1. Finance – Energy Sectors
Cross-Functionality Platform
EUSN - November 16, 2016

2. Finance & Energy/Utilities
Cross-Functionality Platform
Blockchain – The Next Line of Defense for
Cyber Security?
Appendices & Additional Information
Table of Contents
2

3. Finance &
Energy/Utilities
• Synergy
• Security Ecosystem
3

4. Synergy
4
Securities Trading
(Desks)
Strong Regulatory &
Compliance
Data Security &
Residency
Data Reporting &
Analytics
Marketplaces &
Exchanges
Industry Standards
& Protocols
Shift to ITO & Cloud
services
Complex Event
Processing (CIP)
• The Financial Services and Energy &
Utility sectors have significant synergies
• Trading of financial products such as
derivatives contracts (e.g. OPG, NGX)
• Both industry’s are highly regulated with
focus on the end investor / consumer
(e.g. Basel Accord, OSFI-CSA-IIROC-
MFDA / U.S. Regulations and NAESB,
NERC, NEB, OEB)
• Networks & industry Standards (e.g.
FIX / SWIFT and Green Button)
• Data security/residency that protects
consumer information and profiles
• Access, aggregation and analytics
using large amounts of market data and
distribution via low latency software and
hardware accelerated technologies

5. FINANCE
• GOVERNANCE: ISO, INDUSTRY DIRECTED
• CONNECTIVITY: Public Internet / VPN and
dedicated access with Encryption
• DATA: Use of industry standards (i.e. FIX,
SWIFT) with mandatory & optional fields
• CERTIFICATION: Connectivity and Data Level
• The more connected the more vulnerable
• New IT sourcing models are being
implemented and there is a growing
acceptance for cloud computing
UTILITIES
• GOVERNANCE: NAESB, ISO, INDUSTRY
• CONNECTIVITY: Public Internet access and
may include Encryption
• DATA: Use of many industry standards
• CERTIFICATION: TBD
• The more connected the more vulnerable
• New IT 3rd Party Apps
• Large scale public cloud computing and
connectivity to customers and 3rd Party
vendors
5
SECURITY ECOSYSTEM

6. Cross-Functionality
Platform
• Securities Industry Data
Exchange (SIDE)
• SIDE for Energy/Utilities
6

7. SIDE
SIDE -Securities Industry Data Exchange - (First North Platform) was officially
launched in August 2015. SIDE leverages a state of the art “Integration as service”
platform residing on an winning cloud infrastructure (NTT / Dimension Data)
7
Business Outcomes
Providing an operational “on demand”
service platform available for use in 26
countries that is highly secure and scalable,
including:
∙ Data Transaction Services: Supporting
institutional post-trade across asset classes
using many to many data formats in real-time
∙ Reporting Services: Supporting both static
reporting and real-time data analytics including
for customer metrics (i.e. client profitability)
∙ Secure Infrastructure: Hybrid cloud model
provided by Dimension Data with dedicated
network access and data encryption. SIDE uses
audited SSAE 16, ISO 27001, ISO 27018 and CSA
STAR certification to attest the ability to manage
threats
SIDE Integrate - Connector Framework

8. SIDE for Energy/Utilities
8
• Easy transition to the Green Button standard (XML based) as SIDE simply adds another
“Connector” using the platform’s Connector Framework (GUI driven)
• Connectivity, Data integration & Reporting/Analytics capability “out of the box”
Further downstream integration may also be added,
including accounting & billing systems.
Further extend integration services to accommodate non-
standard to standard data mapping (i.e. proprietary to Green
Button). SIDE supports proprietary data formats including
XML, Excel, Flat Files, Email, PDF, Proprietary Messaging (i.e.
MQ-Series) and even Manual Forms/Documents
Leverage out of the box integration as a services platform to
certify the “Green Button Connector”

9. Blockchain – The
Next Line of Defense
for Cyber Security?
• Finance Perspective
• SIDE Use Case (Blockchain)
– 2 Slides
• Where Cryptography meets
Security Research
• Is Blockchain coming soon to
Energy?
9

10. 10
Finance Perspective
1. Security & Scalability - self-regulated
through Cryptography, while ensuring
scale due to increasing transaction/data
volumes in reduced timeframes
2. Reduce Cost and Operational Risk –
Enable disintermediation (e.g. central
counterparty/clearinghouse) to save cost
and increase transaction settlement time
to further reduce operational risk
• A blockchain is a data structure that makes it possible to create a digital ledger of
transactions and share it among a distributed network of computers. It uses cryptography to
allow each participant on the network to manipulate the ledger in a secure way without the
need for a central authority/servers with assurance that each transaction is secure and
immutable.
• Blockchain allows untrusting parties with common interests to co-create a permanent,
unchangeable, and transparent record of exchange and processing without relying on a
central authority.
• Key value propositions for Financial Securities Industry Participants

11. SIDE Use Case (Blockchain)
11
Client
A
Client
B
Client
C
Client
D
Client
E
Bank
1
Bank
2
Bank
3
Client
A
Client
B
Client
C
Client
D
Client
E
Bank
1
Bank
2
Bank
3
SIDE
Distributed
Ledger
Current State (Canadian Bank Client)
• Institutional clients (e.g. a Pension Fund) deal
with a number of regulated securities dealers
(e.g. a Canadian Bank Dealer) whereby the client
receives a significant amount of paper, most often
due to regulatory reasons, including:
• Trade Confirmations
• Client Statements
• Prospectuses (IPO, Secondary)
Mailing of Confirms,
Statements &
Prospectuses
Electronically Delivering
Confirms, Statements &
Prospectuses
Future State (Canadian Bank Client)
• Create a central, single and secure location for
counterparties to send and receive messages (i.e.
trade confirmations) and reports (i.e. Statements
and Prospectuses)
• SIDE Distributed Ledger (SDL) will simplify the
complex web of manual documents mailed by
securities dealers to their clients through secure
electronic delivery

