Sei sulla pagina 1di 14

935DPDQ

$VVRFLDWH9LFH 3UHVLGHQW 7HFKQLFDO


:DDUHH,QVWUXPHQWV/LPLWHG
,1'8675,$/1(7:25.,1*
,QWURGXFWLRQ
1RZDGD\V LQIRUPDWLRQ WHFKQRORJ\ ,7  LV LQFUHDVLQJO\ GHWHUPLQLQJ WKH JURZWK LQ WKH ZRUOG RI
DXWRPDWLRQ$IWHULWFKDQJHGKLHUDUFKLHVVWUXFWXUHVDQGIORZVLQWKHHQWLUHRIILFHZRUOGLWQRZFRYHUVDOO
WKH VHFWRUV IURP WKH SURFHVV DQG PDQXIDFWXULQJ LQGXVWULHV WR ORJLVWLFV DQG EXLOGLQJ DXWRPDWLRQ 7KH
WHFKQRORJLFDO SUREOHPV DUH VKLIWLQJ IURP PHDVXUHPHQW DQG FRQWURO WR LQIRUPDWLRQ PDQDJHPHQW DQG
FRQQHFWLYLW\OHDGLQJWRZLGHVSUHDGXVHRIQHWZRUNLQJ
7KH FRPPXQLFDWLRQV FDSDELOLW\ RI GHYLFHV DQG FRQWLQXRXV WUDQVSDUHQW LQIRUPDWLRQ URXWHV DUH
LQGLVSHQVDEOH FRPSRQHQWV RI IXWXUHRULHQWHG DXWRPDWLRQ FRQFHSWV 7KH ¶V VDZ WKH EHJLQQLQJ RI WKH
QHWZRUNV LQ ,QGXVWULDO $XWRPDWLRQ DQG WKH ¶V VDZ SODQWV WXUQ WR VWDQGDUGL]HG EXV DUFKLWHFWXUHV $W
WKH WXUQ RI WKH VW FHQWXU\ ZH FDQ H[SHFW WKH ZLUHOHVV FRQQHFWLYLW\ WR GRPLQDWH ,W¶V D IRUHJRQH
FRQFOXVLRQWKDWFRPPXQLFDWLRQVZLOOVKDSHWKHIDFWRU\RIWRPRUURZDVLWZLOOEHIDVWHUPRUHHIILFLHQWDQG
UHOLDEOHZRUNDUHDVZLOOEHVDIHUDQGSURGXFWLYLW\ZLOOLQFUHDVH7KHIXWXUHRIWKHDXWRPDWLRQLQGXVWU\OLHV
LQWKHKDQGVRILQWHUQHWEDVHGDGYDQFHGQHWZRUNLQJDQGZLUHOHVVFRQQHFWLYLW\XWLOL]LQJWKHVWDQGDUGDQG
SURYHQ EXV DUFKLWHFWXUHV DQG SURWRFROV $OVR RYHU WKH SDVW VHYHUDO \HDUV WKH DGYDQFHPHQWV LQ WKH
ZLQGRZVRSHUDWLQJV\VWHPKDYHSURYLGHGQHZPHFKDQLVPVIRUWKHH[FKDQJHRILQIRUPDWLRQDPRQJYDULRXV
GHVNWRSDSSOLFDWLRQVDWDUHODWLYHO\ORZHUFRVW
7KLV WHFKQLFDO SDSHU JLYHV WKH UHDGHU D EDVLF XQGHUVWDQGLQJ RI KRZ LQGXVWULDO QHWZRUNLQJ FDQ EH
XVHGLQYDULRXVDSSOLFDWLRQV

:KDWLVD1HWZRUN"
1HWZRUNV DUH FROOHFWLRQV RI FRPSXWHUV ZKLFK FDQ FRPPXQLFDWH ZLWK HDFK RWKHU RYHU D VKDUHG
PHGLXP 3ULRU WR WKH GHYHORSPHQW RI QHWZRUNLQJ WHFKQRORJ\ LQGLYLGXDO PDFKLQHV ZHUH LVRODWHG XQOHVV
WKH\ FRXOG LQWHUFRQQHFW WKURXJK D PDLQ IUDPH1HWZRUNLQJ DOORZV SHRSOH WR 6KDUH UHVRXUFHV VXFK DV
3ULQWHUVODUJHKDUGGULYHVKRVWFRPSXWHUVVXFKDVPDLQIUDPHVPLQLFRPSXWHUVZRUNVWDWLRQVPRGHPV
6HUYHUV ± OLNH GDWDEDVH VHUYHUV (OHFWURQLF PDLO :RUOG :LGH :HE VHUYHUV VHDUFK HQJLQHV HWF DQG LW
PHDQVOHVVKDUGZDUHLQYHVWPHQW,QFRPSXWHUQHWZRUNLQJUXOHVDUHXVXDOO\UHIHUUHGWRDVSURWRFROV
7KHUH DUH RYHU  LQGXVWULDO QHWZRUNV DQG LGHQWLI\LQJ WKH ULJKW RQH IRU WKH ULJKW DSSOLFDWLRQ
EHFRPHVDWULFN\LVVXH7KLVWHFKQLFDOSDSHUZLOOGLVFXVVPDQ\RIVXFKLVVXHVWKDW QHHG WREHFRQVLGHUHG
ZKHQ VHOHFWLQJ DQLQGXVWULDO QHWZRUN 7KH QHWZRUN VHOHFWHG VKRXOG DOORZ XV WR FRPPXQLFDWH ZLWK DOO WKH
LQWHUFRQQHFWHG GHYLFHV ZLWKRXW FRQFHUQV DERXW WKH ORVV RU FRUUXSWLRQ RI GDWD DQG JHWWLQJ WKH ULJKW
LQIRUPDWLRQ WR WKH ULJKW XVHU 1HWZRUNLQJ DQG FRPPXQLFDWLRQV KDYH EHHQ DURXQG IRU GHFDGHV  2QH RI
WKHILUVWQHWZRUNV0RGEXVZKLFKDOPRVWEHFDPHH[WLQFWEXWLVQRZUHERUQRQ(WKHUQHW

/$1 /RFDO$UHD1HWZRUN 
/RFDO DUHD QHWZRUNV /$16  DUH WKRVH QHWZRUNV XVXDOO\ FRQILQHG WR D VPDOO JHRJUDSKLF DUHD VXFK DV D
VLQJOH EXLOGLQJ RU D FROOHJH FDPSXV ,W PD\ FRQVLVW RI ZRUNVWDWLRQV SULQWHUV PRGHPV DQG PDLQIUDPH
FRPSXWHUV7KHGHYHORSPHQWRIYDULRXVVWDQGDUGVIRUQHWZRUNLQJSURWRFROVDQGPHGLDKDVPDGHSRVVLEOH
WKH SUROLIHUDWLRQ RI /$1V ZRUOGZLGH IRU EXVLQHVV DQG HGXFDWLRQDO DSSOLFDWLRQV /$16 DUH FRQQHFWHG E\
GHGLFDWHGOHDVHGSKRQHOLQHVGLDOXSSKRQHOLQHV ERWKV\QFKURQRXVDQGDV\QFKURQRXV VDWHOOLWHOLQNVHWF

:$1 :LGH$UHD1HWZRUN 
:LGHDUHDQHWZRUNLQJFRPELQHVPXOWLSOH/$1VWKDWDUHJHRJUDSKLFDOO\VHSDUDWH2IWHQDQHWZRUNLVORFDWHG
LQPXOWLSOHSK\VLFDOSODFHV7KLVLVDFFRPSOLVKHGE\ FRQQHFWLQJWKHGLIIHUHQW /$1VXVLQJVHUYLFHVVXFKDV
GHGLFDWHG OHDVHG SKRQH OLQHV GLDOXS SKRQH OLQHV ERWK V\QFKURQRXV DQG DV\QFKURQRXV  VDWHOOLWH OLQNV
DQGGDWDSDFNHWFDUULHUVHUYLFHV:LGHDUHDQHWZRUNLQJFDQEHDVVLPSOHDVDPRGHPDQGUHPRWHDFFHVV
VHUYHU IRU HPSOR\HHV WR GLDO LQWR RU LW FDQ EH DV FRPSOH[ DV KXQGUHGV RI EUDQFK RIILFHV JOREDOO\ OLQNHG
XVLQJ VSHFLDO URXWLQJ SURWRFROV DQG ILOWHUV WR PLQLPL]H WKH H[SHQVH RI VHQGLQJ GDWD VHQW RYHU YDVW
GLVWDQFHV

,QWHUQHW
6\VWHP RI ZRUOGZLGH OLQNHG QHWZRUNV WKDW DUH ZRUOGZLGH LQ VFRSH DQG IDFLOLWDWH GDWD FRPPXQLFDWLRQ
VHUYLFHVVXFKDVUHPRWHORJLQILOHWUDQVIHUHOHFWURQLFPDLOWKH:RUOG:LGH:HEDQGQHZVJURXSV:LWKWKH
PHWHRULFULVHLQGHPDQGIRUFRQQHFWLYLW\WKH,QWHUQHWKDVEHFRPHDFRPPXQLFDWLRQVKLJKZD\IRUPLOOLRQV
RIXVHUV7KLV QRZSURYLGHV&RPPXQLFDWLRQVKLJKZD\IRUPLOOLRQVRIXVHUV

,QWUDQHW
3ULYDWH QHWZRUN XVLQJ ,QWHUQHWW\SH WRROV DYDLODEOH LQ OLPLWHG DUHDV OLNH ZLWKLQ D JLYHQ RUJDQL]DWLRQ
EXLOGLQJ ORFDWLRQ HWF )RU ODUJH RUJDQL]DWLRQV DQ LQWUDQHW SURYLGHV DQ HDV\ DFFHVV PRGH WR FRUSRUDWH
LQIRUPDWLRQ

3URWRFROV
1HWZRUNSURWRFROVDUHVWDQGDUGVWKDWDOORZFRPSXWHUVWRFRPPXQLFDWH$SURWRFROGHILQHVKRZFRPSXWHUV
LGHQWLI\RQHDQRWKHURQDQHWZRUNWKHIRUPWKDWWKHGDWDVKRXOGWDNHLQWUDQVLWDQGKRZWKLVLQIRUPDWLRQ
LV SURFHVVHG RQFH LW UHDFKHV LWV ILQDO GHVWLQDWLRQ 3URWRFROV DOVR GHILQH SURFHGXUHV IRU KDQGOLQJ ORVW RU
GDPDJHGWUDQVPLVVLRQVRUSDFNHWV
$OWKRXJK HDFK QHWZRUN SURWRFRO LV GLIIHUHQW WKH\ DOO VKDUH WKH VDPH SK\VLFDO FDEOLQJ 7KLV FRPPRQ
PHWKRGRIDFFHVVLQJWKHSK\VLFDOQHWZRUNDOORZVPXOWLSOHSURWRFROVWRSHDFHIXOO\FRH[LVWRYHUWKHQHWZRUN
PHGLDDQGDOORZVWKHEXLOGHURIDQHWZRUNWRXVHFRPPRQKDUGZDUHIRUDYDULHW\RISURWRFROV
3ULQFLSOHUROHVRI3URWRFROV
x 1RGHVPXVWDGKHUHWRWKHVDPHVWDQGDUGVLIWKH\DUHWRFRPPXQLFDWH
x 'HILQHVKRZFRPSXWHUVLGHQWLI\HDFKRWKHURQDQHWZRUN
x +RZGDWDLVWUDQVPLWWHG
x +RZUHFHLYHGLQIRUPDWLRQLVSURFHVVHG
x 0HVVDJHHUURUKDQGOLQJ
x 7&3,3 WUDQVPLVVLRQFRQWUROSURWRFRO,QWHUQHW3URWRFRO 
x 6WDQGDUGVWKDWGHILQHWKHGDWDOLQNDQGQHWZRUNSURWRFROV
)73 )LOH7UDQVIHU3URWRFRO 
3URWRFROWKDWHQDEOHVILOHVWREHWUDQVIHUUHGEHWZHHQ3&VDQGLV3DUWRIWKH7&3,3SURWRFROVXLWH
)73ZRUNVRQDFOLHQWVHUYHUSULQFLSOHDQG&OLHQWSURJUDPHQDEOHV\RXWRLQWHUDFWZLWKD)73VHUYHU)LOHV
RQ)73VHUYHUVDUHRIWHQFRPSUHVVHGVRWKDW0RUHPD\EHVWRUHGDQG5HGXFHVILOHWUDQVIHUWLPH
7KHFRPSXWHUVGRQRWQHHGWRUXQRQWKHVDPHRSHUDWLQJV\VWHP
,QDGGLWLRQPDQ\FRPSXWHUVDOORZ\RXWRORJRQWRWKHLU)73VHUYHUDVDQ$QRQ\PRXVXVHULI\RX
GRQRWKDYHDQDFFRXQWRQWKHUHPRWHV\VWHP$OWKRXJKWKLVGRHVQRWOHW\RXUXQSURJUDPVRUZULWHWR
WKHGLVWDQWFRPSXWHULWGRHVDOORZ\RXWRFRS\ILOHVLQWR\RXUORFDODFFRXQW
7RXVH)73\RXPXVWNQRZWKH85/RIWKHUHPRWHVLWH

1HWZRUN&KDUDFWHULVWLFV
7R FRUUHFWO\ DQDO\]H DQG HYDOXDWH LQGXVWULDO QHWZRUNV ZH QHHG WR GHILQH DQG DQDO\]H VHYHUDO
FKDUDFWHULVWLFVDQGPRVWRIWKHEHORZPHQWLRQHGFKDUDFWHULVWLFVDUHLQWHUUHODWHG

+LHUDUFK\
:KDWLVWKHQHWZRUNXVHGIRU 
x &RQQHFW,2EDFNWRWKHFRQWUROOHU"
x &RQQHFW3/&VDQGRSHUDWRULQWHUIDFHVWRJHWKHU"
x /LQNPDQXIDFWXULQJFRPSXWHUVWRJHWKHU"
x /LQNPDQXIDFWXULQJZLWKWKHUHVWRIWKHFRPSDQ\"
x /LQNPDQXIDFWXULQJZLWKRWKHUSODQWVWKDWVXSSO\UDZPDWHULDOVRUFRQVXPHWKHSURGXFWV
PDQXIDFWXUHG"
x /LQNDJHWKHLQYHQWRU\ZLWKPDQXIDFWXULQJ"
x 3URPRWHHQWHUSULVHPDQDJHPHQWVROXWLRQ"

5HVSRQVH7LPHDQG9DULDQFH
x :KDWLVWKHW\SLFDOUHVSRQVHUHTXLUHGRQWKHQHWZRUN"
x $UHVRPHPHVVDJHVKLJKSULRULW\DQGVRPHORZSULRULW\"
x $UHWKHPHVVDJHVFRQWLQXRXVRULQWHUPLWWHQW"
x +RZIDVWGRWKHGHYLFHVQHHGWRUHVSRQGWRHDFKRWKHU"
x :KDWKDSSHQVLIWKHGHYLFHVFRPPXQLFDWHDWGLIIHUHQWLQWHUYDOV"

%DQGZLGWK
:KDWLVWKHUDZVSHHGWKDWWKHGDWDWUDYHOV%DQGZLGWKLVWKHDELOLW\WRSXPSGDWDWKURXJKWKH
FRPPXQLFDWLRQVOLQN7KLQNRILWDVKRZELJDUHWKHSLSHVDQGSXPSVWRSXPSWKHGDWD

(IILFLHQF\
(IILFLHQF\LVDPHDVXUHRIKRZPXFKDGGLWLRQDOZRUNKDVWREHGRQHWRVHQGDPHVVDJH
x +RZPXFKRYHUKHDGLVUHTXLUHGWRVHQGDPHVVDJH
x +RZPDQ\PHVVDJHVQHHGWREHVHQWWRUHDGDQGZULWHGDWDWRDGHYLFH
x +RZPXFKWKHKRVWFRPSXWHUKDVWRGR

$FFHVV0HWKRG
:HZLOOFRQVLGHURQO\WZRPDLQW\SHVRIDFFHVVPHWKRGVGHWHUPLQLVWLFDQGFROOLVLRQGHWHFWLRQ
x 'HWHUPLQLVWLF PHDQV WKDW JLYHQ WKH QXPEHU RI GHYLFHV RQ WKH QHWZRUN ZH FDQ FDOFXODWH ZKDW WKH
PD[LPXPUHVSRQVHWLPHZLOOEH7KHUHVSRQVHWLPHRIGHWHUPLQLVWLFQHWZRUNVWHQGVWRYDU\OHVVWKDQ
QHWZRUNV EDVHG RQ FROOLVLRQ GHWHFWLRQ  7\SLFDOO\ 0DVWHU6ODYH QHWZRUNV RSHUDWH LQ D GHWHUPLQLVWLF
PDQQHUZKHUH WKHPDVWHUVHQGVGDWDWRHDFKVODYHZKLFKDOORZVWKHVODYHWRUHVSRQGDQGVHQGGDWD
EDFNWRWKHPDVWHU0RVWLQGXVWULDO,2QHWZRUNVDUHGHWHUPLQLVWLF
x &ROOLVLRQ 'HWHFWLRQ LV ZKHUH D GHYLFH OLVWHQV EHIRUH LW VWDUWV WDONLQJ  ,I WKH GHYLFH GRHV QRW KHDU
DQ\WKLQJWKHQLWVWDUWVWDONLQJ,IVRPHRQHHOVHVWDUWVWDONLQJDWWKHVDPHWLPHWKHQHDFKGHYLFHVWRSV
IRU D UDQGRP DPRXQW RI WLPH DQG WKHQ VWDUWV OLVWHQLQJ IRU VLOHQFH DJDLQ 7KH SUREOHP ZLWK FROOLVLRQ
GHWHFWLRQDFFHVVPHWKRGLVLI\RXKDYHDORWRI GHYLFHVQHHGLQJWRWDONDWWKHVDPHWLPH\RXKDYHWR
ZDLW DQ XQNQRZQ DPRXQW RI WLPH  $ ORW RI FROOLVLRQV ZDVWH HYHQ PRUH WLPH  (YHQ ZRUVH RQFH D
GHYLFH FROOLGHV ZLWK DQRWKHU GHYLFH LW KDV D ORZHU SULRULW\ WR FRPPXQLFDWH DJDLQ  ,W LV HYHQ SURYHG
WKDW QHWZRUNVXVLQJFROOLVLRQGHWHFWLRQVWDUWWRGHJUDGHDW RQO\DERXWWRSHUFHQWRIWKHLUUDWHG
EDQGZLGWK(WKHUQHWLVWKHEHVWH[DPSOHRIDQHWZRUNXVLQJFROOLVLRQGHWHFWLRQ

