

To pick up a brokered deal:
1. Open the Brokered Deals folder. The available brokered deals are displayed in the Deals
List pane.

2. Select the relevant deal. It is displayed in the Deal Details pane and the buttons are
activated.

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Certain fields are automatically populated by MarkitWire. These fields are calculated based
on formulas that either draw from related fields populated by the broker, related fields found
on another tab of the deal, or information previously provided to the system administrator as
being applicable for all transactions of the designated type on MarkitWire. The content of
some fields, although automatically populated, can still be edited. These fields do not delete
or alter any of the terms of the deal.
3. Click the Pick Up button or double-click the deal.
The initiating broker receives a message confirming the deal has been picked up. Neither side
can edit the deal until both parties have accepted it. Once this is the case, the Broker Code,
Brokerage, Currency and Notional fields are all read only and cannot be altered.

6.3 Rejecting a Brokered Deal

Once you have picked up a deal, should you realise that the deal is not for you, it can be
transferred to another dealer (see “Transferring a Brokered Deal” on page 49 for more
information). However should the deal not be relevant for your participant, you can reject it.
To reject a brokered deal:
1. Click the Reject DK button. The Reject DK prompt is displayed.

2. Enter a reason for rejecting the deal (if required) and click OK.
The deal disappears from your screen and your reason for your rejection is displayed on the
screen of the initiating broker. Once a deal has been rejected, the broker must resubmit the deal
before it can be viewed and picked up by another dealer.

6.4 Requesting Revision of a Brokered Deal

Once you have picked up the deal, should there be an error in the terms submitted by the broker
(for example, an incorrect rate or notional), you can request that the deal be revised.
To request revision of a brokered deal:
1. Select the deal requiring revision.
2. Click the Pls Revise button. The Pls Revise dialog is displayed.

3. Enter a reason for revising the deal and click OK.

The Waiting for broker revision message is displayed in the Deal History/Progress pane for both
you and the initiating broker. The broker can now adjust the deal economics and resubmit the
deal.

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6.5 Accepting a Brokered Deal

Once you have picked up the deal, if you would like to proceed you must verify that you agree
with all details entered by the broker.
To accept a brokered deal:
1. Display a deal that you have already picked up
2. Click the Accept button. If both sides have accepted the deal, the deal status changes to
Both counterparties have accepted in the Deals List and Deal History/Progress panes. If
your counterparty has not yet accepted, the Waiting for counterparty to accept notification is
displayed

If your counterparty has used the Accept/Affirm button (see “Accepting/Affirming Pre-Accepted
Brokered Deals” on page 48 for more information), the Affirm button is now available (see
“Affirming a Brokered Deal” on page 49 for more information).

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6.6 Accepting/Affirming Pre-Accepted Brokered Deals

Pre-accepted deals originate from an electronic service provided by a broker with which the you
have an agreement. Deals are generated automatically between counterparties based on
agreed user terms for the service. A typical example of such a service might be one that allows
dealers to hedge interest rate positions through the matching of offsetting positions with each
other and resulting in the automatic generation of the necessary FRA deals. Only deals from a
source recognised by MarkitWire are permitted. These deals follow the same model as standard
brokered deals, however, you cannot reject a pre-accepted deal or request a revision directly
through MarkitWire.
The process starts with a broker submitting a deal. In order to accept the deal, each side must
first pick it up. On picking up the deal, a notification is sent and a separate notification is sent for
each side’s action. You still needs to wait for the other side to accept the deal details before it is
considered as being confirmed with the broker.
Note: If a you find that any deal details are incorrect, you must contact the broker and ask them
to withdraw the deal and re-submit or cancel it. For pre-accepted deals, you cannot reject
the deal yourself.

This method is the fast track to completing a brokered deal. By using this method you are
accepting with the broker and affirming with the counterparty dealer in one step.
To accept/affirm a brokered deal:
1. Display a deal that you have already picked up.
2. Click the Accept/Affirm button. If both sides have affirmed the deal, the deal status changes
to Both counterparties have accepted in the Deals List and Deal History/Progress panes. If
your counterparty has not yet accepted, the Waiting for counterparty to accept notification is
displayed.

Once the deal has been affirmed without changes by both sides, it is possible to release the deal
or transfer the deal to another dealer.

If a pre-accepted deal is withdrawn by the broker to correct the deal economics, it can be
re-submitted and the deal process starts all over again. Once both parties have accepted the
details the broker sent through, the deal reaches a booking state of Accepted. This is equivalent

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to both sides having confirmed the deal with the broker. A notification is sent and no further
action is required on the part of the broker.
Note: If the broker wants to cancel a pre-accepted deal, this follows the same process as for a
standard brokered deal (see “Broker Cancellation of a Deal” on page 51 for more
information.

6.7 Affirming a Brokered Deal

Once both users have accepted they must affirm the deal with their counterparty to proceed. If
you have already clicked the Accept/Affirm button, the deal has been affirmed on your side and
the Affirm button is greyed out. Brokered deals are affirmed in the same way as direct deals (see
“Affirming a Deal” on page 39 for more information).

6.8 Pulling a Brokered Deal

If you realise the deal you have just sent has an error in the deal screen it is possible to prevent
your counterparty from affirming the deal. Brokered deals are pulled in the same way as direct
deals (see “Pulling a Deal” on page 41 for more information).

6.9 Releasing a Brokered Deal

Once a brokered deal has been affirmed by both sides, it can be released. Brokered deals are
released in the same way as direct deals (see “Releasing a Deal” on page 43 for more
information).

6.10 Transferring a Brokered Deal

A deal can be transferred to another user within the same participant at any time after it has
been picked up and before it has been released. Brokered deals are transferred in the same way
as direct deals (see “Transferring a Deal” on page 40 for more information).

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6.11 Broker Withdrawal of a Deal

If the broker wants to update the economics of a deal, they can withdraw it on their side. When a
deal is withdrawn by the broker, you receive the notification Waiting for broker revision.

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6.12 Broker Termination of a Deal

If the broker wants to permanently end a deal they have submitted, they can terminate it on their
side. When a deal is terminated by the broker, you receive the notification Withdrawn by broker.

Click Close to remove the terminated deal from the screen.

Note: Once a broker cancels a deal, it can never be resubmitted and the MarkitWire deal ID
that was used can never be used again.

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6.13 Swap Execution Facility (SEF) Deals

The trading of certain types of swaps is regulated a result of Dodd–Frank legislation
requirements in the United States. A swap execution facility (SEF) is a regulated trading system
or platform which allows eligible participants to execute swaps transactions by accepting bids
and offers made by other participants in the system.
The role of the SEF allows for transparency and provides the tools for a complete record and
audit trail of deals. Consequently, all SEF transactions in MarkitWire must provide a USI for
reporting to the CFTC. Deals executed on a SEF, with limited exceptions, are sent for clearing
as soon as technologically practicable.
Brokers which have multiple legal entities set up in MarkitWire can now identify one of those
legal entities as being registered as a SEF on the MarkitWire system. SEF deals can be
identified by the SEF Traded Deal indicator on the Main tab.

They are also identified on the deal ticket under the Regulatory Reporting Data section in the
Execution Venue field with the SEF indicator.

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7 Allocations
An allocated transaction is made up of a number of deals comprising the original block deal plus
between two and up to 999 sub-deals. An allocated deal can be created as a standard direct
deal between a dealer and their counterparty (either another dealer or an end user), with the
allocations specified as part of the deal economics. Alternatively, an allocated deal can be
initiated by a broker. Recipients of an allocated deal can accept or reject the deal in the same
way as for a non-allocated deal.
There are three ways in which a deal can be allocated, either as a new deal (before pick up), a
new deal after pick up but before it has been accepted (during the affirm/revise cycle) and as an
amendment to an existing deal after it has been released. All three processes result in the
creation of a block deal and the allocation splits.

7.1 Allocation Block Deals

The block deal is the original parent deal negotiated between the two parties in which all the split
details are agreed. This is simply a holding deal (one stage negotiating deal) which is used to
automatically generate the sub-deals (splits) after acceptance.
The non-initiating party picks up the block deal and negotiates the terms with the initiator in
exactly the same way as for a standard direct deal. The allocation details can be entered at any
point by either party when the block deal is being negotiated. An end user can request a revision
and/or submit an allocation request to the dealer via a spreadsheet upload. Both parties can
withdraw/withdraw from the deal at any time.
Once both you and your counterparty have agreed the block deal and allocation splits, the block
deal reaches a booking state of Done and awaits release by both parties (or by the dealer if the
transaction is with an end user). Once the allocated deal is released, it has a new contract state
of Allocated (a terminal state) and is effectively cancelled.

7.2 Allocation Splits

The allocation splits are the child sub-deals automatically generated by MarkitWire once the
block deal reaches booking state of Released and a contract state of Allocated. The sub-deals
now become independent deals with a contract state of New-Allocation and the options chosen
by each party determine whether or not re-affirming the secondary deals is required.
They sub-deals are created with the details laid out in the block deal, except for legal entity/fund,
notional, additional payment(s), independent amount(s) and sales credit. These can be specified
for each split within a matrix on the block deal, all of which may or may not be different from
each other.
Any number of sub-deals can make up a set. A set is only created when a proportion of sub-
deals need to be authorised by a different legal entity (third party or administrator) to the party
negotiating the original block deal. Also, any number of sets can be created, dependent on the
number of third parties and administrators involved.

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Sub-deal sets can fall into one of the following four types:
 Auto-accept (dealer/end user)
This type of allocation consists of sub-deals directly between a dealer and an end user. The
moment the allocation sub-deals are created, they reach a booking state of Done and
Released for both parties.
 Auto-accept (single-sided participant)
This type of allocation consists of sub-deals between a dealer and a counterparty who is not
on MarkitWire. The system recognises this as a single-sided deal set and auto-affirms and
releases the allocation sub-deals.
 Manual accept
This type of allocation consists of sub-deals between two dealers. Both parties can accept
each deal in the deal set, which allows them to reach a booking state of Done. The allocation
sub-deals can then be released as normal. Alternatively, one or both of the parties can
request a revision which results in the allocation sub-deal(s) going into a revise-affirm cycle.
 Manual accept (administrator authorisation only)
This type of allocation consists of sub-deals that must be authorised by an administrator
because either the end user is acting as their advisor (initiating the deal on their behalf, after
which the third party must affirm the sub-deals) or because administrators need to act as the
final authority to affirm the sub-deals. If so, the administrator is automatically sent “deal set p”,
as initiated by the end user, and can only transfer with internal data changes. The
administrator either transfers back to the end user, or requests a revision. The end user finally
accepts each deal and they reach a booking state Done.
Note: Administrators that need to authorise a sub-deal, before the end user finally affirms it, are
described here as administrators. To avoid confusion, this process can be thought of as
administrator authorise.

The sub-deals are now independent deals. The options chosen by each party determine whether
or not re-affirmation of the secondary deals is required. Post-release actions on sub-deals are
possible and have to be bilaterally agreed as standard. It is possible to allocate an existing New-
Allocation deal, as part of a bilateral amendment.
Note: Dealers are only ever required to action sub-deals if a revision is requested by the
counterparty.

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7.3 Adding Allocation Splits to a Deal

The allocations functionality allows you to split a master deal into many children deals. The
parties involved can be changed for each child and the deal amounts (notional, additional
payments, independent amount) are split across the children as specified in the allocation grids.
All other aspects of the master deal (for example currency, dates, rolls, break details, etc.) are
duplicated across each child deal.
A new allocated deal is composed in exactly the same way as a standard direct deal (see
“Composing a New Direct Deal” on page 25 for more information), however, the allocation splits
are also added before the deal is affirmed.
To add the allocation splits:
1. Select the Allocation tab.

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2. Click the Allocated checkbox to activate the tab. The selected counterparty is added.
3. Click the + button to add additional splits. A new row is added to the splits.

Note: You can also import a .csv file containing the allocation details by clicking the Import
button and selecting the relevant file.
4. Change the parties of each child deal (if applicable) by clicking in the We or Cpty fields.
5. Enter the relevant percentage for each child deal, or click the Split button to divide equally
between all child deals.

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6. Complete all required fields on all highlighted tabs including the Independent Amount and
Add’l Payments tabs where the allocation grid also appears.

7. If you are sure the details of the allocations are correct, click the Affirm icon (or click the
Save & Close icon to save the deal to the Drafts folder).
Once affirmed, the allocation block deal appears in your counterparty’s Direct Deals folder and is
listed in your Active Deals folder. After the allocation block deal has been affirmed without
changes and released, it has a contract state of Allocated and is effectively cancelled.
The allocation sub-deals now become independent deals with a contract state of New-Allocation
and the pre-determined settings for each party decide whether or not re-affirming the secondary
deals is required.
If the sub-deals require manual affirmation, they appear in the Allocations folder and are affirmed
and released in the same way as the original block deal (see “Affirming a Deal” on page 39 and
“Releasing a Deal” on page 43 for more information). Once the allocations have been affirmed
by both sides the Done notification is displayed.

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7.4 Allocations to Follow

A broker can submit an allocated deal without having the allocation information at the time of
initial submission by specifying that the allocations are to follow later. This allows the recipient
parties to record the deal in their systems and update their risk position in advance. In this type
of deal the broker does not leave the deal until the re-submitted allocated deal has been re-
accepted by both parties.
The allocations to follow workflow adds an additional phase to the standard brokered deal
workflow. In the first phase the broker creates an empty block deal, providing the deal
economics in the same way as for a standard brokered deal and then instead of providing the
full allocation splits for the block deal, they select the Allocations To Follow checkbox on the
Allocation tab. The deal appears in your Brokered Deals folder as standard. On the Allocation
tab there are no allocation splits and the Allocations To Follow checkbox is selected.

You can affirm the deal in the usual way. However, once affirmed by both parties, the deal
cannot be released.
In the second phase, once the deal has been affirmed by both parties, the broker withdraws the
deal to populate the allocation splits. Once the allocation splits have been added to the deal, the
broker resubmits it to the original parties, providing any relevant information in the Message
field. Both parties can now affirm and release the deal.
Once affirmed and released, the allocations to follow block deal has a contract state of Allocated
and is effectively cancelled. The allocation sub-deals now become independent deals with a
contract state of New-Allocation and the pre-determined settings for each party decide whether
or not re-affirming the secondary deals is required.
If the sub-deals require manual affirmation, they appear in the Allocations folder and are affirmed
and released in the same way as the original block deal (see “Affirming a Deal” on page 39 and
“Releasing a Deal” on page 43 for more information). Once the allocations have been affirmed
by both sides the Done notification is displayed.

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7.5 Viewing the New Allocation Deals

To view the allocation splits that have been created with the release of the original allocation
block deal, create a saved search under the contract state of New-Allocation as shown in the
following example.

The new allocation deals are listed in the Deals List pane showing the contract state of New-
Allocation.

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Double-clicking a deal opens a browser window and the deal ticket is displayed showing a
contract state of New-Allocation.

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8 Amortising/Accreting Swaps
An amortising swap is usually an interest rate swap in which the notional principal for the interest
payments declines during the life-time of the swap. Accretion is the actual value created after a
particular transaction. A deal is always earnings accretive if the acquirer's price-to-earnings ratio
is greater than the target's price-to-earnings ratio, including the acquisition premium.
The amortising/accreting feature supports the step-up or step-down of the notional amount, fixed
rate or floating rate spread during the term of the swap.

8.1 Amortising, Accreting and Rollercoaster Swaps

Amortising, accreting and rollercoaster interest rate swaps are confirmed just like regular interest
rate swaps, with the except that the amount specified in the Notional field is the notional amount
as of the effective date.
Amortising interest rate swap are interest rate swaps where the notional reduces at specified
intervals throughout the life of the deal. Accreting interest rate swap are interest rate swaps
where the notional increases at specified intervals throughout the life of the deal. Rollercoaster
interest rate swap are interest rate swaps where the notional both reduces and increases at
specified intervals throughout the life of the deal. Changes to the notional amounts are specified
in the notional schedule fields.
The schedule of dates on which the notional amount should be specified is the Dates field, listed
in chronological order. The dates should be in chronological order with the first date after the
effective date and the last date before the termination date. Each date can only be used once.
A list of new notional amounts effective from the associated notional schedule dates should be
specified in chronological, not numerical order (i.e. specified in the same order as the
corresponding dates). The new notional amounts (applicable from given dates) and not the
changes to the notional amounts should be specified. The first date in the list is linked to the first
notional amount in the notional amounts list. There must be the same number of notional
amounts and dates specified.

8.2 Fixed Rate Schedules

Deals sometimes have multiple fixed rates. With each fixed rate applying for a portion of the
deal. This is often on amortising, accreting and rollercoaster interest rate swaps but equally can
occur on a swap with a fixed notional.
The schedule of dates on which the fixed rate should be specified is the Date field, listed in
chronological order. The first date should be after the effective date and the last date should be
before the termination date. Each date can only be used once.
A list of new fixed rates effective from the associated fixed rate schedule dates should be
specified in chronological, not numerical order in the Fixed Rate field (i.e. the rates should be
specified in the same order as the corresponding dates). The new fixed rates (applicable from
given dates) and not the changes to the fixed rates should be specified. The first date in the list
is linked to the first fixed rate in the fixed rate schedule list. There must be the same number of
fixed rates and dates specified.

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8.3 Composing an IRS Amortising Deal

A new IRS amortising deal is composed in exactly the same way as a standard direct deal (see
“Composing a New Direct Deal” on page 25 for more information), however, the notional, fixed
rate and spread can be redefined before the deal is affirmed.
Note: The Amortising/Accreting tab is only available on IRS deals and is only visible to users
that have been set up with the “Amortising” permission.

To compose a new IRS amortising deal:

1. Select the Amortising/Accreting tab. The Amortising/Accreting tab is displayed showing the
Pay and Rec panes.

The date columns under Rec and Pay reflect the date that the change in the notional, fixed
rate or spread becomes effective and cannot be edited on this tab. These values are set in
the Notional and Fixed Rate fields on the Main tab and in the Spread field on the
Index/Bonds tab.
These dates are calculated by the MarkitWire system and cannot be overridden. For the
fixed leg, the dates reflect the unadjusted calculation period start dates with respect to fixed
amounts. For the floating leg, the dates reflect the unadjusted calculation period start dates

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with respect to floating amounts, or if compounding is specified for the deal, the dates reflect
the unadjusted compounding period start dates. For both, the fixed and floating leg the initial
calculation period will commence on, and include, the deal effective date.
2. Click the Amortising/Accreting checkbox to activate the tab. The fixed Notional, Fixed Rate,
floating Notional and Spread columns are available for edit.
Note: If the Amortising/Accreting checkbox is unchecked, the Notional, Fixed Rate and Spread
columns are read-only and the values in all rows reflect the values for the notional and
fixed rate specified on the Main tab and the value for the spread entered on the
Index/Bonds tab (i.e. no step-up or step-down schedules can be entered).
3. Enter the relevant changes in the fixed Notional, Fixed Rate, floating Notional and Spread
columns.
Note: You can also import a .csv file containing the amortising details by clicking the Import
button and selecting the relevant file.
4. If you are sure the details of the deal are correct, click the Affirm icon (or click the Save &
Close icon to save the deal to the Drafts folder).
The deal appears in your counterparty’s Direct Deals folder and is listed in your Active Deals
folder.
A step-up or step-down change in notional amount or fixed rate on the fixed leg and a step-up or
step-down change in notional amount or spread on the floating leg are displayed on the deal
ticket (see “Viewing the Deal Ticket” on page 69 for more information).

8.4 Amending IRS Amortising Deals

Amendments of IRS amortising deals are processed in the same way as for a standard IRS
deal, with the exception that it is important to populate the notional amount with the current
notional amount as of the effective date of the amendment rather than the original notional
amount specified on the deal. It is also important to specify the amended notional schedule
without any dates or amounts relating to those dates that are prior to the effective date of the
amendment.
A partial termination of an IRS amortising deal can be processed as an amendment as the
notional schedule fields cannot be changed on a termination. However, full terminations are not
supported.

8.5 Novating IRS Amortising Deals

A partial novation of an IRS amortising deal has to be processed as an amendment (see
“Amending IRS Amortising Deals” above for more information), to reduce the notional and adjust
the notional schedule on the old transaction, and a new deal between the transferee and the
remaining party, with a notional equal to the amount novated and a new notional schedule for
the new transaction. However, full novations are not supported.

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9 Searching for Deals

The Blotter is used to display a summary of deals according to your book permissions and the
search parameters selected (see “Appendix A: Search Parameters” for more information on the
search options available for selection).

