swx swiss exchange – sis eurobonds clearing via links to

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SWX Swiss Exchange – SIS Eurobonds Clearing via Links to Euroclear and Cedel Author(s): Christie David (SWX) Martin Trüb, Lorand Frank (SIS) Date: 11.6.1999 Classification: For internal use only Reference: M-SPR-CLL-9611/E Keywords: Clearing, Settlement, Links, Euroclear, Cedel Distribution: Member banks Approval: Antoinette Hunziker-Ebneter Filename: F:\Eurobonds\M-SPR-CLL-9531E.doc Table of Contents 1. Introduction .................................................................................................................................. 1 2. Overall Principles Applying to Clearing of SWX Trades.......................................................... 2 3. Clearing & Settlement Message Flows ...................................................................................... 4 3.1 In-house Settlement............................................................................................................. 5 3.2 Cross-border Settlement...................................................................................................... 6 3.3 Trade Routing ...................................................................................................................... 7 4. Testing .......................................................................................................................................... 8 5. Applying for a Routing BP Id for Eurobonds Clearing via Euroclear/Cedel .......................... 9 Appendix A. Application Form for Eurobonds Routing BP Id ........................................... 10 Appendix B. Power of Attorney Templates ......................................................................... 12 B.1. Euroclear............................................................................................................................ 12 B.2. Cedel.................................................................................................................................. 14 Appendix C. Mapping of SWX fields to Routed Settlement Instructions & S.W.I.F.T. Status Messages ........................................................................................................................ 16 C.1. Euroclear............................................................................................................................ 16 C.2. Cedel.................................................................................................................................. 19

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SWX Swiss Exchange – SISEurobonds Clearing via Links to

Euroclear and CedelAuthor(s): Christie David (SWX)

Martin Trüb, Lorand Frank (SIS)Date: 11.6.1999

Classification: For internal use only Reference: M-SPR-CLL-9611/EKeywords: Clearing, Settlement, Links,

Euroclear, CedelDistribution: Member banks

Approval: Antoinette Hunziker-Ebneter Filename: F:\Eurobonds\M-SPR-CLL-9531E.doc

Table of Contents

1. Introduction ..................................................................................................................................1

2. Overall Principles Applying to Clearing of SWX Trades..........................................................2

3. Clearing & Settlement Message Flows ......................................................................................4

3.1 In-house Settlement.............................................................................................................53.2 Cross-border Settlement......................................................................................................63.3 Trade Routing ......................................................................................................................7

4. Testing ..........................................................................................................................................8

5. Applying for a Routing BP Id for Eurobonds Clearing via Euroclear/Cedel..........................9

Appendix A. Application Form for Eurobonds Routing BP Id...........................................10

Appendix B. Power of Attorney Templates .........................................................................12

B.1. Euroclear............................................................................................................................12B.2. Cedel..................................................................................................................................14

Appendix C. Mapping of SWX fields to Routed Settlement Instructions & S.W.I.F.T.Status Messages........................................................................................................................16

C.1. Euroclear............................................................................................................................16C.2. Cedel..................................................................................................................................19

SWX Swiss Exchange – SIS Page 1Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EIntroduction 11.6.1999

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1. Introduction

As part of the introduction of the Eurobond market at the SWX Swiss Exchange, the need to providemembers with the possibility of clearing their trades via safe custody accounts at Euroclear and Cedelas well as SIS was recognised early on. The implementation of the necessary automated linksbetween SIS and Euroclear and Cedel is now in final testing and the service wnet live on 19.2.1999.This brief document explains at a high level how the links work, what needs to be set up to use them,and includes a form to apply for the service.

Members that currently use Secom for settlement and clearing of Eurobonds are not obliged to useEuroclear or Cedel. A delivery free of payment mechanism for transferring holdings into Secom isavailable via a SIS transfer account with Cedelbank specially provided for this purpose.

The basic straight through processing approach in the Swiss market remains unchanged. The overallprinciples that apply are also unchanged. See Sections 2 and 3.

The document has the following structure:

• This introduction

• Chapter 2 covers the overall principles applying to the clearing of SWX trades

• Chapter 3 covers the various clearing & settlement message flows which take place in the cases ofin-house settlement, cross-border settlement and trade routing

• Chapter 4 briefly outlines important testing issues

• Finally, Chapter 5 covers the way to apply for a Routing BP Id for Eurobonds Clearing viaEuroclear/Cedel.

The appendices cover the following:

• Appendix A contains the Application Form for a new or changed Eurobonds Routing BP Id

• Appendix B contains Templates for the Powers of Attorney needed for Euroclear and Cedel

• Appendix C gives the mapping of SWX fields to the settlement instructions routed to Euroclear andCedel, and S.W.I.F.T. status messages.