7RSRORJ\
7RSRORJ\UHIHUVWRKRZFDEOHVDUHUXQ&DQDOOFDEOHVUXQEDFNWRDKXERUGR\RX³GDLV\FKDLQ´"$
VWDU RU KXE WRSRORJ\ KDV DOO RI WKH GHYLFHV UXQQLQJ D FDEOH EDFN WR WKH FHQWUDOL]HG KXE  <RX QHHG WR
FKHFN WKH GLVWDQFH WKDW HDFK FDEOH FDQ EH UXQ IURP WKH KXE WR WKH GHYLFH ,I RQH GHYLFH ORVHV SRZHU LW
VKRXOGQRWDIIHFWWKHFRPPXQLFDWLRQVZLWKWKHRWKHUGHYLFHV
$KXEUHFHLYHVGDWDIURPRQHGHYLFHDQGUHEURDGFDVWVGDWDWRDOOWKHRWKHUGHYLFHVFRQQHFWHGWR
WKHKXE6RDVZLWFKJUHDWO\H[SDQGVWKHEDQGZLGWKDQGGHFUHDVHVWKHFROOLVLRQGRPDLQ
$ ULQJ RU ³GDLV\FKDLQ´ QHWZRUN LV ZKHUH \RX UXQ WKH FDEOH IURP GHYLFH WR GHYLFH  7KLV XVXDOO\
UHVXOWV LQ OHVV FDEOH EHLQJ XVHG  +RZHYHU ZH VWLOO KDYH WR FRQVLGHU WKH WRWDO OHQJWK RI WKH FDEOH 2IWHQ
UHSHDWHUVDUHXVHG³PLGVWUHDP´WRERRVW UHDPSOLI\ WKHVLJQDO2QO\RQHGHYLFHFDQWDONDWDWLPHRQWKLV
W\SHRIQHWZRUN

'LVWDQFH
(DFK W\SH RI QHWZRUN KDV GLVWDQFH DQG VSHHG OLPLWDWLRQV WKDW DUH UHODWHG  7KH PRVW FRPPRQ
FKDUDFWHULVWLFWRDOOQHWZRUNVLVWKDWWKHORQJHUWKHGLVWDQFH± WKHVORZHUWKHVSHHG5HSHDWHUVEULGJHV
JDWHZD\VKXEVVZLWFKHVDUHZD\VWRJHWDURXQGWKHVHOLPLWDWLRQV7KHUHLVDOLPLWWRKRZPDQ\UHSHDWHUV
\RXFDQXVHRQRQHFDEOHWRH[WHQGWKHFDEOH
1XPEHURIGHYLFHV
$QRWKHU IDFWRU OLPLWLQJ WKH UHVSRQVH WLPH VSHHG DQG GLVWDQFH LV WKH QXPEHU RI GHYLFHV RQ WKH
FRPPXQLFDWLRQVOHQJWK7KHKLJKHUWKHQXPEHURIGHYLFHVWKHQWKHVKRUWHUWKHGLVWDQFHVORZHUWKHEDXG
UDWHDQGKLJKHUWKHUHVSRQVHWLPH
&DSDELOLWLHV:HQHHGWRGHWHUPLQHZKDWWKHFRPPXQLFDWLRQVFDSDELOLWLHVRIHDFKGHYLFHDUH
/HQJWK2I0HVVDJHV7KHRUHWLFDOO\LWLVLGHDOWRKDYHVLPLODUVL]HGPHVVDJHVRQWKHVDPHQHWZRUN

566WDQGDUG
'XH WR LWV VLPSOLFLW\ DQG ORZ KDUGZDUH RYHUKHDG DV FRPSDUHG WR SDUDOOHO LQWHUIDFH  VHULDO
FRPPXQLFDWLRQ LV H[WUHPHO\ SRSXODU LQ WKH LQGXVWU\ WRGD\ DQG WKH PRVW SRSXODU FRPPXQLFDWLRQ LV WKH
(,$7,$ ( VWDQGDUG 7KLV VWDQGDUG ZKLFK KDV EHHQ GHYHORSHG E\ WKH (OHFWURQLF ,QGXVWU\ $VVRFLDWLRQ
DQG WKH 7HOHFRPPXQLFDWLRQ ,QGXVWU\ $VVRFLDWLRQ (,$7,$  LV PRUH SRSXODUO\ UHIHUUHG DV 56 ZKHUH
56 VWDQGV IRU 5HFRPPHQGHG 6WDQGDUG 7KH RIILFLDO QDPH IRU WKLV VWDQGDUG LV ³,QWHUIDFH EHWZHHQ 'DWD
7HUPLQDO(TXLSPHQWDQG'DWD&LUFXLW7HUPLQDWLRQ(TXLSPHQWHPSOR\LQJ6HULDO%LQDU\'DWD,QWHUFKDQJH´
7KLVVWDQGDUGZDVLQWURGXFHGLQDQGKDVXQGHUJRQHIRXUFKDQJHVWLOOGDWH
8QOLNHPDQ\VWDQGDUGVZKLFKVLPSO\VSHFLI\WKHHOHFWULFDOFKDUDFWHULVWLFVRIDJLYHQLQWHUIDFH56
 VSHFLILHV (OHFWULFDO )XQFWLRQDO DQG 0HFKDQLFDO FKDUDFWHULVWLFV LQ RUGHU WR PHHW WKH DERYH WKUHH
FULWHULD
0DLQ)HDWXUHVRI56
x &RPPXQLFDWLRQLVSRLQWWR3RLQWDQGLV$V\QFKURQRXV
x 7KLVLVVXLWDEOHIRU6HULDO%LQDU\DQG'LJLWDO&RPPXQLFDWLRQ
x 7KHFRPPXQLFDWLRQLVUHOLDEOHXSWRIHHWDQG'DWDUDWHVDUHXSWRNESV
/LPLWDWLRQVXVLQJ56VWDQGDUGV
x 2QHOLPLWDWLRQWKHIDFW WKDWRYHUWZHQW\VLJQDOVKDYHEHHQGHILQHGE\WKHVWDQGDUGGRQRWXVHDOORI
WKHVLJQDOVRUWKHSLQFRQQHFWRU
x 7KHVWDQGDUGGHILQHVWKHPD[LPXPGDWDUDWHRINEVHF7KLVLVVORZIRUPDQ\RIWKHSUHVHQWGD\¶V
DSSOLFDWLRQ
x :H KDYH VHHQ WKDW WKH FDEOH OHQJWK VSHFLILFDWLRQ WKDW ZDV RQFH LQFOXGHG LQ WKH 56 VWDQGDUG KDV
EHHQUHSODFHGE\DPD[LPXPORDGFDSDFLWDQFHRIS)

56$VWDQGDUG
7RDOORZWUDQVPLVVLRQDQGKLJKGDWDUDWHV56$XVHVWZRVHSDUDWHZLUHVIRUHDFKVLJQDODQG
PLQLPL]HVWKHSUREOHPRIYDU\LQJJURXQGSRWHQWLDO EDODQFHGWUDQVPLVVLRQ $QRWKHUPDMRUGLIIHUHQFH
EHWZHHQ56$DQG56LVWKHWUDQVLWLRQUHJLRQEHWZHHQPDUNDQGVSDFHVWDWHV

56$VWDQGDUG
7KLVWUDQVPLWVDWDORZHUVSHHGDQGXVHVRQHZLUHDVDFRPPRQUHWXUQSDWKIRUDOOVLJQDOVLQD
JLYHQGLUHFWLRQ 8QEDODQFHGWUDQVPLVVLRQ 7KLVVWDQGDUGRSHUDWHVLQERWK56DQG56$
HQYLURQPHQWV

56VWDQGDUG
7KLV LV WKH LQWHQGHG VXFFHVVRU WR WKH IXQFWLRQDO SRUWLRQ RI 56 LQFOXGLQJ WKH PHFKDQLFDO
VSHFLILFDWLRQ RI WKH SOXJV DQG VRFNHWV 7KLV VWDQGDUG ZKLFK XVHV WZR FRQQHFWRUV UDWKHU WKDQ RQH LV
LQWHQGHGWRUHSODFHWKHIXQFWLRQDOSRUWLRQRI56,WKDVQRSURYLVLRQIRUDXWRPDWLFGLDOLQJ

56VWDQGDUG
7KLV LV D VSHFLDOL]HG LQWHUIDFH WKDW ZRXOG QRW EH FRQVLGHUHG VWDQGDUG HTXLSPHQW RQ WRGD\¶V KRPH
3&EXWLVYHU\FRPPRQLQWKHVHULDOLQWHUIDFHZRUOG7KLVLVDQH[WHQVLRQRI56VWDQGDUG7RGD\WKH
PRVWSRSXODUVHULDOLQWHUIDFHXVHGLQWKHLQGXVWU\LV(,$RU56VSHFLILFDWLRQV56ZLOOVXSSRUW
 GULYHUV DV ZHOO DV  UHFHLYHUV :H DUH WDONLQJ DERXW ELGLUHFWLRQDO KDOIGXSOH[ PXOWLGURS
FRPPXQLFDWLRQVRYHUDVLQJOHRUGXDOWZLVWHGSDLUFDEOH$Q56QHWZRUNFDQEHFRQQHFWHGLQDRU
ZLUH PRGH 0D[LPXP FDEOH OHQJWK FDQ EH DV PXFK DV  IHHW EHFDXVH RI WKH GLIIHUHQWLDO YROWDJH
WUDQVPLVVLRQ V\VWHP XVHG 7KH 56  PD\ EH FRQYHUWHG WR 56 ZLWK VLPSOH LQWHUIDFH FRQYHUWHU
:KHQ FKRRVLQJ D WUDQVPLVVLRQ OLQH IRU 56 LW LV QHFHVVDU\ WR H[DPLQH WKH UHTXLUHG GLVWDQFH RI WKH
FDEOH DQG WKH GDWD UDWH RI WKH V\VWHP /RVHV LQ D WUDQVPLVVLRQ OLQH DUH D FRPELQDWLRQ RI $& ORVV 6NLQ
HIIHFW  '& FRQGXFWRU ORVV OHDNDJH DQG $& ORVVHV LQ WKH GLHOHFWULF ,Q KLJK TXDOLW\ FDEOH WKH FRQGXFWRU
ORVVHVDQGWKHGLHOHFWULFORVVHVDUHRQWKHVDPHRUGHURIPDJQLWXGH

02'%86
02'%863URWRFROLVDPHVVDJLQJVWUXFWXUHZLGHO\XVHGWRHVWDEOLVKPDVWHUVODYHFRPPXQLFDWLRQ
EHWZHHQLQWHOOLJHQWGHYLFHV$02'%86PHVVDJHVHQWIURPDPDVWHUWRDVODYHFRQWDLQVWKHDGGUHVVRIWKH
VODYHWKHFRPPDQG HJUHDGUHJLVWHURUZULWHUHJLVWHU WKHGDWDDQGDFKHFNVXP /5&RU&5& 
6LQFH0RGEXVSURWRFROLVMXVWDPHVVDJLQJVWUXFWXUHLWLVLQGHSHQGHQWRIWKHXQGHUO\LQJSK\VLFDOOD\HU,W
LV WUDGLWLRQDOO\ LPSOHPHQWHG XVLQJ 56 56 RU 56 RYHU D YDULHW\ RI PHGLD HJ ILEHU UDGLR
FHOOXODUHWF 
x 02'%863/86LVDKLJKHUVSHHGWRNHQSDVVLQJGHULYDWLYHWKDWXVHVWKH02'%86PHVVDJLQJVWUXFWXUH
x 02'%867&3,3XVHV7&3,3DQG(WKHUQHWWRFDUU\WKH02'%86PHVVDJLQJVWUXFWXUH
x 7ZR NLQGV RI FKHFNVXP DUH XVHG IRU VWDQGDUG 0RGEXV QHWZRUNV 7KH HUURU FKHFNLQJ ILHOG FRQWHQWV
GHSHQGXSRQWKHWUDQVPLVVLRQPHWKRGWKDWLVEHLQJXVHG
x 7KH DGGUHVV ILHOG RI D PHVVDJH IUDPH FRQWDLQV WZR FKDUDFWHUV $6&,,  RU HLJKW ELWV 578  $ PDVWHU
DGGUHVVHV D VODYH E\ SODFLQJ WKH VODYH DGGUHVV LQ WKH DGGUHVV ILHOG RI WKH PHVVDJH :KHQ WKH VODYH
VHQGV LWV UHVSRQVH LW SODFHV LWV RZQ DGGUHVV LQ WKLV DGGUHVV ILHOG RI WKH UHVSRQVH WR OHW WKH PDVWHU
NQRZZKLFKVODYHLVUHVSRQGLQJ
x 7KHGDWDILHOGRIPHVVDJHVVHQWIURPDPDVWHUWRVODYHGHYLFHVFRQWDLQVDGGLWLRQDOLQIRUPDWLRQZKLFK
WKHVODYHPXVWXVHWRWDNHWKHDFWLRQGHILQHGE\WKHIXQFWLRQFRGH7KLVFDQLQFOXGHLWHPVOLNHGLVFUHWH
DQGUHJLVWHUDGGUHVVHVWKHTXDQWLW\RILWHPVWREHKDQGOHGDQGWKHFRXQWRIDFWXDOGDWDE\WHVLQWKH
ILHOG
:KDW LV0RGEXV3URWRFRO"
02'%863URWRFROLVDQRSHQSXEOLVKHGDQGZLGHO\LPSOHPHQWHGSURWRFROWKDWUHTXLUHVDOLFHQVH
EXW ZLWKRXW D UR\DOW\ SD\PHQW WR WKH RZQHU ,W LV OLWHUDOO\ LPSOHPHQWHG E\ KXQGUHGV RI YHQGRUV RQ
WKRXVDQGV RI GLIIHUHQW GHYLFHV LQ RUGHU WR WUDQVIHU GLVFUHWHDQDORJ ,2 DQG UHJLVWHU GDWD EHWZHHQ FRQWURO
GHYLFHV2QHUHSRUWFDOOHGLWWKHGHIDFWRVWDQGDUGLQPXOWLYHQGRULQWHJUDWLRQ
x 7KLVGHILQHVDPHVVDJHVWUXFWXUHWKDWWKHGHYLFHVXQGHUVWDQGDQGXVHUHJDUGOHVV RIQHWZRUNW\SHLQ
XVH DQG GHVFULEHV WKH SURFHVV D GHYLFH XVHV WR DFFHVV DQRWKHU GHYLFH KRZ WKH GHYLFH ZLOO UHVSRQG
KRZHUURUVDUHGHWHFWHGDQGUHSRUWHG
x 0RGEXV PHVVDJHV DUH LPEHGGHG ZLWKLQ WKH IUDPH RU SDFNHW VWUXFWXUH RI QHWZRUN EHLQJ XVHG OLNH
0RGEXV 7&3,3 DQG 0RGEXV 3OXV ,W HVWDEOLVKHV D FRPPRQ IRUPDW IRU WKH OD\RXW DQG FRQWHQWV RI
PHVVDJHILHOGV
x 'XULQJFRPPXQLFDWLRQVRQD0RGEXVQHWZRUNWKHSURWRFROGHWHUPLQHVKRZ HDFKFRQWUROOHU ZLOONQRZ
LWVGHYLFHDGGUHVVUHFRJQL]HDPHVVDJHDGGUHVVHGWRLWGHWHUPLQHWKHNLQGRIDFWLRQWREHWDNHQDQG
H[WUDFW DQ\ GDWD RU RWKHU LQIRUPDWLRQ FRQWDLQHG LQ WKH PHVVDJH ,I D UHSO\ LV UHTXLUHG WKH FRQWUROOHU
ZLOOFRQVWUXFWWKHUHSO\PHVVDJHDQGVHQGLWXVLQJ0RGEXVSURWRFRO