9.1 Searching for a Deal

You can search for a deal or set of deals using a range of deal-relevant criteria. However, only
deals assigned to a particular book are displayed. It is also possible to search against an internal
deal ID if one has been assigned to the deal.
To search for a deal:
1. Click the Search icon. The Search dialog is displayed.

2. Select the relevant search option from the first dropdown (see “Appendix A: Search
Parameters” for more information). The available options in the second dropdown change to
match your selection).
3. Select the mandatory option from the second dropdown, or enter a relevant value.
Note: To add additional search criteria, click the + button. Additional rows are added to the
Search dialog. Select the relevant options from the dropdowns as before. Clicking the –
button removes the bottom row of filter criteria.
4. Click OK. Deals matching your search criteria for the products and books for which you are
permissioned are displayed (if there are no matching results, an error message is
displayed).

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If there are more than two hundred deals matching the search criteria, the results are truncated.
The search criteria remain at their current settings (including being carried over to different
sessions) until replaced with a new search.
Note: For more information on searching for clearing deals, see “Searching for Clearing Deals”
on page 153. For an example clearing take up search, see “Example Clearing Take Up
Search” on page 153 and for example matching searches, see “Example Matching
Searches” on page 168 for more information.

9.2 Saving a Search

You can save the searches performed in MarkitWire Trader under the Blotter so that they can be
used again in the future.
To save a search:
1. Click the Search icon. The Search dialog is displayed.

2. Enter the parameters for the search you would like to save (see “Searching for a Deal” on
page 64 for more information).

3. Click Save. The Save dialog is displayed.

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4. Enter a name for the search and click OK. The search is added in the Navigation pane
underneath the Blotter.

9.3 Deleting a Saved Search

You can delete a saved search once it is no longer required.
To delete a saved search:
1. Click the Search icon. The Search dialog is displayed.

2. Select the relevant saved search from the bottom left-hand dropdown. The saved search is
displayed.

3. Click the Delete button.

The saved search is deleted from the Search dialog and from under the Blotter in the Navigation
pane.

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9.4 Filtering a Search

The filter enables you to display only a particular portion of the search results. For example, if
you only require deals in US dollars, you can set that in the filter, so that regardless of the
criteria selected in the Search dialog, the results are only ever in US dollars.
If the filter is applied after your search results are displayed, it allows you to view the search
results in different ways without refreshing the search.
To set a filter:
1. Select the Blotter pre-defined search. The Blotter is displayed.

2. Click the Filter icon. The Filter dialog is displayed.

3. Select the relevant filter criteria from the dropdowns.

Note: To add additional filter criteria, click the + button. Additional rows are added to the Filter
dialog. Select the relevant options from the dropdowns as before. Clicking the – button
removes the bottom row of filter criteria.

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4. Click Apply and then click OK to close the Filter dialog. A notice that a filter has been
applied is displayed above the Deals List.

Once set, the filter remains on until it is removed (including carrying over to different sessions).
When a filter is applied, the Clear icon is active.

9.4.1 Removing a Filter

To remove a filter, click the Clear icon. The filter is removed and the screen automatically
refreshes to show all details.

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9.5 Viewing the Deal Ticket

To view the ticket for a particular deal, select the relevant deal and or double-click it. A browser
window opens and the deal ticket is displayed.

Alternatively, you can click the Display Ticket button and select the required option (Show in
Browser, Show SWML, Save as HTML, or Save as SWML).
Note: If the ticket is not displayed, it may be because the stylesheet has not been set up
correctly. If this is the case, contact your internal helpdesk to resolve this.

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9.6 Adding/Removing Onscreen Columns

The Deal Details and Deal History/Progress panes feature a number of columns which consist of
the different fields on the Deal screen tabs. You can alter which columns are displayed onscreen
by adding and removing particular columns to suit your requirements.
To add/remove columns:
1. Click the Columns icon (or press the F2 key). The Columns dialog is displayed.

2. Select the column(s) that you would like to add to the Blotter screen from the left-hand
Available Columns pane.
3. Click the Add button to move the column to the right-hand Selected Columns pane.
4. Repeat this for each column you would like to add.
5. If you are sure that all the information is correct, click the OK button.

To remove a column from the Details and Deal History/Progress panes, select the relevant
column in the right-hand Selected Columns pane and click the Remove button to move the
column into the left-hand Available Columns pane
To move columns to the left or right in blotter screen, click the Move Up button (to move to the
left) and Move Down (to move to the right).

9.7 Viewing a Deal’s History

Select the deal for which you would like to view the history and click the History button on. The
Deal History dialogue is displayed showing a complete and detailed history of the deal

Note: To export the deal history as a .csv file that can be opened in Microsoft Excel, click the
Export button and save to the relevant location.

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10 Amendments and Cancellations

Released deals can be amended in a number of different ways, both unilaterally and bilaterally,
as well as cancelled where required.

10.1 Changing a Deal’s Post-Release Booking State

You can change the external system post-release booking state for a MarkitWire deal to either
Received, Error, Validated, Cleared, Expired, Novated.
To change a deal’s booking state:
1. Search for the deal(s) for which you would like to change the post-release booking state
(see “Searching for a Deal” on page 64 for more information).
2. Select the deals for which you would like to change the post-release booking state (multiple
deals can be selected by holding the Shift or Ctrl keys).
3. Click the Deal menu and select Booking State and then the relevant booking state option
from the sub-menu. The State Comment screen is displayed.

4. Enter a relevant comment to explain why you are changing the post-release booking state
for the selected deals.
5. If you are sure that you would like to cancel the deal, click the OK button. The deal state is
changed for the selected deals and they are highlighted in red in the Deal List pane.

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You can search for the deal(s) by selecting the new post-released booking state as a search
option, as shown in the example below.

10.2 Amending Your Private Data on a Deal

You can make a unilateral post-release amendment where only your private booking data and
regulatory reporting information is changed. This change is performed unilaterally without the
involvement of the counterparty to the deal.
To perform a unilateral amendment:
1. Search for the released deal that you would like to amend (see “Searching for a Deal” on
page 64 for more information).
2. Click the Update button and select Unilateral Amend from the sub-menu. The Compose
Unilateral Amendment screen is displayed showing the Internal Data tab.

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3. Make the relevant changes to your internal private data fields (see “Completing Internal
Data” on page 29 for more information).
4. Select the Clearing tab (if applicable).

Note: To check clearing eligibilty for this deal, select the relevant clearing house from the
Private Clearing House dropdown before clicking the Check Current Eligibility button.

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5. Make the relevant changes to your clearing private data fields (see “Clearing Tab” on page
134 for more information)
6. Select the Regulatory Reporting tab (if applicable).

7. Make the relevant changes to your regulatory reporting private data fields (see “Reporting
Fields” on page 155 for more information).
8. If you are sure that the information is correct, click the Save & Close button.
Your private data changes are saved and the deal is updated.

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10.3 Amending a Deal Rejected by the Clearing House

On certain deals that have been rejected by the clearing house (for example, where one of the
parties did not provide valid account or netting string information), the party with the
invalid/insufficient information can update the deal details and resubmit the deal to the clearing
house.
Before amending the deal, search for the deal (see “Searching for a Deal” on page 64 for more
information) and view the reason for the deal’s rejection by the clearing house on the deal ticket,
in the Clearing Rejected field under the Conversation section.

A deal that has been rejected by the clearing house is amended in the same way as a standard
unilateral amendment (see “Amending Your Private Data on a Deal” on page 72 for more
information).
Once you have made the required updates to the deal’s clearing fields and saved your changes,
the deal can be resubmitted to the clearing house. Once the deal is accepted by the clearing
house, the deal reaches a booking state of Released and a contract state of Clearing. You can
search for the cleared deal using the booking and contract states as your search parameter.

10.4 Assigning a Batch ID to a Deal

You can assign IRS and CDS master deals to a particular batch by giving them the same batch
ID. The batch ID is a private field which is used as part of the backloading process as a way of
distinguishing sets of backloaded deals. It is helpful for clearing, as a particular batch can be
specified, then all sent for clearing in one block. There is also a permission (Clear.Batch) to
allow users to clear deals with a batch ID.
Note: Users without this permission cannot clear deals that have a batch ID, therefore it is
possible to restrict which users can clear backloaded deals.

To set the batch ID:

1. Search for deals with a booking state of Released and select one or more deals that you
would like to assign to a particular batch ID (see “Searching for a Deal” on page 64 for more
information).
2. Select Set Batch ID from the Deal menu. The Set Batch ID dialog is displayed.

3. Enter the relevant batch ID and click OK.

The selected deals are now assigned to the specified batch.
Note: The Set Batch ID dialog remembers previously entered batch IDs and these can be
selected by clicking the dropdown arrow and selecting from the list.

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10.5 Amending a Deal Bilaterally with Your Counterparty

Certain deals can be amended in MarkitWire after they have been released. However, when a
change is made to the economics of a released deal it must then be confirmed through
MarkitWire Trader as if it were a new deal. Before these changes can be re-released, they must
be confirmed by both sides of the deal (bilaterally).
Note: Both sides of the deal must be released to be able to bilaterally amend the deal. Only the
latest version of the deal can be bilaterally amended.
An overview of the bilateral amendment process for a released deal can be seen in the following
diagram.

Dealer A Dealer B/End User

Released Deal Amended

Affirm Reject Pick Up Booking State:

Pending
A deal can be
pulled by the
broker or the
dealer that last
affirmed and
rejected by
either dealer
any time after it
Affirm
has been
(with changes)
accepted

Affirm
(with changes)

Affirm Affirm
(without changes) (without changes)

Booking State:
Release Release
Done

Booking State:
Released

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To perform a bilateral amendment:

1. Search for the deal that you would like to amend (see “Searching for a Deal” on page 64 for
more information).
2. Click the Deal menu and select Update and then Bilateral Amend from the sub-menu. The
Amendment dialog is displayed.

3. Select the Amendment option from the dropdown and click Continue. The Compose
Amendment screen is displayed.

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4. Click the To button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out. You can search for an addressee by entering
the name in the Addressee field at the top of the dialog. All matching dealers or interest
groups are displayed. Multiple addresses can be selected by holding the Shift or Ctrl
keys.
5. Select the relevant addressee(s) and click OK.
6. Enter a message in the Message field to explain why and how you have amended the deal.
7. Make the relevant changes to the deal economics.
Note: See “Adding Allocation Splits to a Deal” on page 55 for more information on adding
allocations to a deal, “Reporting Fields” on page 155 for more information on the
available regulatory reporting fields, “Clearing Tab” on page 134 and “Clearing Eligibility
Tab” on 137 for more information on the clearing fields, and “Composing an IRS
Amortising Deal” on page 61 for more information on amortising/accreting).
8. If you are sure that the information is correct, click the Affirm button.
The deal appears in your counterparty’s Amendments folder and is listed in your Active Deals
folder, with the Waiting for response notification. Amendments are affirmed and released in
exactly the same way a new deal (see “Affirming a Deal” on page 39 and “Releasing a Deal” on
page 43 for more information). All amendments must be confirmed by both sides. Once it has
been affirmed by both sides the Done notification is displayed.

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10.6 Increasing and Decreasing Equity Options

An increase or decrease event can be made to a released equity option deal and is highlighted
as an increase or decrease, rather than as a bilateral amendment to the deal. However, an
increase/decrease event must be confirmed through MarkitWire Trader as if it were a new deal.
Before these changes can be re-released, they must be confirmed by both sides of the deal
(bilaterally).
To increase/decrease an equity option:
1. Search for the equity deal for which you would like to increase or decrease the number of
options (see “Searching for a Deal” on page 64 for more information).
2. Click the Update button and select Bilateral Amend from the sub-menu. The Amendment
dialog is displayed.

3. Select the relevant option (Increase or Decrease) from the dropdown and click Continue.
The Compose Amendment screen is displayed (showing the Increase/Decrease tab).

Note: For further information on the meaning and functionality of the different fields used on the
Compose Amendment screen tabs, see the relevant annex to the “MarkitWire
Provisions”.

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4. Click the To button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out. You can search for an addressee by entering
the name in the Addressee field at the top of the dialog. All matching dealers or interest
groups are displayed. Multiple addresses can be selected by holding the Shift or Ctrl
keys.
5. Select the relevant addressee(s) and click OK.
6. Enter a message in the Message field to explain why and how you amended the deal.
7. Enter the number of options by which you would like to increase or decrease.
8. Enter the value of each option (by which the premium is calculated).
9. If you are sure that the information is correct, click the Affirm button.
The deal appears in your counterparty’s Amendments folder and is listed in your Active Deals
folder, with the Waiting for response notification. Amendments are affirmed and released in
exactly the same way a new deal (see “Affirming a Deal” on page 39 and “Releasing a Deal” on
page 43 for more information). All amendments must be confirmed by both sides. Once it has
been affirmed by both sides the Done notification is displayed.

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10.7 Corporate Actions on Equity Share Options

Most corporate actions are performed as part of a batch process by MarkitWire. The procedure
for this is distributed via email to a specified list of contacts each time MarkitWire is notified of a
corporate action. However, you can also perform an individual corporate action on a released
equity share option deal using MarkitWire Trader.
To perform a corporate action:
1. Search for the equity deal for which you would like to perform a corporate action (see
“Searching for a Deal” on 64 for more information).
2. Click the Update button and select Bilateral Amend from the sub-menu. The Amendment
dialog is displayed.

3. Select Corporate Action from the dropdown and click Continue. The Compose Amendment
screen is displayed (showing the Increase/Decrease tab).

Note: For further information on the meaning and functionality of the different fields used on the
Compose Amendment screen tabs, see the relevant annex to the “MarkitWire
Provisions”.

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4. Click the To button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out. You can search for an addressee by entering
the name in the Addressee field at the top of the dialog. All matching dealers or interest
groups are displayed. Multiple addresses can be selected by holding the Shift or Ctrl
keys.
5. Select the relevant addressee(s) and click OK.
6. Enter a message in the Message field to explain why you would like to perform a corporate
action.
7. Make any required changes.
8. If you are sure that the information is correct, click the Affirm button.
The deal appears in your counterparty’s Amendments folder and is listed in your Active Deals
folder, with the Waiting for response notification. Amendments are affirmed and released in
exactly the same way a new deal (see “Affirming a Deal” on page 39 and “Releasing a Deal” on
page 43 for more information). All amendments must be confirmed by both sides. Once it has
been affirmed by both sides the Done notification is displayed.

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10.8 Exiting a Deal

Exiting a released deal allows you to define that deal as no longer represented on the
MarkitWire system (for example, if a deal was novated to another counterparty which is not on
the MarkitWire system). This leaves the deal visible on the system showing the last action taken,
but it is recognised by all counterparties that the deal is no longer live on MarkitWire.
To exit a deal:
1. Search for the deal from which you would like to exit (see “Searching for a Deal” on page 64
for more information).
2. Click the Deal menu and select Update and then Bilateral Amend from the sub-menu. The
Amendment dialog is displayed.

3. Select the Exit option from the dropdown and click Continue. The Compose Amendment
screen is displayed showing the Processing tab.

Note: For further information on the meaning and functionality of the different fields used on the
Compose Amendment screen tabs, see the relevant annex to the “MarkitWire
Provisions”.

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4. Click the To button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out. You can search for an addressee by entering
the name in the Addressee field at the top of the dialog. All matching dealers or interest
groups are displayed. Multiple addresses can be selected by holding the Shift or Ctrl
keys.
5. Select the relevant addressee(s) and click OK.
6. Enter an explanation in the Exit Reason field to explain why you are exiting the deal.
7. If you are sure that you would like to exit the deal, click the Affirm button.
The deal appears in your counterparty’s Amendments folder and is listed in your Active Deals
folder, with the Waiting for response notification. Exits are affirmed and released in exactly the
same way a new deal (see “Affirming a Deal” on page 39 and “Releasing a Deal” on page 43 for
more information). All exits must be confirmed by both sides. Once it has been affirmed by both
sides the Done notification is displayed and the deal is exited from MarkitWire.

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10.9 Cancelling a Deal

It is only possible to cancel uncleared released deals in MarkitWire. Before a deal can be
cancelled, it must be confirmed by both sides of the deal. However, once cancelled, a deal
cannot be amended by either party.
An overview of the cancellation process for an released deal can be seen in the following
diagram.

Dealer A Dealer B/End User

Released Deal Cancelled

Affirm Reject Pick Up Booking State:

Pending
A deal can be
pulled by the
broker or the
dealer that last
affirmed and
rejected by
either dealer
any time after it
Affirm
has been
(with changes)
accepted

Affirm
(with changes)

Affirm Affirm
(without changes) (without changes)

Booking State:
Release Release
Done

Booking State:
Released

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To cancel a deal:
1. Search for the deal that you would like to cancel (see “Searching for a Deal” on page 64 for
more information).
2. Click the Deal menu and select Update and then Cancel Deal from the sub-menu (or click
the Update button and select Cancel Deal). The Compose Cancellation screen is displayed.

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3. If a cancellation fee is required, select the Cancellation Fee tab.

Note: The information entered in this tab applies to the fee required when a MarkitWire
transaction is to be cancelled. If the Cancellation Fee Required field is checked, all
subsequent fields are conditional mandatory. Refer to the cancellations section in the
relevant product annex for more information.

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4. Click the Cancellation Fee Required checkbox to activate the fields.

5. Enter the relevant cancellation fee information in the mandatory fields.
6. Click the To button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out. You can search for an addressee by entering
the name in the Addressee field at the top of the dialog. All matching dealers or interest
groups are displayed. Multiple addresses can be selected by holding the Shift or Ctrl
keys.
7. Select the relevant addressee(s) and click OK.
8. Enter a message in the Message field to explain why you are deciding to cancel the deal.
9. If you are sure that you would like to cancel the deal, click the Affirm button.
The deal appears in your counterparty’s Cancellations folder and is listed in your Active Deals
folder, with the Waiting for response notification. If sent to an interest group, as soon as the deal
is picked up, it disappears from the other dealers’ screens. Cancellations are then affirmed and
released in exactly the same way a new deal (see “Affirming a Deal” on page 39 and “Releasing
a Deal” on page 43 for more information). All cancellations must be confirmed bilaterally (by both
sides). Once the deal has been affirmed by both sides the Done notification is displayed and the
deal is cancelled in MarkitWire.

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10.10 Performing a Block Cancellation

Block cancellations allow you to select multiple released deals for cancellation and perform the
cancellation in a single action. They are only permitted on uncleared released deals addressed
to the same counterparty with the same product type and currency. Currently only IRS, OIS,
FRA, swaption and CapFloor products are supported.
Before a deal can be cancelled, it must be confirmed by both sides of the deal. However, once
cancelled, the deals selected for the block cancellation cannot be amended by either party.
Note: Before you are able to perform a block cancellation, you need to ensure that you have
the relevant permissions set up.

To perform a block cancellation:

1. Search for the deals that you would like to cancel (see “Searching for a Deal” on page 64 for
more information).
2. Select the deals that you would like to cancel (multiple deals can be selected by holding the
Shift or Ctrl keys).
3. Click the Deal menu and select Update and then Block Cancel from the sub-menu. The
Compose Block Cancellation screen is displayed.

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4. Click the To button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out. You can search for an addressee by entering
the name in the Addressee field at the top of the dialog. All matching dealers or interest
groups are displayed. Multiple addresses can be selected by holding the Shift or Ctrl
keys.
5. Select the relevant addressee(s) and click OK.
6. Enter a message in the Message field to explain why you are deciding to cancel the deal.
7. If a cancellation fee is required, select the Cancellation Fee tab.

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The information entered in this tab applies to the fee required when a MarkitWire transaction
is to be cancelled. If the Cancellation Fee Required field is checked, all subsequent fields
are conditional mandatory. Refer to the cancellations section in the relevant product annex
for more information.
8. Click the Cancellation Fee Required checkbox to activate the fields.
9. Enter the relevant cancellation fee information in the mandatory fields.
10. If you are sure that you would like to cancel the deal, click the Affirm button.
The deal appears in your counterparty’s Cancellations folder and is listed in your Active Deals
folder, with the Waiting for response notification. If sent to an interest group, as soon as the deal
is picked up, it disappears from the other dealers’ screens. Cancellations are then affirmed and
released in exactly the same way a new deal (see “Affirming a Deal” on page 39 and “Releasing
a Deal” on page 43 for more information). All cancellations must be confirmed bilaterally (by both
sides). Once the block cancellation has been affirmed by both sides the Done notification is
displayed and the deals are cancelled in MarkitWire.

