3URJUDPPLQJZLWK/LESFDS

±6QLI¿QJWKH1HWZRUN
$WWDFN
)URP2XU2ZQ$SSOLFDWLRQ
/XLV0DUWLQ*DUFLD

'LI¿FXOW\

6LQFHWKH¿UVWPHVVDJHZDVVHQWRYHUWKH$53$1(7LQ
FRPSXWHUQHWZRUNVKDYHFKDQJHGDJUHDWGHDO%DFNWKHQ
QHWZRUNVZHUHVPDOODQGSUREOHPVZHUHVROYHGXVLQJVLPSOH
GLDJQRVWLFWRROV$VWKHVHQHWZRUNVJRWPRUHFRPSOH[WKHQHHG
IRUPDQDJHPHQWDQGWURXEOHVKRRWLQJLQFUHDVHG

1
RZDGD\VFRPSXWHUQHWZRUNVDUHXVX
DOO\ ODUJH DQG GLYHUVH V\VWHPV WKDW
FRPPXQLFDWH XVLQJ D ZLGH YDULHW\ RI
V UHYLHZ KRZ SDFNHW FDSWXUH
SURWRFROV 7KLV FRPSOH[LW\ FUHDWHG WKH QHHG
IRU PRUH VRSKLVWLFDWHG WRROV WR PRQLWRU DQG
WURXEOHVKRRWQHWZRUNWUDI¿F7RGD\RQHRIWKH
FULWLFDOWRROVLQDQ\QHWZRUNDGPLQLVWUDWRUWRRO
ER[LVWKHVQLIIHU
6QLIIHUV DOVR NQRZQ DV SDFNHW DQDO\]HUV
VQHWZRUNFDUGGULYHU
DUH SURJUDPV WKDW KDYH WKH DELOLW\ WR LQWHUFHSW
WKHWUDI¿FWKDWSDVVHVRYHUDQHWZRUN7KH\DUH
YHU\ SRSXODU EHWZHHQ QHWZRUN DGPLQLVWUDWRUV
DQGWKHEODFNKDWFRPPXQLW\EHFDXVHWKH\FDQ
EHXVHGIRUERWK±JRRGDQGHYLO,QWKLVDUWLFOH
ZH ZLOO JR WKURXJK PDLQ SULQFLSOHV RI SDFNHW
FDSWXUHDQGLQWURGXFHOLESFDSDQRSHQVRXUFH
DQGSRUWDEOHSDFNHWFDSWXUHOLEUDU\ZKLFKLVWKH
FRUHRIWRROVOLNHWFSGXPSGVQLIINLVPHWVQRUW
RUHWWHUFDS
3DFNHW&DSWXUH
3DFNHWFDSWXUHLVWKHDFWLRQRIFROOHFWLQJGDWD
DV LW WUDYHOV RYHU D QHWZRUN 6QLIIHUV DUH WKH
EHVW H[DPSOH RI SDFNHW FDSWXUH V\VWHPV EXW
PDQ\RWKHUW\SHVRIDSSOLFDWLRQVQHHGWRJUDE
SDFNHWV RII D QHWZRUN FDUG 7KRVH LQFOXGH
QHWZRUN VWDWLVWLFDO WRROV LQWUXVLRQ GHWHFWLRQ
V\VWHPV SRUW NQRFNLQJ GDHPRQV SDVVZRUG
VQLIIHUV$53SRLVRQHUVWUDFHURXWHUVHWF
)LUVW RI DOO OHW
ZRUNVLQ(WKHUQHWEDVHGQHWZRUNV(YHU\WLPH
D QHWZRUN FDUG UHFHLYHV DQ (WKHUQHW IUDPH
LW FKHFNV WKDW LWV GHVWLQDWLRQ 0$& DGGUHVV
PDWFKHVLWVRZQ,ILWGRHVLWJHQHUDWHVDQLQWHU
UXSWUHTXHVW7KHURXWLQHLQFKDUJHRIKDQGOLQJ
WKHLQWHUUXSWLVWKHV\VWHP
7KHGULYHUWLPHVWDPSVUHFHLYHGGDWDDQGFRS
:KDW\RXZLOOOHDUQ
‡ 7KHSULQFLSOHVRISDFNHWFDSWXUH
‡ +RZWRFDSWXUHSDFNHWVXVLQJOLESFDS
‡ $VSHFWVWRFRQVLGHUZKHQZULWLQJDSDFNHWFDS
WXUHDSSOLFDWLRQ
:KDW\RXVKRXOGNQRZ
‡ 7KH&SURJUDPPLQJODQJXDJH
‡ 7KH EDVLFV RI QHWZRUNLQJ DQG WKH 26, 5HIHU
HQFH0RGHO
‡ +RZ FRPPRQ SURWRFROV OLNH (WKHUQHW 7&3,3
RU$53ZRUN