Abbreviations

abbreviation meaning

BP Id business partner identification code – the name used for participants in the Secom system

Cedcom Cedel’s communication network (alternative to S.W.I.F.T. for order entry and report generation)

CSD Central Securities Depository

Euclid Euroclear’s communication network (alternative to S.W.I.F.T. for order entry and report generation)

ICSD International Central Securities Depository – for the purposes of this document Euroclear and Cedel arecommonly entitled ICSD

Secom SIS Communications System – the central computer system used by SIS

SWX Swiss Exchange – SIS Page 2Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EOverall Principles Applying to Clearing of SWX Trades 11.6.1999

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2. Overall Principles Applying to Clearing of SWX Trades

“Locked-in” trades

The overriding business assumption in the SWX market is that trades are binding. Members have nomeans to cancel trades once they have been generated, except by means of a trade reversaltransaction (which is in effect a trade with reversed sign). SWX can cancel trades sent to SIS, but thisis only intended for erroneous messages caused by system faults.

Where Euroclear or Cedel is involved in the settlement of a trade, it is not always possible to block theamendment or cancellation of an SWX trade. In these situations, Euroclear and Cedel are required toinform SWX when trades are not settled. Member banks need to sign a Power of Attorney giving SWX(via SIS) the right to originate transactions on their behalf, and permitting exception reporting ofmaterial amendments to trades and settlement cancellations.

See Appendix B for the relevant Power of Attorney templates for Euroclear and Cedel.

Calculation of accrued interest and its inclusion in the settlement amount

In the case of bond trades, SWX is responsible for calculating the appropriate amount of accruedinterest, and for including it in the settlement amount before transmission for clearing.

The relevant central securities depository (CSD) is responsible for crediting coupon payments to thebeneficial owners of the securities at the appropriate time.

Use of SWX Trade_Id to refer to trades generated by SWX

The SWX Trade_Id is the preferred means to refer to all SWX-generated trades and is unique acrossall SWX members and securities.

Bank internal references for the originating "orders", where supplied, are also available in thesettlement record sent to Secom.

When SIS routes an instruction to Euroclear or Cedel, the SWX Trade_Id is used as the TransactionReference Number (S.W.I.F.T. field 20), so that the member concerned can reconcile the settlementinstruction with the original SWX trade. In addition, the SWX Trade_Id and the buyer or seller bankinternal reference from the original order are also passed on in S.W.I.F.T. field 72.

See Appendix C for details of the mappings between SWX fields and the various S.W.I.F.T. messagessent to Euroclear and Cedel.

SWX rules for automated clearing and settlement

In the majority of cases, trades which are generated by SWX (either on-market or off-exchange) areautomatically cleared and settled (delivery versus payment).

The following general rules apply:

• Trades are only forwarded for automatic clearing if they are for SIS-clearable securities insupported clearing currencies. Non-SIS-clearable securities are cleared according to proceduresdefined in the SWX Rules & Regulations.

• Generally, trades within the same member organisation are not automatically cleared

SWX maintains a list of pairs of member organisations for which trades should not automatically becleared ("Clearing Prevention Groups"). A trade is cleared automatically unless the pair of partiesto the trade is in this list. Use of this feature for suppressing clearing is only intended forexceptional cases.

• Settlement details are calculated only for automatically cleared trades.

In the case of on-market trades, the security reference data maintained by SWX determines whetheror not trades for a particular security are automatically cleared. Note that for trades generated by

SWX Swiss Exchange – SIS Page 3Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EOverall Principles Applying to Clearing of SWX Trades 11.6.1999

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matching, members cannot select, on an individual order-by-order basis, which trades areautomatically cleared.

For off-exchange trades, members may control which trades are automatically cleared by means ofattributes associated with each individual trade. An off-exchange trade is not automatically cleared inthe following circumstances:

• The counterparties indicate that they wish to clear and settle the trade themselves.

• The counterparties explicitly enter a date upon which they wish to clear and settle the trade. Thisapplies even if the date coincides with the value that the Exchange would have allocated.

• The trade date (entered by a member) is not a valid SWX business day (in the case, for example,of an off-exchange trade on a Sunday).

Furthermore, reported trades (these are trades between an SWX member and a non-SWX member)are not automatically cleared.

Settlement cycle

Currently settlement takes place in the rule three business days after the trade for SWX-generatedsettlement requests. This is driven by reference data held in the SWX database at the level of anindividual security, by the holiday calendars for SIS1, and by the holiday calendars for the settlementcurrency.

Supported securities

Trades are only forwarded to Secom for clearing and settlement if they are for SIS-clearablesecurities.

Supported clearing currencies

The currently supported clearing currencies are CHF, USD, and EUR.

The clearing currency is generally the same as the trading currency for shares and derivatives. Forbonds, the clearing currency is generally the same as the nominal currency. In certain exceptionalcases, a different clearing currency is used (for example, dual currency bonds): in these cases, anSWX-defined exchange rate (“Change Fix” is used) to convert the calculated settlement amount intothe required currency. The SWX reference data clearly defines all the various currencies involved foreach security.

Supported Central Securities Depositories links for routing

SWX always sends clearing messages to Secom when automatic clearing is required. Generallyspeaking, all securities traded on SWX are clearable by SIS for safe custody accounts in the Secomsystem.

SIS also provides a number of automated links so that member banks can choose to hold certainclasses of security in a safe custody account with another Central Securities Depository (CSD). Thecurrently supported links for routing are as follows:

• For Eurobonds only, to Euroclear.• For Eurobonds only, to Cedel.

