Euroclear Trade Capture and Matching System

(ETCMS)

"An automated matching and routing service for over-the-counter transactions with a Central Counterparty (CCP), which offers netting at both user and security eligibility level. In practice, the following occurs:

• instructions are entered by clients for matching purposes. If the instruction is deemed to be valid, it will be given a Euroclear reference ID and will enter the matching process; • once matched, instructions are sent to the CCP for netting;

• the CCP then undertakes a local validation process, whereupon the instruction is either registered when the trade is novated or rejected when the instruction does not meet all of the validation criteria."