 KDNLQ ZZZKDNLQRUJHQ
 3URJUDPPLQJZLWK/LESFDS

LHVLWIURPWKHFDUGEXIIHUWRDEORFN WKURXJK EXW DV ZH ZLOO VHH ODWHU 3\WKRQ -DYD & RU 5XE\ /LESFDS
RI PHPRU\ LQ NHUQHO VSDFH 7KHQ LW WKH\ XVXDOO\ RIIHU DGYDQFHG ¿OWHULQJ UXQV RQ PRVW 81,;OLNH RSHUDWLQJ
GHWHUPLQHVZKLFKW\SHRISDFNHWKDV FDSDELOLWLHV $V SDFNHW FDSWXUH PD\ V\VWHPV /LQX[ 6RODULV %6' +3
EHHQ UHFHLYHG ORRNLQJ DW WKH HWKHU
W\SH¿HOGRIWKH(WKHUQHWKHDGHUDQG
SDVVHVLWWRWKHDSSURSULDWHSURWRFRO
KDQGOHULQWKHSURWRFROVWDFN,QPRVW
FDVHVWKHIUDPHZLOOFRQWDLQDQ,3Y
VRI¿FLDO
GDWDJUDPVRWKH,3YSDFNHWKDQGOHU
LQYROYH VHFXULW\ ULVNV PRVW V\VWHPV
UHTXLUH DGPLQLVWUDWRU SULYLOHJHV LQ
RUGHU WR XVH WKLV IHDWXUH )LJXUH 
LOOXVWUDWHVWKHFDSWXUHSURFHVV
/LESFDS
8; 7KHUH LV DOVR D :LQGRZV YHU
VLRQQDPHG:LQSFDS7RGD\OLESFDS
LVPDLQWDLQHGE\WKH7FSGXPS*URXS
)XOOGRFXPHQWDWLRQDQGVRXUFHFRGH
LVDYDLODEOHIURPWKHWFSGXPS
VLWHDWKWWSZZZWFSGXPSRUJKWWS
ZLOOEHFDOOHG7KLVKDQGOHUSHUIRUPV
D QXPEHU RI FKHFN WR HQVXUH IRU
H[DPSOH WKDW WKH SDFNHW LV QRW FRU
UXSW DQG WKDW LV DFWXDOO\ GHVWLQHG
IRU WKLV KRVW ,I DOO WHVWV DUH SDVVHG
WKH ,3 KHDGHUV DUH UHPRYHG DQG
WKH UHPDLQGHU LV SDVVHG WR WKH QH[W
SURWRFRO KDQGOHU SUREDEO\ 7&3 RU
/LESFDSLVDQRSHQVRXUFHOLEUDU\WKDW
SURYLGHVDKLJKOHYHOLQWHUIDFHWRQHW
ZRUN SDFNHW FDSWXUH V\VWHPV ,W ZDV
FUHDWHG LQ  E\ 0F&DQQH /HUHV
DQG -DFREVRQ ± UHVHDUFKHUV DW WKH
/DZUHQFH %HUNHOH\ 1DWLRQDO /DERUD
WRU\IURPWKH8QLYHUVLW\RI&DOLIRUQLDDW
%HUNHOH\DVSDUWRIDUHVHDUFKSURMHFW
ZZZZLQSFDSRUJIRU:LQSFDS
2XU)LUVW6WHSV
:LWK/LESFDS
1RZ WKDW ZH NQRZ WKH EDVLFV RI
SDFNHW FDSWXUH OHW XV ZULWH RXU RZQ
VQLI¿QJDSSOLFDWLRQ
7KH ¿UVW WKLQJ ZH QHHG LV D QHW
8'37KLVSURFHVVLVUHSHDWHGXQWLO WR LQYHVWLJDWH DQG LPSURYH 7&3 DQG ZRUN LQWHUIDFH WR OLVWHQ RQ :H FDQ
WKHGDWDJHWVWRWKHDSSOLFDWLRQOD\HU ,QWHUQHWJDWHZD\SHUIRUPDQFH HLWKHU VSHFLI\ RQH H[SOLFLWO\ RU OHW
ZKHUH LW LV SURFHVVHG E\ WKH XVHU /LESFDS DXWKRUV
 PDLQ REMHFWLYH OLESFDS JHW RQH IRU XV 7KH IXQFWLRQ
OHYHODSSOLFDWLRQ ZDV WR FUHDWH D SODWIRUPLQGHSHQG FKDU
SFDS B ORRNXSGHYFKDU
HUUEXI
:KHQ ZH XVH D VQLIIHU SDFNHWV
JR WKURXJK WKH VDPH SURFHVV GH
VFULEHG DERYH EXW ZLWK RQH GLIIHU
HQFHWKHQHWZRUNGULYHUDOVRVHQGV
DFRS\RIDQ\UHFHLYHGRUWUDQVPLWWHG
SDFNHWWRDSDUWRIWKHNHUQHOFDOOHG
WKH SDFNHW ¿OWHU 3DFNHW ¿OWHUV DUH
ZKDW PDNHV SDFNHW FDSWXUH SRV
VLEOH %\ GHIDXOW WKH\ OHW DQ\ SDFNHW
HQW $3, WR HOLPLQDWH WKH QHHG IRU
V\VWHPGHSHQGHQW SDFNHW FDSWXUH
PRGXOHV LQ HDFK DSSOLFDWLRQ DV YLU
WXDOO\ HYHU\ 26 YHQGRU LPSOHPHQWV
LWVRZQFDSWXUHPHFKDQLVPV
7KH OLESFDS $3, LV GHVLJQHG WR
EH XVHG IURP & DQG & +RZHYHU
WKHUH DUH PDQ\ ZUDSSHUV WKDW DOORZ
LWV XVH IURP ODQJXDJHV OLNH 3HUO
"#$$



$
$
$"
UHWXUQVDSRLQWHUWRDVWULQJFRQWDLQ
LQJ WKH QDPH RI WKH ¿UVW QHWZRUN
GHYLFHWKDWLVVXLWDEOHIRUSDFNHWFDS
WXUH 8VXDOO\ WKLV IXQFWLRQ LV FDOOHG
ZKHQ HQGXVHUV GR QRW VSHFLI\ DQ\
QHWZRUN LQWHUIDFH ,W LV JHQHUDOO\
D EDG LGHD WR XVH KDUG FRGHG LQWHU
IDFH QDPHV DV WKH\ DUH XVXDOO\ QRW
SRUWDEOHDFURVVSODWIRUPV
"

$& "
%
 $ "
 



$
$#




  


" &#"

" $  
$


"%"

"&"
"
! #"
!