:KDWLV02'%867&3,3"
7&3,3LVWKHFRPPRQWUDQVSRUWSURWRFRORIWKH,QWHUQHWDQGLVDFWXDOO\DVHWRIOD\HUHGSURWRFROV
SURYLGLQJ D UHOLDEOH GDWD WUDQVSRUW PHFKDQLVP EHWZHHQ PDFKLQHV (WKHUQHW KDV EHFRPH WKH GH IDFWR
VWDQGDUGRIFRUSRUDWHHQWHUSULVHV\VWHPVVRLWFRPHVDVQRVXUSULVHWKDWLWKDVDOVREHFRPHWKHGHIDFWR
VWDQGDUG IRU IDFWRU\ QHWZRUNLQJ (WKHUQHW LV QRW D QHZ WHFKQRORJ\ 8VLQJ (WKHUQHW 7&3,3 LQ WKH IDFWRU\
DOORZVWUXHLQWHJUDWLRQZLWKWKHFRUSRUDWH,QWUDQHWDQG0(6V\VWHPVWKDWVXSSRUWWKDWIDFWRU\,QRUGHUWR
PRYH 02'%86 SURWRFROV LQWR WKH VW FHQWXU\ DQ RSHQ 02'%86 7&3,3 VSHFLILFDWLRQ KDV EHHQ FUHDWHG
&RPELQLQJDYHUVDWLOHVFDOHDEOHDQGXELTXLWRXVSK\VLFDOQHWZRUN (WKHUQHW ZLWKDXQLYHUVDOQHWZRUNLQJ
VWDQGDUG 7&3,3  DQG D YHQGRUQHXWUDO GDWD UHSUHVHQWDWLRQ 02'%86  JLYHV D WUXO\ RSHQ DFFHVVLEOH
QHWZRUNIRUH[FKDQJHRISURFHVVGDWD
:KHQ LW FRPHV WR FKRRVLQJ D QHWZRUN IRU \RXU GHYLFH 02'%86 7&3,3 RIIHUV VHYHUDO VLJQLILFDQW
DGYDQWDJHV
x 6LPSOLFLW\02'%867&3VLPSO\WDNHVWKH02'%86LQVWUXFWLRQVHWDQGZUDSV7&3DURXQGLW
x 6WDQGDUG(WKHUQHW7KHUHDUHQRH[RWLFFKLSVHWVUHTXLUHGWREHSXUFKDVHGIURPYHQGRUVDQG\RXFDQ
XVH VWDQGDUG 3& (WKHUQHW FDUGV WR WDON WR \RXU QHZO\ LPSOHPHQWHG GHYLFH 7R VXP XS \RX DUH QR
ORQJHUWLHGWRRQHYHQGRUIRU VXSSRUWEXWEHQHILWIURPWKHWKRXVDQGVRI GHYHORSHUVRXWWKHUHZKRDUH
PDNLQJ(WKHUQHWDQGWKH,QWHUQHWWKHQHWZRUNLQJWRROVRIWKHIXWXUH
x 2SHQ02'%86DQG02'%867&3SURWRFROVDUHUHDOO\RSHQSURWRFROV

0RGEXV3URWRFROVWUXFWXUH
7KLV VHFWLRQ GHVFULEHV WKH JHQHUDO IRUP RI HQFDSVXODWLRQ RI D 02'%86 UHTXHVW RU UHVSRQVH ZKHQ
FDUULHG RQ WKH 02'%867&3 QHWZRUN ,W LV LPSRUWDQW WR QRWH WKDW WKH VWUXFWXUH RI WKH UHTXHVW DQG
UHVSRQVHERG\IURPWKHIXQFWLRQFRGHWRWKHHQGRIWKHGDWDSRUWLRQKDYH(;$&7/<WKHVDPHOD\RXWDQG
PHDQLQJDVLQWKHRWKHU02'%86YDULDQWVVXFKDV
x 02'%86VHULDOSRUW $6&,,HQFRGLQJ
x 02'%86VHULDOSRUW %LQDU\HQFRGLQJ
x 02'%863/86QHWZRUN GDWDSDWK
5HTXHVWVDUHQRUPDOO\VHQWLQKDOIGXSOH[IDVKLRQRQDJLYHQFRQQHFWLRQ

&OLHQW6HUYHU,PSOHPHQWDWLRQ*XLGDQFH
7KH FRPPHQWV LQ WKLV VHFWLRQ VKRXOG QRW EH UHJDUGHG DV ELQGLQJ DQG KRZHYHU LI IROORZHG WKHVH
SROLFLHV ZLOO PLQLPL]H LQWHJUDWLRQ µVXUSULVHV¶ ZKHQ LPSOHPHQWLQJ PXOWLYHQGRU V\VWHPV DQG JDWHZD\V WR
LQVWDOOHG02'%86HTXLSPHQW
x &OLHQWGHVLJQ02'%867&3 LVGHVLJQHGWR DOORZWKHGHVLJQRIDFOLHQWWREHDVVLPSOHDVSRVVLEOH
x 6HUYHU GHVLJQ $ 02'%867&3 VHUYHU VKRXOG DOZD\V EH GHVLJQHG WR VXSSRUW PXOWLSOH FRQFXUUHQW
FOLHQWVHYHQLILQLWVLQWHQGHGXVHRQO\DVLQJOHFOLHQWDSSHDUVWRPDNHVHQVH

3HUIRUPDQFHRI02'%86 7&3,3
7KHSHUIRUPDQFHEDVLFDOO\GHSHQGVRQWKHQHWZRUNDQGWKHKDUGZDUH,I\RXDUHUXQQLQJ02'%86
7&3,3 RYHU WKH ,QWHUQHW \RX ZRQ¶W JHW EHWWHU WKDQ W\SLFDO ,QWHUQHW UHVSRQVH WLPHV )RU D KLJK
SHUIRUPDQFH ,QWUDQHW ZLWK KLJKVSHHG (WKHUQHW VZLWFKHV WR JXDUDQWHH SHUIRUPDQFH WKH VLWXDWLRQ LV
FRPSOHWHO\ GLIIHUHQW $V ORZHQG &38¶V JHW FKHDSHU 0RPHQWXPW\SH GHYLFHV ZLOO FKDVH WKH WKHRUHWLFDO
OLPLW DOWKRXJK WKH\¶OO QHYHU UHDFK LW EHFDXVH WKH OLPLW ZLOO EH FRQWLQXDOO\ SXVKHG IXUWKHU DZD\ ZLWK 
*LJDELW(WKHUQHW*LJDELW(WKHUQHWHWF
x 7KHIDFWWKDW7&3,3LVWKHWUDQVSRUWSURWRFRORIWKH,QWHUQHWDXWRPDWLFDOO\PHDQVWKDW02'%867&3,3
FDQEHXVHGRYHUWKH,QWHUQHW
x ,QSUDFWLFDOWHUPVWKLVPHDQVWKDWD02'%867&3,3GHYLFHLQVWDOOHGLQ(XURSHFDQEHDGGUHVVHGRYHU
WKH,QWHUQHWIURPWKH86$IURPDQ\ZKHUHHOVHLQWKHZRUOG
x 0DQDJLQJ JHRJUDSKLFDOO\ GLVWULEXWHG V\VWHPV EHFRPHV HDV\ XVLQJ FRPPHUFLDOO\ DYDLODEOH LQWHUQHW 
LQWUDQHWWHFKQRORJLHV
x 02'%867&3,3LVVLPSO\02'%86SURWRFROZLWKD7&3ZUDSSHU ,W LVWKHUHIRUH H[WUHPHO\VLPSOHIRU
H[LVWLQJ 02'%86 GHYLFHV WR FRPPXQLFDWH RYHU 02'%86 7&3,3 7R GR WKLV D JDWHZD\ GHYLFH LV
UHTXLUHG
x ,Q 02'%86 GDWD WUDQVDFWLRQV DUH WUDGLWLRQDOO\ VWDWHOHVV PDNLQJ WKHP KLJKO\ UHVLVWDQW WR GLVUXSWLRQ
IURPQRLVHDQG\HWUHTXLULQJPLQLPDOUHFRYHU\LQIRUPDWLRQWREHPDLQWDLQHGDWHLWKHUHQG
x $OO 02'%86 UHTXHVWV DQG UHVSRQVHV DUH GHVLJQHG LQ VXFK D ZD\ WKDW WKH UHFLSLHQW FDQ YHULI\ WKDW D
PHVVDJHLVFRPSOHWH
x :KHQ 0RGEXV LV FDUULHG RYHU 7&3 DGGLWLRQDO OHQJWK LQIRUPDWLRQ LV FDUULHG LQ WKH SUHIL[ WR DOORZ WKH
UHFLSLHQWWRUHFRJQL]HPHVVDJHERXQGDULHVHYHQLIWKHPHVVDJHKDGWREHVSOLWLQWRPXOWLSOHSDFNHWVIRU
WUDQVPLVVLRQ7KHH[LVWHQFHRIH[SOLFLWDQGLPSOLFLWOHQJWKUXOHVDQGXVHRID&5&HUURUFKHFNFRGH
RQ (WKHUQHW  UHVXOWV LQ DQ LQILQLWHVLPDO FKDQFH RI XQGHWHFWHG FRUUXSWLRQ WR D UHTXHVW RU UHVSRQVH
PHVVDJH
x ,WPXVWEHQRWHGWKDWIXWXUHH[WHQVLRQVWRWKLVVWDQGDUGPD\GHILQHDGGLWLRQDOIXQFWLRQFRGHVWRKDQGOH
VLWXDWLRQVZKHUHWKHH[LVWLQJGHIDFWRVWDQGDUGLVGHILFLHQW,WZLOODOZD\VEHSRVVLEOHWRGHWHUPLQHLID
SDUWLFXODU WDUJHW GHYLFH VXSSRUWV D SDUWLFXODU IXQFWLRQ FRGH E\ VHQGLQJ LW µVSHFXODWLYHO\¶ DQG FKHFNLQJ
IRU WKH W\SH RI H[FHSWLRQ UHVSRQVH LI DQ\ DQG WKLV DSSURDFK ZLOO JXDUDQWHH WKH FRQWLQXHG
LQWHURSHUDELOLW\RIFXUUHQW02'%86GHYLFHVZLWKWKHLQWURGXFWLRQRIDQ\VXFKH[WHQVLRQV,QGHHGWKLV
LVWKHSKLORVRSK\ZKLFKKDVOHGWRWKHFXUUHQWIXQFWLRQFRGHFODVVLILFDWLRQ

352),%86

&RPPXQLFDWLRQLQDXWRPDWLRQLVEHFRPLQJLQFUHDVLQJO\GLUHFWKRUL]RQWDOO\ DWILHOGOHYHODVZHOODV
YHUWLFDOO\ WKURXJK DOO KLHUDUFK\ OHYHOV 'HSHQGLQJ RQ WKH DSSOLFDWLRQ DQG WKH SULFH JUDGXDWHG PDWFKLQJ
LQGXVWULDOFRPPXQLFDWLRQV\VWHPVVXFKDVWKH(WKHUQHWEDVHG352),QHWWKHILHOGEXV 352),%86 DQG
RWKHUV\VWHPVOLNHWKHVHQVRUDFWXDWRUEXV$6,QWHUIDFH RIIHUWKHLGHDOSUHFRQGLWLRQVIRUWUDQVSDUHQW
QHWZRUNLQJLQDOODUHDVDQGOHYHOVRIWKHDXWRPDWLRQSURFHVV
x 352),%86 LV D YHQGRULQGHSHQGHQW RSHQ ILHOG EXV VWDQGDUG IRU D ZLGH UDQJH RI DSSOLFDWLRQV LQ
PDQXIDFWXULQJ DQG SURFHVV DXWRPDWLRQ 9HQGRULQGHSHQGHQFH DQG RSHQQHVV DUH HQVXUHG E\ WKH
LQWHUQDWLRQDOVWDQGDUGV (1(1DQG,(&
x 352),%86 ,QWHUQDWLRQDO SDYHV WKH ZD\ IRU WKH VWHDG\ GHYHORSPHQW RI WKH 352),%86 WHFKQRORJ\ WR
VHUYHDVWKHEHVWVROXWLRQIRUDOORIWKHLQGXVWULDOVHFWRUVWRGD\DQGLQWKHIXWXUH
x $QRWKHU VRXUFH RI SUHVVXUH LV WKH DZDUHQHVV RI WKH SURYLGLQJ LQGXVWU\ WR GHYHORS D WHFKQRORJ\ RI
JUHDWHVWEHQHILWDQGRIEHVWTXDOLW\
x 352),%86 DOORZV FRPPXQLFDWLRQ EHWZHHQ GHYLFHV RI GLIIHUHQW PDQXIDFWXUHUV ZLWKRXW DQ\ VSHFLDO
LQWHUIDFH DGMXVWPHQW 352),%86 FDQ EH XVHG IRU ERWK KLJKVSHHG WLPH FULWLFDO DSSOLFDWLRQV DQG
FRPSOH[FRPPXQLFDWLRQWDVNV
x 352),%86 RIIHUV IXQFWLRQDOO\ JUDGXDWHG FRPPXQLFDWLRQ SURWRFROV'3 DQG )06 ,Q WKH FRXUVH RI
IXUWKHU WHFKQLFDO GHYHORSPHQW WKH 352),%86 8VHU 2UJDQL]DWLRQ LV FXUUHQWO\ ZRUNLQJ RQ WKH
LPSOHPHQWDWLRQRIXQLYHUVDOFRQFHSWVIRUYHUWLFDOLQWHJUDWLRQRQWKHEDVLVRI(WKHUQHW7&3,3
x $W VHQVRUDFWXDWRU OHYHO WKH VLJQDOV RI WKH ELQDU\ VHQVRUV DQG DFWXDWRUV DUH WUDQVPLWWHG YLD D
VHQVRUDFWXDWRUEXV7KHGDWDDUHWUDQVPLWWHGSXUHO\F\FOLFDOO\
x $W ILHOG OHYHO WKH GLVWULEXWHG SHULSKHUDOV VXFK DV ,2 PRGXOHV PHDVXULQJ WUDQVGXFHUV GULYH XQLWV
YDOYHV DQG RSHUDWRU WHUPLQDOV FRPPXQLFDWH ZLWK WKH DXWRPDWLRQ V\VWHPV YLD DQ HIILFLHQW UHDOWLPH
FRPPXQLFDWLRQ V\VWHP 7KH WUDQVPLVVLRQ RI WKH SURFHVV GDWD LV HIIHFWHG F\FOLFDOO\ ZKLOH DODUPV
SDUDPHWHUVDQGGLDJQRVWLFGDWDDOVRKDYHWREHWUDQVPLWWHGF\FOLFDOO\LIQHFHVVDU\352),%86 PHHWV
WKHVH UHTXLUHPHQWV DQG RIIHUV D WUDQVSDUHQW VROXWLRQ IRU PDQXIDFWXULQJ DV ZHOO DV IRU SURFHVV
DXWRPDWLRQ

&RPPXQLFDWLRQ%DVLFVRI352),%86
352),%86 GHILQHVWKHWHFKQLFDOFKDUDFWHULVWLFVRIDVHULDOILHOGEXVV\VWHPZLWKZKLFKGLVWULEXWHG
GLJLWDO SURJUDPPDEOH FRQWUROOHUV FDQ EH QHWZRUNHG IURP ILHOG OHYHO WR FHOO OHYHO 352),%86 LV D PXOWL
PDVWHU V\VWHP DQG WKXV DOORZV WKH MRLQW RSHUDWLRQ RI VHYHUDO DXWRPDWLRQ HQJLQHHULQJ RU YLVXDOL]DWLRQ
V\VWHPVZLWKWKHLUGLVWULEXWHGSHULSKHUDOVRQRQHEXV
352),%86GLVWLQJXLVKHVEHWZHHQWKHIROORZLQJW\SHVRI GHYLFH
x 0DVWHU GHYLFHV GHWHUPLQH WKH GDWD FRPPXQLFDWLRQ RQ WKH EXV $ PDVWHU FDQ VHQG PHVVDJHV ZLWKRXW
DQ H[WHUQDO UHTXHVW ZKHQ LW KROGV WKH EXV DFFHVV ULJKWV WKH WRNHQ  0DVWHUV DUH DOVR FDOOHG DFWLYH
VWDWLRQV
x 6ODYHGHYLFHV DUHSHULSKHUDOVVXFKDV,2 GHYLFHVYDOYHVGULYHVDQGPHDVXULQJWUDQVGXFHUV7KH\GR
QRWKDYHEXVDFFHVVULJKWVDQGWKH\FDQRQO\DFNQRZOHGJHUHFHLYHGPHVVDJHVRUVHQGPHVVDJHVWRWKH
PDVWHUZKHQUHTXHVWHGWRGRVR6ODYHVDUHFDOOHGSDVVLYHVWDWLRQV

'3&RPPXQLFDWLRQ3URILOH
7KH'3&RPPXQLFDWLRQ3URILOHLVGHVLJQHGIRUHIILFLHQWGDWDH[FKDQJHDWWKHILHOGOHYHO7KHFHQWUDO
DXWRPDWLRQ GHYLFHV VXFK DV 3/&3& RU SURFHVV FRQWURO V\VWHPV FRPPXQLFDWH WKURXJK D IDVW VHULDO
FRQQHFWLRQZLWKGLVWULEXWHGILHOGGHYLFHVVXFKDV,2GULYHVDQGYDOYHVDVZHOODVPHDVXULQJWUDQVGXFHUV
'DWDH[FKDQJHZLWKWKHGLVWULEXWHGGHYLFHVLVPDLQO\F\FOLF7KHFRPPXQLFDWLRQIXQFWLRQVUHTXLUHGIRUWKLV
DUHGHILQHGE\WKHEDVLF'3IXQFWLRQVLQDFFRUGDQFHZLWK(1,QDGGLWLRQWRWKHVHEDVLFIXQFWLRQV
'3 DOVR RIIHUV H[WHQGHG DF\FOLF FRPPXQLFDWLRQ VHUYLFHV IRU WKH SDUDPHWHUL]DWLRQ RSHUDWLRQ PRQLWRULQJ
DQGDODUPKDQGOLQJRILQWHOOLJHQWILHOGGHYLFHV