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11 Exercising Options
An option represents a contract sold by one party to another. The contract offers the buyer the
right, but not the obligation, to buy (call) or sell (put) an underlying asset or security at an agreed
strike price during a certain period of time, or on a specific exercise date. If the buyer wants to
exercises the option, the seller is obligated to fulfil the transaction.
The option style determines when, how, and under what circumstances, the option holder may
exercise. There are three types of exercise option:
 European
European-style option contracts may only be exercised at the option's expiration date. These
contracts may not undergo early exercise and therefore can never be worth more than an
American-style option of the same strike price and expiration date.
 American
American-style option contracts can be exercised at any time up to the option's expiration.
Under certain circumstances early exercise may be advantageous to the option holder.
 Bermudan
Bermudan-style options contracts may only be exercised on specified dates.

You are able to exercise swaptions and equity index and share options in MarkitWire depending
on the status of that option.

11.1 Exercising a Swaption (Cash Settlement)

Swaptions are captured on the MarkitWire system in much the same way as any other type of
deal. The main difference is when it comes to exercising. A swaption is cash settled if the
underlier is not physically delivered and instead settled for an amount of money equal to the
swaption's market value at maturity.
To cash exercise a swaption:
1. Search for the released deal that you would like to exercise (see “Searching for a Deal” on
page 64 for more information).
Note: You can improve your search by selecting Product Type as you search criteria and then
selecting Swaption.
2. Click the Update button and select Exercise from the sub-menu. The Exercise dialog is
displayed.

Note: If the date is not a valid exercise date, a warning is displayed (however, it is still possible
to continue if required). If the swaption has not been released, or is currently being
amended or cancelled, a prompt notifies you that you are not currently able to perform
the operation.

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3. Select Cash from the Settlement dropdown and click the Continue button. The Compose
Exercise screen is displayed.

4. Enter a message in the Message field to explain why you have decided to exercise the
swaption.

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5. Select the Cash Exercise tab. The cash exercise settlement fields are displayed.

6. Click the Calculator button. The Settlement Calculator is displayed.

7. Enter a settlement rate and click OK.

8. If payment is not required, click the Cash Settlement Payment Required checkbox. The
fields are deactivated.

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9. Click the To button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out.
10. Select the relevant addressee(s) and click OK.
11. If you are sure you would like to exercise the option, click the Affirm button.
The deal appears in your counterparty’s Exercise folder and is listed in your Active Deals folder.
Exercised swaptions are affirmed and released in exactly the same way a new deal (see
“Affirming a Deal” on page 39 and “Releasing a Deal” on page 43 for more information). Once it
has been exercised by both sides the Done notification is displayed.

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11.2 Exercising a Swaption (Physical Settlement)

Swaptions are captured on the MarkitWire system in much the same way as any other type of
deal. The main difference is when it comes to exercising. A swaption is physically settled if the
underlier is to be physically delivered in exchange for a specified payment. Once a swaption has
been physically exercised, the underlying interest rate swap has to be created and linked to the
physical settlement (see “Creating the Underlying Interest Rate Swap” on page 99 for more
information).
To physically exercise a swaption:
1. Search for the released deal that you would like to exercise (see “Searching for a Deal” on
page 64 for more information).
Note: You can improve your search by selecting Product Type as your search criteria and then
selecting Swaption.
2. Click the Update button and select Exercise from the sub-menu. The Exercise dialog is
displayed.

3. Select Physical from the Settlement dropdown. Additional fields are displayed.

Note: Deselecting the Auto create, affirm, release Swap checkbox deselects the settlement
fields.

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4. If selecting a straddle exercise, select either Payers or Receivers from the Straddle Exercise
dropdown.
5. Select the relevant book (if applicable).
6. Enter the relevant rate into the 1st Fixing Rate field (if applicable).
7. Select the relevant bilateral clearing house (if applicable).
8. Enter the USI/UTI (if applicable).
9. Click the Continue button. The Compose Exercise screen is displayed.

Note: When you select the Physical exercise option, the Physical Settlement elected at
exercise notification is displayed on the Main tab and you are unable to edit any
information on the deal economics tabs, with the exception of the Internal Data tab. All
fields are relevant only to the option components and not to the underlying swap
transaction (except to the extent that the exercise and settlement of a swaption affects
the underlying swap transaction).

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10. Click the To button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out.
11. Select the relevant addressee(s) and click OK.
12. Click the Affirm button.
The deal appears in your counterparty’s Exercise folder and is listed in your Active Deals folder.
Exercised swaptions are affirmed and released in exactly the same way a new deal (see
“Affirming a Deal” on page 39 and “Releasing a Deal” on page 43 for more information). Once it
has been exercised by both sides the Done notification is displayed.

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11.2.1 Creating the Underlying Interest Rate Swap

After a swaption has been physically exercised, the underlying interest rate swap has to be
created and linked to the physical settlement.
To create the underlying interest rate swap:
1. Open the Blotter and select the deal that you just exercised for which you would like to
create the underlying IRS swap (see “Searching for a Deal” on page 64 for more
information).

Note: After physically exercising a swaption, the notification Physical Settlement elected at
Exercise is displayed on the Main tab.

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2. Click the Duplicate icon and select IRS (Exercise) from the dropdown. The Compose New
Deal window for the new swap is displayed.

3. Make any required changes to the default settings.

4. Provide your required regulatory reporting details (see “Regulatory Reporting” on page 154
for more information on the different report types and the meaning of each regulatory
reporting field to be completed for each reporting jurisdiction).
5. Complete all required private data on the Internal Data tab (see “Completing Internal Data”
on page 29 for more information).
6. If you are sure the details of the deal are correct, click the Affirm icon (or click the Save &
Close icon to save the deal to the Drafts folder).
The deal appears in your counterparty’s Direct Deals folder and is listed in your Active Deals
folder. If sent to an interest group, as soon as the deal is picked up, it disappears from the other
dealers’ screens. An underlying interest rate swap is affirmed and released in exactly the same
way a new deal (see “Affirming a Deal” on page 39 and “Releasing a Deal” on page 43 for more
information). Once it has been exercised by both sides the Done notification is displayed.

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11.3 Exercising an Equity Option

You are able to exercise equity index and share options depending on the status of that option.
As the buyer of a call contract you can exercise your right to buy the underlying shares, or as the
buyer of a put contract you can exercise your right to sell the underlying shares, at the agreed-
upon strike price.
To exercise an equity option:
1. Search for the released deal that you would like to exercise (see “Searching for a Deal” on
page 64 for more information).
2. Click the Update button and select Exercise from the sub-menu. The Exercise dialog is
displayed.

3. Select either Full or Partial from the dropdown and click the Continue button. The Exercise
tab of the Compose Exercise screen is displayed.

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4. If you selected a partial exercise, enter the number of options that you would like to
exercise.
5. Click the To button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out.
6. Select the relevant addressee(s) and click OK.
7. Enter an exercise price.
8. Select the relevant exercise currency from the dropdown.
9. If you are sure you would like to exercise the option, click the Affirm button.
The deal appears in your counterparty’s Exercise folder and is listed in your Active Deals folder.
Exercised equity options are affirmed and released in exactly the same way a new deal (see
“Affirming a Deal” on page 39 and “Releasing a Deal” on page 43 for more information). Once it
has been exercised by both sides the Done notification is displayed.

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12 Novations
The transfer of rights and obligations between legal entities in relation to OTC transactions is
known as “novation” (under English Law) and “assignment” (under New York law). The parties
involved in a novation include the outgoing party/transferor who are transferring their rights and
obligations on the deal, the incoming party/transferee who is receiving rights and obligations on
the deal and the remaining party who is the constant party on the deal.

12.1 Novation Process

An overview of the novation process can be seen in the following diagram.

Outgoing Party Incoming Party Remaining Party

Novate Deal Pick Up Pick Up

Affirm
Resubmit (with changes)

Agree
Affirm Terminate novation fee
(with changes)

Affirm Affirm Booking State:

(without changes) (without changes) Pending

Affirm
(with changes)

Agree new
Affirm deal details
(for example,
(with changes) break)

Affirm Affirm
(without changes) (without changes)

Booking State:
Release Release Release
Done

Booking State:
Released

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When novating a deal, the outgoing party transfers all their rights and obligations, between
themselves and the remaining party, to the incoming party. In order for a novation to be affirmed
on MarkitWire, tri-party agreement is required between all parties such that:
 The incoming party affirms the cancellation of the old deal with the outgoing party and affirms
the new deal with the incoming party
 The outgoing party affirms the cancellation of the old deal
 The incoming party affirms the new deal with the remaining party
Both full and partial novations are supported. A pending novation deal consists of four parts: two
main deals (new deal and cancellation) and two sub-deals (novation fee and novation
confirmation). Novation sub-deals are associated with one or both of the main deals depending
on the party to which the deal refers. Each party only sees data that is applicable to them, as
shown in the example below.
Incoming Party Remaining Party Outgoing Party
Main deal = New Main deal = New Main deal = Cancellation
= Cancellation

Sub-deals = Novation confirmation Sub-deals = Novation Confirmation Sub-deals = Novation confirmation

= Novation fee = Novation fee

Despite four deals, there are only two deal IDs associated with a novation. That of the
Novated/Novated-Partial and resultant New-Novated deal ID.
For the remaining party, once the novation has been released, changes to the booking state
and/or book ID of a new novated deal are replicated on the novated (cancelled deal) and vice-
versa. Once this is done, the private version of both deals is updated to reflect the change. If any
other private data is changed (and the state and book ID are left unchanged), no data is
duplicated across and the private version of the unchanged deal is left untouched.
The novation process consists of two stages. In the first stage the incoming and outgoing parties
agree the novation fee and the incoming party legal entity value. In the second stage the
remaining party and incoming party agree further details (for example, rate, bilateral break
details) and the outgoing party agrees to the novation.

12.1.1 Novation Process: Stage I

In MarkitWire, a novation is initiated by either the outgoing party or the remaining party. The
novated deal is sent to the incoming party and the third party to the deal, either the outgoing
party or the remaining party depending on which party initiated the novation.
Whilst the outgoing party and the incoming party are agreeing the fee details and legal entity
value for the incoming party, the only actions available to the remaining party are Reject, Send
Chat and Pickup. The remaining party can affirm at any point during the novation fee agreement
sequence and provided that there have been no changes made by the incoming party, there is
no further need for the remaining party to affirm. It is also possible that the incoming party may
add a fee or modify the fee and then affirm. If this occurs the incoming party has to agree the
changes with another affirmation.
Novation fee details and the incoming party legal entity must be affirmed by the outgoing and
incoming parties. Once the novation fee details and the incoming party legal entity have been
affirmed by the outgoing and incoming parties, control of the deal must be passed to the
remaining party.
Note: A novation can be transferred by either party to any other users within their own
participant at any point after the deal has been picked up and prior to release (see
“Transferring a Deal” 40 for more information).

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12.1.2 Novation Process: Stage II

The only actions available to the outgoing party once the incoming party legal entity and
novation fee have been agreed are Withdraw and Send Chat. A second affirmation is not
required by the outgoing party during the second stage of the novation process. The outgoing
party's agreement to the novation is implied by their agreement of the novation fee. The outgoing
party's agreement to the novation fee carries through into the second stage of the novation
process and therefore, unless the outgoing party withdraws from the novation, the novation
reaches a booking state of Done as soon as the remaining party and incoming party agree the
novation details, completing the tri-party agreement.
The outgoing party is able to Withdraw during the second stage of the novation process.
Withdrawing from the novation process during the second stage ends the novation deal and
withdraws the novation deal from the other parties.
Novation fee details are private between the outgoing party and the incoming party. The
outgoing party has no visibility of the bilateral details between the remaining party and the
incoming party.
When the remaining party has control of a novation they are able to edit the legal entities to the
deal, initial rate, bilateral credit break clauses and affirm the revised deal details to the incoming
and outgoing parties. Typically no changes are made and the remaining party would have
affirmed the deal while the novation fee was being negotiated and this affirm is applied
immediately after the fee agreement. Once agreed, all sides to the novation can now release the
deal.

12.2 Partial Novations

A partial novation is where a standard deal is partially assigned to a new counterparty. Partially
novating a deal allows the outgoing party to transfer some of the rights and obligations between
themselves and the remaining party to the incoming party, leaving a reduced amount between
themselves and the remaining party.
A partial novation is initiated by the outgoing party. The incoming and outgoing parties agree the
novated amount, novation fee and incoming party legal entity and the new remaining party legal
entity, in the case of a four-way novation (see “Four-Way Novations” on page 106 for more
information).
The remaining and incoming parties agree further details for the New-Novated deal such as rate
and bilateral break details and the outgoing party agrees the novation
Once the partial novation has been affirmed and reaches a booking state of Done, the Novated-
Partial deal representing the outstanding amount between the remaining and outgoing parties is
auto-affirmed moving the deal from Pending to Released without any further action from the
outgoing party. A new deal with a contract state of New-Novated, where the amount of the new
deal is the original amount less the novated amount, is created between the incoming and
remaining parties
Note: Partially novations appear in the Novations folder for each of the counterparties as with a
standard novation.

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12.3 Four-Way Novations

Four-way novations allow you to change the legal entity of the remaining party to on the New-
Novated deal. Although there are four legal entities involved in the novation, there are still only
three parties to the deal. This only impacts the legal entities of the New-Novated deal and has
no effect on the addressing aspect of the deal.
The bilateral fields that are utilised for a four-way novation are:
 4-Way Novation
The 4-Way Novation checkbox activates/deactivates the New Remaining dropdown. It is
unchecked by default. This field can be changed by any party at any stage during the
novation process.
 New Remaining
The New Remaining dropdown is used to select the new legal entity for the remaining party.
This dropdown is disabled unless the 4-Way Novation checkbox is checked.
Note: Four-way novations appear in the Novations folder for each of the counterparties as with
a standard novation.

12.4 Outside Novations

An outside novation is where a deal which has already been novated outside MarkitWire is
recorded in MarkitWire. Outside novations are only applicable to interest rate swap transactions.
An outside novation is not entered in the same way as a standard novation as the outgoing party
is not on MarkitWire (see "Composing an Outside Novation Deal" on page 111 for more
information). However, the incoming and remaining parties must both be on MarkitWire.
The incoming party to the deal is the party most likely to initiate an outside novation. In this case,
they are expected to enter the trade date and effective (start) date to be the same as the
novation trade date and novation date. This would subsequently have to be changed by the
remaining party before affirmation. The remaining party is, therefore, able to enter a new deal
with some details of the fact that the novation took place in the past and the deal contains some
reference to the novation details.
However, if the initiator is the remaining party, then they would be expected to enter the original
deal date and effective (start) date and the novation trade date and novation date. The incoming
party can identify the deal as an outside novation and this should account for the discrepancy in
the dates.
The deal is then affirmed and released as usual and the normal life-cycle events apply creating a
deal with a contract state of New-OutsideNovation. The Outside Novation tab is carried forward
on the deal through the life-cycle events and also in the associated SWML. Any changes to the
contract state are treated as if it is a normal deal, i.e. if the deal is amended then the contract
state changes to Amended, etc.
Note: Normally with novated deals, the deal moves on with new agreed break dates starting
from the novation deal date. This has to be recreated with an outside novation. Normally
the break dates are calculated based on the deal date, but where the new field Novation
Trade Date is populated, the novation deal date (rather than the deal date) becomes the
break from date. These break dates are carried forward onto an allocation.

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12.5 Novating an Existing Deal

In MarkitWire, a novation is initiated by either the outgoing party or the remaining party (if you
are composing a four-way novation, see “Four-Way Novations on page 105 for more
information). The novated deal is sent to the incoming party and the third party to the deal, either
the outgoing party or the remaining party depending on which party initiated the novation.
To novate a deal:
1. Search for the released deal that you would like to novate (see “Searching for a Deal” on
page 64 for more information).
2. Click the Update button and select Novate from the sub-menu and then either Outgoing or
Remaining from the next sub-menu. The Novation Type dialog is displayed.

3. Select either Full or Partial from the dropdown, depending on the novation type required,
and click Continue. The Novation Confirmation tab of the Compose Novation screen is
displayed.

Note: For further information on the meaning and functionality of the different fields used on the
Compose Novation screen tabs, see the relevant annex to the “MarkitWire Provisions”.

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When novating a deal, certain fields are automatically populated by MarkitWire. These fields
are calculated based on formulas that either draw from related fields populated during the
original transaction, related fields found on another tab of the deal, or information previously
provided to the system administrator as being applicable for all transactions of the
designated type on MarkitWire. The content of some fields, although automatically
populated, can still be edited. These fields do not delete or alter any od the terms of the
deal.
Note: For cross currency deals, an additional Novation Notional Exchange tab is available.
Some fields on this tab are duplicated from the Novations and Novation Fee tabs.
4. Click the Incoming button. The Select Addresses dialog is displayed with a list of
participants in the left-hand pane.

Note: You can search for a participant by entering the name in the Participant field at the top of
the dialog. This displays all matching participants. The list can also be filtered using the
radio buttons to show only dealers, end users or single-sided participants. Non-
MarkitWire participant names are followed by (Single Sided Participant) (see “Composing
Single-Sided Deals” on page 30 for more information).
5. Select the relevant participant to display the available dealers and interest groups in the
right-hand pane.

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6. Select the relevant incoming addressee(s) and click OK.

7. Click the Remaining/Outgoing button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out. You can search for an addressee by entering
the name in the Addressee field at the top of the dialog. All matching dealers or interest
groups are displayed. Multiple addresses can be selected by holding the Shift or Ctrl
keys.
8. Select the relevant remaining addressee(s) and click OK.
9. Enter a message in the Message field to explain why you are deciding to novate the deal.

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10. If a novation fee is required, select the Novation Fee tab.

The novation fee elements follow the same validation and rules as a standard additional
payment. The payment element is optional, however if included then all components of the
novation fee become mandatory. Only the outgoing and incoming parties receive the
novation fee and the fee can only be altered within the first stage of the novation process.
Note: Novation fee details are private between the outgoing party and the incoming party. The
outgoing party has no visibility of the bilateral details between the remaining party and the
incoming party.

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11. Click the Novation Fee Required checkbox to activate the fields and enter the relevant
cancellation fee information in the mandatory fields.
12. Provide your required regulatory reporting details (see “Regulatory Reporting” on page 154
for more information on the different report types and the meaning of each regulatory
reporting field to be completed for each reporting jurisdiction).
13. Complete all required private data on the Internal Data tab (see “Completing Internal Data”
on page 29 for more information).
14. If you are sure that the information is correct, click the Affirm button.
The deal appears in the Novations folder for the other parties and is listed in your Active Deals
folder, with the Waiting for response notification. Novations are then affirmed and released in
exactly the same way a new deal (see “Affirming a Deal” on page 39 and “Releasing a Deal” on
page 43 for more information). All novations must be confirmed bilaterally (by both sides).
Once the deal has been novated by both sides the Done notification is displayed. In the case of
end users, the deal is released automatically after they have affirmed it without changes
Note: A novated deal can be transferred by either party to any other users within their own
participant at any point prior to release (and after the deal has been picked up).

12.6 Composing an Outside Novation Deal

An outside novation is where a deal which has already been novated outside MarkitWire, is
recorded in MarkitWire. Outside novations are only applicable to interest rate swap transactions.
When entering an outside novation in MarkitWire, the outgoing party is not a participant on
MarkitWire. However, the incoming and remaining parties must both be on MarkitWire.
To compose an outside novation deal:
1. Click the New Deal icon dropdown and select Direct Deal (or select New Direct Deal from
the Deal menu). The Compose New Deal window is displayed.

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2. Click the To button. The Select Addresses dialog is displayed with a list of participants in the
left-hand pane.

Note: You can search for a participant by entering the name in the Participant field at the top of
the dialog to display all matching participants. The list can also be filtered using the radio
buttons to show only dealers, end users or single-sided participants. Non-MarkitWire
participant names are followed by (Single Sided Participant) (see “Composing Single-
Sided Deals” on page 30 for more information).
3. Select the relevant participant to display the available dealers and interest groups in the
right-hand pane.

Note: You can search for an addressee by entering the name in the Addressee field at the top of
the dialog to display all matching dealers or interest groups. Multiple addresses can be
selected by holding the Shift or Ctrl keys.

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4. Select the relevant remaining addressee(s) and click OK.