)LJXUH(OHPHQWVLQYROYHGLQWKHFDSWXUHSURFHVV

ZZZKDNLQRUJHQ KDNLQ 
 $WWDFN

7KH HUUEXI DUJXPHQW RI SFDS B PHQWHG E\ OLESFDS WDNH WKLV SDUDP 2QFH ZH KDYH WKH QDPH RI WKH
ORRNXSGHYLVDXVHUVXSSOLHGEXIIHU
WKDWWKHOLEUDU\XVHVWRVWRUHDQHUURU
SFDS B
PHVVDJH LQ FDVH VRPHWKLQJ JRHV
GHYLFH LQW
HWHU :KHQ DOORFDWLQJ WKH EXIIHU ZH QHWZRUN GHYLFH ZH KDYH WR RSHQ
KDYHWREHFDUHIXOEHFDXVHLWPXVWEH LW 7KH IXQFWLRQ SFDS B W
DEOH WR KROG DW OHDVW 3&$3 B (55%8) B RSHQ B OLYHFRQVW FKDU
ZURQJ 0DQ\ RI WKH IXQFWLRQV LPSOH 6,=(E\WHVFXUUHQWO\GH¿QHGDV VQDSOHQ LQW SURPLVF LQW WR B PV
FKDU
HUUEXIGRHVWKDW,WUHWXUQVDQ

/LVWLQJ6WUXFWXUHSFDS BSNWKGU LQWHUIDFHKDQGOHURIW\SH SFDS B WWKDW

ZLOOEHXVHGODWHUZKHQFDOOLQJWKHUHVW
VWUXFWSFDSBSNWKGU^ RIWKHIXQFWLRQVSURYLGHGE\OLESFDS
VWUXFWWLPHYDOWV 7LPHVWDPSRIFDSWXUH 
7KH ¿UVW DUJXPHQW RI SFDS B
ESIBXBLQWFDSOHQ 1XPEHURIE\WHVWKDWZHUHVWRUHG 
RSHQ B OLYH LV D VWULQJ FRQWDLQLQJ
ESIBXBLQWOHQ 7RWDOOHQJWKRIWKHSDFNHW 
` WKH QDPH RI WKH QHWZRUN LQWHUIDFH
ZH ZDQW WR RSHQ 7KH VHFRQG RQH
/LVWLQJ6LPSOHVQLIIHU LV WKH PD[LPXP QXPEHU RI E\WHV WR
FDSWXUH 6HWWLQJ D ORZ YDOXH IRU WKLV
 6LPSOH6QLIIHU 
 7RFRPSLOHJFFVLPSOHVQLIIHUFRVLPSOHVQLIIHUOSFDS 
SDUDPHWHU PLJKW EH XVHIXO LQ FDVH
ZH DUH RQO\ LQWHUHVWHG LQ JUDEELQJ
LQFOXGHSFDSK! KHDGHUV RU ZKHQ SURJUDPPLQJ IRU
LQFOXGHVWULQJK! HPEHGGHG V\VWHPV ZLWK LPSRUWDQW
LQFOXGHVWGOLEK!
PHPRU\ OLPLWDWLRQV 7\SLFDOO\ WKH
GH¿QH0$;%<7(6&$3785(
PD[LPXP (WKHUQHW IUDPH VL]H LV
 E\WHV +RZHYHU RWKHU OLQN
YRLGSURFHVV3DFNHWXBFKDU DUJFRQVWVWUXFWSFDSBSNWKGU SNWKGUFRQVW W\SHV OLNH )'', RU  KDYH ELJ
XBFKDU SDFNHW^ JHU OLPLWV $ YDOXH RI  VKRXOG
EH HQRXJK WR KROG DQ\ SDFNHW IURP
LQWL  FRXQWHU LQW DUJ
DQ\QHWZRUN
SULQWI3DFNHW&RXQWG?Q FRXQWHU 7KH RSWLRQ WR B PV GH¿QHV KRZ
SULQWI5HFHLYHG3DFNHW6L]HG?QSNWKGU!OHQ PDQ\PLOOLVHFRQGVVKRXOGWKHNHUQHO
SULQWI3D\ORDG?Q ZDLW EHIRUH FRS\LQJ WKH FDSWXUHG
IRUL LSNWKGU!OHQL^
LQIRUPDWLRQ IURP NHUQHO VSDFH WR
LILVSULQWSDFNHW>L@
XVHUVSDFH&KDQJHVRIFRQWH[WDUH
SULQWIFSDFNHW>L@ FRPSXWDWLRQDOO\H[SHQVLYH,IZHDUH
HOVH FDSWXULQJ D KLJK YROXPH RI QHWZRUN
SULQWI WUDI¿F LW LV EHWWHU WR OHW WKH NHUQHO

JURXS VRPH SDFNHWV EHIRUH FURVV
LIL  L __L SNWKGU!OHQ
SULQWI?Q
LQJ WKH NHUQHOXVHUVSDFH ERXQG
` DU\ $ YDOXH RI ]HUR ZLOO FDXVH WKH
UHWXUQ UHDG RSHUDWLRQV WR ZDLW IRUHYHU XQWLO
` HQRXJK SDFNHWV DUULYHG WR WKH QHW
LQWPDLQ^
ZRUN LQWHUIDFH /LESFDS GRFXPHQWD