([WHQGHG'3)XQFWLRQV
7KHH[WHQGHG'3IXQFWLRQVPDNHLWSRVVLEOHWRWUDQVPLWDF\FOLFUHDGDQGZULWHIXQFWLRQVDVZHOODV
DODUPVEHWZHHQPDVWHUDQGVODYHVSDUDOOHODQGLQGHSHQGHQWRIF\FOLFXVHUGDWDFRPPXQLFDWLRQ7KLVDOORZV
WKHXVHUWRRSWLPL]HWKHGHYLFHSDUDPHWHUVRIWKHFRQQHFWHGILHOGGHYLFHV VODYHV RUUHDGRXWWKHGHYLFH
VWDWXVZLWKRXWGLVWXUELQJV\VWHPRSHUDWLRQ
x :LWKWKHVHH[WHQGHGIXQFWLRQV'3PHHWVWKHUHTXLUHPHQWVRIHYHQFRPSOH[GHYLFHVZKLFKRIWHQKDYH
WREHSDUDPHWHUL]HGGXULQJRSHUDWLRQ
x 7UDQVPLVVLRQRIWKHDF\FOLFUHTXLUHGGDWDLVSHUIRUPHGZLWKDORZHUSULRULW\SDUDOOHOWRWKH KLJKVSHHG
F\FOLF XVHU GDWD WUDQVIHU 7KH PDVWHU UHTXLUHV VRPH DGGLWLRQDO WLPH WR FDUU\ RXW WKH DF\FOLF
FRPPXQLFDWLRQ VHUYLFHV 7KLV PXVW EH WDNHQ LQWR DFFRXQW LQ WKH SDUDPHWHUL]DWLRQ RI WKH RYHUDOO
V\VWHP 7R DFKLHYH WKLV WKH SDUDPHWHUL]DWLRQ WRRO XVXDOO\ LQFUHDVHV WKH WRNHQ FLUFXODWLRQ WLPH
VRPHZKDWLQRUGHUWRJLYHWKHPDVWHUDFKDQFHWRFDUU\RXWQRWRQO\F\FOLFGDWDWUDQVPLVVLRQEXWDOVR
DF\FOLFFRPPXQLFDWLRQWDVNV
)06&RPPXQLFDWLRQ3URILOH
7KH )06 &RPPXQLFDWLRQ 3URILOH LV GHVLJQHG IRU FRPPXQLFDWLRQ DW FHOO OHYHO $W WKLV OHYHO
SURJUDPPDEOHFRQWUROOHUV 3/&VDQG3&V FRPPXQLFDWHSULPDULO\ZLWKHDFKRWKHU,QWKLVDSSOLFDWLRQDUHD
DKLJKGHJUHHRIIXQFWLRQDOLW\LVPRUHLPSRUWDQWWKDQIDVWV\VWHPUHDFWLRQWLPHV
7KH 352),%86)06 FRPPXQLFDWLRQ PRGHO SHUPLWV GLVWULEXWHG DSSOLFDWLRQ SURFHVVHV WR EH XQLILHG LQWR D
FRPPRQ SURFHVV E\ XVLQJ FRPPXQLFDWLRQ UHODWLRQVKLSV 7KDW SRUWLRQ RI DQ DSSOLFDWLRQ SURFHVV LQ D ILHOG
GHYLFHZKLFKFDQEHUHDFKHGYLDFRPPXQLFDWLRQLVFDOOHGDYLUWXDOILHOGGHYLFH 9)' 

$SSOLFDWLRQ3URILOHV
352),%86 $SSOLFDWLRQ3URILOHVGHVFULEHWKHXVHRI352),%86&RPPXQLFDWLRQDQG3K\VLFDO3URILOHV
IRU D FHUWDLQ UDQJH RI DSSOLFDWLRQV SURFHVV DXWRPDWLRQ EXLOGLQJ DXWRPDWLRQ  RU IRU FHUWDLQ GHYLFH W\SHV
HQFRGHUVGULYHV 
x 7KH XVH RI 352),%86 LQ W\SLFDO GHYLFHV DQG DSSOLFDWLRQV LQ SURFHVV DXWRPDWLRQ LV GHILQHG E\ WKH 3$
SURILOH 7KH 3$ SURILOH GHILQHV WKH GHYLFH SDUDPHWHUV DQG WKH GHYLFH EHKDYLRU RI W\SLFDO ILHOG GHYLFHV
VXFKDVPHDVXULQJWUDQVGXFHUVRUSRVLWLRQHUVLQGHSHQGHQWRIWKHPDQXIDFWXUHUWKXVIDFLOLWDWLQJGHYLFH
LQWHUFKDQJHDELOLW\DQGYHQGRULQGHSHQGHQWRSHUDWLRQ
x 7KH GHVFULSWLRQ RI WKH IXQFWLRQV DQG GHYLFH EHKDYLRU LV EDVHG RQ WKH LQWHUQDWLRQDOO\ UHFRJQL]HG
)XQFWLRQ %ORFN PRGHO 7KH GHILQLWLRQV DQG RSWLRQV RI WKH 3$ DSSOLFDWLRQ SURILOH PDNH 352),%86
VXLWDEOHDVDVXEVWLWXWHIRUDQDORJVLJQDOWUDQVPLVVLRQZLWKP$RU+DUW
x 7KH352),%863$SURILOHKDVEHHQGHYHORSHGLQFORVHFRRSHUDWLRQZLWKXVHUVLQWKHSURFHVVLQJLQGXVWU\
1$085 DQGPHHWVWKHVSHFLDOUHTXLUHPHQWVRIWKLVDSSOLFDWLRQDUHDOLNH
$GGLWLRQDQGUHPRYDORIEXVVWDWLRQVHYHQLQLQWULQVLFDOO\VDIHDUHDVZLWKRXWLQIOXHQFLQJRWKHUVWDWLRQV
%XVVXSSO\RIPHDVXULQJWUDQVGXFHUVXVLQJWZRZLUHWHFKQRORJ\DFFRUGLQJWR,(&
8VHLVDOVRSRVVLEOHLQSRWHQWLDOO\H[SORVLYHDUHDVZLWKSURWHFWLRQW\SHV³LQWULQVLFDOO\VDIH´ (([LDLE 
RU³HQFDSVXODWLRQ´ (([G 

352),VDIH

7KH 352),6DIH SURILOH GHILQHV KRZ IDLOVDIH GHYLFHV HPHUJHQF\ VWRS SXVKEXWWRQ OLJKW JULGV
LQWHUORFNV DUHFRQQHFWHGWRWKHSURJUDPPDEOHFRQWUROOHUVYLD352),%867KLVPHDQVWKDWWKHDGYDQWDJHV
RIRSHQEXVFRPPXQLFDWLRQZLWK352),%86FDQDOVREHXVHGLQWKLVVSHFLDODUHDZKHUHXQWLOQRZDOPRVW
DOOGHYLFHVZHUHZLUHGFRQYHQWLRQDOO\
x :LWKWKH352),6DIHSURILOHIDLOVDIHGHYLFHVFDQFRPPXQLFDWHYLD352),%86
x 3URIL6DIHLVEDVHGRQWKH'3&RPPXQLFDWLRQ3URILOHDQGFDQEHRSHUDWHGZLWK56ILEHURSWLFVRU
,(&WHFKQRORJ\
x 3URIL6DIHLVDVLQJOHFKDQQHOVRIWZDUHVROXWLRQWKDWGRHVQRWUHTXLUHDQ\IXUWKHUEXVFDEOHV
x 3URIL6DIH WDNHV DFFRXQW RI DOO NQRZQ SRVVLEOH HUURUV WKDW FDQ RFFXU GXULQJ VHULDO EXV FRPPXQLFDWLRQ
UHSHWLWLRQ ORVV LQVHUWLRQ LQFRUUHFW VHTXHQFH GHOD\ PDVTXHUDGH FRUUXSWHG SURFHVV GDWD DQG
HUURQHRXV DGGUHVVLQJ  DQG GHILQHV IXUWKHU VHFXULW\ PHFKDQLVPV ZKLFK H[WHQG EH\RQG WKH VWDQGDUG
HUURUGHWHFWLRQDQGHOLPLQDWLRQPHFKDQLVPVRIWKH352),%86EXVDFFHVVSURWRFRO
x 7KURXJK VNLOIXO VHOHFWLRQ DQG FRPELQDWLRQ RI WKH DYDLODEOH UHFRYHU\ PHDVXUHV VXFK DV FRQVHFXWLYH
QXPEHULQJ WLPH PRQLWRULQJ ZLWK DFNQRZOHGJHPHQW VRXUFHWDUJHW LGHQWLILFDWLRQ DQG &5& FRQWURO DV
ZHOO DV D SDWHQWHG 6,/ 0RQLWRU LW ZDV SRVVLEOH WR DFKLHYH WKH UHTXLUHG IDLO SUREDELOLW\ FODVV XS WR
6,/RU$.RUFDWHJRU\

352),QHW
7RGD\ WZR DVSHFWV GHWHUPLQH QHZ DXWRPDWLRQ FRQFHSWV 2Q WKH RQH KDQG WKH\ FRQVLVW RI
GLVWULEXWHG DQG FRPSRQHQWRULHQWHG FRQWURO VWUXFWXUHV RQ WKH RWKHU KDQG WKH LQGXVWULDO DXWRPDWLRQ DQG
WKH ,7 RI KLJKOHYHO PDQDJHPHQW ILHOGV DUH JURZLQJ PRUH DQG PRUH WRJHWKHU YHUWLFDO LQWHJUDWLRQ 
352),QHWWDNHVWKLVQHZWUHQGLQWRDFFRXQWE\RIIHULQJDVLPSOHDQGFRVWVDYLQJVROXWLRQIRUERWKSDUWLDO
DVSHFWVRIQHZDXWRPDWLRQVWUXFWXUHVZLWKRQHVLQJOHWHFKQRORJ\
x 352),QHW LV GHVLJQHG DV D FURVVYHQGRU FRPPXQLFDWLRQV DXWRPDWLRQ DQG HQJLQHHULQJ PRGHO DQG LV
RSWLPL]HGIRUWKHUHTXLUHPHQWVRIDQDXWRPDWLRQV\VWHPZLWKGLVWULEXWHGLQWHOOLJHQFH,WVXVHUHVXOWVLQ
PDMRUVDYLQJVIRUWKHFRQILJXULQJDQGFRPPLVVLRQLQJRIPDFKLQHVDQGSODQWV
x 7KH DELOLW\ WR YHUWLFDOO\ LQWHJUDWH WKH ,7 RI WKH RIILFH ZRUOG DQG WR KRUL]RQWDOO\ LQWHJUDWH WKH HQWLUH
DXWRPDWLRQZRUOGPDNHV352),QHWWRDFRPSOHWHRSHQV\VWHP
x 7R HQVXUH WKDW WKH LQYHVWPHQWV RI PLOOLRQV RI 352),%86 XVHUV DUH SURWHFWHG H[LVWLQJ 352),%86
VHJPHQWVFDQEHLQFRUSRUDWHGLQWR352),QHWDXWRPDWLRQSURMHFWV
x 7KHSULPDU\JRDORI352),QHWLVWKHFRPELQDWLRQRIWKHQDWXUDOO\GLVWULEXWHGDXWRPDWLRQREMHFWVRIDQ
DSSOLFDWLRQ UDWKHU WKDQ WKH GLVWULEXWLRQ RI WKH FRPSXWLQJ SRZHU &KLHIO\ FRPSRQHQWV RI D IL[HG
IXQFWLRQDOLW\ WKDW FDQ KDYH SDUDPHWHU YDOXHV DVVLJQHG GULYH YDOYH PHDVXULQJ XQLW FRQWURO VWDWLRQ
PDQLSXODWRU PRQLWRULQJ HTXLSPHQW HWF  DUH LQYROYHG LQ WKLV SURFHVV 7KH IUHH FRPSXWLQJ SRZHU RI
WKH DXWRPDWLRQ GHYLFHV OLNH 3/& RU 3& LV WKHQ UHGXFHG WR WKH KLJKHURUGHU VHTXHQFLQJORJLF VXFK DV
UHFLSH KDQGOLQJ  KLJKHURUGHU VDIHW\ VXFK DV JXDUGV HQHUJ\ VXSSO\  RU LQWHUIDFHV WR WKH RXWVLGH
ZRUOG VXFKDVRIILFHDSSOLFDWLRQVDFFHVVFRQWURO 
x 352),QHW VDWLVILHV WKH PDLQ FXVWRPHU GHPDQGV IRU RSHQQHVV KRUL]RQWDO DQG YHUWLFDO WUDQVSDUHQF\
IURPRIILFHHQYLURQPHQWRIDQHQWHUSULVHXSWRDXWRPDWLRQOHYHODQGODVWEXWQRWOHDVWWKHSURWHFWLRQ
RILQYHVWPHQWV
x ,QVXPPDU\352),QHWKDVQRWRQO\EHHQVSHFLILHGWRGHILQHDPXOWLYHQGRUFRPPXQLFDWLRQVPRGHOIRU
(WKHUQHWLWLVDOVRDQHZPDQXIDFWXUHULQGHSHQGHQWREMHFWRULHQWHGDUFKLWHFWXUHPRGHOIRUGLVWULEXWHG
DXWRPDWLRQVROXWLRQVZLWKFDSDELOLW\RIV\VWHPZLGHHQJLQHHULQJ
),(/'%86

)LHOGEXVLV DQ HQDEOLQJ WHFKQRORJ\ )LHOGEXV LV D PXOWLGURS ELGLUHFWLRQDO GLJLWDO FRPPXQLFDWLRQ
OLQN DPRQJ LQWHOOLJHQW ILHOG GHYLFHV DQG KRVW V\VWHPV 7KH )LHOGEXV WHFKQRORJ\ VWDQGDUGL]HG WKURXJK WKH
)LHOGEXV )RXQGDWLRQ )281'$7,2170 ILHOGEXV  HQDEOHV IRU YDULRXV EHQHILFLDO DSSOLFDWLRQV WR XWLOL]H
HQRUPRXVDPRXQWRIIXQFWLRQVDQGGDWDRIWKHLQWHOOLJHQWILHOGGHYLFHV&RQWURODQGPRQLWRULQJLVWKHEDVLF
DSSOLFDWLRQXWLOL]LQJILHOGGHYLFHV,QWKLVDUHDILHOGGHYLFHVDUHWUHDWHGDVWKHSURFHVV,2DQGDGGLWLRQDOO\
SDUW RI WKH EDVLF FRQWURO IXQFWLRQV PD\ EH VKLIWHG WR WKH ILHOG GHYLFHV WR DFKLHYH VDIHU DQG KLJKHU
SHUIRUPDQFHDVWKHWRWDOV\VWHP
$QRWKHUSRLQWLVWKHHQRUPRXVDPRXQWRIILHOGPDQDJHPHQWGDWDDYDLODEOHRQWKHKRVWV\VWHPVIURPWKH
GHYLFHVDQGWKHLUDSSOLFDWLRQV)LHOGEXVSURYLGHVXQLILHGPHWKRGWRDFFHVVYDULRXVGDWDLQWKHGHYLFHVIURP
YDULRXVPDQXIDFWXUHUVDQGEDVHG RQHDFKXQLTXHPHDVXUHPHQWDQGFRQWUROWHFKQRORJLHV)LHOGEXVLVWKH
GLJLWDOUHSODFHPHQWRIP$VLJQDOWUDQVPLVVLRQLQDFRQYHQWLRQDOVHQVHEXWLWVLPSDFWZLOOEHPXFK
ODUJHU

0XOWLGURS&DSDELOLW\
:LWK P$ HDFK ILHOG GHYLFH LV LQGLYLGXDOO\ FRQQHFWHG SRLQWWRSRLQW WR D FRQWURO V\VWHP
&RQWUDU\ ILHOGEXV DOORZV XS WR  GHYLFHV RQ D VLQJOH ZLUH SDLU PXOWLGURS ZKLFK VLJQLILFDQWO\ UHGXFHV
ZLULQJ FRPSOH[LW\ LQVWDOODWLRQ WLPH DQG HIIRUWV ZKLOH LQFUHDVLQJ IOH[LELOLW\ DQG PDNLQJ WURXEOH VKRRWLQJ
HDVLHU 3UHOLPLQDU\ VWXGLHV HVWLPDWH DQ LQVWDOODWLRQ VDYLQJV IRU QHZ LQVWDOODWLRQV WR EH   
SRWHQWLDOO\ ZLWK IHZHU ZLUHV FRQGXLWV EDUULHUV WHUPLQDWLRQ UDFNV DQG HYHQ FRQWURO V\VWHP
V ,2 UDFNV
)RU UHQRYDWLRQ QHZ ILHOG GHYLFHV PD\ EH RIWHQ DGGHG EDVHG RQ UHJXODWRU\ UHTXLUHPHQWV DQG IRU PRUH
HIIHFWLYH PRQLWRULQJ DQG RSHUDWLRQ EXW ZLWKRXW DGGLWLRQDO ZLULQJ /DUJH YROXPHV RI ILHOG GDWD SURYLGHG
IURP ILHOG GHYLFHV WKURXJK ILHOGEXV HQDEOH \RX WR LPSURYH SODQW SHUIRUPDQFH DQG SURFHVV DYDLODELOLW\ LI
SURSHUO\PDQDJHGDQGSUHVHQWHGIRURSHUDWLRQDQGPDLQWHQDQFH:LWKWKLVFDSDELOLW\\RXZLOOEHQHILWIURP
IXWXUH LQQRYDWLRQV RI ILHOG LQVWUXPHQWDWLRQ VXFK DV IXOO GLJLWDO VHQVLQJ UDQJHIUHH PHDVXUHPHQW PXOWL
YDULDEOHDQGPXOWLIXQFWLRQDOGHYLFHV
)LHOGEXV EHFRPHV PRUH UHSUHVHQWDWLYH RI D 1HZ /DQJXDJH IRU GLJLWDO SURFHVV FRQWURO
LQVWUXPHQWDWLRQ LQ WKH VW &HQWXU\ :H EHOLHYH WKDW LW ZLOO GUDPDWLFDOO\ LPSDFW HYHU\ DUHD RI
LQVWUXPHQWDWLRQ LQ WKH \HDUV WR FRPH )LHOGEXV WHFKQRORJ\ RIIHUV TXDQWLWDWLYH DQG TXDOLWDWLYH PHDVXUHV
WKDW DOORZ XVHUV WR SURGXFH DQG VDYH PRUH WKHUHE\ LQFUHDVLQJ WKH OLQH RI SURILWDELOLW\ )LHOGEXV DOORZV
PLJUDWLRQRIFRQWUROIXQFWLRQVWRWKHILHOGGHYLFHVSDYLQJWKHZD\IRU³&RQWURO$Q\ZKHUH´