5. Enter a message in the Message field to explain why you are deciding to novate the deal.
6. Select the relevant options from the Product and Currency dropdowns.
7. Click the Outside Novation checkbox to make this an outside novation deal.
8. Click the Next icon. The Main tab is displayed.

Note: When the Outside Novation checkbox is checked, the contract state of New-
OutsideNovation is displayed at the top of the Main tab.

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9. Complete all required fields on all highlighted tabs (see “Deal Details” on page 21 for more
information on the required fields and “Completing Internal Data” on page 29 for information
on completing the Internal Data tab) and perform any additional changes to the default
settings as required.
10. Select the Outside Novation tab.

The novation fee elements follow the same validation and rules as a standard additional
payment. The payment element is optional, however if included then all components of the
novation fee become mandatory. Only the outgoing and incoming parties receive the
novation fee and the fee can only be altered within the first stage of the novation process.
Note: Novation fee details are private between the outgoing party and the incoming party. The
outgoing party has no visibility of the bilateral details between the remaining party and the
incoming party.

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11. Complete the fields on the Outside Novation tab (see “Outside Novation Tab” on page 115
for more information).
12. If a novation fee is required, click the Novation Fee Required checkbox to activate the fields
and enter the relevant cancellation fee information.
13. If you are sure that the information is correct, click the Affirm button.
The deal appears in your counterparty’s Direct Deals folder and is listed in your Active Deals
folder, with the Waiting for response notification. It is then affirmed and released in exactly the
same way as any new deal (see “Affirming a Deal” on page 39 and “Releasing a Deal” on page
43 for more information). All outside novations must be confirmed bilaterally (by both sides).
Once the deal has been affirmed by both sides the Done notification is displayed and a deal with
a contract state of New-OutsideNovation is created.

12.6.1 Outside Novation Tab

The Outside Novation tab contains the following fields:
 Outside Novation
This field (when checked) specifies that the deal has previously been novated prior to being
entered in MarkitWire. The Outside Novation tab and the Outside Novation indicator are only
displayed where the Outside Novation field on the Compose Deal screen is checked.
 Novation Trade Date
This field specifies the novation trade date per the “2004 ISDA Novation Definitions”.
 Novation Date
This field specifies the novation date per the “ISDA Novation Definitions” and represents the
date on which the provisions of section 2 of the “ISDA Novation Agreement” became effective.
 Outgoing Party
This field specifies the outgoing party/transferor (or transferor 1 for a four-way novation), in
accordance with the “ISDA Novation Definitions”.
 My Role
This field specifies your role in the outside novation transaction, specifying whether you are
the incoming or the remaining party. Selecting Incoming activates the Novation Fee Required
checkbox.
 Full First Calculation Period
This field specifies whether the full first calculation period is preserved in the deal, in
accordance with section 1.20 of the “ISDA Novation Definitions”.
 1st Fixed Period Start Date
This field specifies the commencement date of the initial calculation period with respect to the
new transaction initial fixed rate payer payment date.
 1st Float Period Start Date
This field specifies the commencement date of the initial calculation period with respect to the
new transaction initial floating rate payer payment date.
 Novation Fee Required
If this field is checked, it specifies that the transaction has a related novation fee and the
novation fee fields are activated. These details are only available to the incoming party and
cannot be seen by any other party to the transaction.
 We
This field specifies the legal entity name of the incoming party (and where applicable, the
office through which that incoming party is acting). The direction of the payment is determined
by selecting either Pay or Rec from the dropdown.
 Date
This field specifies the relevant date on which the novation fee is due to be paid.
 Other
This field specifies the legal entity name of the outgoing party (and where applicable, the
office through which that outgoing party is acting). The direction of the payment is determined
by selecting either Pay or Rec from the dropdown.

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 Holidays
This field specifies the business days applicable to the novation fee payment.
 Amount
This field specifies the novation fee currency amount.
 Convention
This field specifies the business day convention applicable to the novation fee payment date
and can be either MODF (default), FOLL, or PREC.
 Reason
This is always Outside Novation.

12.7 Composing a New Novation Consent Deal

The novation consent service automates the request, approval and notification procedures
among the three parties involved in an OTC credit derivative contract assignment, as stipulated
by the International Swaps and Derivatives Association (ISDA) in its novation protocol.
Novation consent allows participants to electronically request and obtain the approvals required
by the ISDA protocol when one party to a transaction seeks to novate its obligation to a new
company.
The transferor initiates the process by creating a pending novation. The details of the novation
consent are then transmitted to the remaining party, which can accept or refuse the novation,
and to the transferee. The pending novation is then either approved or refused status depending
on the actions of the other parties to the deal.
To compose a novation consent deal:
1. Click the New Deal icon dropdown and select Novation Consent Deal (or select New
Novation Consent Deal from the Deal menu). The Compose Novation Consent window is
displayed.

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2. Click the Remaining button. The Select Addresses dialog is displayed with a list of
participants in the left-hand pane.

Note: You can search for a participant by entering the name in the Participant field at the top of
the dialog to display all matching participants. The list can also be filtered using the radio
buttons to show only dealers, end users or single-sided participants. Non-MarkitWire
participant names are followed by (Single Sided Participant) (see “Composing Single-
Sided Deals” on page 30 for more information).
3. Select the relevant participant to display the available dealers and interest groups in the
right-hand pane.

Note: You can search for an addressee by entering the name in the Addressee field at the top of
the dialog to display all matching dealers or interest groups. Multiple addresses can be
selected by holding the Shift or Ctrl keys.

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4. Select the relevant remaining addressee(s) and click OK.

5. Click the Incoming button. The Select Addresses dialog is displayed with a list of
participants in the left-hand pane.

6. Select the relevant participant to display the available dealers and interest groups in the
right-hand pane.

7. Select the relevant incoming addressee(s) and click OK.

8. Enter a message in the Message field to explain why you are deciding to novate the deal.
9. Select the relevant option from the Product Type dropdown.

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10. Click the Next icon. The Main tab is displayed.

Note: For further information on the meaning and functionality of the different fields used on the
Compose Novation Consent screen tabs, see the relevant annex to the “MarkitWire
Provisions”.

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11. Complete all required fields on all highlighted tabs (see “Deal Details” on page 21 for more
information on the required fields and “Completing Internal Data” on page 29 for information
on completing the Internal Data tab) and perform any additional changes to the default
settings as required.
12. Select the Novation Consent tab.

13. Select the incoming party from the Incoming dropdown.

14. Enter the original trade reference.

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15. If a novation fee is required, select the Novation Fee tab.

The novation fee elements follow the same validation and rules as a standard additional
payment. The payment element is optional, however if included then all components of the
novation fee become mandatory. Only the outgoing and incoming parties receive the
novation fee and the fee can only be altered within the first stage of the novation process.
Note: Novation fee details are private between the outgoing party and the incoming party. The
outgoing party has no visibility of the bilateral details between the remaining party and the
incoming party.
16. Click the Novation Fee Required checkbox to activate the fields and enter the relevant
cancellation fee information in the mandatory fields.
17. Provide your required regulatory reporting details (see “Regulatory Reporting” on page 154
for more information on the different report types and the meaning of each regulatory
reporting field to be completed for each reporting jurisdiction).
18. Complete all required private data on the Internal Data tab (see “Completing Internal Data”
on page 29 for more information).
19. If you are sure that the information is correct, click the Affirm button.
The deal appears in your counterparty’s Novations folder and is listed in your Active Deals
folder, with the Waiting for response notification. If sent to an interest group, as soon as the deal

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is picked up, it disappears from the other dealers’ screens. Novations are then affirmed and
released in exactly the same way a new deal (see “Affirming a Deal” on page 39 and “Releasing
a Deal” on page 43 for more information). All novations must be confirmed bilaterally (by both
sides). Once the deal has been affirmed by both sides the Done notification is displayed.

12.7.1 Deemed Novation Consent Requests

To avoid counterparty uncertainty, incoming parties have the option to refuse to accept a
novation if the remaining party have not provided consent by 6:00pm. Consequently, the
incoming party has the right to “deem” (refuse to accept) the deal as of 6:00pm EST on the
novation trade date.
In MarkitWire, the way to deem is via a workaround. The incoming party must accept the
novation before deeming, so at 6:00pm they must accept the novation. If the remaining party has
already accepted (this is hidden from the incoming party), the novation consent request would
be completed and the deal is taken to a booking state of Done or Released. If the novation
consent request does not move to completed when the incoming party accepts, it is at that point
that they have the right to deem by disputing the deal which triggers an incoming party Refuse
action on NCM.
Note: Best practice dictates that the incoming party should populate the word Deem in the
message box in both MarkitWire and NCM when deeming a novation.

12.7.2 Expired Novation Consent Requests

If a novation consent request expires in MarkitWire, the deal moves to a Withdrawn state (both
the summary if unmatched and the detail). If one of the detail deals related to a summary had
been affirmed for any reason, but the summary was unmatched, the summary would not be
withdrawn)
On NCM, the deal moves to the Cancelled tab for all three parties. The Additional Comment field
is also updated with the default text Novation consent request auto-cancelled due to expiry and
the Last Updated By field is populated with Auto-cancelled.

12.7.3 Disputing a Novation Consent Request

A novation consent request can be disputed in MarkitWire, with the incoming party choosing to
dispute either the fee or the consent. The outgoing party receives the message and should
modify or cancel the deal as appropriate. If the outgoing party modifies the deal such that it now
matches the incoming party’s submitted summary deal, the deals automatically match in
MarkitWire. See “MarkitWire Trader C=C User Guide” for more information on disputing a
novation consent deal.

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13 Prime Brokerage
Prime brokerage allows a third party to be brought into a deal to act as the prime broker. Once
all parties have agreed, two back-to-back deals are produced. One deal between the participant
bank (executing broker) and the prime broker and another between the prime broker and the
client.

13.1 Prime Brokerage Process

An overview of the prime brokerage deal process for the original prime broker deal can be seen
in the following diagram.

Executing Broker End User Prime Broker

Prime Broker
Pick Up Pick Up
Deal

Affirm
(with changes)

Parent
Affirm Booking State:
(with changes)
Pending

Affirm Affirm
(without changes) (without changes)

Accept

Parent
Booking State:
Released

After the deal has been accepted by the prime broker, the original deal is released and the
following two child deals are generated from the original deal:
 Executing broker to prime broker
 End user to prime broker
However, the deal still shows as Pending for the executing broker and the end user until their
particular child of the original deal has been released (as shown in the following diagram).
Note: If the prime broker clicks the Accept/Affirm button, the deal is taken immediately to the
Done state for the prime broker and is released automatically for the executing broker
and end user. However, this is only the case when Accept/Affirm is selected. If performed
in two stages (Accept then Affirm) the executing broker needs to release their child deal
even if they affirm without changes.

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An overview of the prime brokerage process for each child deal can be seen in the following
diagram.

Executing Broker End User Prime Broker

Affirm
(with changes)

Affirm
(with changes)

Child
Booking State:
Affirm Pending
(with changes)

Affirm
(with changes)

Affirm Affirm Affirm Affirm

Child
Booking State:
Release Release Release
Done

Child
Booking State:
Released

Note: A deal can be transferred by either party to any other users within their own participant at
any point prior to release (and after the deal has been picked up by your counterparty).
Also, for end users, the deal is released automatically after they have affirmed it without
changes.

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13.2 Composing a New Prime Brokered Deal

To compose a new prime brokered deal:
1. Click the New Deal icon (or select New Prime Brokered from the Deal menu). The Compose
New Prime Brokered Deal screen is displayed.

2. Click the To button. The Select Addresses dialog is displayed with a list of participants in the
left-hand pane.

Note: You can search for a participant by entering the name in the Participant field at the top of
the dialog to display all matching participants. The list can also be filtered using the radio
buttons to show only dealers, end users or single-sided participants. Non-MarkitWire
participant names are followed by (Single Sided Participant) (see “Composing Single-
Sided Deals” on page 30 for more information).

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3. Select the relevant participant. The addressees for that participant are displayed in the right-
hand pane.

Note: You can search for an addressee by entering the name in the Addressee field at the top
of the dialog to display all matching dealers or interest groups. Multiple addresses can be
selected by holding the Shift or Ctrl keys.
4. Select the relevant addressee(s) and click OK.
5. Click the Intermediary button. The Select Addresses dialog is displayed with a list of
participants in the left-hand pane.

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6. Select the relevant participant to display the available dealers and interest groups in the
right-hand pane.

7. Select the relevant addressee(s) and click OK.

8. Enter any deal-relevant information in the Message field.
Note: A history of all messages attached to a deal is retained. This can be used later by
operations teams in downstream systems.
9. Select the relevant option from the Product dropdown.
10. Select the relevant currency and tenor from the dropdowns.
11. Click the Zero Coupon (Fixed) checkbox if required.
12. Click the Zero Coupon (Floating) checkbox if required.

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13. Click the Next icon. The Main tab is displayed.

Note: For further information on the meaning and functionality of the different fields used on the
Compose New Prime Brokered Deal screen tabs, see the relevant annex to the
“MarkitWire Provisions”.
14. Complete all required fields on all highlighted tabs (see “Deal Details View” on page 21 for
more information on the required fields) and perform any additional changes to the default
settings as required.
15. If you are sure the details of the deal are correct, click the Affirm icon (or click the Save &
Close icon to save the deal to the Drafts folder).
The deal appears in your counterparty’s Intermediated Deals folder and is listed in your Active
Deals folder. If sent to an interest group, as soon as the deal is picked up, it disappears from the
other dealers’ screens. Prime brokered deals are then affirmed and released in exactly the same
way a new deal (see “Affirming a Deal” on page 39 and “Releasing a Deal” on page 43 for more
information).

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13.3 Adding a Prime Broker to an Existing Deal

To add a prime broker to a deal:
1. Search for the released deal to which you would like to add a prime broker (see “Searching
for a Deal” on page 64 for more information).
2. Click the Update button and select Prime Broker from the sub-menu. The Compose New
Prime Brokered Deal screen is displayed.

Note: The Eligible Trade field at the bottom of the Main tab details whether or not this deal is
eligible for prime brokerage. If it is not, a warning appears to inform you of this if you try to
affirm the deal.

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3. Click the To button. The Select Addresses dialog is displayed.

Note: Only the counterparty with which you originally made the deal is available for addressing.
All the other participants are greyed out.
4. Select the relevant addressee(s) and click OK.
5. Click the Intermediary button. The Select Addresses dialog is displayed with a list of
participants in the left-hand pane.

Note: You can search for a participant by entering the name in the Participant field at the top of
the dialog to display all matching participants. The list can also be filtered using the radio
buttons to show only dealers, end users or single-sided participants. Non-MarkitWire
participant names are followed by (Single Sided Participant) (see “Composing Single-
Sided Deals” on page 30 for more information).

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6. Select the relevant participant to display the available dealers and interest groups in the
right-hand pane.

7. Select the relevant prime broker addressee(s) and click OK.

8. Enter a message in the Message field to explain why you are deciding to exercise the
option.
9. Select the relevant intermediary for both you and your counterparty from the Intermediary
dropdowns.
10. If you are sure that the information is correct, click the Affirm button
The deal appears in your counterparty’s Prime Brokered Deals folder and is listed in your Active
Deals folder. If sent to an interest group, as soon as the deal is picked up, it disappears from the
other dealers’ screens. Prime brokered deals are then affirmed and released in exactly the same
way a new deal (see “Affirming a Deal” on page 39 and “Releasing a Deal” on page 43 for more
information).

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14 Clearing
Markit has provided connectivity for our dealer, buy-side, and e-Trading platform clients to
clearing houses for over eight years, with over five million deals cleared to date. For the majority
of the last few years, clearing was focused on voluntary inter-dealer (D2D) clearing. However, in
July 2010, the Dodd-Frank Act was signed into law, marking the beginnings of a global
movement towards regulatory-required mandatory clearing of certain OTC derivative trades.
These regulations not only introduce compulsory OTC clearing, but also widen the products in
scope for clearing and bring buy-side clients into the fold as clearing participants (D2C and
C2C).
The clearing house offerings can be broadly categorised into new deal registration, backload
deal registration, and post-clearing functionality. With respect to the first two categories, Markit
has historically provided new deal confirmation and backload connectivity/ confirmation for
bilateral deals and in this vein has introduced and maintained connectivity to support new
clearing house deal registration. The last category, post-clearing functionality, represents a new
suite of services for which Markit is now extending support.
Note: Once a MarkitWire deal has been cleared, it can only be unilaterally amended. If a
bilateral amendment is required on a cleared deal, the deal must first be de-cleared by
the clearing house.

14.1 Clearing Houses in MarkitWire

A clearing house is a financial institution that provides clearing and settlement services for
financial transactions. Once a deal has been executed between two counterparties, the deal can
be submitted to a clearing house which then steps between the two original participants and
assumes the legal counterparty risk for the deal.
A clearing house reduces the settlement risks by netting offsetting transactions between multiple
counterparties, by requiring collateral deposits, by providing independent valuation of deals and
collateral, by monitoring the credit worthiness of the clearing participants and in many cases, by
providing a "guarantee fund" that can be used to cover losses that exceed a defaulting
participant’s collateral on deposit.
Many clearing house guarantee funds are capitalised with collateral from its clearing
participants. In the event of a settlement failure, the clearing participant may be declared to be in
default and clearing house default procedures may be utilised. These may include the orderly
liquidation of the defaulting participant's positions and collateral. In the event of a significant
failure, the clearing house may draw on its guarantee fund in order to settle deals on behalf of
the failed participant.
Consequently, the clearing house reduces the given risks of a participant failing to honour their
deal settlement obligations by mutualising the counterparty risk.

As a middleware provider, providing access to clearing houses, Markit enjoys the widest number
of integrations, including:
 Australian Securities Exchange (ASX)
 Chicago Mercantile Exchange (CME)
 Chicago Mercantile Exchange Clearing Europe (CME CE)
 Eurex
 IntercontinentalExchange Clear Credit (ICE CC)
 InterContinentalExchange Clear Europe (ICE CE)
 Japan Securities Clearing Corporation (JSCC)
 KDPW_CCP
 Korea Exchange (KRX)

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 LCH.Clearnet Ltd (SwapClear)

 LCH.Clearnet LLC (SwapClear)
 LCH.Clearnet SA (CDSClear)
 NASDAQ OMX
 Options Clearing Corporation (OCC)
 OTC Clearing Hong Kong Limited (HKEx)
 Singapore Exchange (SGX)
Note: It is also expected that additional clearing houses will connect to Markit in the future.

14.2 Eligibility for Clearing

Within MarkitWire, it is possible to flag a trade to be sent to clear through a link with an approved
clearing house supported by MarkitWire and designated as applicable by both parties. Unless
the parties have specified a bilateral clearing house, a transaction is only eligible to be sent to
the designated clearing house if all eligibility criteria is met and both parties to the transaction
have indicated their mutual intent to send the transaction to the designated clearing house.
MarkitWire supports a mechanism for defining clearing eligibility criteria to be applied against a
deal in order to determine whether a deal is made available for clearing. The eligibility rules can
broadly be divided into the following:
 Clearing Eligibility (general product characteristic restrictions)
Certain characteristics of a deal entered into MarkitWire may make it ineligible for clearing
based on constraints set by the CCP (for example, the deal term may be required to be
greater than a minimum number of days and less than a maximum).
 Clearing Membership (clearing member restriction)
The two parties to the deal must either be members of the clearing house or have a
relationship with at least one clearing member of the clearing house.
 Trade Party Permissions (clearing legal entity pair restrictions)
The two parties to the deal must have trading permissions in place between themselves.
Additionally, clearing permissions can be configured as “all” or “none”. In the case of “all”, if
the two trade parties have clearing permissions in place for a given CCP, they must have the
clearing permission in place for all CCPs. In the case of “none”, the two trade parties do not
need any additional special clearing permission to submit to a given clearinghouse.
 Proprietary Rules (legal entity specific product characteristic restrictions)
An individual legal entity may restrict the types of deals they clear with all other clearing
members (for example, a particular legal entity may not clear deals in a specific currency even
though the currency is supported by the CCP).
Note: As the CFTC requires SEF-submitted deals to be submitted to a DCO as soon as
technologically practicable, with strict timeframes for DCO evaluation of the deal, the
eligibility rules above are not applied when a deal is submitted by a SEF.

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14.2.1 Clearing Tab

A dealer can determine if a deal is to be sent for clearing on the Clearing tab. The eligibility for
clearing status can be set to Not Determined until the deal reaches a booking state of Done.