Further such links are planned (for instance, links to Crest and DBC for the clearing of Swisssecurities). The routing of clearing instructions to another Central Securities Depository (CSD) isdetermined by reference data maintained by both SWX and SIS. This is covered further in Chapter 3.

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1 SIS is open on all weekdays, excepting 1 January and 25 December. Euroclear and Cedel have the same opening days

SWX Swiss Exchange – SIS Page 4Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EClearing & Settlement Message Flows 11.6.1999

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3. Clearing & Settlement Message Flows

Introduction

This section outlines the clearing- and settlement-related message flows in the following cases:

• Both counterparties have their safe custody accounts with SIS: this is termed in-house settlement

The message flows used for in-house settlement form the basic framework for clearing andsettlement of SWX trades.

• One counterparty has his safe custody account with SIS and the other with Euroclear or Cedel: thisis termed cross-border settlement

In this situation, the member with safe custody account with SIS receives the same statusintimations from Secom as for in-house settlement, whereas the other member receives only therelevant messages from Euroclear or Cedel.

• Both counterparties have their safe custody accounts with Euroclear or Cedel: this is termed traderouting

It is possible to route trades to either Euroclear or Cedel. In these situations, the membersconcerned receive no status intimations from Secom.

Under certain circumstances, an SWX remote member may not have any safe custody accounts inSIS. Nevertheless, SIS still performs trade routing on his behalf. Here, SWX collects the routingfees from the member concerned on SIS’s behalf.

BP Ids determine which routing is applied

Secom determines whether in-house settlement, cross-border settlement or trade routing is requiredfrom the BP Ids supplied by SWX with the trade. The BP Id used by SWX for a given memberorganisation is determined by the class of security being cleared. This is represented in the SWXreference data is by means of a “clearing organisation” associated with each security2. For each“clearing organisation”, SWX maintains a separate BP Id per member organisation.

The currently defined classes of security (which broadly correspond to “market segments”) are asfollows. Each member may have the same, or different BP Ids for the two “market segments”. SWXwill use the same BP Id for a given member organisation for all securities unless told otherwise:

• Securities traded in the SWX Main Market

Here, SIS is the “home” CSD and Clearing_Organisation_Code = “SGA”

• Securities traded in the SWX Eurobond Market

Here, Euroclear and Cedel are the “home” CSD's and Clearing_Organisation_Code = “EBD”.

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2 The required information is accessible via the SWX Trading System MAPI using field Clearing_Organisation_Code in tableSECURITY_CLEARING_PARAM. Note that SECURITY_CLEARING_PARAM is a disc-only table meaning that access isrelatively slow. In addition, the table has an Effective_From_Date and Vers_No as key attributes: this means that the keycan’t easily be populated because these attributes are not necessarily known. The suggested approach is as follows:

• Read the data for one security whenever necessary using the TS_GetRows function with index count equal to 1. In thefunction callback, filter on the newest Effective_From_Date (less than or equal to Current_Business_Date) and highestVers_No, and store the result in a small in-memory table for reuse throughout the business day

• Check the stored results whenever the business day changes (subscribe to updates on the tableSYSTEM_PARAMETERS)

• Whenever inserts or update occur on the table SECURITY_CLEARING_PARAM (which can accomplished bysubscribing using the TS_Select function), repeat the first step.

SWX Swiss Exchange – SIS Page 5Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EClearing & Settlement Message Flows 11.6.1999

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Categories of Secom BP Id

In Secom, there are two main categories of BP Id:

• In-house BP Id

This is the normal SIS participant account in the Secom system

• Routing BP Id

In the case of a Routing BP Id, the settlement instructions stored provide the necessary routinginformation for getting to the required CSD and safe custody account with that CSD. Each RoutingBP Id has a default routing, which may be overridden for a specific settlement currency.

Currently, it only makes sense to use a Routing BP Id for Eurobonds. The reason for this is thatneither Cedel nor Euroclear currently supports the automatic clearing of SWX Main Market locked-intrades. As further CSD links become available, the situation will become more complex. Members willbe informed of such new developments well in advance.

See Chapter 5 for details of how to apply for a new Routing BP Id for clearing trades closed in theSWX Eurobond Market.

Cancellation of SWX-originated Settlement Instructions

As noted in Chapter 2, SWX trades are binding and members have no means to cancel trades oncethey have been generated, except by means of a trade reversal transaction.

SWX can cancel and resend trades sent to SIS, but this is only intended for erroneous messagescaused by system faults or incorrect accrued interest calculations. In the case that settlementinstructions have been routed to another CSD, the cancellation and correction is automatically routedto the external CSD by SIS too. No additional intervention should be required from the member.

Transferring Eurobond holdings between Secom and Euroclear/Cedel

Facilities are also provided to enable Secom participants to transfer Eurobond holdings to and fromEuroclear/Cedel accounts. Currently (December 98) these transfers take place via a UBS account atCedel using DFP/RFP transactions. At the same time as the new trade routing and cross-borderfacilities are introduced by SIS, the UBS account will be replaced by a SIS account also at Cedel.Details of the precise instructions required will be communicated by SIS in due course.

