A Bloomberg Professional Services Offering

Adding value beyond complianceNew regulations and the compliance challenges they present
call for agile solutions. SEC 22e-4 requires mutual funds andETFs worth over $1bn to implement a liquidity risk management
system with enhanced disclosure on liquidity and redemption
practices by December 1, 2018.

SEC 22e-4 and other global liquidity-related regulations forthe buy side, such as AIFMD, UCITS and SFC (HK) add to thecomplexity of doing business. Our analytics provide deep
insights into the liquidity of your holdings and our enterprisedelivery efficiently supports you to get ready to navigate,
manage and report market liquidity risk and align with
global regulatory requirements.

Are you regulation-ready?
For your firm to be regulation-ready, is it more effective tobuild or buy — and how will you select a vendor? Liquidity rules
proposed for mutual funds and ETFs in SEC 22e-4 will provechallenging under existing systems, because firms will now
need to report on activities and areas currently lacking inavailable, consistent data. You can’t be truly prepared if yourdata isn’t reliable and comprehensive.

Global coverage

Fixed income, including government and supranational, agency, corporate and municipal
bonds; and equities, including common stocks, ADR, GDR, ETFs and more.

Unrivaled data

Bloomberg is the leader in reliable data, offering you an edge with our trade, quote and reference
data. And we extend that advantage with the most powerful suite of analytics and tools for taking
data-driven solutions further.

Liquidity risk
management& reporting

Bloomberg’s solution for SEC 22e-4 offers best-practice liquidity analytics and the enterprisedelivery environment enabling clients to consistently manage and report liquidity risk acrossmulti-asset-class portfolios. Bloomberg Liquidity Assessment (LQA) is built on Bloomberg’saward-winning approach to liquidity, designed to deliver on global regulatory requirements andadd value to risk management and investment processes. We provide the ability to quantitatively
evaluate market liquidity, even for instruments with limited trading activity.

Regulation

Increasing liquidity challenges

Content & Data Solutions

Liquidity & regulation:
SEC 22e-4

How it works
Our SEC 22e-4 liquidity solution integrates easily into your workflow, converting your information into compliance-ready data feeds, dashboards
and reports. As shown below, you input your information — including security ID(s) and optional client-specific assumptions. The Bloomberg LQAthen calculates per security liquidity classification and analytics. Then, for those securities, LQA outputs a variety of liquidity related data points thatcan be consumed in multiple ways. With SEC 22e-4, simplicity will be hard to find — but you’ll find it with Bloomberg’s liquidity solutions.

Fund Liquidation Determinants
Position Size
Reasonable trade size based onexpected redemptions.

FundPositions

Value Impact
Constraints on liquidation cost.
Stress Scenarios
Reflect foreseeably stressedmarket conditions.

Position
Size

ValueImpact

StressScenarios

Highly Liquid Instrument Limit
Buffer to meet redemptions in bothnormal and stressed conditions.

HighlyLiquidInstrument
Limit

Bloomberg Liquidity Solution
Instrument, Market and Trading Data
Sensitivities for Market, Trading andInvestment Specific Data.
Liquidity Analytics
Transparency into granularliquidity metrics such as
Liquidation Cost, Liquidation
Horizon and Available Volume.

Instrument,
Market andTrading Data

Settlement Conventions
Settlement periods and calendars.

LiquidityAnalytics

SettlementConventions

22e-4
Position Level
Classification

Enterprise Delivery
Terminal
Regular and ad-hoc monitoringof classification and limits.
Single security transparency.
Data Feed
Enterprise Risk andreporting applications.

Terminal

Data Feed

Governance& ComplianceFilingOperational Efficiency
Governance & Compliance
Facilitate oversight, alerting to potential
limit breaches and record keeping.
FilingPre-integrated streamlined
Regulatory Filing.

Take the next step.
For additional information,press the <HELP> key twiceon the Bloomberg Terminal®.

bloomberg.com/liquidity

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The data included in these materials are for illustrative purposes only. ©2017 Bloomberg L.P. S771321102 0517