LQWL FRXQW 
WLRQGRHVQRWSURYLGHDQ\VXJJHVWLRQ
SFDSBW GHVFU 18// IRU WKLV YDOXH 7R KDYH DQ LGHD ZH
FKDUHUUEXI>3&$3B(55%8)B6,=(@ GHYLFH 18// FDQH[DPLQHZKDWRWKHUVQLIIHUVGR
PHPVHWHUUEXI3&$3B(55%8)B6,=( 7FSGXPSXVHVDYDOXHRIGVQLII
XVHVDQGHWWHUFDSGLVWLQJXLVKHV
 *HWWKHQDPHRIWKH¿UVWGHYLFHVXLWDEOHIRUFDSWXUH 
GHYLFH SFDSBORRNXSGHYHUUEXI
EHWZHHQGLIIHUHQWRSHUDWLQJV\VWHPV
XVLQJIRU/LQX[RU2SHQ%6'DQG
SULQWI2SHQLQJGHYLFHV?QGHYLFH IRUWKHUHVW
 7KHSURPLVFÀDJGHFLGHVZKHWK
 2SHQGHYLFHLQSURPLVFXRXVPRGH 
HU WKH QHWZRUN LQWHUIDFH VKRXOG EH
GHVFU SFDSBRSHQBOLYHGHYLFH0$;%<7(6&$3785(HUUEXI
SXW LQWR SURPLVFXRXV PRGH RU QRW
 /RRSIRUHYHU FDOOSURFHVV3DFNHWIRUHYHU\UHFHLYHGSDFNHW  7KDW LV ZKHWKHU WKH QHWZRUN FDUG
SFDSBORRSGHVFUSURFHVV3DFNHWXBFKDU  FRXQW VKRXOGDFFHSWSDFNHWVWKDWDUHQRW
GHVWLQHG WR LW RU QRW 6SHFLI\  IRU
UHWXUQ
QRQSURPLVFXRXV DQG DQ\ RWKHU
`
YDOXH IRU SURPLVFXRXV PRGH 1RWH
WKDWHYHQLIZHWHOOOLESFDSWROLVWHQ

 KDNLQ ZZZKDNLQRUJHQ
 $WWDFN

LQ QRQSURPLVFXRXV PRGH LI WKH <RX DUH SUREDEO\ ZRQGHULQJ LI WKH VWUXFWSFDSBSNWKGU
SNWKGUFRQVWXB
LQWHUIDFH ZDV DOUHDG\ LQ SURPLVFX IXQFWLRQRQO\UHWXUQVDQLQWHJHUZKHUH FKDU
SDFNHW
RXVPRGHLWPD\VWD\WKDWZD\:H DUH WKH SDFNHWV WKDW ZHUH FDSWXUHG"
VKRXOGQRWWDNHIRUJUDQWHGWKDWZH 7KHDQVZHULVDELWWULFN\SFDS B ORRS 7KH¿UVWDUJXPHQWLVWKHXVHUSRLQWHU
ZLOO QRW UHFHLYH WUDI¿F GHVWLQHG IRU
RWKHU KRVWV LQVWHDG LW LV EHWWHU WR
XVHWKH¿OWHULQJFDSDELOLWLHVWKDWOLE
SFDSSURYLGHVDVZHZLOOVHHODWHU
2QFH ZH KDYH D QHWZRUN LQWHU
GRHVQRWUHWXUQWKRVHSDFNHWVLQVWHDG
LW FDOOV D XVHUGH¿QHG IXQFWLRQ HYHU\
WLPHWKHUHLVDSDFNHWUHDG\WREHUHDG
7KLVZD\ZHFDQGRRXURZQSURFHVV
LQJ LQ D VHSDUDWH IXQFWLRQ LQVWHDG RI
WKDW ZH SDVVHG WR SFDS B ORRS WKH
VHFRQGRQHLVDSRLQWHUWRDVWUXFWXUH
WKDW FRQWDLQV LQIRUPDWLRQ DERXW WKH
FDSWXUHGSDFNHW/LVWLQJVKRZVWKH
GH¿QLWLRQRIWKLVVWUXFWXUH
IDFH RSHQ IRU SDFNHW FDSWXUH ZH FDOOLQJ SFDS B QH[W LQ D ORRS DQG 7KH FDSOHQ PHPEHU KDV XVXDOO\
KDYH WR DFWXDOO\ WHOO SFDS WKDW ZH SURFHVV HYHU\WKLQJ LQVLGH +RZHYHU WKH VDPH YDOXH DV OHQ H[FHSW WKH
ZDQWWRVWDUWJHWWLQJSDFNHWV)RUWKLV WKHUH LV D SUREOHP ,I SFDS B ORRS VLWXDWLRQ ZKHQ WKH VL]H RI WKH FDS
ZHKDYHVRPHRSWLRQV FDOOVRXUIXQFWLRQKRZFDQZHSDVVDU WXUHG SDFNHW H[FHHGV WKH VQDSOHQ
JXPHQWVWRLW"'RZHKDYHWRXVHXJO\ VSHFL¿HGLQRSHQ B SFDS B OLYH
‡ 7KH IXQFWLRQ FRQVW X B FKDU JOREDOV"7KHDQVZHULVQRWKHOLESFDS 7KHWKLUGDOWHUQDWLYHLVWRXVHLQW

SFDS B QH[WSFDS B W
S VWUXFW JX\V WKRXJKW DERXW WKLV SUREOHP DQG SFDS B GLVSDWFKSFDS B W
SLQWFQW
SFDS B SNWKGU
K
WDNHV WKH LQFOXGHGDZD\WRSDVVLQIRUPDWLRQWR SFDS B KDQGOHU FDOOEDFN X B FKDU
SFDS B W KDQGOHU UHWXUQHG E\ WKHFDOOEDFNIXQFWLRQ7KLVLVWKHXVHU
XVHU ZKLFK LV VLPLODU WR SFDS B
SFDS B RSHQ B OLYH D SRLQWHU WR DUJXPHQW 7KLV SRLQWHU LV SDVVHG LQ ORRS EXW LW DOVR UHWXUQV ZKHQ WKH
D VWUXFWXUH RI W\SH SFDS B SNWKGU HYHU\ FDOO 7KH SRLQWHU LV RI W\SH X B WR B PV WLPHRXW VSHFL¿HG LQ SFDS B
DQG UHWXUQV WKH ¿UVW SDFNHW WKDW FKDUVRZHZLOOKDYHWRFDVWLWIRURXU RSHQ B OLYHHODSVHV
DUULYHVWRWKHQHWZRUNLQWHUIDFH RZQQHHGVZKHQFDOOLQJ SFDS B ORRS /LVWLQJ  SURYLGHV DQ H[DPSOH
‡ 7KH IXQFWLRQ LQW SFDS B DQG ZKHQ XVLQJ LW LQVLGH WKH FDOOEDFN RI D VLPSOH VQLIIHU WKDW SULQWV WKH
ORRSSFDS B W
S LQW FQW IXQFWLRQ2XUSDFNHWSURFHVVLQJIXQF UDZ GDWD WKDW LW FDSWXUHV 1RWH WKDW
SFDS B KDQGOHUFDOOEDFNX B FKDU WLRQ PXVW KDYH D VSHFL¿F SURWRW\SH KHDGHU¿OH SFDSKPXVWEHLQFOXGHG