3.1 In-house SettlementEssentially the in-house settlement process for SWX-generated trades takes place in the followingsteps:

• Generation of trade and "pre-matched" settlement request (trade day)

The first stage in the process is the generation of a trade in SWX. This results in SWX sending asettlement instruction to Secom. Secom in turn then forwards a pair of "pre-matched" settlementorders to the counterparties involved. Members may adjust certain details of the settlementrequests before settlement. The cash settlement systems are not involved in this part of theprocess.

• Settlement (settlement day)

On the settlement day, Secom exchanges clearing messages with the relevant cash settlementsystem, and informs the involved parties of completion of the delivery versus payment. The waythat the money side of the operation is performed depends on the settlement currency3.

Basically, the following steps take place as one single transaction:

� Secom checks the balance of security held and reserves the quantity to be settled. It thenattempts the related funds transfer.

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3 Details of this are outside the scope of this document: contact SIS for more information

SWX Swiss Exchange – SIS Page 6Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EClearing & Settlement Message Flows 11.6.1999

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� Upon successful funds transfer, the security quantity is transferred by Secom and the membersare informed of the settlement and clearing via a status intimation.

At the end of the settlement day, further messages are received concerning the totality oftransactions for the day, depending on the cash settlement system involved.

3.2 Cross-border SettlementThe way that cross-border settlement takes place is essentially that two back-to-back transactions areorganised by SIS:

1. For the member with safe custody account in Secom, the trade is between himself and a specialomnibus account in Secom representing the other CSD

2. For the member with safe custody account at the other CSD, the trade is between a special SISomnibus account at the other CSD and himself.

Note that the counterparty can always be read from the SWX data for the trade concerned, even if thisinformation is not always clear from the Secom status intimations or other CSD messages.

SIS is responsible for organising the flows of securities and money between the omnibus accountsinvolved, and for ensuring that the instructions arrive at the other CSD and any involvedcorrespondent banks in time for settlement on the required date:

• For “on holding basis” safe custody accounts, SIS reserves the required securities and money inSecom from the time the settlement instruction is transmitted to the other CSD until the transactionhas completed. The timing of the messages depends on the level of real time support provided bythe other CSD: if it is possible to send a “pre-advice”, then this is sent as soon as possible. Thedefinitive settlement instruction is, however, not sent until close to settlement, so as not to block theSecom participant’s account unduly long.

• For “on credit basis” safe custody accounts, the instruction is sent directly to the other CSD withoutblocking.

If settlement cannot be completed on the settlement day, then the transaction is queued and retried onthe following days until it succeeds.

In the case of cross-border settlement, the message flows for the member with safe custody accountin Secom are the same as for in-house settlement. The other member receives the normal settlementmessages from the other CSD.

Clearing of the cash side of the transaction always takes place via the normal cash settlement systemfor the CSD where the safe custody account is based:

• For Secom, via SIS or SIS’s correspondent (note that cash settlement for cross-border transactionsis not currently possible via SIC/euroSIC)

• For Cedel, via Cedelbank

• For Euroclear, via Morgan Guaranty Trust Company of New York.

SWX Swiss Exchange – SIS Page 7Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EClearing & Settlement Message Flows 11.6.1999

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3.3 Trade RoutingIn the case of trade routing, the members concerned receive the normal settlement messages fromtheir respective CSD’s:

• If both counterparties are at the same external CSD (Euroclear or Cedel), then Secom simplyroutes the required DVP and RVP transactions to Euroclear and/or Cedel as required

In this case, the messages are sent directly on the trade date.

• If one counterparty is with Cedel and the other with Euroclear, then Secom simply routes therequired “Bridge” DVP and RVP transactions to Euroclear and/or Cedel as required

In this case also, the messages are sent directly on the trade date.

• If the counterparties are in two different CSD's not themselves connected by a Bridge, then SISessentially carries out two back-to-back transactions, and organises the flows of securities andmoney between the special SIS omnibus accounts at the two external CSD's involved asnecessary

Here, the same considerations about settlement instruction timing apply as noted in Section 3.2.This case does not arise at present.

Note that the counterparty can always be read from the SWX data for the trade concerned, even if thisis not always clear from the messages sent by the other CSD's involved.

SWX Swiss Exchange – SIS Page 8Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/ETesting 11.6.1999

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4. Testing

Neither Euroclear nor Cedel has a permanent test environment. This means that it is impossible forSWX and SIS to offer members a fully integrated testing solution.

Routing BP Ids will nevertheless also be opened in the Member Test environment and will cause thevarious types of routing (trade routing and cross-border settlement) to take place. However, thesettlement instructions destined for Euroclear and Cedel will not be sent further. Members wishing, fortest purposes, to confirm that the correct transactions have been generated and that the correctcontents would have been routed, can ask for the individual messages for a particular day to be sentto them.

Please contact SIS to arrange this: full details are given in the Realtime “Eurobonds Phase II”,published in January 1999.

SWX Swiss Exchange – SIS Page 9Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EApplying for a Routing BP Id for Eurobonds Clearing via Euroclear/Cedel 11.6.1999

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5. Applying for a Routing BP Id for Eurobonds Clearingvia Euroclear/Cedel

This chapter covers the approach needed to apply for the new trade routing and cross-bordersettlement services for Eurobonds. See Appendix A for the application form.

