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Ex. Q (Trading Systems) Mockup

THIS DOCUMENT IS A TECHNICAL ILLUSTRATION OF HOW CERTAIN DISCLOSURES IN SEC FILINGS ARE TO BE TAGGED. IT DOES NOT INDICATE WHICH PARTICULAR DISCLOSURES MUST BE INCLUDED AND/OR TAGGED IN COMMISSION FILINGS, AND IT DOES NOT CONSTITUTE LEGAL GUIDANCE OF ANY SORT.

 

Trading System 1 (Order Book)

XYZ SBSEF operates a fully automated electronic book (“Order Book”) for orders to buy or sell SBSs (“orders”) with a continuous, automated matching function. Trades will occur when an order to buy and an order to sell match on XYZ SBSEF’s Order Book.  The Order Book fulfills guidelines regarding execution methods by being available to all Members. 

The Order Book displays all orders and trades to all Members in an electronic form. It does so within five nanoseconds of execution. All market participants can see and transact on all SBS bids and offers.

Our proprietary algorithm is able to match trades with industry-leading efficiency. When there are two Members participating in an SBS transaction, and each Member submits a held order, the algorithm uses the FPX dual-sided matching protocol. If there are more than two Members participating in an SBS transaction, and each Member submits a not-held order, the algorithm uses the FPY omni matching protocol. We have built a fifteen-second timing delay into the Order Book to comply with Rule 815(b) of Regulation SE.

# Order Type / Scenario
1 Buy Limit Order / Some sellers below limit. Explanation of algorithmic matching goes here.
2 Buy Limit Order with Good-till-cancelled / No sellers below limit. Explanation of algorithmic matching goes here.
3 Sell Limit Order / Multiple buyers at or above limit. Explanation of algorithmic matching goes here.

 

Trading System 2 (RFQ System)

XYZ SBSEF also operates a request for quote (“RFQ”) system. The RFQ system fulfills guidelines regarding execution methods by providing equal quote visibility to all Members. The system allows a Member to transmit a request for a quote to buy or sell a specific instrument to at least twelve market participants in the trading system or platform, and all Members may respond to it. Resting bids or offers from our Order Book are communicated to requesting Members via SNS 5.0.2 Protocol. Requesting Members have equal license to transact on resting bids or offers along with the responsive orders. We have built a fifteen-second timing delay into the RFQ system to comply with Rule 815(b) of Regulation SE.

Transmission: Requester creates a request. Ipsum nunc aliquet bibendum enim facilisis gravida neque. Amet facilisis magna etiam tempor orci eu lobortis elementum. Purus viverra accumsan in nisl nisi scelerisque eu. Fusce ut placerat orci nulla pellentesque dignissim.

Responses: Responder responds to the request. Turpis egestas sed tempus urna et pharetra pharetra. Tellus in hac habitasse platea dictumst. Volutpat commodo sed egestas egestas fringilla phasellus faucibus. Felis bibendum ut tristique et egestas quis. Proin sagittis nisl rhoncus mattis rhoncus urna neque viverra.

Negotiation: Requester either accepts the response, declines it, or declines with a counter offer. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ipsum nunc aliquet bibendum enim facilisis gravida neque. Amet facilisis magna etiam tempor orci eu lobortis elementum. Purus viverra accumsan in nisl nisi scelerisque eu. Fusce ut placerat orci nulla pellentesque dignissim. Egestas integer eget aliquet nibh praesent tristique magna sit.