XVHU LV XVHG WR FROOHFW SDFNHWV RWKHUZLVH SFDS B ORRS ZRXOGQ
W (UURU FKHFNV KDYH EHHQ RPLWWHG IRU
DQG SURFHVV WKHP ,W ZLOO QRW UH NQRZKRZWRXVHLW7KLVLVWKHZD\LW FODULW\
WXUQ XQWLO FQW SDFNHWV KDYH EHHQ VKRXOGEHGHFODUHG
FDSWXUHG $ QHJDWLYH FQW YDOXH 2QFH
ZLOO FDXVH SFDS B ORRS WR UHWXUQ YRLGIXQFWLRQBQDPHXBFKDU
XVHUDUJ :H&DSWXUHD3DFNHW
RQO\LQFDVHRIHUURU FRQVW :KHQDSDFNHWLVFDSWXUHGWKHRQO\
WKLQJ WKDW RXU DSSOLFDWLRQ KDV JRW LV
D EXQFK RI E\WHV 8VXDOO\ WKH QHW
ZRUN FDUG GULYHU DQG WKH SURWRFRO


 VWDFN SURFHVV WKDW GDWD IRU XV EXW
ZKHQZHDUHFDSWXULQJSDFNHWVIURP

 RXU RZQ DSSOLFDWLRQ ZH GR LW DW WKH


 



 ORZHVW OHYHO VR ZH DUH WKH RQHV LQ



FKDUJH RI PDNLQJ WKH GDWD UDWLRQDO
7RGRWKDWWKHUHDUHVRPHWKLQJVWKDW
VKRXOGEHWDNHQLQWRDFFRXQW




  'DWD/LQN7\SH




$OWKRXJK (WKHUQHW VHHPV WR EH
SUHVHQWHYHU\ZKHUHWKHUHDUHDORWRI
GLIIHUHQWWHFKQRORJLHVDQGVWDQGDUGV
WKDWRSHUDWHDWWKHGDWDOLQNOD\HU,Q
RUGHU WR EH DEOH WR GHFRGH SDFNHWV
)LJXUH1RUPDOSURJUDPÀRZRIDSFDSDSSOLFDWLRQ FDSWXUHG IURP D QHWZRUN LQWHUIDFH
ZH PXVW NQRZ WKH XQGHUO\LQJ GDWD
OLQN W\SH VR ZH DUH DEOH WR LQWHUSUHW


WKHKHDGHUVXVHGLQWKDWOD\HU

 
  


 
7KH IXQFWLRQ LQW SFDS B
GDWDOLQNSFDS B W SUHWXUQVWKHOLQN
OD\HU W\SH RI WKH GHYLFH RSHQHG E\
)LJXUH'DWDHQFDSVXODWLRQLQ(WKHUQHWQHWZRUNVXVLQJWKH7&3,3 SFDS B RSHQ B OLYH /LESFDS LV DEOH
SURWRFRO WR GLVWLQJXLVK RYHU  GLIIHUHQW OLQN

 KDNLQ ZZZKDNLQRUJHQ

W\SHV+RZHYHULWLVWKHUHVSRQVLELO
LW\ RI WKH XVHU WR NQRZ WKH VSHFL¿F
GHWDLOV RI DQ\ SDUWLFXODU WHFKQRORJ\
7KLV PHDQV WKDW ZH DV SURJUDP
PHUV PXVW NQRZ WKH H[DFW IRUPDW
RIWKHGDWDOLQNKHDGHUVWKDWWKHFDS
WXUHG SDFNHWV ZLOO KDYH ,Q PRVW DS
SOLFDWLRQVZHZRXOGMXVWZDQWWRNQRZ
WKHOHQJWKRIWKHKHDGHUVRZHNQRZ
ZKHUHWKH,3GDWDJUDPVWDUWV
7DEOH  VXPPDUL]HV WKH PRVW
FRPPRQ GDWD OLQN W\SHV WKHLU
VZRQGHUIXOZRUOG
QDPHV LQ OLESFDS DQG WKH RIIVHWV
WKDW VKRXOG EH DSSOLHG WR WKH VWDUW
RIWKHFDSWXUHGGDWDWRJHWWKHQH[W
GH¿QHG$FRPSOHWHOLVWFDQEHIRXQG
DW KWWSZZZLDQDRUJDVVLJQPHQWV
SURWRFROQXPEHUV
$SSOLFDWLRQ/D\HU3URWRFRO
2N VR ZH KDYH JRW WKH (WKHUQHW
KHDGHU WKH ,3 KHDGHU WKH 7&3
KHDGHU DQG QRZ ZKDW" $SSOLFDWLRQ
OD\HU SURWRFROV DUH D ELW KDUGHU WR
GLVWLQJXLVK 7KH 7&3 KHDGHU GRHV
QRW SURYLGH DQ\ LQIRUPDWLRQ DERXW
WKH SD\ORDG LW WUDQVSRUWV EXW 7&3
SRUW QXPEHUV FDQ JLYH DV D FOXH ,I
7DEOH&RPPRQGDWDOLQNW\SHV
3URJUDPPLQJZLWK/LESFDS
IRUH[DPSOHZHFDSWXUHDSDFNHWWKDW
LVWDUJHWHGWRRUFRPHVIURPSRUW
DQGLWLVSD\ORDGLVSODLQ$6&,,WH[WLW
ZLOO SUREDEO\ EH VRPH NLQG RI +773
WUDI¿FEHWZHHQDZHEEURZVHUDQGD
ZHEVHUYHU+RZHYHUWKLVLVQRWH[DFW
VFLHQFHVRZHKDYHWREHYHU\FDUH
IXOZKHQKDQGOLQJWKH7&3SD\ORDGLW
PD\FRQWDLQXQH[SHFWHGGDWD
0DOIRUPHG3DFNHWV
,Q/RXLV$PVWURQJ
HYHU\WKLQJ LV EHDXWLIXO DQG SHUIHFW
SURWRFROKHDGHU 'DWD/LQN7\SH 3FDS$OLDV 2IIVHWLQE\WHV
3UREDEO\WKHEHVWZD\WRKDQGOH (WKHUQHW0EV 
'/7B(10%
WKH GLIIHUHQW OLQN OD\HU KHDGHU VL]HV
LVWRLPSOHPHQWDIXQFWLRQWKDWWDNHV :L)L 
'/7B,(((B
D SFDS B W VWUXFWXUH DQG UHWXUQV WKH
RIIVHWWKDWVKRXOGEHXVHGWRJHWWKH )'',)LEHU'LVWULEXWHG'DWD 
,QWHUIDFH '/7B))',
QHWZRUN OD\HU KHDGHUV 'VQLII WDNHV
WKLV DSSURDFK +DYH D ORRN DW IXQF 333R(333RYHU(WKHUQHW (WKHUQHW
'/7B333B(7+(5
WLRQSFDS B GORIILQ¿OHSFDS B XWLOF 333 
IURPWKH'VQLIIVRXUFHFRGH %6'/RRSEDFN 
'/7B18//