The existing clearing instructions via Secom will be retained in the absence of further instructions fromthe member: only members wishing to open a new Routing BP Id need to send in an applicationform.

In order to fill out the form, it is necessary to have sent the necessary Power of Attorney agreementsto Euroclear or Cedel, covering the required safe custody accounts at those organisations (seeAppendix B). Copies of these Power of Attorney agreements will need to be attached to the form.

In addition, it is necessary to know the SWX code and main In-house BP Id for your memberorganisation.

The main choice is as follows:

• To use the existing main In-house BP Id

• To use a Routing BP Id

In this latter case, it is also necessary to specify to which external account at which CSD the routedsettlement instructions should be sent. Special instructions can be specified for particularcurrencies that override the default instructions.

Please do not forget to enter (top left) whether the form is for a new Routing BP Id, for a change to anexisting set up, or for a deletion (in this case the main In-house BP Id will be used for Eurobondssettlement)

Also, please do not forget to specify the effective start dates.

SWX Swiss Exchange Page 10Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-8B25/EApplication Form for Eurobonds Routing BP Id 25.11.1998

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Appendix A. Application Form for Eurobonds Routing BP Id

See the next page for the application form for applying for a new/changed Eurobonds Routing BP Id.The form should be sent, complete with all necessary copies of Power of Attorney agreements, to:

SWX Swiss ExchangeKey Account Management Members (Attn: Paola D’Ambrogio)PostfachSelnaustr. 30CH-8021 Zürich

Fax: +41-1 229 24 76

who will take the necessary steps to set up the required reference data in the SWX and SIS systems.

Please allow at least two weeks for processing.

The form will be returned to the member organisation at the normal correspondence address with allrelevant fields filled out, as a confirmation.

If you do not know your current SWX Member Organisation code or main SIS In-house BP Id, pleasecontact Key Account Management Members at SWX.

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Application for a Secom Routing BP Id for SWX-traded Eurobonds

Member Organisation:

enter nameSWX Code: Main In-house BP Id:

(if any)Contact Person & Telephone:

We wish to clear Eurobonds traded on the SWX Swiss Exchange as follows (choose one):

m via our main In-house BP Id as used for the SWX Main Market (see above)

m via a Routing BP Id: q please open a new account

insert number if known

Default routing (select only one option):

m to our Euroclear account: æ copy of Power of Attorney attached

enter account number required for a new or a changed account

m to our Cedel account: æ copy of Power of Attorney attached

enter account number required for a new or a changed account

Also, we need the following (more than one choice possible):

q Special routing for USD toour account with __________ : æ copy of Power of Attorney attached

specify Euroclear or Cedel enter account number only where necessary

q Special routing for EUR toour account with __________ : æ copy of Power of Attorney attached

specify Euroclear or Cedel enter account number only where necessary

The change should take effect from the following dates (at least two weeks’ notice should be given):

Production environment: Member Test environment:

enter start date (default:as soon as possible)

enter start date (default:as soon as possible)

We understand that routing and S.W.I.F.T. fees incurred will be charged by SIS to the member(s)holding their securities outside Secom. We also authorise SWX to collect these fees on behalf of SISwhere direct charging is not (yet) possible.

We confirm that the attached Power of Attorney agreements (if any) have been accepted by Euroclearand/or Cedel.

Name and title of authorised signatory Authorised signature

Name and title of authorised signatory Authorised signature

Place Date

SWX Swiss Exchange Page 12Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-8B25/EPower of Attorney Templates 25.11.1998

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Appendix B. Power of Attorney Templates

B.1. EuroclearA template for the required Power of Attorney agreement for Euroclear is given on the next page.Such a Power of Attorney must be filled out and sent to Euroclear either covering all Euroclearaccounts which will be used for cross-border settlement and trade routing via SIS, or specifying whichindividual Euroclear account(s) may be used.

A copy of the signed Power of Attorney (as sent to Euroclear) should be attached to the ApplicationForm requesting the setting up of trade routing for Eurobonds (see Appendix A).

Note that material changes in the status of the Power of Attorney should also be communicated toSWX and SIS as soon as they are known (for example a change in an account number), so that thenecessary reference data changes can be made on time.

Please also note the following text that forms part of the Operating Procedures of Euroclear:

Authorized disclosure (see Section 3.4):

Participants are reminded that Morgan Guaranty Brussels may be required to confirmcertain information to the Swiss Stock Exchange (“SWX”) concerning certain instructions(cancellation instructions of Participants, unsettled instructions after the due settlementdate) resulting from trading on SWX and instructed by SWX on behalf of Participants.Participants authorise Morgan Guaranty Brussels to disclose all such information(including their name, the SWX and the Euroclear reference) which SWX may requirerelating to trades executed on SWX.