)LHOG%XV$UFKLWHFWXUH
7KLVWHFKQRORJ\FRQVLVWVRIWKUHHSDUWV
x 3K\VLFDO/D\HU
x &RPPXQLFDWLRQVVWDFN
x 8VHU$SSOLFDWLRQV

7KH SK\VLFDO OD\HU LV GHILQHG E\ ,(&  ,6$ VWDQGDUGV ,W UHFHLYHV WKH PHVVDJHV IURP WKH
FRPPXQLFDWLRQ VWDFN DQG FRQYHUWV WKHP LQWR SK\VLFDO VLJQDOV RQ WKH ILHOG EXV WUDQVPLVVLRQ PHGLXP DQG
YLFHYHUVD )LHOGEXV VLJQDOV DUH HQFRGHG XVLQJ WKH ³0DQFKHVWHU %LSKDVH ± / 7HFKQLTXH´ 7KH VLJQDO LV
FDOOHG ³6\QFKURQRXV 6HULDO´ EHFDXVH WKH FORFN IRUPDWLRQ LV HPEHGGHG LQ WKH VHULDO GDWD VWUHDP 'DWD LV
FRPELQHGZLWKWKHFORFNVLJQDOWRFUHDWHWKHILHOGEXVVLJQDO
7KH'//OD\HUFRQWUROVWUDQVPLVVLRQRIPHVVDJHVRQWRWKHILHOGEXV7KH'//PDQDJHVWKHDFFHVVWR
WKHILHOGEXVWKURXJKDGHWHUPLQLVWLFFHQWUDOL]HGEXVVFKHGXOHUFDOOHGWKH/LQN$FWLYH6FKHGXOHU /$6 7KH
'//LVDVXEVHWRIHPHUJLQJ,(&,6$'//6WDQGDUG
8VHU $SSOLFDWLRQ EORFNV GHILQHV WKH ZD\ WR DFFHVV LQIRUPDWLRQ ZLWKLQ WKH ILHOGV DQG KRZ WR
GLVWULEXWHWKLVLQIRUPDWLRQWRGHYLFHVLQWKHVDPHQRGHRUHYHQWXDOO\WRRWKHUQRGHVRIDILHOGEXVQHWZRUN
7KHDUFKLWHFWXUHEDVH RIILHOGEXVLVWKHIXQFWLRQEORFNZKLFKSHUIRUPVWKHGDWDDFTXLVLWLRQFRQWURORXWSXW
HWF (YHU\ IXQFWLRQ EORFN FRQWDLQV DQ DOJRULWKP D GDWDEDVH WKDW LV XVHG E\ WKH DOJRULWKP DQG WKH XVHU
GHILQHGQDPH7KHGDWDEDVHLVSDUWLWLRQHGLQWR,QSXW2XWSXWDQG ,QWHUQDOYDULDEOHV
7KH 2SHQ 6\VWHPV ,QWHUFRQQHFW 26,  OD\HUHG FRPPXQLFDWLRQ PRGHO LV XVHG IRU WKLV PRGHO 7KH
SK\VLFDOOD\HULV26,/D\HU7KHGDWDOLQNOD\HU '// LV26, /D\HU7KHILHOGEXVPHVVDJH VSHFLILFDWLRQ
)06 LV26,/D\HU7KHFRPPXQLFDWLRQVWDFNLVFRPSULVHGRIOD\HUV LQWKH26,PRGHO7KHILHOGEXV
SURWRFROGRHVQRWXVH26,OD\HUV 

)LHOGEXV± ,QWULQVLFDOO\VDIHDSSOLFDWLRQV
7KH ,(&  SK\VLFDO OD\HU UHSODFHV WKH ROG  P$ WHFKQRORJ\ LQ KD]DUGRXV DQG QRQKD]DUGRXV
DUHDV ,(&  LV WKH SK\VLFDO OD\HU VWDQGDUG JRYHUQLQJ GLJLWDO PXOWLGURSV DQG WZR ZD\
FRPPXQLFDWLRQV 2QH DGYDQWDJH WR XVLQJ WKH ILHOGEXV LQ ,6 DSSOLFDWLRQV LV WKH SRVVLELOLW\ RI FRQQHFWLQJ
XSWRIRXUGHYLFHVWRDVLQJOHILHOGEXVEDUULHU
$QRWKHU LPSRUWDQW SRLQW LV WKH IOH[LELOLW\ ± E\ FKRRVLQJ GHYLFHV WKDW UHTXLUHV OHVV SRZHU WR RSHUDWH RQH
FDQKDYHORQJHUFDEOHUXQVDQGRUPRUHGHYLFHVFRQQHFWHGZLWKLQWKHVDPHEDUULHU
8QWLO QRZ LW KDV EHHQ QHFHVVDU\ WR VHOHFW GLIIHUHQW EDUULHU W\SH IRU LQSXW DQG RXWSXW IRU YDULRXV VXSSO\
YROWDJHV :LWK ILHOGEXV DOO WUDQVPLWWHUV DQG SRVLWLRQHUV DUH WKH VDPH DQG DOO GHYLFHV PXVW RSHUDWH RQ
YROWV9'&ZKLFKLQWXUQSHUPLWVWKHXVHRIVLQJOHEDUULHU
,WLVWREHQRWHGWKDWWKDWILHOGEXVQHWZRUNUHTXLUHVWZRWHUPLQDWRUVRQHDWHDFKHQG7KHLQVWDOODWLRQLV
VLPSOLILHGLIWKHWHUPLQDWRU ZKLFKPXVWDOVREHLQWULQVLFDOO\VDIH IRUWKHKRVWHQGLVEXLOWLQWRWKHVDIHW\
EDUULHU

1HWZRUN&ODVVLILFDWLRQ
,QIRUPDWLRQ/HYHO (WKHUQHW7&3,3
&RQWURO/HYHO $5&QHW&RQWURO1HW
'HYLFH/HYHO± 3DFNHW'DWD )LHOGEXV3URILEXV3$
'HYLFH/HYHO± %\WH'DWD 3URILEXV'3'HYLFHQHW,QWHUEXV
'HYLFH/HYHO± %LW'DWD $6,6HULSOH[
$ ZLGH YDULHW\ RI QHWZRUNV DUH DYDLODEOH LQ WKH LQGXVWULDO DXWRPDWLRQ HQYLURQPHQW KRZHYHU
FRQIXVLRQDULVHVEHFDXVHRIWKHLUFDSDELOLWLHVRYHUODS7KHLPSRUWDQWSRLQWLV12VLQJOHILHOGEXVSURGXFWZLOO
HPHUJHDVXQLYHUVDOVWDQGDUGDQGLWLVPRUHOLNHO\WKDWVHYHUDOVWDQGDUGVZLOOHPHUJHDWYDULRXVOHYHOVRI
SHUIRUPDQFH DQG FRPSOH[LW\ LQ GLIIHUHQW DSSOLFDWLRQV DQG HQYLURQPHQW 6PDOO DQG PHGLXP VL]HG
FRPSDQLHV DUH OLNHO\ WR KDYH GLIIHUHQW QHHGV DQG H[SHFWDWLRQV DQG WKH UHTXLVLWH VWDQGDUGV WR PHHW WKHLU
QHHGV6LQFHLQWHURSHUDELOLW\DPRQJHTXLSPHQWIURPGLIIHUHQWYHQGRUVLVDPDMRUIDFWRUIRUPDQ\XVHUV DOO
PDMRURSHQEXVYHQGRURUJDQL]DWLRQVRIIHULQGHSHQGHQWO\FHUWLILHGLQWHURSHUDELOLW\W\SLFDOO\WKURXJKWKLUG
SDUW\ WHVW HVWDEOLVKPHQWV 7KH TXHVWLRQ LV ZKHWKHU DQ ,2 IURP YHQGRU$ ZLOO RSHUDWH ZLWK VHQVRUV IURP
YHQGRU% DQG FRQWUROOHU IURP YHQGRU& DV WKHUH PD\ EH VSHHG RI RSHUDWLRQV DV D FRQVWUDLQW ZKLFK ZLOO
SURYLGHSURSULHWDU\GLIIHUHQWLDWLRQ
$ VWDQGDUG EHQHILWV HQG XVHU QRW WKH YHQGRUV 2YHU WKH \HDUV QXPEHU RI EXVHV KDYH HPHUJHG RQ WKH
PDUNHW ,QGHHG WKH WUHQG KDV EHHQ WRZDUGV WKH GHYHORSPHQW RI XQLYHUVDO QRQ SURSULHWDU\ EXVHV EXW
XVHUVDUHVWLOOIDFHGZLWKDFRQIXVLQJDUUD\RIRSHQDQGVWDQGDUGEXVHV)RUILHOGEXVDORQHHLJKWGLIIHUHQW
EXVHVZHUHDFFHSWHGE\,(&1RQHRIWKHVHILHOGEXVHVFDQWDONWRHDFKRWKHUVRLWLVYHU\GLIILFXOWIRUWKH
HQGXVHUWRPL[DQGPDWFKV\VWHPV

+$57
+$57QHWZRUNVDUHDQRWKHUIRUPRIILHOGEXVWKDWZRUNVTXLWHZHOOLQWKHGLJLWDOSODQW9LUWXDOO\DOO
WKH PDQXIDFWXUHUV RIIHU DUUD\ RI SURGXFWV VXSSRUWLQJ +$57 ,Q D +$57 GHYLFH GLJLWDO GDWD DQG VWDWXV
LQIRUPDWLRQ DUH HQFRGHG LQWR WKH DQDORJ VLJQDO DQG FDQ EH H[WUDFWHG E\ KDQGKHOG FDOLEUDWLRQ GHYLFHV RU
SOXJLQPRQLWRUV$GGLWLRQDOO\+$57FDQSHUIRUPOLPLWHGDPRXQWRIORFDOFRQWURO

,1'8675,$/(7+(51(7

,QGXVWULDO (WKHUQHW LV WKH ODWHVW RYHU K\SHG WHFKQRORJ\ (DUOLHU WKH (WKHUQHW ZDV QRW D
FRQVLGHUDWLRQ VLQFH LW ZDV VORZ DQG QRW GHWHUPLQLVWLF :LWK WKH GHYHORSPHQW RI KLJK EDQGZLGWK DQG
LQH[SHQVLYH(WKHUQHWVZLWFKLQJWHFKQRORJ\(WKHUQHWLVHPHUJLQJDVDJRRGDOWHUQDWLYH
x (WKHUQHW LV D ORFDO DUHD QHWZRUN /$1  WHFKQRORJ\ WKDW WUDQVPLWV LQIRUPDWLRQ EHWZHHQ FRPSXWHUV DW
VSHHGVRIDQGPLOOLRQELWVSHUVHFRQG 0ESV 
x 7KHDELOLW\WROLQNDZLGHUDQJHRIFRPSXWHUVXVLQJDQHXWUDOQHWZRUNWHFKQRORJ\LVDQHVVHQWLDOIHDWXUH
IRU WRGD\¶V PDUNHW 0RVW /$1¶V PXVW VXSSRUW D ZLGH YDULHW\ RI FRPSXWHUV SXUFKDVHG IURP GLIIHUHQW
PDQXIDFWXUHUV ZKLFK UHTXLUHV D KLJK GHJUHH RI QHWZRUN LQWHURSHUDELOLW\ RI WKH VRUW WKDW (WKHUQHW
SURYLGHV
x (WKHUQHWLVVLPSO\DZD\WRWUDQVSRUWGDWDEHWZHHQWZRGHYLFHV± LWGRHVQRWJXDUDQWHHWKDWWKHGHYLFH
UHFHLYLQJWKHGDWDZLOONQRZKRZWRLQWHUSUHWWKHGDWD7KHSURWRFROLVDWWKHKLJKHVW26,PRGHOOD\HU
,Q D UHODWLYHO\ VKRUW WLPH QHWZRUN FRQQHFWLRQ KDYH HYROYHG IURP VKDUHG RU VZLWFKHG (WKHUQHW WR
VZLWFKHGIDVW(WKHUQHWWRPHHWWKH ULVLQJEDQGZLGWKGHPDQG
x $OO GHYLFHV DWWDFKHG WR DQ (WKHUQHW DUH FRQQHFWHG WR D VKDUHG VLJQDOLQJ V\VWHP DOVR FDOOHG WKH
PHGLXP(WKHUQHWVLJQDOVDUHWUDQVPLWWHGVHULDOO\RQHELWDWDWLPHRYHUWKHVKDUHGVLJQDOFKDQQHOWR
HYHU\DWWDFKHGGHYLFH7RVHQGGDWDDGHYLFHILUVWOLVWHQVWRWKHFKDQQHODQGZKHQWKHFKDQQHOLVLGOHLW
WUDQVPLWV WKH GDWD LQ WKH IRUP RI D SDFNHW FDOOHG (WKHUQHW )UDPH $IWHU HDFK IUDPH WUDQVPLVVLRQ DOO
GHYLFHV RQ WKH QHWZRUN PXVW FRQWHQG HTXDOO\ IRU WKH QH[W IUDPH WUDQVPLVVLRQ RSSRUWXQLW\ 7KLV
HQVXUHV WKDW DFFHVV WR WKH QHWZRUN FKDQQHO LV IDLU DQG WKDW QR VLQJOH GHYLFH FDQ ORFN RXW WKH RWKHU
GHYLFHV
x $FFHVV WR WKH VKDUHG FKDQQHO LV GHWHUPLQHG E\ WKH PHGLXP DFFHVV FRQWURO 0$&  PHFKDQLVP
HPEHGGHGWKH(WKHUQHWLQWHUIDFHORFDWHGLQ HDFKRIWKHGHYLFH7KHPHGLXPDFFHVVFRQWUROPHFKDQLVP
LVEDVHGRQWKHDV\VWHPFDOOHG6HQVH0XOWLSOH$FFHVVZLWK'LUHFW&ROOLVLRQ &60$&' 
x (WKHUQHWLVWKHPRVWSRSXODU/$1WHFKQRORJ\LQXVHWRGD\ 2WKHU/$1 W\SHVLQFOXGH7RNHQ5LQJ)DVW
(WKHUQHW )LEHU 'LVWULEXWHG 'DWD ,QWHUIDFH )'',  $V\QFKURQRXV 7UDQVIHU 0RGH $70  DQG /RFDO7DON
(WKHUQHW LV SRSXODU EHFDXVH LW VWULNHV D JRRG EDODQFH EHWZHHQ VSHHG FRVW DQG HDVH RI LQVWDOODWLRQ
7KHVHEHQHILWVFRPELQHGZLWKZLGHDFFHSWDQFHLQWKHFRPSXWHUPDUNHWSODFHDQGWKHDELOLW\WRVXSSRUW
YLUWXDOO\ DOO SRSXODU QHWZRUN SURWRFROV PDNH (WKHUQHW DQ LGHDO QHWZRUNLQJ WHFKQRORJ\ IRU PRVW
FRPSXWHUXVHUVWRGD\
x ,((( 6WDQGDUG  GHILQHV UXOHV IRU FRQILJXULQJ DQ (WKHUQHW QHWZRUN DV ZHOO DV VSHFLI\LQJ KRZ
HOHPHQWVLQDQ(WKHUQHWQHWZRUNLQWHUDFWZLWKRQHDQRWKHU