1HWZRUN/D\HU3URWRFRO 3RLQWWR3RLQW'LDOXS

'/7B333
7KH QH[W VWHS LV WR GHWHUPLQH ZKDW
IROORZV WKH GDWD OLQN OD\HU KHDGHU
7DEOH1HWZRUNOD\HUSURWRFROVDQGHWKHUW\SHYDOXHV
)URPQRZRQZHZLOODVVXPHWKDWZH
DUHZRUNLQJZLWK(WKHUQHWQHWZRUNV 1HWZRUN/D\HU3URWRFRO (WKHUW\SH9DOXH
7KH (WKHUQHW KHDGHU KDV D ELW ,QWHUQHW3URWRFRO9HUVLRQ,3Y [
¿HOG QDPHG HWKHUW\SH ZKLFK VSHFL ,QWHUQHW3URWRFRO9HUVLRQ,3Y [''
¿HVWKHSURWRFROWKDWFRPHVQH[W7D
$GGUHVV5HVROXWLRQ3URWRFRO$53 [
EOHOLVWVWKHPRVWSRSXODUQHWZRUN
OD\HU SURWRFROV DQG WKHLU HWKHUW\SH 5HYHUVH$GGUHVV5HVROXWLRQ3URWRFRO5$53 [
YDOXH $SSOH7DONRYHU(WKHUQHW(WKHU7DON [%
:KHQ WHVWLQJ WKLV YDOXH ZH 3RLQWWR3RLQW3URWRFRO333 [%
PXVWUHPHPEHUWKDWLWLVUHFHLYHGLQ 333R('LVFRYHU\6WDJH [
QHWZRUN E\WH RUGHU VR ZH ZLOO KDYH
333R(6HVVLRQ6WDJH [
WR FRQYHUW LW WR RXU KRVW
V RUGHULQJ
VFKHPHXVLQJWKHIXQFWLRQQWRKV 6LPSOH1HWZRUN0DQDJHPHQW3URWRFRO6103 [&

7UDQVSRUW/D\HU3URWRFRO 7DEOH7UDQVSRUWOD\HUSURWRFROV
2QFH ZH NQRZ ZKLFK QHWZRUN OD\HU 3URWRFRO 9DOXH 5)&
SURWRFROZDVXVHGWRURXWHRXUFDS ,QWHUQHW&RQWURO0HVVDJH3URWRFRO [ 5)&
WXUHG SDFNHW ZH KDYH WR ¿QG RXW ,&03
ZKLFK SURWRFRO FRPHV QH[W $VVXP
,QWHUQHW*URXS0DQDJHPHQW3URWRFRO [ 5)&
LQJ WKDW WKH FDSWXUHG SDFNHW KDV
,*03
DQ ,3 GDWDJUDP NQRZLQJ WKH QH[W
SURWRFRO LV HDV\ D TXLFN ORRN DW WKH 7UDQVPLVVLRQ&RQWURO3URWRFRO7&3 [ 5)&
SURWRFRO ¿HOG RI WKH ,3Y KHDGHU LQ ([WHULRU*DWHZD\3URWRFRO [ 5)&
,3Y LV FDOOHG QH[W KHDGHU ZLOO WHOO 8VHU'DWDJUDP3URWRFRO8'3 [ 5)&
XV 7DEOH  VXPPDUL]HV WKH PRVW ,3Y5RXWLQJ+HDGHU [% 5)&
FRPPRQ WUDQVSRUW OD\HU SURWRFROV
,3Y)UDJPHQW+HDGHU [& 5)&
WKHLU KH[DGHFLPDO YDOXH DQG WKH
5)& GRFXPHQW LQ ZKLFK WKH\ DUH ,&03IRU,3Y [$ 5)&