The form should be sent to:

Client Service AdministrationEuroclear Operations CenterMorgan Guaranty Trust CompanyBd Emile Jacqmain 151B-1210 Brussels

RG 213 Power of Attorney

S.W.I.F.T. Access

From____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________(Company name & address)

ToPlease complete this form and send it to Morgan Guaranty Trust Company of New York

Euroclear Operations CentreBoulevard E. Jacqmain 151B-1210 Brussels – BelgiumAttention: Client Service Administration

Please be advised that we have granted to:

Name: __________________________________________________________________

Address: __________________________________________________________________

__________________________________________________________________

Bank Identifier Code (BIC)(the “Agent”)full power and authority to transmit securities transaction instructions and cancellations by S.W.I.F.T.for:

q all Securities Clearance Accounts and related Cash Accounts, and any other accounts thatmay be opened from time to time by us, or

q our Securities Clearance Account __________________ (number), and the associated CashAccount,

maintained on your books in connection with your role as Operator of the Euroclear System.

You are hereby authorized to accept any and all instructions from, send reports to, and provide anyand all validation reports related thereto to the Agent for the above account(s). All S.W.I.F.T.instructions received from the Agent will be processed in accordance with the Terms andConditions Governing Use of Euroclear, the Supplementary Terms and Conditions Governing theLending and Borrowing of Securities through Euroclear (if applicable), the Operating Procedures ofthe Euroclear System (“Operating Procedures”) and the General Conditions Governing Extensionsof Credit to Participants in the Euroclear System (“General Conditions”) (if applicable). You mayrely upon the accuracy of any data received from the Agent without any further inquiry orexamination.

We acknowledge that we will be fully responsible, and will indemnify Morgan Guaranty, for allliability which may arise as a result of any instruction given by the Agent for the above account(s).

Any revocation of this authorization will take effect on the Business Day (as defined in theOperating Procedures) following that upon which you receive written notice of revocation by us. Weunderstand and hereby agree that any instruction received by you prior to the effectiveness of anysuch revocation will be processed in accordance with the Operating Procedures.

This authorization is governed by and construed in accordance with the laws of Belgium.

Name and title of authorized signatory Authorized signature

Name and title of authorized signatory Authorized signature

Place Date RG213 - 07/97

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SWX Swiss Exchange Page 14Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-8B25/EPower of Attorney Templates 25.11.1998

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B.2. CedelA template for the required Power of Attorney agreement for Cedel is given on the next page. Such aPower of Attorney must be filled out and sent to Cedel for every Cedel account that will be used forcross-border settlement and trade routing via SIS.

A copy of the signed Power of Attorney (as sent to Cedel) should be attached to the Application Formrequesting the setting up of trade routing for Eurobonds (see Appendix A).

Note that material changes in the status of the Power of Attorney should also be communicated toSWX and SIS as soon as they are known (for example a change in an account number), so that thenecessary reference data changes can be made on time.

The form should be sent to:

CedelbankCredit DepartmentAttn: Daphne Graham67 Bd Grande-Duchesse CharlotteL-1331 Luxembourg

[Letterhead of the Cedelbank Customer]

POWER OF ATTORNEY

This power of attorney is granted on [insert date], [year].

[Insert name of Cedelbank customer], whose registered office is at [insert address] (the"Customer") hereby appoints SIS SEGAINTERSETTLE AG (“SIS”) acting through its dulyauthorised officers and as S.W.I.F.T. agent using the BIC address "INSECHZZXXX", to be itsattorneys for the following purposes:

1. to approve, transmit, and amend any settlement instruction on behalf of the Customerrelating to a security transaction on SWX Swiss Exchange for the following account(s) ofthe Customer at Cedelbank: [insert account details] ("the Account(s)");

2. to receive from Cedelbank information on the status of the instructions transmitted by theattorney related to but not limited to its cancellation, amendment or settlementprovisioning failure.

The Customer agrees that it shall be fully liable to Cedelbank for any and all obligationscreated on its behalf pursuant to the authority or purported authority of this power of attorneyand undertakes to ratify whatever the attorneys cause to be done under the authority orpurported authority of this power of attorney. In addition the Customer agrees that it has noright to cancel or amend the settlement instruction sent by the attorney and that any attemptto do so will be reported to the attorney.

This power of attorney shall remain valid until notice of revocation or amendment is receivedfrom the Customer by Cedelbank by registered letter/tested telex/authenticated swiftmessage. A copy of such revocation or amendment shall be sent by the Customer toSIS and to SWX Swiss Exchange. Any such revocation or amendment shall take effect onthe second business day in Luxembourg after receipt of the notice by Cedelbank or suchother later date specified in the notice accordingly.

This power of attorney is governed by and shall be construed in accordance with the laws ofthe Grand-Duchy of Luxembourg.

In witness whereof this deed has been executed by the Customer and is intended to be andis hereby delivered on the date first above written.