+LVWRU\DQG6WDQGDUGV
x (WKHUQHW ZDV LQYHQWHG DW WKH ;HUR[ 3DOR $OWR 5HVHDUFK &HQWHU GXULQJ WKH ¶V E\ 'U 5REHUW 0
0HWFDOIH ,W ZDV GHVLJQHG WR VXSSRUW UHVHDUFK RQ WKH ³RIILFH RI WKH IXWXUH´ ZKLFK LQFOXGHG RQH RI WKH
ZRUOG¶VILUVWSHUVRQDOZRUNVWDWLRQVWKH;HUR[ $OWR7KHILUVW(WKHUQHW V\VWHPUDQDWDSSUR[LPDWHO\
0ESV DQG ZDV NQRZQ DV WKH ³([SHULPHQWDO (WKHUQHW´ 7KH VLJQDO FORFN IRU WKH H[SHULPHQWDO (WKHUQHW
LQWHUIDFHZDVGHULYHGIURPWKH$OWR
VV\VWHPFORFNZKLFKUHVXOWHGLQDGDWDWUDQVPLVVLRQUDWHRQWKH
H[SHULPHQWDO(WKHUQHWRI0ESV
x 0HWFDOIH
VILUVWH[SHULPHQWDOQHWZRUNZDVFDOOHGWKH$OWR$ORKD1HWZRUN,Q0HWFDOIHFKDQJHGWKH
QDPHWR(WKHUQHWWRPDNHLWFOHDUWKDWWKHV\VWHPFRXOGVXSSRUWDQ\FRPSXWHUQRWMXVW$OWRV+H
FKRVHWREDVHWKHQDPHRQWKHZRUGHWKHUDVDZD\RIGHVFULELQJDQHVVHQWLDOIHDWXUHRIWKHV\VWHP
WKH SK\VLFDO PHGLXP LH D FDEOH  FDUULHV ELWV WR DOO VWDWLRQV PXFK WKH VDPH ZD\ WKDW WKH ROG
OXPLQLIHURXV HWKHU ZDV RQFH WKRXJKW WR SURSDJDWH HOHFWURPDJQHWLF ZDYHV WKURXJK VSDFH 7KXV
(WKHUQHWZDVERUQ´
x )RUPDO VSHFLILFDWLRQV IRU (WKHUQHW ZHUH SXEOLVKHG LQ  E\ D PXOWLYHQGRU FRQVRUWLXP WKDW FUHDWHG
WKH '(&,QWHO;HUR[ ',;  VWDQGDUG 7KH HIIRUW WXUQHG WKH H[SHULPHQWDO (WKHUQHW LQWR DQ RSHQ
SURGXFWLRQTXDOLW\ (WKHUQHW V\VWHP WKDW RSHUDWHV DW 0ESV (WKHUQHW WHFKQRORJ\ ZDV WKHQ DGRSWHG
IRU VWDQGDUGL]DWLRQ E\ WKH /$1 VWDQGDUGV FRPPLWWHH RI WKH ,QVWLWXWH RI (OHFWULFDO DQG (OHFWURQLFV
(QJLQHHUV ,((( 7KH,(((VWDQGDUGZDVILUVWSXEOLVKHGLQZLWKWKHIRUPDOWLWOH³,(((
± &DUULHU6HQVH0XOWLSOH$FFHVVZLWK&ROOLVLRQ'HWHFWLRQ &60$&' $FFHVV0HWKRGDQG3K\VLFDO/D\HU
6SHFLILFDWLRQV´
x 7KH,(((VWDQGDUGKDVVLQFHEHHQDGRSWHGE\WKH,QWHUQDWLRQDO2UJDQL]DWLRQIRU6WDQGDUGL]DWLRQ ,62 
ZKLFK PDNHV LW ZRUOGZLGH QHWZRUNLQJ VWDQGDUG 6LQFH  WKH VWDQGDUG KDV JURZQ WR LQFOXGH QHZ
PHGLD V\VWHPV IRU 0ESV (WKHUQHW  HJ 7ZLVWHG SDLU PHGLD  DV ZHOO DV WKH ODWHVW VHW RI
VSHFLILFDWLRQVIRU0ESVIDVW(WKHUQHW
x 2ULJLQDO (WKHUQHW ZDV FRQVWUXFWHG DV D EXV V\VWHP ZKHUH LQGLYLGXDO VWDWLRQV VKDUHG D FRPPRQ
EDFNERQH FRQQHFWLRQ 7KLV FRD[LDO EDFNERQH ZDV WHUPHG DV µWKLFNQHW´ IRU LWV EXON\ DSSHDUDQFH
(YHQWXDOO\ WKH ,((( VWDQGDUGL]HG WKLV SK\VLFDO OD\HU DV %$6( $ VXEVHTXHQW EXV LPSOHPHQWDWLRQ
FDOOHG³WKLQQHW´ZDVVWDQGDUGL]HGDV%$6(7KHVHWZREXVVWDQGDUGVDUHQRORQJHUSRSXODU
x :KDWLVSRSXODUWRGD\LVWKHOLQNVHJPHQWFRQVLVWLQJRIHLWKHUWZLVWHGSDLURUILEHURSWLFFDEOLQJ$OLQN
VHJPHQW LV GHILQHG WR KDYH RQO\ WZR GHYLFHV DWWDFKHG WR D OLQN ,Q RUGHU WR H[SDQG DQ (WKHUQHW
QHWZRUNDWZRSRUWUHSHDWHURUPXOWLKXESRUWPXVWEHXVHG
x 7KUHHGDWDUDWHVDUHFXUUHQWO\GHILQHGIRURSHUDWLRQRYHURSWLFDOILEHUDQGWZLVWHGSDLUFDEOHV
 0ESV²%DVH7(WKHUQHW
 0ESV²)DVW(WKHUQHW
 0ESV²*LJDELW(WKHUQHW
1RWH*LJDELW(WKHUQHWLVXQGHUGHYHORSPHQWDQGZLOOEHSXEOLVKHGDV,(((VWDQGDUGV

(PHUJHQFHRI(WKHUQHW
,QWKHSDVWWKHUHZHUHPDQ\LVVXHVUHJDUGLQJWKHXVHRI(WKHUQHWIRU5HDO7LPHDSSOLFDWLRQVOLNH
x %DQGZLGWKLVVKDUHGDQGQRWGHGLFDWHG
x 6KDULQJQHFHVVLWDWHGEXVDUELWUDWLRQZLWKQRFRQFHSWRISULRULW\
x 6KDULQJUHVXOWVLQFROOLVLRQVZKHQRUPRUHGHYLFHVWUDQVPLWVLPXOWDQHRXVO\
x 0RUHGHYLFHVRQRQHVHJPHQWLQFUHDVHVWKHSUREDELOLW\RIFROOLVLRQV
x /DUJHEURDGFDVWGRPDLQVHDWXSXVDEOHEDQGZLGWK
x 7KHUHLVQRZD\WRGLIIHUHQWLDWHEHWZHHQ+LJKSULRULW\DQG/RZSULRULW\RIWUDIILF
x 7KHUHLVQRZD\WRSURYLGHDORZGHOD\SDWKIRUUHDOWLPHWUDIILF
$OOWKHDERYHFRQFHUQVZHUHMXVWLILHGLQWKHHDUOLHUGD\VDVDWWKDWWLPH(WKHUQHWZDVSXUHO\DVKDUHGEXV
WRSRORJ\ XVLQJ EXV DUELWUDWLRQ WR PDQDJH WKH WUDQVPLVVLRQ DPRQJ GHYLFHV 7KLV VXLWHG WKH 2IILFH
$XWRPDWLRQHQYLURQPHQWGXHWRKLJKSHUIRUPDQFHDQGORZFRVWEXWZDVGHILQLWHO\QRWVXLWHGIRUWKHUHDO
WLPHDSSOLFDWLRQV
:LWK WKH GHYHORSPHQW RI VZLWFKHG (WKHUQHW GHYLFHV LW ZDV SRVVLEOH WR GHVLJQ D QHWZRUN WKDW VZLWFKHG
IUDPHV IURP RQH (WKHUQHW VHJPHQW WR DQRWKHU ZLWKRXW DIIHFWLQJ GHYLFHV VHQGLQJ RU UHFHLYLQJ IUDPHV RQ
RWKHUVZLWFKHGSRUWV%\XVLQJKLJKVSHHGSRUWVZLWFKHVWKHEDQGZLGWKFDQEHLQFUHDVHGDQGWKHQHHGIRU
EXVDUELWUDWLRQFDQEHRYHUFRPH
(WKHUQHW LV QRZ DYDLODEOH DW 0ESV RU PRUH LQ IXOO GXSOH[ PRGH $XWR VHQVLQJ  (WKHUQHW KDV
EHFRPH WRGD\¶V VWDQGDUG LQWHUIDFH IRU XVHUV 7KLV KDV HOLPLQDWHG WKH ERWWOHQHFNV FDXVHG E\ WKH ORZHU
VSHHGRIWKHQHWZRUN
(WKHUQHW LV D VFDODEOH WHFKQRORJ\ 7KH QHWZRUNV FDQ EH VHJPHQWHG WR DFKLHYH JUHDWHU EDQGZLGWKV ,W LV
SRVVLEOH WR FRQQHFW D VLQJOH GHYLFH SHU SRUW :LWK WKLVLWLV SRVVLEOH WR VZLWFK RII WKH EXV DUELWUDWLRQ DQG
RSHUDWHLQIXOOGXSOH[PRGH:LWKEXVDUELWUDWLRQGLVDEOHGDGHYLFHFDQWUDQVPLWDQGUHFHLYHDWZLUHVSHHG
DQGDWDQ\LQVWDQWRIWLPH7KLVHOLPLQDWHVWKHFROOLVLRQVDQGLPSURYHVWKHQHWZRUNSHUIRUPDQFH$OVRWKH
%DQGZLGWKLVVFDODEOH LH0RUHXVHUV PRUHEDQGZLGWKV 
(WKHUQHW)UDPHDQG(WKHUQHW$GGUHVVHV
7KHKHDUWRIWKH(WKHUQHWV\VWHPLVWKH(WKHUQHWIUDPHZKLFKLVXVHGWRGHOLYHUGDWDEHWZHHQFRPSXWHUV
7KHIUDPHFRQVLVWVRIDVHWRIELWVRUJDQL]HGLQWRVHYHUDOILHOGV
7KHILUVWWZRILHOGVLQWKHIUDPHFDUU\ELWDGGUHVVHVFDOOHGWKHGHVWLQDWLRQDQGVRXUFHDGGUHVVHV7KH
,(((FRQWUROVWKHDVVLJQPHQWRIWKHVHDGGUHVVHVE\DGPLQLVWHULQJDSRUWLRQRIWKHDGGUHVVILHOG7KH,(((
GRHVWKLVE\SURYLGLQJELW LGHQWLILHUVFDOOHG2UJDQL]DWLRQDOO\8QLTXH,GHQWLILHUV 28,V VLQFHDXQLTXH
ELWLGHQWLILHULVDVVLJQHGWRHDFKRUJDQL]DWLRQWKDWZLVKHVWREXLOG(WKHUQHWLQWHUIDFHV7KHRUJDQL]DWLRQ
LQ WXUQ FUHDWHV ELW DGGUHVVHV XVLQJ WKH DVVLJQHG 28, DV WKH ILUVW  ELWV RI WKH DGGUHVV 7KLV ELW
DGGUHVVLVDOVRNQRZQDVWKHSK\VLFDODGGUHVVKDUGZDUHDGGUHVVRU0$&DGGUHVV
$VHDFK(WKHUQHWIUDPHLVVHQWRQWRWKHVKDUHGVLJQDOFKDQQHODOO(WKHUQHWLQWHUIDFHVORRNDWWKHILUVW
ELW ILHOG RI WKH IUDPH ZKLFK FRQWDLQV WKH GHVWLQDWLRQ DGGUHVV 7KH LQWHUIDFHV FRPSDUH WKH GHVWLQDWLRQ
DGGUHVV RI WKH IUDPH ZLWK WKHLU RZQ DGGUHVV 7KH (WKHUQHW LQWHUIDFH ZLWK WKH VDPH DGGUHVV DV WKH
GHVWLQDWLRQ DGGUHVV LQ WKH IUDPH ZLOO UHDG LQ WKH HQWLUH IUDPH DQG GHOLYHU LW WR WKH QHWZRUNLQJ VRIWZDUH
UXQQLQJRQWKDWFRPSXWHU$OORWKHUQHWZRUNLQWHUIDFHVZLOOVWRSUHDGLQJWKHIUDPHZKHQWKH\GLVFRYHUWKDW
WKHGHVWLQDWLRQDGGUHVVGRHVQRWPDWFKWKHLURZQDGGUHVV
(DFK GHYLFH RQ WKH QHWZRUN FRPSHWHV IRU DFFHVV WR WKH EXV WKURXJK DQ DUELWUDWLRQ PHWKRG NQRZQ DV
&60$&' 2QFH D GHYLFH JHWV WKH DFFHVV GDWD LV WUDQVPLWWHG LQ SDFNHWV ZKLFK LQFOXGH WKH GHVWLQDWLRQ
DGGUHVVWKHVRXUFHDGGUHVVWKHGDWDEHLQJVHQWDQGDQHUURUFKHFN7KHFRQWUROOHUIRUPVWKHVHSDFNHWV
IURPWKHVWUHDPRIGDWDEHLQJRXWSXWE\DGHYLFHZLWKWKHGDWDUDWHRIWR0ESV$OOWUDQVPLVVLRQV
DUH VHHQ E\ DOO GHYLFHV RQ D QHWZRUN VHJPHQW EXW RQO\ WKH RQH WR ZKLFKWKH PHVVDJH LV DGGUHVVHG ZLOO
UHVSRQGWRLW

&60$&'SURWRFRO
7KH&60$&'SURWRFROIXQFWLRQVVRPHZKDWOLNHDGLQQHUSDUW\LQDGDUNURRP
x 7RWUDQVODWHWKLVLQWR(WKHUQHWWHUPVHDFKLQWHUIDFHPXVWZDLWXQWLOWKHUHLVQRVLJQDORQWKHFKDQQHO
WKHQ LW FDQ EHJLQ WUDQVPLWWLQJ ,I VRPH RWKHU LQWHUIDFH LV WUDQVPLWWLQJ WKHUH ZLOO EH D VLJQDO RQ WKH
FKDQQHO ZKLFK LV FDOOHG FDUULHU $OO RWKHU LQWHUIDFHV PXVW ZDLW XQWLO FDUULHU FHDVHV EHIRUH WU\LQJ WR
WUDQVPLWDQGWKLVSURFHVVLVFDOOHG&DUULHU6HQVH
x $OO(WKHUQHWLQWHUIDFHVDUHHTXDOLQWKHLUDELOLW\WRVHQGIUDPHVRQWRWKHQHWZRUN1RRQHJHWVDKLJKHU
SULRULW\ WKDQ DQ\RQH HOVH DQG GHPRFUDF\ UHLJQV 7KLV LV ZKDW LV PHDQW E\ 0XOWLSOH $FFHVV 6LQFH
VLJQDOVWDNHDILQLWHWLPHWRWUDYHOIURPRQHHQGRIDQ(WKHUQHWV\VWHPWRWKHRWKHUWKHILUVWELWVRID
WUDQVPLWWHGIUDPHGRQRWUHDFKDOOSDUWVRIWKHQHWZRUN VLPXOWDQHRXVO\7KHUHIRUHLW
VSRVVLEOHIRUWZR
LQWHUIDFHVWRVHQVHWKDWWKHQHWZRUNLVLGOHDQGWRVWDUWWUDQVPLWWLQJWKHLUIUDPHVVLPXOWDQHRXVO\:KHQ
WKLV KDSSHQV WKH (WKHUQHW V\VWHP KDV D ZD\ WR VHQVH WKH FROOLVLRQ RI VLJQDOV DQG WR VWRS WKH
WUDQVPLVVLRQDQGUHVHQGWKHIUDPHV7KLVLVFDOOHG&ROOLVLRQ'HWHFW
x 7KH&60$&'SURWRFROLVGHVLJQHGWRSURYLGHIDLUDFFHVVWRWKHVKDUHGFKDQQHOVRWKDWDOOVWDWLRQVJHW
DFKDQFHWRXVHWKHQHWZRUN$IWHUHYHU\SDFNHWWUDQVPLVVLRQDOOVWDWLRQVXVHWKH&60$&'SURWRFROWR
GHWHUPLQHZKLFKVWDWLRQJHWVWRXVHWKH(WKHUQHWFKDQQHOQH[W
x 7KH&DUULHU6HQVHSDUWRIWKHSURWRFRO&60$&'PHDQVWKDWEHIRUHWUDQVPLWWLQJGDWDDVWDWLRQOLVWHQV
WR VHH LI DQ\ RWKHU VWDWLRQ LV DOUHDG\ VHQGLQJ VRPHWKLQJ ,Q VSLWH RI DOO WKLV WKHUH H[LVWV D IHZ
QDQRVHFRQGVRIWLPHZKHUHLWLVSRVVLEOHWKDWWZRVWDWLRQVFRXOGVHHWKHQHWZRUNLVDYDLODEOHDQGVHQG
WKHGDWDH[DFWO\DWWKHVDPHWLPH
x 7KLV LV ZKHUH &ROOLVLRQ GHWHFWLRQ FRPHV LQ :KHQ VXFK FROOLVLRQV RFFXU ERWK WKH VWDWLRQV VWRSV
WUDQVPLWWLQJ³EDFNRII´DQGWU\DJDLQDIWHUDUDQGRPO\FKRVHQGHOD\SHULRG

