Introduction to VRXML: Streamlining Reporting Processes

1. An Introduction to VRXML December, 2002 Bryan Palmer Gemini Systems, Inc. 61 Broadway New York NY 10006 Tel: 212.480.3960 Fax:: 212.480.3963 http://www.gemini-systems.com

2. Presentation Contents • Current Reporting Process • VRXML Objectives • NYSE’s Strategy • VRXML Timeline • VRXML Features • VRXML Uncovered • VRXML – The Business Case • Questions

3. Current Reporting Process • Major disconnect between billing and reporting • Terminology/Vocabulary issues • Customer service issues • Tri-Party reconciliation • Inaccurate reporting based on time differences • Intensive reconciliation problems Vendor Subscriber Exchange

4. Current Reporting Process (cont) Indirect Bill Exchanges 1. Data Feed Vendors 3a. Report 3b.1. Report for Multiple Exchanges 3b.2a. Report Report Administrators 3a. Report 1. Data Feed 2. Device or other Data Product 3b.2b. Report Direct Bill Exchanges Subscribers

5. Reporting Formats Why create yet another Reporting Format? • VRXML has the potential to turn > 100 different reporting formats into 1 standard format. • Extensibility – The ability to add additional functionality or modify existing functionality without impacting the existing system functionality. Other Reporting Formats • VARS – effective but lacks extensibility and can lead to inconsistent data • Excel

6. VRXML Objectives • Keep things as simple as possible • Additional features to cover a wider spectrum of reporting possibilities • Hardened but extensible • A “what is it that you would like to do” interface

7. NYSE’s Strategy • From Transaction to Inventory Reporting • Every product for each location is reported, not just changes • Less errors, more concise • In essence, becomes monthly reconciliation • Extensible technology • Full support for VARS • Poised to become an industry standard

8. VRXML Timeline • February 2002 - Vision established • May 2002 - NYSE and GSI designs initial draft • June 2002 - NYSE through the FISD publishes V0.6 • September 2002 – Pilot Vendor reports • October 2002 • NYSE through the FISD publishes V1.0 pre-release • Deutsche Boerse verbally commits to support • Several vendors commit to migrate • November 2002 • FISD, NYSE, and GSI finalize version 1.0 • FISD continues to gain industry acceptance • December 2002 – Pilot Vendor(s) report • 2003 – On going transition for Vendors, Exchanges, and Users with support from GSI and FISD

9. Efficient Communication Mechanism • Explicit Reporting Actions • New Subscribers • New Locations • New Products • Address Changes • Billing Changes • Company Name Changes • Contact Changes • Customer Service Options • Vendor Name Change Requests • Deactivating reportable products • Upfront validation of files – eliminates bottlenecks in the overall process

10. Conceptual Model – Meta Data Elements

11. Conceptual Model – 1st Level Elements

12. Conceptual Model – 2nd Level Elements

13. Conceptual Model – Core Data Elements

14. VRXML Uncovered <vrxml:vrxml xmlns:vrxml="http://mds.nysedata.com/vrxml/2002/1.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://mds.nysedata.cm/vrxml/2002/1.0 http://mds.nysedata.com/vrxml/2002/1.0/VRXML.xsd"> <vrxml:fileDescriptor vrxml:vendorId=“XYZ">…</vrxml:fileDescriptor> <vrxml:inventoryEntry vrxml:VAN="0000I"> <vrxml:product vrxml:actionCode=“UPD"> <vrxml:productCode vrxml:codeOwner="VEN" vrxml:code="NYSEPRO" /> <vrxml:inventory> <vrxml:effectiveDate>2002-12-01</vrxml:effectiveDate> <vrxml:quantity>13</vrxml:quantity> <vrxml:comments /> </vrxml:inventory> </vrxml:product> </vrxml:inventoryEntry> <vrxml:vrxml>

15. VRXML Uncovered (cont.) <vrxml:inventoryEntry vrxml:VAN="0000I"> <vrxml:product vrxml:actionCode=“UPD"> <vrxml:productCode vrxml:codeOwner="VEN" vrxml:code="NYSEPRO" /> <vrxml:inventory> <vrxml:effectiveDate>2002-12-01</vrxml:effectiveDate> <vrxml:quantity>13</vrxml:quantity> <vrxml:comments /> </vrxml:inventory> <vrxml:inventory> <vrxml:effectiveDate>2002-11-01</vrxml:effectiveDate> <vrxml:quantity>15</vrxml:quantity> <vrxml:comments /> </vrxml:inventory> </vrxml:product> </vrxml:inventoryEntry>

16. Obstacles • Vendor / Exchange interpretation of VRXML • Each Exchange may have their own Business Rules • Each Vendor may have their own Business Rules • Possible learning curve / Technical resource availability

17. What will it take to implement VRXML? • Inception - Acceptance and Knowledge • Elaboration • Analysis of current reporting mechanism • Identification of requirements (where the data comes from, data model modifications, architectural considerations) • Construction - From a prototype to an engine • Transition - Validation and Deployment • Maintenance - Take advantage of new features as VRXML matures • GSI’s VRXML FastTrack Program

18. Conclusion • VRXML is absolutely appropriate • Significant cost savings (ROI) • Modest upfront effort • Reduction or elimination of data reconciliations • Streamlined services, less time spent utilizing CSRs • Ability to quickly take advantage of new features that also have the potential to save time and money

19. Next Steps • NYSE is accepting VRXML • FISD and GSI are prepared to help all parties with the migration process • Pilot Vendors report

20. Questions

21. An Introduction To VRXML December, 2002 Bryan Palmer Gemini Systems, Inc. 61 Broadway New York NY 10006 Tel: 212.480.3960 Fax: 212.480.3963 http://www.gemini-systems.com