Options Symbology Initiative Deadline

The February 12, 2010 deadline for mandatory conversion to the new options symbology
in the U.S. is fast approaching. In three weeks, the OCC, OPRA network, Exchanges and DTCC will begin processing options without OPRA codes and fractional strike prices.

What will happen starting February 12th?

• The new 21 character series key will be added to all data files to support the new OCC standard format.
• CUSIP changes to support the new unstructured CUSIP without OPRA codes.
• Data Files, Statements, Trade Confirms, and Reports will be modified to support the
  explicit options data.

What is the impact to Market Participants?

• As a result of data files and reports being changed, any applications or processes that extract data from our data sources will need to be analyzed to accommodate the new
  OSI compliant format.
• If you use third party vendors be sure to communicate directly with the vendor to determine impact.
• Contact our help desk if you have any questions how the symbology change will affect you.

Please be reminded, due to the mandatory February 12th cut-over date, all market participants must convert to the new OSI methodology.

OSI will eliminate the current practice of representing listed options contracts with OPRA
codes. The new options naming convention will affect all options transactions between market participants. Therefore, any client that trades, brokers, or processes options will be impacted. Impact can be felt across processing, reporting, and third party vendors, with each area representing a potential OSI risk.

Note that LSC never used OPRA codes. Our internal representation of an option
contract has always resembled the new symbols.

The only difference is that the expiration date will be added to LSC's current representation. Example:
LSC's old Symbol:  MSQ CALL JUL10 30
New Symbology:    MSQ CALL 17JUL10 30

If you have not undergone OSI testing, contact our help desk immediately.

What is the Options Symbology Initiative?

OSI is an initiative led by the Options Clearing Corporation (OCC) to change the existing method of identifying exchange listed options contracts. The current method for identifying options, in place for the past 25 years, uses alpha codes to denote call/put indicators, fractional prices and contract expiration information. Its objection is to remove the limitations by replacing the current alpha codes with explicit data elements that uniquely identifies each contract. The new elements incorporate the actual expiration dates (including the DD) and decimal strike prices.

For more information, contact our help desk or visit
www.optionsclearing.com/initiatives/symbology