12. SIDE Use Case (Blockchain)
12
Sending
Counter-
Party
Receiving
Counter-
Party
SIDE
Distributed
Ledger
Portal/Website
View
Message
Email
Message
Post
Message
automatically
Post
Message
Manually
Solution
• A sending counterparty (CP) adds a
message to the SIDE DL which effects
an email to be sent to the receiving
counterparty
• The receiving counterparty clicks on
the email link and using their private
key they can now access the message
Benefits
• Security and Scalability: Use of
Distributed Ledger Technology
(Blockchain) using Cryptography
with “BigData” approach used by
SIDE
• Reduce Cost and Risk: Eliminates
the cost of physical document
production and handling (both
sender and receiver) and allows for
Trade Confirmations to be sent on
“T” (Trade Date) instead of “T+1”
(Trade Date + 1 or next day)

13. 13
Where Cryptography meets Security Research
Using ...
CRYPTOGRAPHY
1. Confidentiality
2. Privacy
3. Non-repudiation
4. Integrity
Immutability
Chain of
cryptographic
hashes enforcing
secured time
sequenced order
SMART
CONTRACTS
algorithm enables
complex asset or
commodity (gas,
energy) transfer and
an automated
exchange of rights
to achieve
Consensus
independent
algorithmic validation
record of authenticity
and sequence order
agreed by majority of
network nodes
Trusted Shared
Ledger
Network
(Blockchain)
combined with
resulting in
enabling
Smart contracts reside in a decentralised system accessible to
anyone, that doesn’t require an intermediary party.
This eliminates inefficient, error prone and costly back office
processes such as confirmations, actualisation of volumes and
numerous forms of reconciliation (Deloitte)

14. 14
BLOCKCHAIN coming soon to ENERGY?
• We refer to Transactive Energy YES, because it provides a secure platform and business models as a way to maintain the
reliability and security of the power system while increasing efficiency among a growing distributed energy resources.
Based Upon Source: bakerstr-admin | Mar 10, 2015 | Barrager, Business models, Cazalet, Transactive Energy |

15. Appendices &
Additional Materials
• Key Finance Industry Data
Standards
• Key Drivers for Financial Industry
Change
• Additional Materials
- Upon Request
15

16. Key Finance Industry Standards
16
Established in 1973, SWIFT (Society for Worldwide Interbank Financial
Telecommunication) is the predominant industry standard for the global banking industry
• ISO Data Standard (15022 to 20022 Data Dictionary is well defined)
• Secure encrypted network requires both dedicated network access and computer
based terminal (CBT) for session login
• Requires both network and message certification governed by SWIFT
Established over 20 years ago, FIX (Financial Information eXchange) is the predominant
industry protocol/standard for securities trading and trade related transactions
• Unlike SWIFT, FIX is not a corporation or legal structure and is maintained by industry
participants through the “FIX Trading Community”, that is a non-profit standards body
• Initiated in the US for equity trading, FIX has become a globally recognized standard
and is SWIFT’s primary competitor
• Like SWIFT, FIX is attempting to increase usage across the industry transaction
lifecycle and value chain (pre-trade, trade, post-trade, clearing, securities lending etc.)
• Independent certification is required that includes the use of private communication
networks, software (FIX Engine) and FIX session / message validation

17. Key Drivers for Financial Industry Change
17
• Over the past 10 years the proliferation of secure internet based technologies have caused
Financial Services companies to re-evaluate internal policy on matters related to IT ownership
• Social Media Networks (LinkedIn, Facebook and Twitter) enable organizations to integrate
data from these sources for trend analysis, including investor sentiment patterns
• Cloud Computing is slowly gaining wider acceptance despite ongoing concerns about data
access and security. Increasing knowledge of “what the cloud really is” allows Financial
Services companies to eventually move forward;
• Subscribing to some public cloud applications such as corporate Email (O365)
• SaaS/PaaS applications have been used for years (e.g. Salesforce CRM)
• “Service Bureau” platforms are common in the industry and include highly sensitive personal and
financial information (e.g. Investment Book of Record)
• Big Data has created the need to explore alternative technologies (including open source) that
save cost (etc. servers/storage) and increase time to market for businesses
• “BlockChain” is by far the largest driver currently - the industry is both investing and seriously
contemplating the implied risk of the technology that powers Bitcoin
• Fully transparent and unbroken through the entire transaction lifecycle
• Eliminates the need for financial intermediaries (institutions)

18. Additional Materials (Upon Request)
18
Blockchain Technology
First North Presentations for Connected Conferences (2015 and 2016)
An introduction to Blockchain (Distributed Ledgers)
Whitepaper – Cloud Security Overview, SIDE Case Study and Research Reports

19. www.firstnorth.ca
Contact us at:
First North Group
161 Bay Street, 27th Floor, Toronto, Canada
416.572.2063 (Reception)
John Packwood
President & Managing Director
First North Group
jpackwood@firstnorth.ca
jpackwood@sidexchange.com
Puica Nitu
Managing Director, First North Energy
pnitu@firstnorth.ca
Yogi Golle
Principal Consultant, SIDE/Blockchain Development
Ygolle@sidexchange.com
Thank You!