Note: With the exception of the Bilateral Clearing House field, all other fields on this tab are for
informational purposes only

The Clearing tab contains the following bilateral clearing fields:

 Bilateral Clearing House
The Bilateral Clearing House dropdown is a bilateral field containing a list of all CCPs set up
against the legal entity. As dealers are configured to send inter-dealer deals to multiple CCPs,
eligibility has been extended to capture the intended CCP.
 Private Clearing House
The Private Clearing House dropdown is a unilateral field containing a list of all CCPs set up
against your legal entity.
 Clearing Broker
The Clearing Broker dropdown is used to specify a clearing broker if the party is not a
member of clearing house. If the deal is subsequently allocated, the clearing broker is copied
over to each split from the block deal. However, you can specify a different clearing broker for
each split. Any clearing broker selected by the executing party is not visible to the
counterparty and vice-versa.

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 Client Clearing Deal

The Client Clearing Deal checkbox signifies that the deal is a client clearing deal and is set
automatically when a deal is created as a client clearing deal. Checking this checkbox
automatically sets the Auto Send for Clearing checkbox. The Auto Send for Clearing
checkbox can then be amended independently if required.
The value of the Client Clearing Deal checkbox is propagated to child deals throughout the life
of the deal unless explicitly changed.
 Exclude from Clearing
The Exclude from Clearing bilateral field in the deal template can be used to indicate that a
deal should not be considered for clearing irrespective of other eligibility considerations. This
field can be set manually in MarkitWire Trader prior to the deal reaching a booking state of
Done. Setting the Exclude from Clearing field to Yes results in the Eligible for Clearing field
being set to a value of No when the deal reaches the Done state.
 Auto Send for Clearing
The Auto Send for Clearing checkbox only exists for products which can be cleared. This is
checked as default on all deals which are created as client clearing deals and is available for
amendment during subsequent amendments to the deal.
If the Client Clearing Deal checkbox is unchecked, then the Auto Send for Clearing checkbox
is also unchecked by default.
If the deal consists of allocations, the value of this field is copied down to all child New-
Allocation deals (i.e. if it is set to True on the parent deal, this is copied as True to all child
deals). If one party changes the value on the allocated deal, then all parties see this change
as a bilateral change.
When Auto Send for Clearing is checked, once the deal reaches the Released stage and is
eligible for clearing, an attempt is made to clear the deal with no further actions required by all
parties. This is equivalent to manually checking the Send for Clearing checkbox to True. The
deal going to clearing is subject to the normal clearing eligibility rules as well as any
participant-specific rules regarding private data entry, etc. However, if Auto Send for Clearing
is unchecked, the deal behaves as a normal deal and awaits user input before being sent for
clearing.
The Auto Send for Clearing checkbox is present for all deals, not just client clearing deals.
However, only on a client clearing deal is it checked by default, in all other instances it is
unchecked.
 Send for Clearing
The Send for Clearing field displays one of four possible values, Not Determined, Yes, No or
Not Applicable. The field is enabled providing the user has the Clear permission and the
Eligible for Clearing field contains a value of Yes or No. It is read-only if the user does not
have the Clear permission or the Eligible for Clearing field contains a value of Not Determined
or Not Applicable.
When the Send for Clearing field is enabled and the Eligible for Clearing field contains a value
of Yes, the possible menu selection choices are Not Determined, Yes and No. However,
when it is enabled and the Eligible for Clearing field contains a value of No, the possible menu
selection choices are Not Determined and No.
A deal that has not yet reached a booking state of Done displays a value of Not Determined
any time the Eligible for Clearing field contains a value of Not Determined.
A deal with a Clearing contract state displays a value of Not Applicable.
 Last Updated (Send for Clearing timestamp)
The Last Updated field is the Send for Clearing timestamp. It is always read-only since it is a
system calculated field. It is blank (empty) if the Send for Clearing field contains a value of Not
Determined or Not Applicable. It is updated with the current MarkitWire hub time each time the
Send for Clearing field changes value (for example, from Not Determined to Yes or Not
Determined to No etc.).

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 Eligible for Clearing

The Eligible for Clearing field is always read-only since it is a system calculated field. It
displays one of four possible values; Not Determined, Yes, No or Not Applicable. A New,
Amended or Cancelled deal that has not yet reached a booking state of Done displays a value
of Not Determined.
The Eligible for Clearing field is set automatically when a New, Amended or Cancelled deal
reaches a booking state of Done. A New or Amended deal that has reached a booking state
of Done displays a value of Yes or No depending on whether the deal is eligible and a
Cancelled deal that has reached a booking state of Done displays a value of No since a deal
with a contract state of Cancelled cannot be cleared.
A deal with a Clearing contract state displays a value of Not Applicable irrespective of its
booking state.
 Last Checked (Eligible for Clearing timestamp)
The Last Checked field is read-only since it is a system calculated field (when labelled Last
Checked), or blank (empty) if the Eligible for Clearing field contains a value of Not Determined
or Not Applicable.
The field is set to the current MarkitWire hub time when a deal reaches a booking state of
Done (i.e. when eligibility is first determined) and is updated with the current MarkitWire hub
time each time the active Check Current Eligibility button is clicked irrespective of whether the
Eligible for Clearing field changes value.
For IDB/SEF deals, Private Clearing House can be set up-front bilaterally or left empty for
both sides to set independently. For non-brokered deals the party entering the deal can
choose to populate or leave blank
Where parties mismatch on CCP, deals are marked under Eligible for Clearing as No.
 Check Current Eligibility
The Check Current Eligibility button is disabled when the Eligible for Clearing field contains a
value of Not Determined or Not Applicable and enabled when the Eligible for Clearing field
contains a value of Yes or No (i.e. this is generally when a deal is in a post-Done state,
including a post-Release state, via a unilateral amend).
When the Check Current Eligibility button is enabled, clicking the button results in a check of
current eligibility. If the deal is still eligible then Eligible for Clearing displays Yes.
If a deal is not currently eligible for clearing then pressing the Check Current Eligibility button
results in the Eligible for Clearing field displaying a value of No and a message displaying all
the reasons for ineligibility.
 Parties Eligible
This read-only field contains the result of eligibility data checks run against the legal entity to
legal entity combination (the clearing broker and client legal entities). This is only populated
as a result of clicking the Check Clearing Eligibility button which runs the client clearing
eligibility rules (otherwise it displays Not determined). If the private data requirements are
eligible, the field displays Yes, otherwise it displays No.
In terms of the allocations grid, each individual allocation is checked for clearing eligibility
between each legal entity to legal entity combination. The results are returned and displayed
in the grid for each individual allocation, where present. If a deal is ineligible for clearing
because the parties are not set up, it is possible to see the reason by hovering over the
exclamation mark.
Where the user is the executing broker participating in the client clearing process, the Parties
Eligible flag ignores whether the parties are set to clear with each other as the executing
broker does not usually have clearing permissions set up with the client block legal entity.
Consequently, for the executing broker side of the deal the Parties Eligible flag is always set
to Yes by default.
From the client side of the deal, the eligibility checks run on the client and clearing broker
combination ensure that they are permissioned correctly with each other for clearing.
 Clearing House Eligible
This read-only field displays the result of the eligibility check and is only populated after
clicking the Check Clearing Eligibility button which runs the client clearing eligibility rules
(otherwise it displays Not determined). If the deal is eligible, the field displays Yes, otherwise
it displays No.

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 Internal Rules Eligible

This read-only field contains the result of private data checks run against your party’s internal
rules. This is only populated as a result of clicking the Check Clearing Eligibility button which
runs the client clearing eligibility rules (otherwise it displays Not determined). If the private
data requirements are eligible, the field displays Yes, otherwise it displays No.
Note: Once the deal reaches a status of Done, the clearing eligibility is determined. If the
Exclude from Clearing checkbox has been selected, the deal is not able to be cleared.

14.2.2 Clearing Eligibility Tab

As the clearing broker requires all relevant information about the deal that is proposed to be
cleared upfront, MarkitWire adds information about whether deals are eligible for clearing or not
on the Clearing Eligibility tab (as shown in the example below).

Note: In order to help determine who the client is, MarkitWire provides information about who is
designated as being a clearing member. This information is visible on the Clearing
Eligibility tab under each legal entity. The assumption is that the client is not a member of
the clearing house and as such would not have the Clearing Member checkbox checked.

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Clearing eligibility is only evaluated by clicking the Check Clearing Eligibility button. This makes
it possible to check clearing eligibility before all parties have picked up the deal. However, where
private data cannot be determined, the value Not Determined is displayed.

The Clearing Eligibility tab contains the following bilateral clearing fields:
 Clearing House Eligible
The Clearing House Eligible field displays the result of the eligibility check (i.e. those rules
which are applicable to the selected clearing house only) performed by clicking the Check
Clearing Eligibility button, otherwise it displays Not Determined. If the deal details are eligible
for clearing, the field displays Yes, if not eligible it displays No.
When a trade is ineligible for clearing, it is possible to drill down to find the exact reason for
ineligibility.
 Check Clearing Eligibility
Clicking the Check Clearing Eligibility button runs the client clearing eligibility rules and
populates the Internal Rules Eligible, Counterparty Rules Eligible, Parties Eligible fields with
the results. Also if allocations are present, the Parties Eligible column in the allocations grid is
also populated.
 Clearing Member
The Clearing Member checkbox identifies whether the participant legal entity is a clearing
member of the selected clearing house or not. If the checkbox is ticked, the legal entity is a
member of the clearing house.
 Internal Rules Eligible
The Internal Rules Eligible field contains the result of private data checks run against my
party’s internal rules. This is only populated as a result of clicking the Check Clearing
Eligibility button, otherwise it displays Not Determined. If the deal details are eligible for
clearing, the field displays Yes, if not eligible it displays No.
 Counterparty Rules Eligible
The Counterparty Rules Eligible field contains the result of private data checks run against the
counterparty’s internal rules. This is only populated as a result of clicking the Check Clearing
Eligibility button, otherwise it displays Not Determined. If the deal details are eligible for
clearing, the field displays Yes, if not eligible it displays No.
 Parties Eligible
The Parties Eligible field contains the result
of the legal entity combination eligibility check for the legal entity to legal entity pair of the
clearing broker and client. This is only populated as a result of clicking the Check Clearing
Eligibility button, otherwise it displays Not Determined. If the deal details are eligible for
clearing, the field displays Yes, if not eligible it displays No.
 Allocation Grid
Each individual allocation is checked for clearing eligibility for the legal entity to legal entity
combination. The results of this check are returned and displayed in the grid for each
individual allocation.

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14.2.3 Allocations Clearing

Where there are allocations on a deal, to identify which splits have been cleared and which have
been rejected, MarkitWire uses an All Cleared notification. The allocations/clearing functionality
means that as the booking state changes to Released and the version number updates for each
split, a DealSink notification is automatically received.
The Clearing tab features three read-only fields to support the all cleared functionality of an
allocated deal in the client clearing workflow.

The relevant clearing fields include the following:

 Allocations Cleared
The Allocations Cleared field displays the number of allocations that have cleared (out of the
total allocations on the block). This field is updated following the change in state of a child
deal to Clearing Released.
 Allocations Rejected
The Allocations Rejected field displays the number of allocations that have been rejected by
the clearing house (out of the total allocations on the block). This field is updated following the
change in state of a child deal to Clearing Rejected.
If deals which were rejected are then subsequently cleared successfully, this field is not
updated to reflect the new status (for example, a deal could be rejected numerous times and
each time it is rejected this count is updated.
 All Cleared
The All Cleared checkbox signifies when all the allocations, or child deals related to the block
deal, have been cleared. This field is only checked once all the allocations have been
accepted by the clearing house and are in the Clearing/Released contract/booking state.

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14.2.4 Deal Parameter Checks

To aid the executing broker, MarkitWire provides the ability to check general deal parameters to
ensure that the deal is acceptable to the clearing house (for example, whether the currency is
supported by the selected clearing house) at the point at which the deal is sent out.
If the deal is not eligible for client clearing based on the deal details, MarkitWire prevents the
deal from being sent out. In this case an error message is displayed (as shown in the example
below).

If the deal does not have any allocations, clearing eligibility for the clearing broker/client deal and
clearing broker/executing broker deal is evaluated based on the information available and the
result is displayed in MarkitWire Trader.
If the deal does have allocations, in addition to the two above mentioned combinations, the
clearing eligibility for each of the clearing broker/client allocation deals is also evaluated. In this
case the block legal entity is ineligible for clearing. Banks need to look at the eligibility of the
allocations, not the block deal, in order to determine whether or not the resulting deals are
eligible for clearing.

14.3 Clearing Pending Deals

Deals that have been sent for clearing, but have not yet been accepted by the clearing house
are marked as Clearing Pending on the deal ticket.

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14.4 Composing a New Client Clearing Deal

In a client clearing deal, a client that is not a member of a clearing house can lever a relationship
with a clearing member to clear deals. As a result, the client enjoys the same benefits from
clearing as dealers. In MarkitWire it is the executing broker who initiates the deal with the client.
Upon receipt of the alleged deal, the client can indicate the clearing member for the deal. There
are several requirements surrounding the selection of the clearing broker that must be fulfilled.
The client must specify the clearing broker on a direct unallocated deal or, when allocated, for
the individual splits on a block deal (i.e. multiple dealer clearing member capability).
The clearing broker is set up as a participant in MarkitWire. Trading permissions must be set up
between the clearing broker and the client legal entities. However, permissions between the
clearing broker and executing broker are not required. The client must also have clearing
permissions with the clearing broker and the clearing broker and executing broker must be
members of the selected clearing house. The executing broker does not have any visibility of the
client’s clearing broker(s) at any point.
An overview of the Markit client clearing process can be seen below.

Executing
Client
Broker

1 1 2

MarkitWire

3 5

Clearing House

1 Match/Affirm
2 Allocate
Clearing 3 Take-Up
Broker 4 Submit to central counterpart
5 Cleared notification

Note: For more information on MarkitWire client clearing process, see the “Client Clearing
Processes in MarkitWire” document.

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To compose a new client clearing deal:

1. Click the New Deal icon dropdown and select Client Clearing Deal (or select New Client
Clearing Deal from the Deal menu). The Clearing House dialog is displayed.

2. Select the relevant product from the Product dropdown.

Note: A client clearing deal which is destined for a particular clearing house must be an eligible
product for that clearing house (for example, for CME, it must be a CDS index or CDS
matrix deal).
3. Select the relevant clearing house from the Clearing House dropdown and click OK. The
Compose New Client Clearing Deal window is displayed.

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4. Click the To button. The Select Addresses dialog is displayed with a list of participants in the
left-hand pane.

Note: You can search for a participant by entering the name in the Participant field at the top of
the dialog to display all matching participants. The list can also be filtered using the radio
buttons to show only dealers, end users or single-sided participants. Non-MarkitWire
participant names are followed by (Single Sided Participant) (see “Composing Single-
Sided Deals” on page 30 for more information).
5. Select the relevant participant. The addressees for that participant are displayed in the right-
hand pane.

Note: You can search for an addressee by entering the name in the Addressee field at the top
of the dialog to display all matching dealers or interest groups. Multiple addresses can be
selected by holding the Shift or Ctrl keys.
6. Select the relevant addressee(s) and click OK.
7. Enter any deal-relevant information in the Message field (if applicable).
Note: A history of all messages attached to a deal is retained. This information can be used
later by operations teams in downstream systems.

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8. Select the relevant options from the Currency and Tenor dropdowns.
9. Click the Zero Coupon (Fixed) checkbox if required.
10. Click the Zero Coupon (Floating) checkbox if required.
11. Click the Next icon. The Main tab is displayed.

Note: For further information on the meaning and functionality of the different fields used on the
Compose New Client Clearing Deal screen tabs, see the relevant annex to the
“MarkitWire Provisions”.
12. Complete all required fields on all highlighted tabs (see “Deal Details” on page 21 and
“Completing Internal Data” on page 29 for information) and perform any additional changes
to the default settings as required.
13. If you are sure the details of the deal are correct, click the Affirm icon (or click the Save &
Close icon to save the deal to the Drafts folder).
The deal appears in your counterparty’s Direct Deals folder and is listed in your Active Deals
folder. If sent to an interest group, as soon as the deal is picked up, it disappears from the other
dealers’ screens. Client clearing deals are then affirmed and released in exactly the same way a
new deal (see “Affirming a Deal” on page 39 for more information). Once the deal has been
affirmed by both sides, the Done notification is displayed.

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When a client clearing deal is initiated, MarkitWire run clearing house rules to validate that the
deal meets the clearing house’s eligibility criteria (these are based purely on deal details such as
currency, tenor, etc.). If a client clearing deal does not meet the clearing house eligibility criteria,
the deal is not allowed to be cleared. MarkitWire Trader users are informed via a dialog that a
client clearing deal must meet the clearing eligibility rules.

14.4.1 Allocations Block Deal

On initiation of a client clearing deal, the executing dealer selects the block legal entity for the
client and affirms. The client must pick-up the deal to allocate. Clicking the Allocated checkbox
on the Allocation tab activates the allocation splits pane where the client can enter the splits by
either uploading the splits from a .csv file or entering them manually.
Once the client affirms the deal, after entering the allocations, the executing broker must re-
affirm the deal, as bilateral fields have been altered.
Note: The fund names and the clearing broker for each split are not disclosed to the
counterparty. The fund names are masked (specifically the counterparty sees the block
name instead of the fund names) and the client’s clearing broker(s) are absent.

An example of an executing broker’s view of a block deal on the Allocations tab can be seen
below.

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Behind the scenes the funds which the client has actually selected in the Allocation tab are
saved to unilateral fields so that the executing broker has no visibility of these values. The
bilateral fields, which the executing broker sees, are saved in the normal bilateral fields for
allocation funds.

14.4.2 New-Allocation Deal

Once the bilateral block deal has been affirmed and released by both parties, the New-Allocation
deals are created, one for each allocation. If the deal has a clearinghouse designated, the
allocations are eligible for clearing and progress to the clearing house. This is evidenced by the
contract state changing to Clearing and the booking state changing to Pending.
MarkitWire submits the allocations independently to the clearing house where they are evaluated
independently for clearing acceptance or rejection. The deals remain in a contract state/booking
state of Clearing/Pending until the clearing house accepts or rejects the allocations. If the
allocations are accepted/registered, they have a contract state/booking state of
Clearing/Released. If the allocations are rejected, the contract state/booking state changes to
Clearing/Withdrawn.
Note: In certain clearing house workflows (for example, OCC OTC equity submissions) the
clearing broker(s) must accept the allocations before the deal is presented to the clearing
house.

14.4.3 Brokered Client Clearing Deals

Brokered client clearing deals are client clearing deals that are initiated by a broker. The
brokered client clearing deal workflow is exactly the same as the process detailed in “Composing
a New Client Clearing Deal” on page 141, except that the broker must select the executing
broker and client and can also decide whether or not to populate the Clearing Broker fields on
the Broker Processing tab.
The brokered client clearing deal workflow is as follows:
1. The broker initiates/submits the bilateral deal, addressing it to the executing broker and
client. Before submitting the deal, allocations can be added, or it can be indicated that
allocations are to follow. The broker can also provide details of the clearing broker for each
allocation submitted.
2. The executing broker accepts the deal.
Note: The client’s clearing broker (or clearing brokers if allocations have been added) remains
anonymous to the executing broker and vice versa.
3. The client accepts the deal. The clearing broker’s details are presented to the client if
submitted by the broker.
Note: Once both the executing broker and the client have accepted the deal, the broker drops
out of the deal.
4. The executing broker affirms the deal. The client can only affirm the deal once the clearing
broker’s details are present.
5. The client affirms the deal. However, they are allowed to update the clearing broker details
at the block and/or for each allocation if provided by the broker. Since the clearing broker is
treated as private data, any changes to the clearing broker do not require further affirmation.
The deal moves to a booking state of Done.
The non-allocated bilateral deal goes though the standard clearing eligibility rules and is sent to
the clearing house. If allocations are applicable, each client/clearing broker deal goes through
the standard clearing eligibility rules and is sent to the clearing house.
Note: There is special treatment for swap execution facility (SEF) submissions. Given CFTC
regulatory requirements which require clearing of a deal as soon as technologically
practicable, certain controls that are typically applied for brokered and trade party direct
submissions are suppressed. This includes suppression of legal entity trading and
clearing permission checks, as well as clearing house-proprietary rule validations.

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14.4.4 Client View of a Client Clearing Deal

The client’s view of the Processing tab is different from that of the executing broker (as shown in
the example below).