Executed as a deed by[Name of Customer]

Signature of director Signature of director

or

The Common Seal of[Name of Customer]

Signature of director Signature of director

SWX Swiss Exchange – SIS Page 16Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EMapping of SWX fields to Routed Settlement Instructions & S.W.I.F.T. Status Messages 11.6.1999

For internal use only

Appendix C. Mapping of SWX fields to Routed Settlement Instructions & S.W.I.F.T. StatusMessages

C.1. Euroclear

SWX MT 598-120 Settlement Request – SWX Exchange System to Secom RVP Order routed by Secomto Euroclear

DVP Order routed by Secomto Euroclear

MT 53xfromEuroclear

MT 573fromEuroclear

field name S.W.I.F.T.format

SWX field example value field remarks field remarks field field

20 Transaction ReferenceNumber

16x Trade_Id 00012A0412345678 20 SWX Trade Id 20 SWX Trade Id 21 21

– – 21 (left empty) 21 (left empty) –

12 Sub-message Type 3n – 120 (MT 598-120) – – – – – –

77E Proprietary Message – – – – – – –

23 Further Identification 16x – DVP (SWX acts as “seller”) – – – – – –

30 Settlement Date YYMMDD Settlement_Date 940930 30 Settlement Date 30 Settlement Date 30 30

31P Date and Place ofTrade

YYMMDD/EXCH/3X

(date part of)<trade_creation>Date_Time

MARKET.external_market_code

940927/EXCH/SWX 31P Date and Place ofTrade

31P Date and Place ofTrade

(notavailable)

72

(only tradedatereturned)

35A Quantity of Securities 3a15n SECURITY_TYPE.secom_instrument_type_code

Trade_Size

SHS200, 35A Quantity of Securities 35A Quantity of Securities 35A 35A

35B Identification ofSecurity

ISINb12x ISIN ISIN EU0123456789 35B Identification ofSecurity

35B Identification ofSecurity

35B 35B

SWX Swiss Exchange – SIS Page 17Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EMapping of SWX fields to Routed Settlement Instructions & S.W.I.F.T. Status Messages 11.6.1999

For internal use only

SWX MT 598-120 Settlement Request – SWX Exchange System to Secom RVP Order routed by Secomto Euroclear

DVP Order routed by Secomto Euroclear

MT 53xfromEuroclear

MT 573fromEuroclear

field name S.W.I.F.T.format

SWX field example value field remarks field remarks field field

87C Receiver of Security 2a6n <buying_trading>External_Member_Id

BU001234 83C Safe custody accountof buyer atEuroclear/Cedel

87a Counterpartyinformation

SIS’s Euroclear/Cedelaccount (where SIS iscounterparty)

or

Buyer’s BIC or Nameand Address

83C or87a asrelevant

(onlyEuroclear/Cedelaccountnumberreturned)

87D

(onlyEuroclear/Cedelaccountnumberreturned)

33T Deal Price 3a15n <trading>Currency_Code

Trade_Price

PCT99,275

("PCT" when traded inpercent)

33T Deal Price 33T Deal Price (notavailable)

72

32B Settlement Amount 3a15n <settlement>Currency_Code

Settlement_Amount

EUR49672,65 32B Settlement Amount 32B Settlement Amount 32B 32B

79 Narrative /BREF/16x/SREF/16x

<buyer> & <seller>Bank_Internal_Reference

/SREF/1234567890123456/BREF/9876543210123456(optional buyer and sellerreferences)

72 /MGTCBEBEECL(internal instruction)

or

/CEDELULL(Bridge instruction)

followed by SWXTrade_Id:

//SWX/00012A0412...

followed by buyerreference (if any):

//BREF/9876543210...

72 /MGTCBEBEECL(internal instruction)

or

/CEDELULL(Bridge instruction)

followed by SWXTrade_Id:

//SWX/00012A0412...

followed by sellerreference (if any):

//SREF/1234567890...

724 72�

�����������������������������������������������������

4 Euroclear is currently investigating the possibility of returning the SWX Trade_Id and buyer/seller reference via field 72

SWX Swiss Exchange – SIS Page 18Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EMapping of SWX fields to Routed Settlement Instructions & S.W.I.F.T. Status Messages 11.6.1999

For internal use only

SWX MT 598-120 Settlement Request – SWX Exchange System to Secom RVP Order routed by Secomto Euroclear

DVP Order routed by Secomto Euroclear

MT 53xfromEuroclear

MT 573fromEuroclear

field name S.W.I.F.T.format

SWX field example value field remarks field remarks field field

26H SIS Order Id 2a6n/7n External_Trade_Id CH108931/145 (identifiesorder between SWX andSIS)

– – – – – –

82B Instructing Party 2a6n <seller>External_Member_Id

SE012345 (seller) 87a Counterpartyinformation

SIS’s Euroclear/Cedelaccount (where SIS iscounterparty)

or

Seller’s BIC or Nameand Address

83C Safe custody accountof seller atEuroclear/Cedel

87D or83C asrelevant

(onlyEuroclear/Cedelaccountnumberreturned)

83C

(onlyEuroclear/Cedelaccountnumberreturned)

26L Control Status 1n – 2 (always value for Release) – – – – – –

– – 85a SIS’s original client inA or D format (cross-border settlement)

88a SIS’s original client inA or D format (cross-border settlement)

(notavailable)

(notavailable)

SWX Swiss Exchange – SIS Page 19Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EMapping of SWX fields to Routed Settlement Instructions & S.W.I.F.T. Status Messages 11.6.1999