6SHHGDQG'LVWDQFH
6KDUHG(WKHUQHWRI+DOI'XSOH[(WKHUQHWLVWKHRULJLQDOWHFKQRORJ\ZKHUHPHGLXPDFFHVVLVGHWHUPLQHGE\
WKHIDPRXV&60$&'DOJRULWKP
x :LWKDKDOIGXSOH[PHGLXPWUDQVPLWWLQJDQGUHFHLYLQJLVSRVVLEOHEXWQRWDWWKHVDPHWLPHRWKHUZLVH
D GDWD FROOLVLRQ ZLOO RFFXU %HIRUH D VWDWLRQ LQLWLDWHV D WUDQVPLVVLRQ LW ILUVW ZDLWV IRU D FOHDU FKDQQHO
'XULQJ WKH WUDQVPLVVLRQ WKH RULJLQDWLQJ VWDWLRQ OLVWHQV IRU D WLPH WR HQVXUH WKDW WKH WUDQVPLVVLRQ LV
IDLWKIXOO\ UHSURGXFHG DQG WKDW QR RWKHU VWDWLRQ DWWHPSWV D VLPXOWDQHRXV WUDQVPLVVLRQ ,I RQH RFFXUV
WKLVLVFDOOHGFROOLVLRQDQGWKHRULJLQDWLQJVWDWLRQZLOOUHLQIRUFHWKHFROOLVLRQE\DSSO\LQJ-$0VLJQDO$OO
VWDWLRQV ZLOO VHH WKH FROOLVLRQ DQG ZLOO GLVFDUG WKH IUDPH 7KH FRPSHWLQJ VWDWLRQV ZLOO EDFN RII IRU D
UDQGRP DPRXQW RI WLPH EDVHG RQ WKH DOJRULWKP  DQG ZLOO UHQHZ WKHLU DWWHPSW ,Q RUGHU IRU WKLV
PHFKDQLVPWRIXQFWLRQDOOVWDWLRQVDQGKXEVPXVWUHVLGHLQFROOLVLRQGRPDLQ
x ,QRUGHUIRUWKHFROOLVLRQGHWHFWLRQPHFKDQLVPWRIXQFWLRQWKHURXQGWULSSURSDJDWLRQWLPHEHWZHHQWKH
WZRIDUWKHVWGHYLFHVPXVWEHVKRUWHUWKDQWKH(WKHUQHWVORWWLPHSOXVSUHDPEOH
x 7KH,(((GLVFXVVHVWKHXVHRIUHSHDWHUVWRH[WHQGQHWZRUNOHQJWKDQGWKHUXOHZHFDQXVHLV
UXOHDQGDSSOLHVRQO\WR0ESVUHSHDWHURSHUDWLRQ7KHUXOHVWDWHVWKDWDQHWZRUNFDQKDYHXSWR
ILYHVHJPHQWVIRXUUHSHDWHUVDQGQRPRUHWKDQWKUHHPL[LQJVHJPHQWV$PL[LQJVHJPHQWLVDFRD[LDO
EXV VHJPHQW 7KLV UXOH LV FRQVHUYDWLYH DQG QRW DSSOLFDEOH WR ILEHU RSWLF $OWKRXJK WKH ILEHU RSWLF
VHJPHQWFDQEHXSWR .PZHDUHQRWDOORZHGWRFDVFDGHILYH VHJPHQWV7KH ,(((VWDQGDUG
VD\VWKDWLI\RXOLPLWWKHQXPEHURIUHSHDWHUVWRWKUHHDQGUHWDLQWZLVWHGSDLUVHJPHQWVDWHDFKHQGRI
WKHQHWZRUNWKHWZRUHPDLQLQJVHJPHQWVFDQEHILEHURSWLFDVORQJDVHDFKVHJPHQWGRHVQRWH[FHHG
 .P )URP WKLV ZH FDQ DVVXPH WKDW LI ZH HOLPLQDWH RQH UHSHDWHU DQG RQH ILEHU RSWLF VHJPHQW WKH
UHPDLQLQJILEHURSWLFVHJPHQWFDQEHLQFUHDVHGWRLWV.POLPLW

+DOI'XSOH[RU)XOO'XSOH[
)XOOGXSOH[OLQNVDUHWKHNH\WRH[WHQGLQJWKHPD[LPXPQHWZRUNGLDPHWHURIIDVW 0ESV (WKHUQHW)XOO
GXSOH[UHTXLUHVVHSDUDWHUHFHLYHDQGWUDQVPLWSDWKV7KHVHGHYLFHVFDQEH(WKHUQHWDGDSWHUVRUVZLWFKLQJ
KXESRUWV$UHSHDWLQJKXELVDSDUWRIWKHFROOLVLRQGRPDLQDQGUHLQIRUFHVFROOLVLRQVUHFHLYHGRQDQ\RILWV
RWKHU SRUWV (WKHUQHW DGDSWHUV FRQILJXUHG IRU IXOO GXSOH[ H[SDQVLRQ EH\RQG WZR DGDSWHUV UHTXLUHV D
VZLWFKLQJKXEFDSDEOHRIVXSSRUWLQJIXOOGXSOH[RSHUDWLRQ
x +DOIGXSOH[PHDQVWUDQVPLWWLQJDQGUHFHLYLQJRYHUWKHVDPHPHGLXPEXWQRWDWWKHVDPHWLPH
x )XOOGXSOH[DOORZVIRUVLPXOWDQHRXVVHQGLQJDQGUHFHLYLQJ
x ,WLVLPSRUWDQWWRFRQILJXUHIXOOGXSOH[FRUUHFWO\ ,IWKLVLVFRQILJXUHGIRUKDOIGXSOH[LWZLOOLQFRUUHFWO\
GHWHFWFROOLVLRQVDQGWDNHDFWLRQVWKDWFRXOGFDXVHODWHFROOLVLRQV ZKLFKDUHQRWDXWRPDWLFDOO\UHVHQW 
DQG &5& HUURUV 7KLV UHVXOW LV D VORZGRZQ RI WKH QHWZRUN QHJDWLQJ WKH EHQHILWV RI PLJUDWLQJ WR IDVW
(WKHUQHW
x $V PHQWLRQHG DERYH  DW  0ESV WKH PD[LPXP QHWZRUN GLDPHWHU LV VKRUW EHFDXVH RI OLPLWHG
FROOLVLRQVGRPDLQDWWKLVVSHHG7KLVLVQRWDSUREOHPZLWKWZLVWHGSDLUOLQNVHJPHQWVDQGVZLWFKSRUWV
EHFDXVHWKHPD[LPXPWZLVWHGSDLUVHJPHQWOHQJWKLVPZKLFK LVZLWKLQWKHFROOLVLRQGRPDLQOLPLW
7KHSUREOHPLVZLWKILEHURSWLFSRUWVZKLFKDOORZVHJPHQWOHQJWKVRI.PIRUPXOWLPRGHRSHUDWLRQ
DQG.PRUJUHDWHUIRUVLQJOHPRGHRSHUDWLRQ8QGHUWKHUXOHVIRUKDOIGXSOH[&60$&'(WKHUQHWRXU
SRLQWWRSRLQWILEHURSWLFVHJPHQWLVOLPLWHGE\WKHFROOLVLRQGRPDLQWRP+RZHYHUZLWKIXOOGXSOH[
RSHUDWLRQZKLFKGRQRWIROORZ&60$&'DOJRULWKPILEHURSWLFVHJPHQWVFDQEHH[WHQGHGWRWKHLUOLPLW
x :LWKIDVW(WKHUQHWXVHRIVZLWFKWHFKQRORJ\LVUHFRPPHQGHGDQG ZKHQXVLQJ)DVW(WKHUQHWRYHUILEHU
RSWLFFDEOLQJIXOOGXSOH[RSHUDWLRQLVUHFRPPHQGHG

&ROOLVLRQV
,I PRUH WKDQ RQH VWDWLRQ KDSSHQV WR WUDQVPLW RQ WKH (WKHUQHW FKDQQHO DW WKH VDPH PRPHQW WKHQ WKH
VLJQDOV DUH VDLG WR FROOLGH 7KH VWDWLRQV DUH QRWLILHG RI WKLV HYHQW DQG LQVWDQWO\ UHVFKHGXOH WKHLU
WUDQVPLVVLRQXVLQJDVSHFLDOO\GHVLJQHGEDFNRIIDOJRULWKP$VSDUWRIWKLVDOJRULWKPWKHVWDWLRQVLQYROYHG
HDFKFKRRVHDUDQGRPWLPHLQWHUYDOWRVFKHGXOHWKHUHWUDQVPLVVLRQRIWKHIUDPHZKLFKNHHSVWKHVWDWLRQV
IURPPDNLQJWUDQVPLVVLRQDWWHPSWVLQORFNVWHS
x 7KHWUXWKRIWKHPDWWHULVWKDWFROOLVLRQVDUHDEVROXWHO\QRUPDODQGH[SHFWHGHYHQWVRQDQ(WKHUQHWDQG
VLPSO\LQGLFDWHWKDWWKH&60$&'SURWRFROLVIXQFWLRQLQJDVGHVLJQHG$VPRUHFRPSXWHUVDUHDGGHGWR D
JLYHQ (WKHUQHW DQG DV WKH WUDIILF OHYHO LQFUHDVHV PRUH FROOLVLRQV ZLOO RFFXU DV SDUW RI WKH QRUPDO
RSHUDWLRQRIDQ(WKHUQHW$QRUPDOFROOLVLRQGRHVQRWUHVXOWLQORVWGDWD
x 2QDQHWZRUNZLWKKHDY\WUDIILFORDGVLWPD\KDSSHQWKDWWKHUHDUHPXOWLSOHFROOLVLRQVIRUDJLYHQIUDPH
WUDQVPLVVLRQDWWHPSW7KLVLVDOVRQRUPDOEHKDYLRU,IUHSHDWHGFROOLVLRQVRFFXUIRUDJLYHQWUDQVPLVVLRQ
DWWHPSW WKHQ WKH VWDWLRQV LQYROYHG EHJLQ H[SDQGLQJ WKH VHW RI SRWHQWLDO EDFNRII WLPHV IURP ZKLFKWKH\
FKRVHWKHLUUDQGRP UHWUDQVPLVVLRQWLPH
x 5HSHDWHG FROOLVLRQV IRU D JLYHQ SDFNHW WUDQVPLVVLRQ DWWHPSW LQGLFDWH D EXV\ QHWZRUN 2QO\ DIWHU 
FRQVHFXWLYH FROOLVLRQV IRU D JLYHQ WUDQVPLVVLRQ DWWHPSW ZLOO WKH LQWHUIDFH ILQDOO\ GLVFDUG WKH (WKHUQHW
SDFNHW7KLVFDQKDSSHQRQO\LIWKH(WKHUQHWFKDQQHOLVRYHUORDGHGIRUDIDLUO\ORQJSHULRGRIWLPHRULV
EURNHQLQVRPHZD\
x ,QDV\VWHPZKHUHWKHGHYLFHVDUHFRQQHFWHGLQGLYLGXDOO\WKURXJKDSDFNHWVZLWFKVXFKDVVZLWFKLQJKXE
EULGJHRUDURXWHUWKH\DUHLQVHSDUDWHFROOLVLRQGRPDLQV3DFNHWVZLWFKHVGRQRWIRUZDUGFROOLVLRQVLJQDOV
IURP RQH VHJPHQW WR RWKHU ,QVWHDG RI SURSDJDWLQJ WKH FROOLVLRQ VLJQDOV EHWZHHQ (WKHUQHW VHJPHQWV
SDFNHWVZLWFKHVLQWHUUXSWWKHFROOLVLRQGRPDLQDQGDOORZWKH(WKHUQHWWKH\OLQNWRRSHUDWHLQGHSHQGHQWO\

7UDQVSRUW/D\HU3URWRFROV
5HIHUWRWKH26,5HIHUHQFHPRGHOOD\HUV(WKHUQHWLVWHUPHGDGDWDOLQNDQGSK\VLFDOOD\HUWHFKQRORJ\DQG
WKHUHIRUH RFFXSLHV OD\HUV WZR DQG RQH RI WKH 26, UHIHUHQFH PRGHO 7KLV WHFKQRORJ\ QHYHU LQWHQGHG WR
JXDUDQWHHHQGWRHQGPHVVDJHGHOLYHU\7KLVUHVSRQVLELOLW\LVJLYHQWRWUDQVSRUWOD\HU /D\HUIRXU RIWKH
26, PRGHO ,W LV LPSRUWDQW WKDW DOO (WKHUQHW QRGHV RQ WKH QHWZRUN XWLOL]H FRPSDWLEOH SURWRFROV 6LQFH
7&3,3 SRZHUV WKH ,QWHUQHW WKLV LV WKH SURWRFRO WKDW LV UHFRPPHQGHG IRU ,QGXVWULDO (WKHUQHW $FWXDOO\
7&3,3 LV D VHW RI SURWRFROV GHILQHG E\ D VHULHV RI 5)&¶V 5HTXHVW IRU FRPPHQWV  7&3,3 ZLOO ZRUN ZLWK
RWKHUGDWDOLQNWHFKQRORJLHVEHVLGHV(WKHUQHWVRLWUHVLGHVDERYHWKHGDWDOLQNSK\VLFDOOD\HU
x $W WKH WUDQVSRUW OD\HU WKHUH DUH WZR LPSRUWDQW SURWRFROV 7UDQVPLVVLRQ &RQWURO 3URWRFRO 7&3 
DFNQRZOHGJHVUHFHLSWRIPHVVDJHVZKLOHWKHXVHU'DWDJUDP3URWRFRO 8'3 GRHVERWK$WWKHYHU\WRS
RI WKH SURWRFRO VWDFN WKHUH DUH VHYHUDO XVHIXO DSSOLFDWLRQ OD\HU SURWRFROV WKDW ILQG XVH LQ ,QGXVWULDO
(WKHUQHW
x 7KH,QWHUQHW3URWRFRO ,3 KDQGOHVWKHURXWLQJRISDFNHWVEHWZHHQVWDWLRQVWKDWPD\UHVLGHRQGLIIHUHQW
QHWZRUNV
5RXQG7ULS7LPLQJ
,Q RUGHU IRU WKH PHGLD DFFHVV FRQWURO V\VWHP WR ZRUN SURSHUO\ DOO (WKHUQHW LQWHUIDFHV PXVW EH
FDSDEOHRIUHVSRQGLQJWRRQHDQRWKHU
VVLJQDOVZLWKLQDVSHFLILHGDPRXQWRIWLPH
7KHVLJQDOWLPLQJLVEDVHGRQWKHDPRXQWRIWLPHLWWDNHVIRUDVLJQDOWRJHWIURPRQHHQGRIWKHFRPSOHWH
PHGLDV\VWHPDQGEDFNZKLFKLVNQRZQDVWKHURXQGWULSWLPH7KHPD[LPXPURXQGWULSWLPHRIVLJQDOV
RQ WKH VKDUHG (WKHUQHW FKDQQHO LV VWULFWO\ OLPLWHG WR HQVXUH WKDW HYHU\ LQWHUIDFH FDQ KHDU DOO QHWZRUN
VLJQDOVZLWKLQWKHVSHFLILHGDPRXQWRIWLPHSURYLGHGLQWKH(WKHUQHWPHGLXPDFFHVVFRQWUROV\VWHP
7KHORQJHUDJLYHQQHWZRUNVHJPHQWLVWKHPRUHWLPHLWWDNHVIRUDVLJQDOWRWUDYHORYHULW7KHLQWHQWRI
WKH FRQILJXUDWLRQ JXLGHOLQHV LV WR PDNH VXUH WKDW WKH URXQG WULS WLPLQJ OLPLWV DUH PHW QR PDWWHU ZKDW
FRPELQDWLRQRIPHGLDVHJPHQWVDUHXVHGLQWKHV\VWHP

([WHQGLQJ(WKHUQHWVZLWK+XEV
(WKHUQHW ZDV GHVLJQHG WR EH HDVLO\ H[SDQGDEOH WR PHHW WKH QHWZRUNLQJ QHHGV RI D JLYHQ VLWH 7R
KHOSH[WHQG(WKHUQHWV\VWHPVQHWZRUNLQJYHQGRUVVHOOGHYLFHVWKDW SURYLGHPXOWLSOH(WKHUQHWSRUWV7KHVH
GHYLFHVDUHNQRZQDVKXEVVLQFHWKH\SURYLGHWKHFHQWUDOSRUWLRQRUKXERIDPHGLDV\VWHP
x 7KHUH DUH WZR PDMRU NLQGV RI KXE UHSHDWHU KXEV DQG VZLWFKLQJ KXEV $V ZH
YH VHHQ HDFK SRUW RI D
UHSHDWHU KXE OLQNV LQGLYLGXDO (WKHUQHW PHGLD VHJPHQWV WRJHWKHU WR FUHDWH D ODUJHU QHWZRUN WKDW
RSHUDWHVDVDVLQJOH(WKHUQHW/$17KHWRWDOVHWRIVHJPHQWVDQGUHSHDWHUVLQWKH(WKHUQHW/$1PXVW
PHHWWKHURXQGWULSWLPLQJVSHFLILFDWLRQV7KHVHFRQGNLQGRIKXESURYLGHVSDFNHWVZLWFKLQJW\SLFDOO\
EDVHGRQEULGJLQJSRUWV
x 7KH LPSRUWDQW WKLQJ WR NQRZ DW WKLV SRLQW LV WKDW HDFK SRUW RI D SDFNHW VZLWFKLQJ KXE SURYLGHV D
FRQQHFWLRQWRDQ(WKHUQHWPHGLDV\VWHPWKDWRSHUDWHVDVDVHSDUDWH(WKHUQHW/$18QOLNHDUHSHDWHU
KXEZKRVHLQGLYLGXDOSRUWVFRPELQHVHJPHQWVWRJHWKHUWRFUHDWHDVLQJOHODUJH/$1D VZLWFKLQJKXE
PDNHVLWSRVVLEOHWRGLYLGHDVHWRI(WKHUQHWPHGLDV\VWHPVLQWRPXOWLSOH/$1VWKDWDUHOLQNHGWRJHWKHU
E\ZD\RIWKHSDFNHWVZLWFKLQJHOHFWURQLFVLQWKHKXE7KHURXQGWULS WLPLQJUXOHVIRUHDFK/$1VWRSDW
WKHVZLWFKLQJKXESRUW7KLVDOORZV\RXWROLQNDODUJHQXPEHURILQGLYLGXDO(WKHUQHW/$1VWRJHWKHU
x $JLYHQ(WKHUQHW/$1FDQFRQVLVWRIPHUHO\DVLQJOHFDEOHVHJPHQWOLQNLQJVRPHQXPEHURIFRPSXWHUV
RU LW PD\ FRQVLVW RI D UHSHDWHU KXE OLQNLQJ VHYHUDO VXFK PHGLD VHJPHQWV WRJHWKHU :KROH (WKHUQHW
/$1V FDQ WKHPVHOYHV EH OLQNHG WRJHWKHU WR IRUP H[WHQGHG QHWZRUN V\VWHPV XVLQJ SDFNHW VZLWFKLQJ
KXEV:KLOHDQLQGLYLGXDO(WKHUQHW/$1PD\W\SLFDOO\VXSSRUWDQ\ZKHUHIURPDIHZXS WRVHYHUDOGR]HQ
FRPSXWHUVWKHWRWDOV\VWHPRI(WKHUQHW/$1VOLQNHGZLWKSDFNHWVZLWFKHVDWDJLYHQVLWHPD\VXSSRUW
PDQ\KXQGUHGVRUWKRXVDQGVRIPDFKLQHV