The relevant clearing fields on the Clearing tab include the following:
 Bilateral Clearing House
The Bilateral Clearing House field is mandatory on a client clearing deal. It is available as a
dropdown for the executing broker, but it is locked for a client recipient (as shown in the
example above).
 Clearing Broker
The Clearing Broker field is mandatory on a client clearing deal and specifies the clearing
broker. This field is only visible to the client. If a deal is allocated, there must also be a
clearing broker for each split. Changing this field does not cause a bilateral amendment to the
deal.
If the deal is a block deal, once the allocation checkbox is checked, this field is disabled. In
this case, the clearing broker must be specified on the splits. If the deal is not unallocated (i.e.
a simple bilateral deal), then the client must enter a clearing broker before clicking Affirm in
order to complete the deal.
On an allocated deal, there is a column in the allocation grid to specify the clearing broker for
the individual splits on an allocated deal. The Clearing Broker field must be specified for each
individual allocation on a block deal. Failure to complete this field prevents the client from
being able to affirm the deal.
 Fund
The Fund field is mandatory on a client clearing deal that is not an allocated deal. The field is
the unilateral fund name as specified by the client. This field is only visible to the client.
Changing this field does not cause a bilateral amendment to the deal.

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14.4.5 Auto-Sending a Deal for Clearing

In order to indicate that a deal is a client clearing deal, the Client Clearing Deal checkbox on the
Clearing tab is checked by default when a client clearing deal is initiated.

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The relevant clearing fields on the Clearing tab include the following:
 Client Clearing Deal
The Client Clearing Deal checkbox signifies that the deal is a client clearing deal and is set
automatically when a deal is created as a client clearing deal. Checking this checkbox
automatically sets the Auto Send for Clearing checkbox. The Auto Send for Clearing
checkbox can then be amended independently if required.
The value of the Client Clearing Deal checkbox is propagated to child deals throughout the life
of the deal unless explicitly changed.
Note: If one party changes the value of this field, then all parties see this change as a bilateral
change (which requires everyone to affirm the deal again).
 Auto Send for Clearing
The Auto Send for Clearing checkbox only exists for products which can be cleared. This is
checked as default on all deals which are created as client clearing deals and is available for
amendment during subsequent amendments to the deal.
If the Client Clearing Deal checkbox is unchecked, then the Auto Send for Clearing checkbox
is also unchecked by default.
If the deal consists of allocations, the value of this field is copied down to all child New-
Allocation deals (i.e. if it is set to True on the parent deal, this is copied as True to all child
deals). If one party changes the value on the allocated deal, then all parties see this change
as a bilateral change.
When Auto Send for Clearing is checked, once the deal reaches the Released stage and is
eligible for clearing, an attempt is made to clear the deal with no further actions required by all
parties. This is equivalent to manually checking the Send for Clearing checkbox to True. The
deal going to clearing is subject to the normal clearing eligibility rules as well as any
participant-specific rules regarding private data entry, etc. However, if Auto Send for Clearing
is unchecked, the deal behaves as a normal deal and awaits user input before being sent for
clearing.
The Auto Send for Clearing checkbox is present for all deals, not just client clearing deals.
However, only on a client clearing deal is it checked by default, in all other instances it is
unchecked.
Note: The Auto Send for Clearing and Client Clearing checkboxes are bilateral. Both are
optional, but are checked by default on the bilateral deal which has been initiated as a
client clearing deal and can be unchecked if required.

It is important to understand that by using the Auto Send for Clearing functionality, the bank
might not be able to set the required private data on deals before they are sent for clearing. If
there are rules set up requiring private data to be set, the process stops at the point the rule is
evaluated and it is the bank’s responsibility to add the required data and ensure that the deal is
sent for clearing.
Also, if for whatever reason the deal fails to be registered for clearing (maybe because the
clearing house rejects it, or because it fails a clearing rule set up in MarkitWire), the bank must
work on rectifying the situation and re-send the deal for clearing when appropriate.

14.4.6 Searching for Client Clearing Deals

When a deal is sent for clearing, the contract state changes to Clearing. In the Blotter, searches
only show one level of depth (i.e. it is not possible to cascade all the way down to the cleared
deals from the original deal). In order to find all deals resulting from a client clearing deal, search
criteria encompassing all deals (for example, deal date, or some deal characteristics) must be
ascertained. It is possible to search for deals where the Client Clearing flag is set to either True
or False (see “Searching for a Deal” on page 64 for more information).

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14.5 Clearing Broker Take Up Service

Clearing brokers, including futures commission merchants (FCMs), can guarantee (in the
agency regulatory model) or step-in (in the principal regulatory model) a given deal using
MarkitWire’s clearing broker take-up functionality. MarkitWire’s functionality enables a clearing
broker to use a single interface for take-up across multiple clearing houses.
MarkitWire supports clearing broker take-up either after clearing house submission (for example,
LCH, Eurex) or before clearinghouse submission (for example, OCC), depending on the clearing
house.
Clearing broker take-up after clearing house submission is irrespective of how the deal was
submitted to the clearing house. In other words, clearing brokers can accept deals that were
either submitted to the clearing house via MarkitWire or not. When the deal is initiated on
MarkitWire, the executing broker and client affirm the deal on MarkitWire and it is then sent to
the clearing house who immediately re-route the deal to the clearing broker. When the deal is
initiated off MarkitWire (for example, via Bloomberg, TradeWeb, etc.), the executing broker and
the client affirm the deal outside MarkitWire and it is sent directly to the clearing house. The
clearing house then sends the deal to the clearing broker on MarkitWire.
An overview of the MarkitWire clearing take up post process can be seen below.

Executing
Client
Broker

1 1 2

MarkitWire

3 4 5 6 5 4

Clearing
Clearing House Broker(s)

1 Match/affirm
2 Allocate
3 Submit to clearing house
4 Clearing house submits to clearing broker(s) via MarkitWire
5 Clearing broker(s) affirm deal and submit to clearing house
6 Cleared notification

The executing broker initiates the deal and can assign their own clearing broker if required. The
Clearing Broker field is only mandatory if the executing broker is not a member of the clearing
house.
The client picks up the deal and assigns their clearing broker (the clearing house should already
be populated). The client then affirms the deal and the deal is sent to the clearing house.

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The clearing house notifies the clearing broker that there is a deal that needs to be
accepted/rejected and sends the deal to the clearing broker(s) on MarkitWire in the form of a
clearing take up deal. The clearing broker affirms (or rejects the deal) and accept/reject
messages are sent to the clearing house.

14.5.1 Accepting a Clearing Take Up Deal

A clearing broker receives clearing take up deals in their Clearing Takeup folder. Picking up the
deal (see “Picking Up a Deal” on page 36 for more information) displays the clearing take up
deal Main tab in the Deal Details pane.

The Main tab contains the following read only fields:

 Initiating Event
This field determines the type of trade being received.
 Client Id
This field is the client BIC.
 Client Trade Id
This field is the client trade ID.
 Exec Src
This field is the BIC for the execution source.
 Exec Src Trade Id
This field is the trade ID for the execution source.
 Correlation Id
This field is the correlation ID sent on the clearing take up message received from the clearing
house.
 Clearing House Trade Id
This field is the trade ID of the clearing house.

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Once the clearing take up deal has been picked up, if you are happy with the deal details you
can accept the deal by clicking the Accept button or reject the deal (see “Rejecting a Clearing
Take Up Deal” on page 152 for more information). Once the deal has been accepted, it moves to
the Active Deals folder.

14.5.2 Rejecting a Clearing Take Up Deal

If you do not would like to accept a clearing take up deal, you can reject it.
To reject a clearing take up deal:
1. Click the Reject button. The Reject prompt is displayed.

2. Enter a reason for rejecting the deal (if required) and click OK.
Upon rejection, the deal disappears from your deal folders and is only visible through a Blotter
search.

14.5.3 Counterparties on a Clearing Take Up Deal

When a deal (or allocation) has a contract state of Clearing, the counterparty is updated from the
original counterparty, to the expected counterparty for when the deal clears.
When a deal is submitted to a clearing house following an agency regulatory model, the new
counterparty is the clearinghouse. However, when a deal is submitted to a clearing house
following a principal regulatory model:
 if the deal party is a member of the clearinghouse, the counterparty is the clearinghouse,
 if the deal party is not a member of the clearinghouse, the counterparty is their clearing
member on the deal.

In the agency model, the executing broker’s view of a client clearing deal shows them as facing
the clearing house along with information about the previous counterpart, as can be seen in the
following example.

The client’s view of a client clearing deal also shows them as facing the clearing house along
with information about the previous counterpart, as can be seen in the following example.

The deal remains in this view as long as the contract state is Clearing. If the deal does not clear
or exits clearing at a later stage, the deal reverts back to the original counterparty following a life-
cycle event on the deal.

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14.5.4 Example Clearing Take Up Search

To view all clearing take up deals that have been released by the FCM, create a saved search
under the contract state of Clearing-Takeup as shown in the following example.

Double-clicking a deal opens a browser window and the deal ticket is displayed showing a
contract state of Clearing-Takeup (Released).

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15 Regulatory Reporting
Reporting is required by a number of international jurisdictions. The reporting jurisdictions
supported by MarkitWire are CFTC, ESMA, JFSA, HKMA, ASIC and MAS. For regulatory
reporting in MarkitWire, all deal data is reported by the reporting party (reporting counterparty
(RCP) for CFTC reportable deals).
Note: A participant has the option for Markit to determine their reporting jurisdiction, reporting
counterparty (RCP) and to generate their unique swap identifier (USI). However,
depending on your setup, certain deals can fall under the remit of multiple reporting
jurisdictions.

15.1 CFTC Report Types

For deals that fall within the jurisdiction of the CFTC, MarkitWire determine who the RCP is
based on your participant’s static data set up. On any given deal, one side is obligated to send
the reporting data. This value can be calculated within MarkitWire. However, you can also
specify the RCP on a deal-by-deal basis. All event types can trigger reports to the DTCC Global
Trade Repository (GTR).

The following report types can be sent to the GTR for deals that fall under the CFTC reporting
jurisdiction:
 Real-Time reporting (RT)
The real-time report contains the real-time execution prices for a transaction.
 Primary Economic Terms (PET)
The PET report contains all key economic details of the transaction as determined by the
Commissions. However, it is not a full confirmation. The CFTC requires transaction
verification prior to reporting. The SEC does not require verification.
 Confirmation (CONF)
The confirmation report contains very similar details to the PET. It is sent once a trade has
been officially confirmed between counterparties. Confirmation reports are sent for all
confirmed deals in MarkitWire (regardless of eligibility) to the GTR.
 Post Trade Event
The post trade event report consists of a snapshot style report for CFTC transactions when
any post-trade events are carried out on the deal. This has not been labelled as “continuation”
as some of the data required for a full “confirmation” report is not transmitted by MarkitWire.

15.2 ESMA, JFSA, HKMA, ASIC and MAS Report Types

Jurisdiction determination is unilaterally set up by each side for deals that fall within the
jurisdiction of ESMA, JFSA, HKMA, ASIC and MAS. This allows you to specify which deals fall
within a particular reporting regime on a deal by deal basis.

The following report types can be sent to the GTR for deals that fall under the ESMA, JFSA,
HKMA, ASIC and MAS reporting jurisdictions
 Prior to Confirmation
The prior to confirmation report consists of a snapshot style report for obligated parties prior to
the transaction having reached a booking state of Done.
 Confirmation
The confirmation report consists of a snapshot style report for obligated parties once the
transaction has reached a booking state of Done.
 CCP Leg
The CCP leg report consists of a snapshot style report for obligated parties once they face the
clearing house on the cleared version of the deal.

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15.3 Reporting Fields

There are a number of optional and conditional regulatory reporting fields which must be
submitted as part of a deal in MarkitWire, depending on the reporting jurisdiction under which the
transaction must be reported. This data appears under the Regulatory Reporting tab which
contains the sub-tabs for each of the various reporting jurisdictions.

Note: The information on the Regulatory Reporting tab is for reporting purposes only and is not
incorporated into the deal affirmation.

The Regulatory Reporting tab sub-tabs for each jurisdiction capture your reporting preferences
and the reporting identifiers required for that particular jurisdiction. You can populate the values
on a deal-by-deal basis, however, the majority of the fields contain pre-determined values based
on static data preferences provided by your participant and appear for both unconfirmed and
confirmed deals.
Note: Not all of the regulatory reporting fields appear on each of the reporting jurisdiction sub-
tabs. For simplicity, the reporting fields have been divided into the following sections.

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15.3.1 Upper Regulatory Reporting Tab Fields

The upper regulatory reporting fields are principally divided into the Reporting Preferences,
Report Identifiers and Mid-Market Price (CFTC only) sections.

Note: The availability of the upper Regulatory Reporting tab fields is dependent on which
reporting jurisdiction sub-tab (CFTC, ESMA, JFSA, HKMA, ASIC and MAS) has been
selected.

A comprehensive description of each of the fields can be seen below:

 Within Jurisdiction
This indicates whether your deal falls within a particular jurisdiction.
 Reporting Counterparty
This indicates the party that is the reporting counterparty. This is only a mandatory field if a
deal is within jurisdiction. It is determined using a combination of the CFTC and industry rules
and displays the name of the entity of the agreed RCP. The field can be overridden. This field
is for CFTC reportable deals only.
 Regulator Type
This indicates the regulator type or regulatory agency type for a given deal. This defaults to
Broad Based at go-live on all full template deals. All rates products are classed as Broad
Based and equities products as Narrow Based. On the Generic Template three options are
presented, Broad Based, Mixed and Narrow Based. This field is for CFTC reportable deals
only.

Reporting Preferences (CFTC)

A comprehensive description of each of the CFTC Reporting Preferences fields can be seen
below:
 RT
This indicates the preference for Markit to send a real-time report.
 PET
This indicates the preference for Markit to send a PET report.
 CONFIRM
This indicates the preference for Markit to send a CONF report.
 Post Trade Event
This indicates the preference for Markit to send a report for post-deal events.

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Reporting Preferences (ESMA, JFSA, HKMA, ASIC and MAS)

A comprehensive description of each of the ESMA, JFSA, HKMA, ASIC and MAS Reporting
Preferences fields can be seen below:
 Prior to Confirmation
This indicates the preference for MarkitWire to send a snapshot prior to confirmation of the
deal.
 Confirmation
This indicates the preference for Markit to send a snapshot on confirmation.
 CCP Leg
This indicates the preference for Markit to send a snapshot once obligated parties face the
clearing house on the cleared version of the deal.

Repository/Routing
 Destination SDR/TR
This indicates the trade repository to which the report is going to be sent.
 Intermediary/Via
This indicates the intermediate body through which the report is sent.

CFTC Reporting Fields

A comprehensive description of each of the CFTC reporting fields can be seen below:
 Price Forming
This indicates if an event is a price forming event and therefore indicates if Markit should send
a real-time report. This is always sent on a new deal, as these are always price forming. This
can impact the reporting of real-time. It is valid in many cases where bi-amends are made (for
example, terminations where a fee is incurred). This causes a second real-time report to be
sent. It would not, however, be valid for allocations as only PET and CONF are sent on splits.
If this is unchecked, but real-time is set to report, MarkitWire does not send the report.
 Regulatory Reportable
This indicates whether a deal is reportable or not. It is used when the two parties have
different interpretations of the CFTC ET rules. If one side believes that the deal is reportable,
but the RCP believes it is excluded by the ET rules, they can uncheck this box to stop the
deal from being reported.
 Non-Standard
This indicates other price affecting terms (such as indicating non-standardised (bespoke)
swaps). This defaults where MarkitWire deems applicable (for example, a rates product with
an unusual stub) although a client can override if they believe MarkitWire to be incorrect.
 Clearing Mandatory
This indicates that the deal is mandatorily clearable for this jurisdiction. This is left unchecked
for the foreseeable future until the CFTC determine the mandatory clearing rules.
 Clearing Exception
This indicates a clearing exception has been invoked. This is only applicable if mandatory
clearing indication is true.
 Intent To Clear
This indicates whether or not the confirmed trade is expected/intended to clear for the
designated clearing house with a value of either Yes or No.
 Block Trade/Large Notional
This indicates whether the deal should be identified as a large sized deal which will
subsequently benefit from a delay in public dissemination. The available options are Yes, No
or TR Calculate (which requests the trade repository to calculate on their behalf based on the
trade economics). The supplied value is propagated to the parties receiving the deal and is
editable by all parties. The default is TR Calculate and set upon creation of the deal.

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Report Identifiers (CFTC)

A comprehensive description of each of the CFTC Report Identifiers fields can be seen below:
 USI
This indicates the unique identifier assigned to all swap transactions which identifies the
transaction (the swap and its counterparties) uniquely throughout its duration. It is made up of
USI namespace and USI value.
 Prior USI
This indicates the previous USI relating to a transaction (for example, novations, swaption
exercise, etc.).
 Block USI
This indicates the previous USI relating to a block deal.

Report Identifiers (ESMA, JFSA, HKMA, ASIC and MAS)

A comprehensive description of each of the ESMA, JFSA, HKMA, ASIC and MAS Report
Identifiers fields can be seen below:
 UTI
This indicates the unique identifier assigned to all swap transactions which identifies the
transaction (the swap and its counterparties) uniquely throughout its duration. It is made up of
UTI prefix and UTI value.
 Prior UTI
This indicates the previous UTI relating to a transaction (for example, novations, swaption
exercise, etc.).
 Block UTI
This indicates the previous UTI relating to a block deal.

Mid-Market Price
A comprehensive description of each of the Mid-Market Price fields can be seen below:
 Type
This indicates the type of mid-market price. The options available for selection are
BasisPoints, Percentage and Price, Level. There is a pre-trade requirement under Dodd
Frank’s business conduct standards for swap dealers and major swap participants to
communicate the mid-market price to their clients. Certain products that are liquid and have
readily available electronic prices are exempt if the client agrees not to receive this mid-
market price. This is a trade economic field which is not reportable to regulators.
 Value
This indicates the relevant value for the selected mid-market price type.

USI to UTI Propagation

A comprehensive description of the field can be seen below:
 Propagate USI To UTI (best practice)
This indicates whether the USI namespace and value is copied into the UTI prefix and value
for all UTI requiring jurisdictions. The default is for the checkbox to be checked on all new
deals (including allocations, new prime brokered, new novated and new underlying swap
deals). If you uncheck the checkbox, this results in the system not copying the USI into the
UTI. If you would like to override the default setting because you are providing your own UTIs,
you need to uncheck the checkbox first and then add the UTI change. If you change the UTI
value and then uncheck the checkbox the system does not take your submission into
consideration.

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15.3.2 Lower Regulatory Reporting Tab Fields

The lower regulatory reporting fields are principally divided into the GTR Report Identifiers,
Execution, Locations, Asset Class and Product Identifier sections and are available for all
reporting jurisdictions.

A comprehensive description of each of the fields can be seen below:

 Branch Location
This indicates the country of the overseas branch of a legal entity in the case of a trade being
entered into by such an overseas branch.
 Trading Capacity
This indicates whether the reporting counterparty has concluded the contract as the principal
on their own account (on their own behalf or on the behalf of a client) or as an agent for the
account of and on behalf of a client.
 Beneficiary ID
This indicates the party subject to the rights and obligations arising from the contract. Where
the transaction is executed via a structure, such as a trust or fund, representing a number of
beneficiaries, the beneficiary should be identified as that structure. If the beneficiary of the
contract is not a counterparty to this contract, the reporting counterparty has to identify this
beneficiary by a unique code or, in case of individuals, by a client code as assigned by the
legal entity used by the individual.
 Commercial activity/Treasury financing
This indicates information on whether the contract is objectively measurable as directly linked
to the reporting counterparty's commercial or treasury financing activity, as referred to in Art.
10(3) of Regulation (EU) No 648/2012.

GTR Report Identifiers

A comprehensive description of each of the fields can be seen below:
 GTR Report Event ID
This identifies the transaction is a life-cycle event. This is always disabled for new deals. For
post-deal events the GTR require this to be populated. MarkitWire auto-populates using the
format “MWMVTradeVersion”. This can be overwritten, but a value is required to be
populated. In conjunction with USI, It is the unique identifier for a given report.
 GTR Bulk Event Processing ID
This identifies a transaction that is submitted as part of a multi-transaction event (for example,
credit event, TriOptima compression, etc.). MarkitWire does not default this value.

