With Market Reform Office Market Reform Forum August 2009 Christopher Croft, MRO Mike Barr, Watertrace Peter Holdstock, LMA

Market Reform 2009 Market Reform Office Agenda Market reform update Electronic Support for Placing –Where are we know? – Mike Barr –Where next? – Peter Holdstock

Market Reform 2009 Market Reform Office You can escape from a market committee.

Market Reform 2009 Market Reform Office Mr Chairman…

Market Reform 2009 Market Reform Office eMRCE July 3148

Market Reform 2009 Market Reform Office FWWS next steps Development programme –IMR Security model to expand scope of IMR –XIS systems development to accept and process structured accounting messages –Non-fundamental splits service –ECF2 package of usability improvements –Binders solution for ECF On target for Nov 2009 On target for May 2010 Release from Q Prototype approved

Market Reform 2009 Market Reform Office MRC – version 1.3? Version published for wider consultation Guidance changes only so no formal implementation timetable

Market Reform 2009 Market Reform Office Slip Standards - The good news Recent slip changes have contributed significantly to recent improvements in market practice … Contract certainty – MRS –Recognised as success by FSA –… and implicitly by other markets (Bermuda, New York) –London seen as leading the world Slip used as contract documentation - MRC –Required slip (MRC) changes –Lloyds Customer Satisfaction survey shows significant improvements in speed of contract documentation –London seen as better than other markets

Market Reform 2009 Market Reform Office Why do we need new slip version? Reform activity generates slip changes So do other changes (e.g. regulatory) This is because the slip contains product details, documentation requirements & processing requirements. If any of these change, it potentially affects the slip. MRC 1.3 = mainly improved guidance/examples for tax headings. 1 new taxation heading (to cater for certain withholding taxes). Idea generated from practitioner work on eAccounting around non fundamental splits

Market Reform 2009 Market Reform Office Lloyds Exchange Phase 1 is officially finished, although some organisations are still completing activities; phase 1 participants will continue to use the Exchange as they wish 2,100 test messages were sent over the Exchange during phase 1 The first live message was sent by Millers to Aspen Re which was an Energy Quotation Request Phase 2 began on 3rd August, 5 participants have been set up to date and have started connectivity testing Please contact if you are interested in more information, or visit the website

Market Reform 2009 Market Reform Office Questions?