For internal use only

C.2. Cedel

SWX MT 598-120 Settlement Request – SWX Exchange System to Secom RVP Order routed by Secomto Cedel

DVP Order routed by Secomto Cedel

MT 53xfromCedel

MT 573fromCedel

field name S.W.I.F.T.format

SWX field example value field remarks field remarks returnedin field

returnedin field

20 Transaction ReferenceNumber

16x Trade_Id 00012A0412345678 20 SWX Trade Id 20 SWX Trade Id 21 21

– – – – 21 /CEDEL/41/SWXnnnn

nnnn is derived fromtag 26H in the MT598-120 message

21 /CEDEL/51/SWXnnnn

nnnn is derived fromtag 26H in the MT598-120 message

SWXnnnn/41

or

SWXnnnn/51

asapplicable

SWXnnnn/41

or

SWXnnnn/51

asapplicable

12 Sub-message Type 3n – 120 (MT 598-120) – – – – – –

77E Proprietary Message – – – – – – –

23 Further Identification 16x – DVP (SWX acts as “seller”) – – – – – –

30 Settlement Date YYMMDD Settlement_Date 940930 30 Settlement Date 30 Settlement Date 30 30

31P Date and Place ofTrade

YYMMDD/EXCH/3X

(date part of)<trade_creation>Date_Time

MARKET.external_market_code

940927/EXCH/SWX 31P Date and Place ofTrade

31P Date and Place ofTrade

(notavailable)

72

(only tradedatereturned)

35A Quantity of Securities 3a15n SECURITY_TYPE.secom_instrument_type_code

Trade_Size

SHS200, 35A Quantity of Securities 35A Quantity of Securities 35A 35A

35B Identification ofSecurity

ISINb12x ISIN ISIN EU0123456789 35B Identification ofSecurity

35B Identification ofSecurity

35B 35B

SWX Swiss Exchange – SIS Page 20Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EMapping of SWX fields to Routed Settlement Instructions & S.W.I.F.T. Status Messages 11.6.1999

For internal use only

SWX MT 598-120 Settlement Request – SWX Exchange System to Secom RVP Order routed by Secomto Cedel

DVP Order routed by Secomto Cedel

MT 53xfromCedel

MT 573fromCedel

field name S.W.I.F.T.format

SWX field example value field remarks field remarks returnedin field

returnedin field

87C Receiver of Security 2a6n <buying_trading>External_Member_Id

BU001234 83C Safe custody accountof buyer atEuroclear/Cedel

87a Counterpartyinformation

SIS’s Euroclear/Cedelaccount (where SIS iscounterparty)

or

Buyer’s BIC or Nameand Address

83C or87D asrelevant

(onlyEuroclear/Cedelaccountnumberreturned)

87D

(onlyEuroclear/Cedelaccountnumberreturned)

33T Deal Price 3a15n <trading>Currency_Code

Trade_Price

PCT99,275

("PCT" when traded inpercent)

33T Deal Price 33T Deal Price (notavailable)

72

32B Settlement Amount 3a15n <settlement>Currency_Code

Settlement_Amount

EUR49672,65 32B Settlement Amount 32B Settlement Amount 32B 32B

79 Narrative /BREF/16x/SREF/16x

<buyer> & <seller>Bank_Internal_Reference

/SREF/1234567890123456/BREF/9876543210123456(optional buyer and sellerreferences)

72 SWX Trade_Id:

/O/SWX/00012A041...

followed by buyerreference (if any):

//BREF/9876543210...

72 SWX Trade_Id:

/O/SWX/00012A041...

followed by sellerreference (if any):

//SREF/1234567890...

72

(SWXTrade_Idand buyer/sellerreferencearereturned)

72

(SWXTrade_Idand buyer/sellerreferencearereturned)

26H SIS Order Id 2a6n/7n External_Trade_Id CH108931/145 (identifiesorder between SWX andSIS)

– – – – –

SWX Swiss Exchange – SIS Page 21Eurobonds Clearing via Links to Euroclear and Cedel M-SPR-CLL-9611/EMapping of SWX fields to Routed Settlement Instructions & S.W.I.F.T. Status Messages 11.6.1999

For internal use only

SWX MT 598-120 Settlement Request – SWX Exchange System to Secom RVP Order routed by Secomto Cedel

DVP Order routed by Secomto Cedel

MT 53xfromCedel

MT 573fromCedel

field name S.W.I.F.T.format

SWX field example value field remarks field remarks returnedin field

returnedin field

82B Instructing Party 2a6n <seller>External_Member_Id

SE012345 (seller) 87a Counterpartyinformation

SIS’s Euroclear/Cedelaccount (where SIS iscounterparty)

or

Seller’s BIC or Nameand Address

83C Safe custody accountof seller atEuroclear/Cedel

87D or83C asrelevant

(onlyEuroclear/Cedelaccountnumberreturned)

83C

(onlyEuroclear/Cedelaccountnumberreturned)

26L Control Status 1n – 2 (always value for Release) – – – – – –

– – 85a SIS’s client in A or Dformat (cross-bordersettlement)

88a SIS’s client in A or Dformat (cross-bordersettlement)

(notavailable)

(notavailable)