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Execution
A comprehensive description of each of the fields can be seen below:
 Off Platform Verified
This indicates if the data was electronically (for example, SEF) or non-electronically
(phone/fax) verified off-platform and is sent on PET reports.
For a single-sided deal, it must be marked Off Platform Verified for PET reporting, although a
full PET report is not sent, only an unverified PET can be sent (effectively a bookmark report
that allows a window of 48 hours before the full PET must be sent). This willingness to send
unverified PET reports must first be set-up in you participant’s static data.
 Execution Time
This indicates the time and date of execution of the reportable swap transaction in co-
ordinated universal time (UTC).
 Venue
This indicates the venue of execution of a reportable swap transaction. You can select either
SEF, DCM (designated contract market) or Off-Facility (not executed on or pursuant to the
rules of a swap execution facility or designated contract market). It defaults to Off-Facility.
 Off Platform Confirmed
This indicates if the data was electronically confirmed (for example, SEF) or confirmed by
non-electronic means (paper) off-platform. This is only be editable on a single-sided or
manual-confirm deal. It is not applicable for the Generic Template or credit deals on
MarkitWire.
 Confirmation Time
This indicates the business date and time of the confirmation.
 Collateralized
This indicates whether the contract is collateralised. Collateralisation is not reported for
cleared deals. As clearing eligibility is determined during deal composition, as opposed to
post-affirm, the real-time report is able to record an intention to clear. Although this does not
require collateralisation, a value must pass, so is marked as Uncollateralised. If an
independent amount has been entered, It is marked as One-Way. Both Fully and Partially
need to be either manually set, or defaulted in your participant’s static data.
 Price
This indicates the price for submitted transactions. It is not populated for rates deals. It
defaults to the fix rate for credit deals, but can be overridden.
 Collateral Portfolio Code
This indicates the unique code (up to ten numeric digits) determined by the reporting
counterparty if collateral is reported on a portfolio basis.
 Additional Price
This indicates the unit for the additional price type. Markit never default this value.
 Lifecycle Event
This indicates the trade event type that triggered the report sent to comply with the ESMA
regulatory reporting regime.
 Compression
This indicates that the trade is part of a compression event and is marked as either True or
False.

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Locations
A comprehensive description of each of the fields can be seen below:
 Broker
This indicates the physical location of the broker for the transaction and is optional and
unilateral. This information cannot be drawn for reporting from the Internal Data tab, even if
present as a field on the tab, as this tab is not consistent across clients. This is true for all
location data.
 Sales
This indicates the physical location of the sales desk for the transaction and is optional and
unilateral.
 Trader
This indicates the physical location of the trader for the transaction and is optional.
 Desk
This is optional and unilateral and indicates the physical location of the trading desk for the
transaction.

Asset Class
A comprehensive description of each of the fields can be seen below:
 Primary
This indicates under which of the primary asset classes the data falls.
 Secondary
This indicates a secondary asset class for multi-asset transactions. This is available when
using the Generic Template only. This can be used to record a multi-asset swap.

Product Identifier
A comprehensive description of each of the fields can be seen below:
 Product ID
This indicates the type product ID value. As a selectable dropdown, this is only used on the
Generic Template (as such exotic products are less likely to have a UPI). You can select
either an ISDA or a GTR taxonomy code. These can be used for reporting where a UPI is not
available. The value field identifies the taxonomy code for the product.
 UPI
This indicates the unique product identifier. These have not yet been determined. They are
likely to be provided by either the CFTC or possibly the industry.

15.4 USI/UTI Generation

On MarkitWire, the USI is a bilateral field that must be agreed as part of the confirmation
process. Consequently, it can be added or changed as part of a unilateral amendment prior to a
deal reaching a booking state of Done. Where a USI has been provided incorrectly on a deal
that has reached a booking state of Done, this can be amended through a bilateral amendment,
marked as an error correction, where no other post-trade events have already been confirmed
on that same deal.
For deals with no existing USI associated with them, a USI can be added as part of any bilateral
post-trade amendment to allow for reporting of post-trade events through MarkitWire, and is
locked down when that amendment reaches a booking state of Done.
MarkitWire always generates a USI where a deal falls within CFTC jurisdiction and on initial
submission the system generates a UTI for the first submitter specifying a jurisdiction that is not
CFTC (either JFSA, ESMA, ASIC or MAS).
MarkitWire always generates a UTI for all deals regardless of jurisdiction and product. If the
Propagate USI To UTI (best practice) checkbox is checked, the USI value is used for UTI
generation.

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15.5 Viewing a Deal’s Reporting History

To view the reporting history for a deal:
1. Search for the deal(s) for which you would like to view the reporting history (see “Searching
for a Deal” on page 64 for more information).
2. Select the relevant deal(s) (multiple deals can be selected by holding the Shift or Ctrl keys).
3. Click the Reporting History button. The Reporting History pane is displayed in the lower half
of the screen.

The reporting history includes details of the reporting regime, the regulator, the report type and
which party reported for each stage of the deal, including a timestamp for each of the reports.
Note: You can export this information as a .csv file by clicking the Export button and saving to
the relevant directory.

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16 Matching
MarkitWire Matching Engine matches all new matching deals with unmatched deals on the
MarkitWire system that have the same deal information. All deals that do not find a match
remain as unmatched deals in the MarkitWire system with the prospect of being matched by
another new deal in the future.
Note: The matching functionality (including the Unmatched search option) is only available to a
matching user (requiring special permissions). However, most matching is performed via
backloading using MarkitWire Deal Matcher (see the “MarkitWire Backloading Cookbook”
for more information).

16.1 Matching Process

An overview of the deal matching process can be seen in the following diagram.

Dealer A MarkitWire Dealer B

Matching Engine

Create Deal A B Create Deal

new deals are compared

with existing deals

Amend Deal Amend Deal Booking State:

Pending
Withdraw Unmatched Withdraw
Deal Deals Deal

Match Match
Counterparty Counterparty

Deals Matched
Deal Auto-Affirmed
Deal Auto-Released

Booking State:
Released

When a new matching deal is composed, it is in the New-Match/Pending state. If this deal
matches another deal contained in the system, MarkitWire Matching Engine withdraws one deal
from the matching process (causing a Withdraw DealSink notification to be sent) and progresses
the other deal to Done and Released. The private data from the withdrawn deal is copied over to
the new deal. The side whose deal was withdrawn receives Pending/Done/Released DealSink
notifications for the remaining deal.

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16.2 Composing a New Matching Deal

If you are set up with the appropriate matching permissions, each new deal you compose in
MarkitWire Trader is a matching deal.
To compose a new matching deal:
1. Click the New Deal button (or select New Direct Deal from the Deal menu). The Compose
New Deal window is displayed.

2. Click the To button. The Select Addresses dialog is displayed with a list of participants in the
left-hand pane.

Note: You can search for a participant by entering the name in the Participant field at the top of
the dialog to display all matching participants. The list can also be filtered using the radio
buttons to show only dealers, end users or single-sided participants. Non-MarkitWire
participant names are followed by (Single Sided Participant) (see “Composing Single-
Sided Deals” on page 30 for more information).

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3. Select the relevant participant. The addresses for the participant are displayed in the right-
hand pane.
Note: You can search for an addressee by entering the name in the Addressee field at the top
of the dialog to display all matching dealers or interest groups. Multiple addresses can be
selected by holding the Shift or Ctrl keys.
4. Select the relevant matching addressee(s) and click OK.
5. Enter any deal-relevant information in the Message field.
Note: A history of all messages attached to a deal is retained. This can be used later by
operations teams in downstream systems.
6. Select the relevant options from the Product, Currency, Tenor and Supplement (if
applicable) dropdowns.
7. Click the Next icon. The Main tab is displayed.

Note: For further information on the meaning and functionality of the different fields used on the
Compose New Deal screen tabs, see the relevant annex to the “MarkitWire Provisions”.

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8. Complete all required fields on all highlighted tabs (see “Deal Details” on page 21 for more
information on the required fields) and perform any additional changes to the default
settings as required.
9. If you are sure the details of the deal are correct, click the Affirm button (or click the Save &
Close icon to save the deal to the Drafts folder).
If the deal matches another deal contained in the system, MarkitWire Matching Engine
withdraws one deal from the matching process and progresses the other deal to Done and
Released. The private data from the withdrawn deal is copied over to the new deal. The side
whose deal was withdrawn receives Pending/Done/Released DealSink notifications for the
remaining deal. To view which deal was withdrawn, display the deal ticket. The information is
noted in the top section of the ticket under Replaces Trade Id.

16.3 Matching a Deal to an Existing Deal

Depending on your user permissions, you can use MarkitWire Trader to browse unmatched
deals and search for those that closely match your own and then adjust your own deal to match
a particular deal in the system using MarkitWire Matching Engine.
To match a deal to an existing deal:
1. Select the Unmatched pre-defined search. The unmatched deals are displayed.

2. Select one of your own deals (highlighted in green) that you would like to match.

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3. Click the Compare Closest button. The Compare screen is displayed showing the three
closest matching deals.

Note: A maximum of three matching deals are displayed with the original deal furthest to the left
and the deals in descending order in terms of closest match to the right. Only differences
are highlighted. Any areas that are blank currently match. To compare more deals, select
the deals in the Unmatched Deals List and click the Compare button.
4. Select the column of the deal to which you would like to match your own deal and click the
Match button. A confirmation prompt is displayed.

5. If you are sure that you would like to match your deal to the selected deal, click Yes.
Note: In the unlikely event that both sides are attempting to match their respective deals with
the other side and click the Match button simultaneously, the deals will no longer match
and you have to attempt the matching process again.

Your deal is edited to match the selected deal. Once both deals match, one of the original deals
is withdrawn and the other is automatically affirmed and released and the private data from the
withdrawn deal is copied over to the released deal. To view which deal was withdrawn, display
the deal ticket. The information is noted in the top section of the ticket under Replaces Trade Id.

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16.4 Amending an Unmatched Deal

You can make amendments to your existing unmatched deals by selecting the deal and clicking
the Amend button. The deal is displayed. Make the required changes to the available fields and
click the Save & Close button. The deal is resubmitted to MarkitWire Matching Engine. If the
amended deal finds a match, it is automatically affirmed and released. If not, it remains in the
system and is available in Unmatched for future matching.

16.5 Withdrawing an Unmatched Deal

You can remove a particular unmatched deal by withdrawing it from MarkitWire Matching
Engine. Select the deal that you would like to withdraw and click the Withdraw button. The Are
you sure you wish to withdraw prompt is displayed. Click Yes. The deal is now withdrawn from
MarkitWire Matching Engine.

16.6 Submitting a Cancelled-Match Deal

You can submit a cancelled-match deal (for a deal that has been affirmed and released on both
sides) by selecting the deal and clicking the Update button and selecting Cancel Deal from the
sub-menu. The Compose Cancellation screen is displayed.
Make the required changes to the available fields (see “Cancelling a Deal” on page 85 for more
information) and affirm. The deal ceases to be active in MarkitWire Trader and is auto-released
when matched with a cancelled deal from an external counterparty.

16.7 Example Matching Searches

To view all deals that have matched today and have a booking state of either Released and
Withdrawn and a contract state of New and New-Match, create a saved search as shown in the
following example.

To view all deals that you have matched on the summary level, create a saved search under the
contract state of New-Match as shown in the following example.

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17 Chat
It is possible to send a chat message to you counterparty on a MarkitWire deal during the deal
transaction process without having to send the deal back to them. This is done using the
Message field.

17.1 Sending a Chat to a Counterparty

To send a chat:
1. Open a deal in your Active Deals folder. The deal is displayed.

2. Enter your message in the Chat field and click the Send Chat button.
The chat is sent to your counterpartys and appears as text with Chat in the Message column
highlighted with the icon (see “Viewing a Chat from a Counterparty” on page 170 for more
information).

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17.2 Viewing a Chat from a Counterparty

When a chat is received it highlights a deal in your Active Deals pane. Opening the deal displays
the chat as a line of text in the Deals List and Deal History/Progress panes highlighted with the
icon.

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18 Customising MarkitWire Trader

You can customise MarkitWire Trader to meet your own specifications and to reduce the amount
of information you have to add to each deal you compose by setting default information for
certain fields. You can also change the onscreen indicators and the alerts used to notify you of
newly arrived deals.

18.1 Adding/Removing Onscreen Columns

The Deals List pane features a number of columns which consist of the different fields on the
Deal screen tabs. You can alter which columns are displayed onscreen by adding and removing
particular columns to suit your requirements.
To add/remove columns:
1. Click the View menu and select Columns (or press the F2 key). The Select Columns screen
is displayed.

2. Select the relevant product from the Product dropdown.

3. Select the field(s) that you would like to add to the onscreen columns from the left-hand
Available Columns pane.
4. Click the Add button to add to the selected columns.
5. If you are sure that all the information is correct, click the OK button.

To remove a column, select the relevant column in the right-hand Selected Columns pane and
click the Remove button to move the column into the left-hand Available Columns pane.

18.1.1 Moving Columns to the Left and Right

To move columns to the left or right onscreen, select the relevant column in the right-hand
Selected Columns pane and click the Move Up button (to move the column to the left) or click
the Move Down button (to move the column to the right).
Note: When in MarkitWire Trader, the columns currently onscreen can be moved by selecting
the column header and dragging left or right with the mouse.

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18.2 Changing Your Default Field Indicators

You can change the default highlight colours and field indicators used on the deal screen tabs to
settings of your own particular choosing.
To change the default indicators:
1. Click the Tools menu and select Options. The Options dialog is displayed.

2. Click the Change button next to the indicator you would like to change. The Set Highlight
Colours dialog is displayed.

3. Click the Change button for the field type for which you would like to change the colour. The
Color window is displayed.

4. Select the new colour you would like as an indicator and click OK.
5. Repeat this process for each of the highlight colour options/field indicators as required.

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6. Once all the colours have been selected, click OK to close the Set Highlight Colours dialog.
7. Click OK to close the Options dialog.
Your changes to your field indicators take effect immediately.

18.3 Setting Your Default Book

To set a default book:
1. Click the Tools menu and select Options. The Options dialog is displayed.

2. Select the Defaults tab. The default settings are displayed.

3. Click the Add button. The Add Default Book dialog is displayed.

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4. Select the required product, currency and book from the dropdowns and click OK.
5. Click OK to close the Options dialog.
Your default book is now defined.

18.4 Setting Your Default Legal Entity

Default legal entities are set on a product-by-product basis.
To set a default legal entity:
1. Click the Tools menu and select Options. The Options dialog is displayed.

2. Select the Defaults tab. The default settings are displayed.

3. Select a product for which you would like to set a default legal entity from the Product
dropdown.
4. Select the relevant legal entity from the My Entity dropdown.
5. Click OK to close the Options dialog.
These values automatically populate the relevant fields on the deal screen. You can, however,
change them on an individual deal. If you would like to remove these as your default settings,
select the blank option in the My Entity dropdown.

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18.5 Defining Duplication Settings

You can define your default private data settings for when you duplicate a deal in MarkitWire
Trader (see “Composing A Duplicate Deal” on page 32 for more information). Certain fields on
the Main, Clearing, Regulatory Reporting and Internal Data tabs can be set to duplicate or not on
a product-by-product basis.
To define duplication settings:
1. Click the Tools menu and select Options. The Options dialog is displayed.

2. Select the Duplication tab. The default duplication settings are displayed.

3. Select whether you would like the dates, breaks, or neither to be duplicated.
Note: If both checkboxes are ticked, clicking the Reset Trade Data checkbox deactivates it and
activates the Reset Breaks checkbox. You can then set as breaks only or also deactivate
the Reset Breaks checkbox. Selecting the Reset Trade Data checkbox again
automatically sets both for duplication.

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4. Click the Private Data button. The Private Data dialog is displayed showing the Internal
Data tab.

Note: Values which can be selected/deselected for duplication are highlighted with either
which means that they are not duplicated on the new deal, or highlighted with which
means that they are duplicated on the new deal.

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5. Select the relevant product type from the dropdown.

6. If you would like to change the Internal Data tab duplication settings, double-click the
highlight icons to define whether or not you would like these fields duplicated for this
particular product.
7. Click the Main tab. The fields available for duplication are highlighted.

8. If you would like to change the Main tab duplication settings, double-click the highlight icons
to define whether or not you would like these fields duplicated for this particular product.

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9. Click the Clearing tab. The fields available for duplication are highlighted.

10. If you would like to change the Clearing tab duplication settings, double-click the highlight
icons to define whether or not you would like these fields duplicated for this particular
product.

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11. Click the Regulatory Reporting tab. The fields available for duplication are highlighted.

12. If you would like to change the Regulatory Reporting tab duplication settings, double-click
the highlight icons to define whether or not you would like these fields duplicated for this
particular product.
13. If you are sure that all your duplication settings have been set, click OK.
14. Click OK to close the Options dialog.
The new duplication settings for the selected product are applied and remain the default settings
until changed. To set duplication settings for additional products, select a new product and
repeat the process.

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18.6 Setting Deals to Auto-Release

You can specify your intention to have all deals automatically released once they have reached
a status of Done. However, standard validations apply before any deals are automatically
released.
To set deals to auto-release:
1. Click the Tools menu and select Options. The Options dialog is displayed.

2. Select the General tab. The general options are displayed.

3. Click the Auto-Release trades checkbox.

4. Click OK to close the Options dialog.
Once you affirm a deal and it moves to a booking state of Done, that particular deal is released
and closed (disappearing from the Active Deals folder). Any time a counterparty affirms the deal
(while it is in your Active Deals folder) and it moves to a booking state of Done, it is automatically
released and closed.

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18.7 Customising Your Sound Alerts

It is possible to set up your own personal sound alerts to notify you when new deals come
through, when a deal reaches a booking state of Done, is withdrawn, rejected, etc.
To set up a sound alert:
1. Click the Tools menu and select Options. The Options dialog is displayed.

2. Select the Sounds tab. The sound settings are displayed.

3. Select the alert for which you would like to add a sound.
4. Select a sound from the dropdown (or click the Browse button and select a sound file saved
on your PC).
5. Repeat this process for each of the sound alert as required.
6. Click OK to close the Options dialog.
Note: This function only works if the relevant hardware is installed on your PC. This is not
something provided by MarkitWire.

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19 Password Reset
If your MarkitWire account has been locked, it could be for one of the following reasons:
 When three incorrect login attempts have been made
 As a result of a period of inactivity. This can be either more than ten days from set up, or
when an account has not been logged into for more than thirteen days

The following message is displayed by MarkitWire Trader when three incorrect passwords have
been provided or an account has been locked due to inactivity.

19.1 Unlocking Your Account Using the Password Reset

Request Portal
Where possible, Markit Client Services advise users to reset their own passwords using the
Markit Password Reset Request portal.
To reset your password
1. Open a web browser and enter the address https://mw.passwordreset.markit.com/. The
Password Reset Request portal is displayed.

Note: You can also click the Reset Password link on the MarkitWire Trader login dialog to
access the Markit Password Reset Request portal.
2. Enter your username and email address.
3. Enter the randomly generated security code.
4. Click the Submit button.

An email is sent to your email account containing a hyperlink which you must click to confirm
receipt of the email. This sends a second email containing a randomly generated password
which you are prompted to change once you use it to log into MarkitWire Trader.
Note: You can also request a password reset either by calling Markit Client Services or by
raising a support case.

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19.2 Resetting Auto-Login Enabled Passwords

The auto-login function allows you to not be prompted for a password when launching
MarkitWire Trader. This is achieved by selecting the Remember my user name and password
checkbox on the MarkitWire Logon dialog.

If you have selected the Remember my user name and password checkbox, you are
automatically logged in the next time you launch MarkitWire Trader without seeing this dialog
again. To be able to access the MarkitWire Logon dialog again, you have to log out of
MarkitWire.
However, when this option is enabled, the system saves your password to a registry. If you then
request a password change, the change does not pass down to MarkitWire Trader. This also
applies if you were to log into a different machine, change your password and return to your
original machine.
To resolve this issue, you can remove the auto-login. The install path of MarkitWire Trader uses
the tc_client.ini file. This file defaults specifics such as the system time-out duration and the
environment that you connect to when you log into MarkitWire Trader.
You can override the Remember my user name and password checkbox and remove it from the
MarkitWire Logon dialog by adding the line AllowRememberPassword=N to the tc_client.ini
file after the timeout line.
An example of this can be seen below.

Note: As soon as AllowRememberPassword=N is removed from the tc_client.ini file,

MarkitWire Trader reverts back to enabling auto-login.