(WKHUQHW*DLQLQJ*URXQGLQ&RQWURO1HWZRUNV
)DFHG ZLWK D SOHWKRUD RI SURSULHWDU\ DQG ³VWDQGDUG´ FRQWURO QHWZRUNV VRPH XVHUV KDYH EHJXQ WR
H[SORUHWKHSRWHQWLDORIXVLQJ(WKHUQHWIRUSODQWIORRUFRQWURODSSOLFDWLRQV8VHUVDUHYHU\IDPLOLDUZLWKWKLV
ORZ FRVW KLJKO\ UHOLDEOH WHFKQRORJ\ $GGLQJ LPSHWXV WR WKLV PRYHPHQW DUH XVHU FRQFHUQV WKDW H[LVWLQJ
FRQWUROQHWZRUNVPD\QRWSURYLGHHQRXJKEDQGZLGWKIRUWKHLUFXUUHQWDQGIXWXUHUHTXLUHPHQWV8VHUVDUH
DOVRVNHSWLFDORI³VWDQGDUGV´EHLQJLQWHUSUHWHGDQGWKHODFNRIDQ\VLQJOH³VWDQGDUG´ULVLQJWRWKHIRUHIURQW
LQ WKH LQGXVWU\  :LWK LWV VSHHG UREXVW SHUIRUPDQFH ORZ FRVW RI GHSOR\PHQW DQG FRQVWDQWO\ XSGDWHG
WHFKQRORJ\(WKHUQHWLVDQDWXUDOILWLQWRWKHDXWRPDWLRQKLHUDUFK\DWWKHFRQWUROOHYHO(WKHUQHW¶VDELOLW\WR
HDVLO\ FRPPXQLFDWH ZLWK PXOWLSOH GHYLFHV DQG PDQDJH WKH WUDIILF WR WKH LQIRUPDWLRQ OHYHO RI WKH SODQW
PDNHLWDQLGHDOFDQGLGDWHIRUXVHDWWKHFRQWUROOHYHO:LGHO\DYDLODEOHORZFRVW(WKHUQHWVZLWFKLQJKXEV
DUH QRZ DYDLODEOH DOORZLQJ (WKHUQHW QHWZRUNV WR EH IXOO\ GHWHUPLQLVWLF 6HYHUDO FRQWURO VXSSOLHUV DUH DOVR
OHDGLQJ WKH FKDUJH WRZDUG PRUH RSHQ V\VWHPV E\ WDNLQJ DGYDQWDJH RI WKH ODWHVW WHFKQRORJLHV IURP
FRPPHUFLDO VXSSOLHUV  :LWK WKLV QHZ HPSKDVLV VHYHUDO RI WKHVH FRPSDQLHV KDYH GHYHORSHG QHZ FRQWURO
V\VWHPVWKDWWDNHIXOODGYDQWDJHRIWKHODWHVWFRPPHUFLDOWHFKQRORJLHVLQFOXGLQJWKHXVHRI(WKHUQHWDVD
FRQWURO QHWZRUN 7RS WLHU 3/& VXSSOLHUV DUH PL[HG LQ WKHLU DSSURDFK WR (WKHUQHW DGRSWLRQ  6RPH
PDQXIDFWXUHUV XVH (WKHUQHW WR QHWZRUN 3/&V ZKLOH RWKHUV DUH SDVVLYH RQ WKH LVVXH DQG IRFXV PRUH RQ
SURSULHWDU\FRQWUROQHWZRUNVDVWKHLUVROXWLRQZKLOHGRZQSOD\LQJ(WKHUQHWWRXVHUV

:LUHOHVVQHWZRUNLQJ
7KHUH DUH D ORW RI GLIIHUHQW ZD\V WR ZLUHOHVV QHWZRUN LQFOXGLQJ LQIUDUHG UDGLR IUHTXHQF\ FHOOXODU
DQGVDWHOOLWH$ORWRIDGYDQFHVDUHEHLQJPDGHLQWKHVHDUHDVIRU3HUVRQDO$UHD1HWZRUNV 3$1V /RFDO
$UHD1HWZRUNV /$1V DQG:LGH$UHD1HWZRUNV :$1V 
3URPLQHQW DPRQJ WKHP LV WKH %OXHWRRWK D UDGLR FRPPXQLFDWLRQ SURWRFRO JHWWLQJ VHW WR GRPLQDWH WKH
ZRUOG RI QHWZRUNLQJ 7KH %OXHWRRWK WHFKQRORJ\ ZDV LQLWLDOO\ GHYHORSHG DQG SURPRWHG E\ 6ZHGLVK
WHOHFRPPXQLFDWLRQJLDQW(ULFVRQLQWKHPLG¶V%OXHWRRWKLVDQLQGXVWU\GHYHORSHGVWDQGDUGLQWHQGHG
WR DOORZ D EURDG UDQJH RI HOHFWURQLF GHYLFHV WR FRPPXQLFDWH ZLUHOHVVO\ %OXHWRRWK LV D 5DGLR )UHTXHQF\
VSHFLILFDWLRQIRUVKRUWUDQJHSRLQWWRSRLQWDQGSRLQWWRPXOWLSRLQWYRLFHDQGGDWDWUDQVIHU,WFRQVLVWVRI
D VPDOO LQH[SHQVLYH FRPSXWHU FKLS WKDW FDUULHV D WZR ZD\  VSUHDGVSHFWUXP UDGLR WKDW FDQ EH LQVWDOOHG
LQWRYLUWXDOO\DQ\HOHFWURQLFGHYLFH&RQVLVWLQJRIDORZSRZHUWUDQVPLWWHU DQGUHFHLYHUWKDWRSHUDWHVLQWKH
JLJDKHUW]UDQJHRYHUDGLVWDQFHRIDSSPHWHUV,WFRPPXQLFDWHVDQGH[FKDQJHVLQIRUPDWLRQZLWK
DQ\ VLPLODUO\ HTXLSSHG GHYLFH XVLQJ SURWRFROV %\ HOLPLQDWLQJ FDEOHV DQG SURYLGLQJ FRPPRQ
FRPPXQLFDWLRQSURWRFRO%OXHWRRWKPDNHVSRVVLEOHWKHFUHDWLRQRIDQLQILQLWHVHULHVRIQHWZRUNV

+LVWRU\
+DUDOG%OXHWRRWKZDVNLQJRI'HQPDUNIURPFXQWLOKLVGHDWKFDQGFRPSOHWHGWKHXQLILFDWLRQRI
'HQPDUN EHJXQ E\ KLV IDWKHU ,WV KLV UROH DV D XQLILHU RI IUDFWLRXV VWDWHV WKDW OHG WR WKH DGRSWLRQ RI KLV
QDPHIRUWKHUDGLRWHFKQRORJ\

$UFKLWHFWXUH5HOLDELOLW\
%OXHWRRWK ZDV GHVLJQHG ZLWK UHOLDELOLW\ LQ PLQG ZLWK VHYHUDO FRQFHSWV EHKLQG LW )UHTXHQF\
+RSSLQJ &RGH 'LYLVLRQ 0XOWLSOH $FFHVV )+&'0$  7KH FKRVHQ UDGLR EDQG  *+] LV GLYLGHG LQWR 
0+] VORWV (DFK FRPPXQLFDWLQJ SDLU RI GHYLFHV KDV LWV RZQ IUHTXHQF\KRSSLQJ VFKHPH GHFLGHG ZKHQ
LQLWLDOO\ FRQQHFWHG DQG FKRVHQ LQ RUGHU WR DYRLG FRQIOLFWV DV PXFK DV SRVVLEOH 7KLV WHFKQLTXH PLQLPL]HV
SRVVLELOLWLHVIRULQWHUIHUHQFHZLWKLQ%OXHWRRWKV\VWHPDQGLQWHUIHUHQFHZLWKRWKHUUDGLREDVHGV\VWHPV
%OXHWRRWK LQFOXGHV ERWK IRUZDUG HUURU FRUUHFWLRQ )(&  DQG SDFNHW UHWUDQVPLVVLRQ 7KHUH DUH WZR
GLIIHUHQW )(& FRGHV XVHG  UDWH FRGH DQG  UDWH FRGH 7KH  UDWH FRGH LV DOZD\V XVHG IRU WKH
SDFNHWKHDGHU)RUDSSOLFDWLRQGDWDJHQHUDOO\WKHUDWHLVXVHG7KLVLVDVKRUWHQHGKDPPLQJFRGHDQG
DEOH WR DXWRPDWLFDOO\ FRUUHFW DOO RQH ELW HUURUV DQG GHWHFW WZR ELW HUURUV (DFK SDFNHW RI $54 FRQWDLQV D
&5&FKHFNVXPWRFKHFNIRUHUURUV(DFKWUDQVPLWWHGSDFNHWFRQWDLQVDQ$&.1$.ELWWRLQGLFDWHWKHVWDWXV
RISUHYLRXVO\UHFHLYHGSDFNHW5HWUDQVPLVVLRQLVGRQHLISDFNHWVDUHORVWRU1$.HG7KLVDOORZVIRUWKHVDIH
WUDQVPLVVLRQRIGDWD
%OXHWRRWK ZLOO DOORZ GDWD WUDQVPLVVLRQ RI XSWR DERXW  .ESV XVLQJ IUHTXHQF\ KRSSLQJ VSUHDG
VSHFWUXPWHFKQRORJ\DW*+],WVGHVLJQHGWRDOORZZLUHOHVVFRQQHFWLYLW\DPRQJLWVRZQGHYLFHVDQGDOO
VRUWVRIKDQGKHOGGHYLFHVFRPSXWHUHTXLSPHQWDQGWHOHSKRQHV
%OXHWRRWK GHYLFHV VHOIGHWHFW RQH DQRWKHU DV ORQJ DV SRZHU LV RQ DQG WKH\ IRUP OLPLWHG ³SLFRQHWV´ ±
VPDOOSHHUWRSHHUQHWZRUNVLQZKLFKDQ\GHYLFHPD\FRPPXQLFDWHZLWKHDFKRWKHU%OXHWRRWKWHFKQRORJ\
SURYLGHVDPHWHUSHUVRQDOEXEEOHWKDWVXSSRUWVVLPXOWDQHRXVWUDQVPLVVLRQRIERWKYRLFHDQGGDWDIRU
PXOWLSOH GHYLFHV 8SWR  GDWD GHYLFHV FDQ EH FRQQHFWHG LQ D SLFRQHW DQG XSWR  SLFRQHWV FDQ H[LVW
ZLWKLQWKLVPHWHUEXEEOH+HJURVVGDWDUDWHLV0ESVEXWWKHDFWXDOGDWDUDWHVDUH.ESVIRUIXOO
GXSOH[ WUDQVPLVVLRQ DQG  .ESV IRU DV\PPHWULF WUDQVPLVVLRQ DQG  .ESV IRU 706 
WUDQVPLVVLRQ$WLPHGLYLVLRQGXSOH[VFKHPHLVXVHGIRUIXOOGXSOH[WUDQVPLVVLRQ
7KH UDGLR EDQG FKRVHQ IRU WKH %OXHWRRWK LV WKH  *+] ,60 XQOLFHQVHG EDQG 6HYHUDO UDGLR RSHUDWHG
GHYLFHVDQGVWDQGDUG QHWZRUNVXVHWKLVEDQG7KHLPSRUWDQWLVWKHSUREDEO\WKH,(((EVWDQGDUG
7KH HPEHGGHG LQWHOOLJHQFH DORQJ ZLWK WKH EXLOWLQ ,QWHUQHW EDVHG XVHU LQWHUIDFH 8,  PD\ YLVXDOL]H WKH
GHYLFHVWDWXVIURPGLIIHUHQWSRLQWRIYLHZ&RPELQLQJ%OXHWRRWKDQGXVHULQWHUIDFHDXVHUPD\XVHDQ\
+0, +XPDQ 0DFKLQH ,QWHUIDFH  RU 3'$ RU /DSWRS WR DFFHVV WKH GHYLFH )RU ,QWHUQHW EDVHG DSSOLFDWLRQV
WKH RQO\ GHPDQG LV D VWDQGDUG +70/ RU :$3  EURZVHU DYDLODELOLW\ LQ WKH +0, GHYLFH DQG WKDW WKH
%OXHWRRWKLVVXSSRUWHGDVDPHGLDIRUWKH,3EDVHGFRPPXQLFDWLRQ
7KH PDLQ SUREOHP IDFHG E\ WRGD\¶V XVHUV LQ %OXHWRRWK WHFKQRORJ\ LV QRQDYDLODELOLW\ RI VLQJOH XQLYHUVDO
SURWRFRO +HQFH HDFK PDQXIDFWXUHU KDV KLV RZQ VHW RI IUHTXHQFLHV ZKLFK LQ WXUQ UHVXOWV LQ FRQIOLFWV
EHWZHHQWZR GHYLFHVIURPGLIIHUHQWPDQXIDFWXUHUV

:LUHOHVV/$1
$ZLUHOHVV/RFDO$UHD1HWZRUN :/$1 LVDIOH[LEOHGDWDFRPPXQLFDWLRQV\VWHPLPSOHPHQWHGDVDQ
H[WHQVLRQ WR WKH ZLUHG /$1 8VLQJ 5DGLR )UHTXHQF\ WHFKQRORJ\ ZLUHOHVV /$1¶V WUDQVPLWUHFHLYH GDWD
:LUHOHVV/$1VWDQGDUGLVQRWVXIILFLHQWO\ULJLGWRJXDUDQWHHLQWHURSHUDELOLW\7KH,(((IVWDQGDUGLV
VXSSRVHGWRVROYHWKLVSUREOHPE\GHILQLQJDVHWRILQWHURSHUDELOLW\VWDQGDUGVEXWRQO\IRUGLUHFWVHTXHQFH
VSUHDG VSHFWUXP 7KH GHVLJQDWHG SXUSRVH IRU D :/$1 LV WR FRQQHFW PRELOH FRPSXWHUV DQG KDQGKHOG
GHYLFHVGLUHFWO\LQWRWKHFRUSRUDWH/$1ZKLFKLQWXUQZLOOSURYLGHUHDOWLPHGDWDLQWHUFKDQJH

&RQFOXVLRQ
)RU 3URGXFWLYLW\ ,PSURYHPHQWV  9DU\ <RXU 'LHW  7KH PDQFDQQRWOLYHRQEUHDGDORQH D[LRP LV
GLUHFWO\ SDUDOOHO WR PDQXIDFWXULQJ DQG QHWZRUNV 0RVW PDQXIDFWXULQJ IDFLOLWLHV FDQQRW OLYH RQ RQH
QHWZRUN7KHUHDVRQLVVLPSOHGLIIHUHQWQHWZRUNVDUHGHVLJQHGWRVXSSRUWWKHQHHGVRIGLVWLQFWO\GLIIHUHQW
DSSOLFDWLRQV
*LYHQWKDWDYDULHW\RI EXVHVDUHDOPRVWDQHFHVVLW\WKH RQHSUREOHPWKDWFXUUHQWO\H[LVWVLVWKH
ODFN RI LQWHJUDWLRQ EHWZHHQ HDFK HYHQ WKRXJK VHYHUDO RUJDQL]DWLRQV DUH ZRUNLQJ IRU XQLI\LQJ DQG
VWDQGDUGL]LQJLW
7RLQFUHDVHSURGXFWLYLW\DQGGHFUHDVHFRVWKRZHYHUPDQXIDFWXUHUVPXVWEH DEOHWRVHHDQDO\]H
DQGDGMXVWZKDWLVKDSSHQLQJRQWKHSODQWIORRUDVDZKROH6RPHFRQWUROVXSSOLHUVKDYHUHFRJQL]HGWKLV
QHHGDQGDUHRIIHULQJSURGXFWVWRVHDPOHVVO\FRXSOHQHWZRUNVWKURXJKRXWWKHHQWLUHIDFLOLW\
7KH%RWWRP/LQHLVWKHXOWLPDWHEHQHILWRILQWHJUDWLQJSURFHVVDQGGLVFUHWHDSSOLFDWLRQVLVWKDWHQG
XVHUV FDQ WDNH IXOO DGYDQWDJH RI D QHWZRUN¶V EHQHILWV DQG VWUHQJWKV ZLWK ORZHU FRVW 6LQFH GDWD FDQ EH
VKDUHG DFURVV WKH SODQW IORRU HQJLQHHUV FDQ HDVLO\ JDWKHU DQG FRPSDUH LQIRUPDWLRQ IRU RQJRLQJ
SURGXFWLYLW\LPSURYHPHQWVZKLOHWKHPDQDJHPHQWFDQDQDO\]HWKHSHUIRUPDQFHDQGSURGXFWLYLW\
(DFK QHWZRUN IXQFWLRQV LQ LWV RSWLPDO HQYLURQPHQW DQG PDQXIDFWXUHUV IHDVW RQ WKH UHVXOWLQJ
FRQWLQXRXV ERRVW LQ HIILFLHQF\ DQG UHOLDELOLW\ 7KLV VRRQ KDV WR EH UHVROYHG DQG XQLIRUP VWDQGDUGV WR EH
GHYHORSHGZKLFKZLOOEHQHILWERWKWKHPDQXIDFWXUHUVDQGWKHXVHUV

3OHDVH6HQG\RXUIHHGEDFNVWR0U935DPDQDWUDPDQYS#ZDDUHHFRP