ZZZKDNLQRUJHQ KDNLQ 
 $WWDFN
EXW VQLIIHUV XVXDOO\ OLYH LQ KHOO 1HW
ZRUNVGRQRWDOZD\VFDUU\YDOLGSDFN
HWV6RPHWLPHVSDFNHWVPD\QRWEH
FUDIWHG DFFRUGLQJ WR WKH VWDQGDUGV
RU PD\ JHW FRUUXSWHG LQ WKHLU ZD\
7KHVH VLWXDWLRQV PXVW EH WDNHQ LQWR
DFFRXQWZKHQGHVLJQLQJDQDSSOLFD
WLRQWKDWKDQGOHVVQLIIHGWUDI¿F
7KH IDFW WKDW DQ HWKHUW\SH YDOXH
VD\V WKDW WKH QH[W KHDGHU LV RI W\SH
$53 GRHV QRW PHDQ ZH ZLOO DFWXDOO\
¿QGDQ$53KHDGHU,QWKHVDPHZD\
/LVWLQJ6LPSOH$53VQLIIHU

6LPSOH$536QLIIHU
 GHVFU SFDSBRSHQBOLYHDUJY>@0$;%<7(6&$3785(

7RFRPSLOHJFFDUSVQLIIHUFRDUSVQLIIOSFDS
ZH FDQQRW EOLQGO\ WUXVW WKH SURWRFRO
¿HOGRIDQ,3GDWDJUDPWRFRQWDLQWKH
FRUUHFWYDOXHIRUWKHIROORZLQJKHDGHU
1RWHYHQWKH¿HOGVWKDWVSHFLI\OHQJWKV
FDQ EH WUXVWHG ,I ZH ZDQW WR GHVLJQ
D SRZHUIXO SDFNHW DQDO\]HU DYRLGLQJ
VHJPHQWDWLRQ IDXOWV DQG KHDGDFKHV
HYHU\GHWDLOPXVWEHFKHFNHG
+HUHDUHDIHZWLSV ‡ &KHFN ,3 DQG 7&3 FKHFNVXPV
‡ &KHFN WKH ZKROH VL]H RI WKH UH
FHLYHG SDFNHW ,I IRU H[DPSOH
ZHDUHH[SHFWLQJDQ$53SDFNHW
RQDQ(WKHUQHWQHWZRUNSDFNHWV
ZLWK D OHQJWK GLIIHUHQW WKDQ  
  E\WHVVKRXOGEHGLVFDUG
HG)DLOLQJWRFKHFNWKHOHQJWKRI
D SDFNHW PD\ UHVXOW LQ D QRLV\
VHJPHQWDWLRQIDXOWZKHQWU\LQJWR
DFFHVVWKHUHFHLYHGGDWD
,I FKHFNVXPV DUH QRW YDOLG WKHQ
WKH GDWD FRQWDLQHG LQ WKH KHDG
HUV PD\ EH JDUEDJH +RZHYHU
 HUUEXI

5XQDVURRW


/RRNXSLQIRIURPWKHFDSWXUHGHYLFH

LQFOXGHSFDSK! SFDSBORRNXSQHWDUJY>@ QHWDGGU PDVNHUUEXI
LQFOXGHVWGOLEK!
LQFOXGHVWULQJK! 
&RPSLOHVWKH¿OWHUH[SUHVVLRQLQWRD%3)¿OWHU
SURJUDP


$53+HDGHUDVVXPLQJ(WKHUQHW,3Y
 SFDSBFRPSLOHGHVFU ¿OWHUDUSPDVN
GH¿QH$53B5(48(67
$535HTXHVW
 
GH¿QH$53B5(3/<
$535HSO\
 
/RDGWKH¿OWHUSURJUDPLQWRWKHSDFNHWFDSWXUH
W\SHGHIVWUXFWDUSKGU^ GHYLFH

XBLQWBWKW\SH
+DUGZDUH7\SH
 SFDSBVHW¿OWHUGHVFU ¿OWHU
XBLQWBWSW\SH
3URWRFRO7\SH

XBFKDUKOHQ
+DUGZDUH$GGUHVV/HQJWK
 ZKLOH^
XBFKDUSOHQ
3URWRFRO$GGUHVV/HQJWK
 
XBLQWBWRSHU
2SHUDWLRQ&RGH
 SDFNHW SFDSBQH[WGHVFU SNWKGU
*HWRQHSDFNHW
XBFKDUVKD>@
6HQGHUKDUGZDUHDGGUHVV


XBFKDUVSD>@
6HQGHU,3DGGUHVV
 DUSKHDGHU VWUXFWDUSKGU
SDFNHW
3RLQWWR
XBFKDUWKD>@
7DUJHWKDUGZDUHDGGUHVV
 WKH$53KHDGHU

XBFKDUWSD>@
7DUJHW,3DGGUHVV

`DUSKGUBW SULQWI?Q?Q5HFHLYHG3DFNHW6L]HGE\WHV?Q
SNWKGUOHQ
GH¿QH0$;%<7(6&$3785( SULQWI+DUGZDUHW\SHV?QQWRKVDUSKHDGHU
!KW\SH "(WKHUQHW
LQWPDLQLQWDUJFFKDU
DUJY>@^ 8QNQRZQ
SULQWI3URWRFROW\SHV?QQWRKVDUSKHDGHU
LQWL  !SW\SH [",3Y
ESIBXBLQWQHWDGGU PDVN 
7R6WRUHQHWZRUN 8QNQRZQ
DGGUHVVDQGQHWPDVN
 SULQWI2SHUDWLRQV?QQWRKVDUSKHDGHU!RSHU 
VWUXFWESIBSURJUDP¿OWHU
3ODFHWRVWRUHWKH $53B5(48(67"$535HTXHVW
%3)¿OWHUSURJUDP
 $535HSO\
FKDUHUUEXI>3&$3B(55%8)B6,=(@
(UURUEXIIHU 