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19.3 Disabling MarkitWire Trader Auto-Login

There is also a permanent way to remove the Remember my user name and password
checkbox to disable auto-login. However, great care should be taken when attempting to use
this process as it makes amendments to your PC registry. Consequently, you may not have
access to change these settings and may require someone from your own IT helpdesk to
complete this for you.
To permanently disable MarkitWire Trader auto-login:
1. Click the Start button and enter regedit into the search field and select regit.exe. The
Registry Editor dialog is displayed.
2. Expand the folders HKEY_CURRENT_USER  Software  SwapsWire to display the
registry keys.

3. Select both of the keys and press the Delete key.

MarkitWire Trader auto-login is now disabled.

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19.3.1 Disabling MarkitWire Trader Shortcut Auto-Login

If you run MarkitWire Trader from a shortcut with parameters contained within the shortcut rather
than the tc_client.ini file,m you can reset your auto-login
To remove the Remember my user name and password checkbox:
1. Right-click the shortcut and select Properties. The Properties dialog is displayed.
2. Add the following command line to the Target field on the Shortcut tab.

3. Click OK to close.
MarkitWire Trader auto-login is now disabled.

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Appendix A: Search Parameters

The following list of search parameters is available when searching for deals in the MarkitWire
system (see “Searching for a Deal” on page 64 for more information).

Activity Date This is the date that any activity started for a particular deal.
Additional Matrix This is the additional ISDA provisions that may be applicable to a
Provisions CDS matrix deal. This can consist of one or more from a defined set
of values.
Additional Terms These are any additional terms associated with a transaction.
Adjustment Method This is the type of adjustment method used on equity deals.
All Cleared This is the notification (true or false) that all the allocations have been
accepted by the clearing house and are in the Clearing/Released
contract/booking state. A search with true returns all deals for which
this flag has been set.
Amendment Type This is the type of amendment actioned on the deal.
Attachment Point This is the point at which a CDS index tranche become applicable.
This applies to CDS index (tranche) deals only.
Auto Processing This is the flag (true or false) on a brokered deal that indicates that a
Indicator dealer does not need to take any action on a deal for affirmation. A
search with true returns all deals for which this flag has been set.
Backload Indicator This is the flag (either Backloaded or Not Backloaded) that indicates
whether a deal was backloaded. A search with Backloaded returns all
deals for which this flag has been set.
Bilateral Clearing This is the CCP set up against the legal entity.
House
Block USI This is the unique identifier of the block trade from which an allocation
originated.

Block USI This is the original ten-digit numeric identifier (consisting of a three-
Namespace digit prefix followed by a unique seven-digit identifier) of the block
trade from which an allocation originated.
Book ID This is the book to which the deal has been assigned.
Booking State This is the booking state(s) of the deal(s) for which you would like to
search.
Broker This is the broker code assigned to the deal.
Broker ID This is the broker trade reference.
Calculation Agent This is the calculation agent used to determine the cash settlement
amount when the selected currency is Brazilian Real (BRL) (either
Buyer or Seller).
Calculation Agent This is the location of the calculation agent.
Business Centre
Cancellation Type This is the type of cancellation (either Cancellation or Booked in
Error).

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CCP Validation This is a flag (true or false) that overrides the application of
Override MarkitWire hosted clearing house eligibility rules. A search with true
returns all deals for which this flag has been set.
CDS Non Std This is the non-standard CDS deal flag for deals that deviate from
Defaults Bankruptcy, Failure to Pay and Restructuring as credit events (roll
th
dates on the 20 ). This is only applicable when CDS is selected as
the product.
CDS Ref Entity This is the entity to which the debt relates. This is only applicable
when CDS Index is selected as the product.
CDS Ref Obligation This is the actual debtor. This is only applicable when CDS Index is
selected as the product.
Clear If Eligible This is the flag (true or false) that determines if a deal is eligible for
clearing. A search with true returns all deals for which this flag has
been set.
Cleared Physical This is the flag (true or false) that indicates an underlying IRS deal for
a physically exercised swaption is to be cleared. A search with true
returns all deals for which this flag has been set.
Cleared USI This is the unique identifier assigned to the cleared leg of all swap
transactions reporting into the CFTC.
Cleared USI This is the ten-digit numeric identifier (consisting of a three-digit prefix
Namespace followed by a unique seven-digit identifier) assigned to the cleared leg
of all swap transactions reporting into the CFTC.
Cleared UTI This is the unique identifier assigned to the cleared leg of all swap
transactions reporting into ESMA, JFSA, HKMA, ASIC and MAS.

Cleared UTI This is the ten-digit numeric identifier (consisting of a three-digit prefix
Namespace followed by a unique seven-digit identifier) assigned to the cleared leg
of all swap transactions reporting into ESMA, JFSA, HKMA, ASIC
and MAS.
Clearing House This is the clearing house selected for the deal.
Client Clearing This is the flag (true or false) that sets a deal as a client clearing deal.
A search with true returns all deals for which this flag has been set.
Commodity This is the type of commodity being traded.
Commodity Category This is the category of the type of commodity being traded (for
example, oil or gas).
Contract State This is the contract state(s) of the deal(s) for which you would like to
search.
Counterparty This is the legal entity of the counterparty with which the deal was
done.
Currency This is the currency relevant to the deal.

Data Migration Trade This is the dealer’s internal trade reference in DSMatch.
ID
Draft Flag This is the flag (either True (Drafts only) or False (Exclude drafts))
that highlights whether or not a deal is a draft. A search with True
(Drafts only) returns all deals for which this flag has been set.
Effective Date This is the start date for the deal.

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Eligible for Clearing This is the flag (yes or no) that defines whether the deal is eligible for
clearing. A search with Yes returns all deals for which this flag has
been set.
End Date This is the termination date for the deal when all activity on the deal
will (or did) end.
Entity This is the available legal entities for your participant.
Equity Backload This is the flag (either Backloaded or Not Backloaded) that indicates
Indicator whether an equity deal has been backloaded for purposes of EDR. A
search with Backloaded returns all deals for which this flag has been
set.
Equity Backload This is the DSMatch trade reference added by the uploading party to
Migration Ref A a MarkitWire deal.
Equity Backload This is the client’s DSMatch trade reference added by the uploading
Migration Ref B party to a MarkitWire deal.
Execution Venue This is the venue of execution of a reportable swap transaction. You
can search against SEF, DCM (designated contract market) or Off-
Facility (not executed on or pursuant to the rules of a swap execution
facility or designated contract market).
Exhaustion Point This is the point at which a CDS index tranche ceases to become
applicable. This applies to CDS index (tranche) deals only.
First Payment Date This is the date of the first payment.
First Period Start This is the date that the first period starts.
Date
Floating Rate Index This is the floating rate option of the deal.
Futures Commission This is the flag (true or false) to show that the dealer is acting as a
Merchant future commission merchant on this particular deal. A search with
true returns all deals for which this flag has been set.
Hibernating This is the flag (true or false) to show a deal that is in the unmatched
deal pool, but is temporarily unavailable for matching. A search with
true returns all deals for which this flag has been set.

Independent Amount This is the currency of the independent amount used on an equity
Currency share swap transaction.
Index Annex Date This is the date that the index annex was signed.
Index Family This is the CDS index family for a particular CDS index deal. This is
only applicable when CDS Index is selected as the product.
Index Name This is the name of the index for a particular CDS index deal. This is
only applicable when CDS Index is selected as the product.
Index RED ID This is the RED code for a particular CDS index deal. This is only
applicable when CDS Index is selected as the product.

Inter Affiliate This is the clearing exemption flag (true or false) for swaps between
Clearing Exemption certain affiliated entities. A search with true returns all deals for which
this flag has been set.
InterOp Trade ID This is the end user’s trade reference from DSMatch used to link the
MarkitWire record with the corresponding end user record in
DSMatch.

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Interoperable This is the flag (true or false) to show that a deal is subject to the
Interoperability Service as an interoperable confirmation. A search
with True returns all deals for which this flag has been set.
Manual Confirmation This is the flag (true or false) to show that the deal should be booked
manually. A search with Set returns all deals for which this flag has
been set.
MarkitSERV Block ID This is the original block ID for an allocations deal.
MarkitSERV NCM ID This is the ID for a novation consent deal created in NCM.

Modified Equity This is the flag (true or false) to show that modified equity delivery is
Delivery applicable. A search with true returns all deals for which this flag has
been set.
Net USI This is the reporting identifier used to report the real-time reportable
portion of a novation under the CFTC.
Net USI Namespace This is the ten-digit numeric identifier (consisting of a three-digit prefix
followed by a unique seven-digit identifier) used to report the real-
time reportable portion of a novation under the CFTC.
Non Deliverable This is the flag (Set or Not Set) to show that a deal is traded in a non-
deliverable currency. A search with Set returns all deals for which this
flag has been set.
Novation Date This is the date that the novation was actioned.
Novation Trade Date This is the date on which the parties agreed on the transfer.
Obligation To Clear This is the obligation of a participant to clear a deal either because of
mandatory clearing considerations or because the bilateral clearing
house is present. A search with true returns all deals for which this
flag has been set.
Option Expiry Date This is the date that the option expires.
Option Style This defines whether this is an American, European, Bermuda or
Asian option.
Other Party InterOp This is the dealer’s trade reference number from DSMatch.
Trade ID
Pending Private This is the flag (true or false) to show that the Internal Trade ID field
Trade ID has been populated. A search with true returns all deals for which this
flag has been set.
Prior USI This is the previous USI relating to a transaction reporting into the
CFTC.
Prior USI This is the previous ten-digit numeric identifier (consisting of a three-
Namespace digit prefix followed by a unique seven-digit identifier) relating to a
transaction reporting into the CFTC.
Private Batch ID This is the private field for distinguishing batches of backloaded
deals. A search with is set returns all deals for which this flag has
been set.
Product Type This is the type of deal (for example, IRS, CDS index).
Related Exchange This is the name of the exchange relevant to the deal.
Released By This is the dealer who released the deal.

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Report Summary This is the flag to show the status of regulatory reports. You can
search against Completed, Some Errors, Some In Progress, or No
reports.
Restructuring This is the flag (true or false) to show whether restructuring is
applicable to a CDS matrix or master deal. A search with true returns
all deals for which this flag has been set.
RIC This is the Reuters instrument code.

Settled Entity Matrix This is the date of the relevant matrix and applies to CDS index
Date (tranche) deals only.
Settlement Method This is the type of settlement method for a swaption (either Cash or
Physical).
Sub-Product Type This is the flag that identifies whether a deal is either CDS Matrix,
Fixed Recovery, or Recovery Lock. This applies to CDS matrix deals
only.
Suggested Match ID This is the flag that indicates a matcher has suggested you match
your trade against their trade. A search with is set returns all deals for
which this flag has been set. It is only useful to a matching user.
Termination Date This is the maturity date of the deal.
Trade Date This is the date that the deal was created.
Trade ID This is the individual MarkitWire deal ID.
Trader This is the dealer at your participant who is a party to the deal.
USI This is the unique identifier assigned to all swap transactions
reporting into the CFTC.
USI Namespace This is the ten-digit numeric identifier (consisting of a three-digit prefix
followed by a unique seven-digit identifier) assigned to all swap
transactions reporting into the CFTC.
UTI This is the unique identifier assigned to all swap transactions
reporting into ESMA, JFSA, HKMA, ASIC and MAS.
UTI Namespace This is the ten-digit numeric identifier (consisting of a three-digit prefix
followed by a unique seven-digit identifier) assigned to all swap
transactions reporting into ESMA, JFSA, HKMA, ASIC and MAS.
We-CB UTI This is the principle model reporting between a counterparty and a
clearing broker on a cleared version of a deal.
We-CB UTI This is the ten-digit numeric identifier (consisting of a three-digit prefix
Namespace followed by a unique seven-digit identifier) assigned to the principle
model reporting between a counterparty and a clearing broker on a
cleared version of a deal.
Within ASIC This is the flag that identifies whether a deal is within the ASIC
Jurisdiction jurisdiction.
Within CFTC This is the flag that identifies whether a deal is within the CFTC
Jurisdiction jurisdiction.
Within HKMA This is the flag that identifies whether a deal is within the HKMA
Jurisdiction jurisdiction.
Within JFSA This is the flag that identifies whether a deal is within the JFSA
Jurisdiction jurisdiction.

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Within MAS This is the flag that identifies whether a deal is within the MAS
Jurisdiction jurisdiction.
UTI Namespace This is the ten-digit numeric identifier (consisting of a three-digit prefix
followed by a unique seven-digit identifier) assigned to all swap
transactions reporting into ESMA, JFSA, HKMA, ASIC and MAS.
Zero Coupon (Fixed) This is the flag (Set or Not Set) set against IRS deals. Changing a
deal from a normal IRS to a fixed zero coupon swap means the fixed
side does not pay on coupon dates, but rather settles with a single
payment on maturity. A search with is set returns all deals for which
this flag has been set.
Zero Coupon This is the flag (Set or Not Set) set against IRS deals. Changing a
(Floating) deal from a normal IRS to a floating zero coupon swap means a
single floating amount is paid on the termination date in lieu of
periodic floating amount payments. A search with is set returns all
deals for which this flag has been set.

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Appendix B: Additional Documentation

A number of other MarkitWire documents are available for download from the Markit
Documentation Portal. The following documents provide additional information relevant for
MarkitWire Trader users.

MarkitWire Provisions and Annexes

The “MarkitWire Provisions” explains the relevant terms and definitions that apply to transactions
entered into MarkitWire. It also references other industry standard definitions which govern the
treatment of transactions entered into between dealers and end users.
Each financial product supported by MarkitWire has an annex which supplements and forms a
part of the “MarkitWire Provisions”. Each Annex contains information and rules that relate to
various types of products and transactions including individual screen terms and field
options/selections and covers the treatment of deals for the master agreements supported by
MarkitWire.

MarkitWire Business Processes and Flows

For additional diagrams and in depth descriptions of the process flows used in this document,
see the following documents:
 MarkitWire Business Processes & Trade Life-Cycle
This document describes MarkitWire operations and deal concepts, along with the generic
processes for direct deals, brokered deals, novations, prime brokerage, allocations,
amendments, cancellations and physical swaption exercises in MarkitWire.
 MarkitWire Process Flows: Direct & Brokered Deals
This document describes the different activity process flows for direct deals (dealer to dealer
and dealer to end user) and brokered deals (broker to two dealers/interest groups, or broker
to dealer and end user) in MarkitWire.
 MarkitWire Process Flows: Novations
This document describes the different activity process flows for novated deals in MarkitWire.
 MarkitWire Process Flows: Prime Brokerage
This document describes the different activity process flows for prime brokered deals in
MarkitWire.
 MarkitWire Process Flows: Amendments & Cancellations
This document describes the different activity process flows for bilateral and unilateral
amendments and cancellations in MarkitWire.
 MarkitWire Process Flows: Exercising Swaptions
This document describes the different activity process flows for one and two step physical
swaption exercises in MarkitWire.

MarkitWire Regulatory Reporting Documentation

Regulatory reporting documentation consisting of trade messaging documents, functional
specifications and cross-asset spreadsheets are available for each regulatory reporting regime
(CFTC, ESMA, JFSA, HKMA, ASIC and MAS).

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MarkitWire Quick Reference Guides

The following MarkitWire quick reference guides are also available:
 MarkitWire Trader: Set Up and Installation Quick Reference Guide
This document provides information on how to download and install MarkitWire Trader on a
network directory or client machine.
 MarkitWire Trader: Direct Deals Quick Reference Guide
This document provides information on the direct deal process, including how to compose,
pick up, revise and affirm direct deals between you and your counterparty in MarkitWire, as
well as reject, transfer and withdraw from a deal.
 MarkitWire Trader: Brokered Deals Quick Reference Guide
This document provides information on the brokered deal process, including how to pick up,
accept, request revision of and affirm brokered deals in MarkitWire, as well as how to reject,
and transfer a deal.
 MarkitWire Trader: Searching Quick Reference Guide
This document provides information on searching for deals in MarkitWire, including how to
filter and save your search results, view deal history, add and remove blotter columns and
view the deal ticket.
 MarkitWire Trader: Search Parameters Quick Reference Guide
This document provides information on all the search parameters available when searching
for deals in MarkitWire.
 MarkitWire Trader: Allocations Reference Guide
This document provides information on allocation block deals, allocation splits, adding
allocation splits to a deal, allocations to follow and viewing the new allocation deals.
 MarkitWire Trader: Amortising/Accreting Swaps Quick Reference Guide
This document provides information on amortising, accreting and rollercoaster swaps, fixed
rate schedules, composing an IRS amortising deal, amending IRS amortising deals and
novating IRS amortising deals.
 MarkitWire Trader: Amendments Quick Reference Guide
This document provides information on how to amend a deal unilaterally, increase and
decrease equity options, perform a corporate action on equity share options and exit a deal.
 MarkitWire Trader: Cancellations Quick Reference Guide
This document provides information on how cancel a deal and perform a block cancellation.
 MarkitWire Trader: Exercising Options Quick Reference Guide
This document provides information on exercising options in MarkitWire, including how to
cash settle a swaption, physically settle a swaption and create the underlying interest rate
swap and exercise an equity option.
 MarkitWire Trader: Prime Brokerage Reference Guide
This document provides information on the prime brokerage process in MarkitWire, including
how to compose a new prime brokered deal and add a prime broker to an existing deal.
 MarkitWire Trader: Novations Quick Reference Guide
This document provides information on the novations process in MarkitWire, including how to
novate a deal and how to compose an outside novation.
 MarkitWire Trader: Novation Consent Quick Reference Guide
This document provides information on novation consent deals in MarkitWire, including how to
compose a new novation consent deal, deemed and expired novation consent requests and
how to dispute a novation consent request.
 MarkitWire Trader: Clearing Quick Reference Guide
This document provides information on clearing in MarkitWire, including integrated clearing
houses, clearing eligibility, clearing house visibility and unmasking client funds in the event of
clearing house rejection.

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 MarkitWire Trader: Client Clearing Quick Reference Guide

This document provides information on client clearing in MarkitWire, including how to
compose a new client clearing deal as well as information on block and new-allocation deals,
brokered client clearing deals, the client view of a client clearing deal, auto-sending a deal for
clearing and electronically executed deals.
 MarkitWire Trader: Clearing Take Up Quick Reference Guide
This document provides information on clearing take up in MarkitWire, including how to
accept and reject a clearing take up deal and an example clearing take up search.
 MarkitWire Trader: Regulatory Reporting Quick Reference Guide
This document provides information on regulatory reporting in MarkitWire, including report
types, USI/UTI generation, reporting fields and reporting history.
 MarkitWire Trader: Matching Quick Reference Guide
This document provides information on the matching process in MarkitWire, including how to
compose a matching deal, match a deal to an existing deal, amend and withdraw an
unmatched deal, submit a cancelled-match deal and example matching searches.
 MarkitWire Trader: Password Reset Quick Reference Guide
This document provides information on how to reset MarkitWire passwords as well as
unlocking locked MarkitWire accounts.

MarkitWire User Guides and Cookbooks

The following MarkitWire user guides and cookbooks are also available:
 MarkitWire Trader C=C User Guide
This document is designed for users of MarkitWire Trader, specifically for those transacting
credit novations for consent = confirmation (C=C). It provides an overview of what the process
is and why it was required as well details on how transferees (EE) and remaining parties (RP)
are able to use the MarkitWire platform to process novations initiated by a transferor (OR)
using Markit Novation Consent Module (NCM).
 MarkitWire Tracker User Guide
MarkitWire Tracker is a monitoring tool that enables middle and back office personnel to view
and track deals within the MarkitWire system. This document provides a detailed guide for
using MarkitWire Tracker.
 MarkitWire API: Dealer Cookbook
The MarkitWire API for dealers allows deals to be created and legally confirmed as part of the
deal process in the same way as with MarkitWire Trader. This document provides a detailed
guide for implementing the MarkitWire API for a dealer.
 MarkitWire Backloading Cookbook
The MarkitWire Backloader allows batches of deals to be backloaded into MarkitWire as part
of the deal process. This document provides a detailed guide for implementing the MarkitWire
API for backloading.

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Appendix C: Contacting Markit Support

The following has been provided in case additional information is required.

Markit Client Services

Markit Client Services can be contacted at the following regional phone numbers:
UK/Europe: +44 (0)84 4994 7378
USA/Canada: +1 877 765 8737
Singapore: +65 6922 4302
Alternatively you can email Markit Client Services at the following address:
support@markitSERV.com

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