Streamlining ourFX venues
For Improved Performance, User Experience &Flexibility

Contents
We are making improvements to our FX venues ............................................................................................ 3
Addressing the changing needs of the FX market .......................................................................................... 4
More than a tech upgrade ............................................................................................................................... 5
Improving the customer experience ................................................................................................................ 6
New features .................................................................................................................................................... 7
Single shared credit capability ..................................................................................................................... 7
Consistent admin controls across venues ................................................................................................... 7
Consistent APIs and connections ................................................................................................................ 7
A new permissioned stream-based ECN ..................................................................................................... 7
Significant upgrades to our Matching venue ................................................................................................ 7
Better and fairer delivery of market data ...................................................................................................... 8More functionality for FX Prime Brokers ...................................................................................................... 8
Support for NDFs to meet customer demand .............................................................................................. 8
Looking to the future ........................................................................................................................................ 9Streamlining our FX venues2

We are making
improvements to ourFX venues
Our aim is to empower our FX customers across the globe to trade more efficiently through the developmentof new trading workflows, order types, market data, admin tools, credit capabilities and analytics.
As our business has grown, we understand that it has become more complex for customers to maximise
the benefits of their trading interactions with the firm as a whole. We have multiple ways of supplying data,and our customers have multiple ways of consuming this data and of interacting with us. Our goal now is tosimplify this.
Our PriceStream ECN and Matching venues are often seen by customers as three independent products.
Although PriceStream has traditionally been branded as part of FXall, and thus as a customer-side product,
it is more accurate to consider it as part of our interbank venue business.
By investing in the replatforming of these venues onto a common core technology infrastructure, we areproviding customers with the ability to trade on any or all of them according to their requirements. In thisway we are committing to providing an even better service in a constantly evolving FX market.

Streamlining our FX venues

3Addressing the changing
needs of the FX market
Our FX venues are the result of several years of acquisition and development across a number ofplatforms. Between our three interbank venues we have multiple sets of credit instances, different admin
services, various post-trade channels, and numerous APIs.
With most customers using integration services for venue connectivity, it is difficult to create consistency
around how people interact with our venues. This legacy technology makes it expensive to add newcapabilities and challenging to sustain investment across all three venues.

Streamlining our FX venues4

More than a tech upgradeStarting in 2023, we will migrate our FX venues to a common core technology – Millennium, LSEG’s provencross-asset technology. Millennium powers the London Stock Exchange and Turquoise trading, and issubstantially more capable of delivering multiple products and trading paradigms. It also shares a credit
function and common admin services and APIs. A single API will enable a customer’s interactions with ourECN, Order Book, and Matching environments. Although we expect most customers to maintain multiple
connections, all will have the same protocols, making onboarding and integration simpler, increasing
resilience, and improving performance.
The new common core technology will offer reduced latency to our FX venues, bringing them in line withthe speeds seen in equities markets. This in turn will help to improve reliability and robustness of thesolutions. We recognise that performance matters and that speed is of the essence, but we are embarking
on more than a simple systems upgrade. The migration of the technology is simply the first step in theevolution of our venues to adapt to the evolving structure of the market.

Streamlining our FX venues

5Improving the customerexperience
The migration of our FX venues to the new infrastructure will future-proof our technology and provide ourcustomers with a significantly improved experience. A common technology framework means a common
input and common set of outputs for supervision and analytics. Customers will be able to see the lifecycleof every order that has gone through the system across every platform they have interacted with.
The use of a single common core technology will allow us to put new commercial structures in place,allowing customers to benefit from discounts across our venues, with volumes traded as a market maker inone venue influencing value which can be obtained in others.
We are asking our clients to plan for budget and activities in 2022 and 2023 to integrate with this newfunctionality

Streamlining our FX venues

6New features
Single shared credit capability
This will make credit easier to navigate across all venues. As we evolve the credit function in our Forwards
Matching service, customers will be able to control the credit they have within the venue by trading on ahard match or soft credit paradigm.

Consistent admin controls across venues
Operational tasks will be simplified with services such as tag management becoming self-service. The
creation of end-to-end solutions means that customers will be able to use our FX venues with moreautonomy than previously possible.

Consistent APIs and connections
This will make it faster and simpler for customers to connect to all FX venues. All venues will support
customer connections through standard message-based protocols.

A new permissioned stream-based ECNThis will enable enhanced performance and customer reporting.

Significant upgrades to our Matching venue
We understand that customers have differing trading needs and we are committed to providing smaller
customers who do not use APIs with different mechanisms to trade, in order to enhance their tradingexperience.
The venue migration will see the introduction of several new order types, such as pegged and discretionary
orders, giving smaller market participants a better trading experience. Similarly, the replatforming projectwill also see the introduction of mid-orders, which will give participants more certainty in trading and lead toa better outcome.

Streamlining our FX venues7

Better and fairer delivery of market data
Customers are increasingly looking for more advanced analytics as part of a venue’s product offering. We
will offer analytics tailored to each venue and to the needs of individual users. These reports will help
customers to better analyse trades and gain more insight into trading relationships and the allocation of
their business.
Replatforming our FX venues offers the opportunity for a new paradigm for Matching. Going forward, theavailability of data services will depend on a customer’s volumes and their frequency of interaction with ourvenues. This will ensure our venues maintain a high-level of integrity.
We have changed the criteria by which participants can receive high-frequency data to reflect the fact that
this data is only available to firms which contribute to it. Our binary market data feed at 5ms has become
participant-eligible, with a threshold for participation of $100 million ADV in spot volume on Matching, of
which 25% is as a market maker.

More functionality for FX Prime Brokers
This will include the ability to rebalance credit between venues and kill switches at user, counterparty andcustomer level.

Support for NDFs to meet customer demand
As part of the venue streamlining, we will launch a new NDF capability on the CLOB. Unlike existing
services, we will not use a centralised or bilateral credit model but will launch a mandatory cleared venue
through LCH (London Clearing House).
We believe that a mandatory cleared venue for NDFs will open up the opportunity for non-banks to become
NDF market makers. A more diverse range of participants will change the liquidity profile and have apositive impact on the market, benefiting not just our customers but the market as a whole. We are excitedabout the potential for this function, which we have not been able to offer using existing technology.
We are creating specific user journeys for each group of participants to minimise the impact of thetechnology changes where possible, whilst ensuring that customers are ready to benefit from new features.

Streamlining our FX venues

8

Looking to the future
The replatforming of our FX venues is only the start of our journey of transformation.
Alongside the foundational changes which the new technology stack can provide such as faster venues,
easier integration via APIs and a single post-trade channel, we are fully committed to the ongoing
innovation and development of our FX venues.
We are not simply overhauling technology to meet today’s requirements. We are investing for the future toprovide the best possible trading experience for our customers and for the market as the needs of its
participants evolve.

Visit www.lseg.com/en/fx