 
,ILV(WKHUQHWDQG,3YSULQWSDFNHWFRQWHQWV

SFDSBW
GHVFU 18//
1HWZRUNLQWHUIDFH LIQWRKVDUSKHDGHU!KW\SH  QWRKVDUSKHDGHU
KDQGOHU
 !SW\SH [^
VWUXFWSFDSBSNWKGUSNWKGU
3DFNHWLQIRUPDWLRQ SULQWI6HQGHU0$&
WLPHVWDPSVL]H
 IRUL LLSULQWI;DUSKHDGHU!VKD>L@
FRQVWXQVLJQHGFKDU
SDFNHW 18//
5HFHLYHGUDZ SULQWI?Q6HQGHU,3
GDWD
 IRUL LLSULQWIGDUSKHDGHU!VSD>L@
DUSKGUBW
DUSKHDGHU 18//
3RLQWHUWRWKH$53 SULQWI?Q7DUJHW0$&
KHDGHU
 IRUL LLSULQWI;DUSKHDGHU!WKD>L@
PHPVHWHUUEXI3&$3B(55%8)B6,=( SULQWI?Q7DUJHW,3
IRUL LLSULQWIGDUSKHDGHU!WSD>L@
LIDUJF ^ SULQWI?Q
SULQWI86$*(DUSVQLIIHULQWHUIDFH!?Q `
H[LW `
` UHWXUQ

2SHQQHWZRUNGHYLFHIRUSDFNHWFDSWXUH
 `

 KDNLQ ZZZKDNLQRUJHQ

WKHIDFWWKDWFKHFNVXPVDUHFRU
UHFW GRHV QRW JXDUDQWHH WKDW WKH
SDFNHW FRQWDLQV YDOLG KHDGHU
YDOXHV
‡ &KHFNHQFRGLQJ+773RU6073
DUH WH[W RULHQWHG SURWRFROV ZKLOH
(WKHUQHWRU7&3,3XVHELQDU\IR
UPDW &KHFN ZKHWKHU \RX KDYH
ZKDW\RXH[SHFW
‡ $Q\GDWDH[WUDFWHGIURPDSDFNHW
IRUODWHUXVHVKRXOGEHYDOLGDWHG
)RU H[DPSOH ,I WKH SD\ORDG RI
D SDFNHW LV VXSSRVHG WR FRQWDLQ
/LVWLQJ7&3567$WWDFNWRRO

6LPSOH7&3567$WWDFNWRRO

DQ ,3 DGGUHVV FKHFNV VKRXOG
EHPDGHWRHQVXUHWKDWWKHGDWD
DFWXDOO\ UHSUHVHQWV D YDOLG ,3Y
DGGUHVV
)LOWHULQJ3DFNHWV
$VZHVDZEHIRUHWKHFDSWXUHSURF
HVV WDNHV SODFH LQ WKH NHUQHO ZKLOH
RXU DSSOLFDWLRQ UXQV DW XVHU OHYHO
:KHQWKHNHUQHOJHWVDSDFNHWIURP
WKH QHWZRUN LQWHUIDFH LW KDV WR FRS\
LW IURP NHUQHO VSDFH WR XVHU VSDFH
FRQVXPLQJ D VLJQL¿FDQW DPRXQW RI
FKDUHUUEXI>3&$3B(55%8)B6,=(@
3URJUDPPLQJZLWK/LESFDS
&38WLPH&DSWXULQJHYHU\WKLQJWKDW
ÀRZV SDVW WKH QHWZRUN FDUG FRXOG
HDVLO\ GHJUDGH WKH RYHUDOO SHUIRUP
DQFHRIRXUKRVWDQGFDXVHWKHNHU
QHOWRGURSSDFNHWV
,I ZH UHDOO\ QHHG WR FDSWXUH DOO
WUDI¿F WKHQ WKHUH LV OLWWOH ZH FDQ GR
WRRSWLPL]HWKHFDSWXUHSURFHVVEXW
LIZHDUHRQO\LQWHUHVWHGLQDVSHFL¿F
W\SHRISDFNHWVZHFDQWHOOWKHNHUQHO
WR¿OWHUWKHLQFRPLQJWUDI¿FVRZHMXVW
JHWDFRS\RIWKHSDFNHWVWKDWPDWFK
D ¿OWHU H[SUHVVLRQ 7KH SDUW RI WKH
 PHPVHWHUUEXI3&$3B(55%8)B6,=(

7RFRPSLOHJFFWFSBUHVHWWHUFRWFSUHVHWWHUOSFDS

 LIDUJF ^
SULQWI86$*(WFSV\QGRVLQWHUIDFH!?Q
GH¿QHBB86(B%6'
8VLQJ%6',3KHDGHU H[LW

 `
LQFOXGHQHWLQHWLSK!
,QWHUQHW3URWRFRO

 
2SHQQHWZRUNGHYLFHIRUSDFNHWFDSWXUH

GH¿QHBB)$925B%6'
8VLQJ%6'7&3KHDGHU GHVFU SFDSBRSHQBOLYHDUJY>@0$;%<7(6&$3785(

 HUUEXI
LQFOXGHQHWLQHWWFSK!
7UDQVPLVVLRQ&RQWURO
3URWRFRO
 
/RRNXSLQIRIURPWKHFDSWXUHGHYLFH

LQFOXGHSFDSK!
/LESFDS SFDSBORRNXSQHWDUJY>@ QHWDGGU PDVNHUUEXI


LQFOXGHVWULQJK!
6WULQJRSHUDWLRQV 
&RPSLOHVWKH¿OWHUH[SUHVVLRQ3DFNHWVZLWK$&.RU

 36+$&.ÀDJVVHW

LQFOXGHVWGOLEK!
6WDQGDUGOLEUDU\ SFDSBFRPSLOHGHVFU ¿OWHUWFS>@ [RU
GH¿QLWLRQV
 WFS>@ [PDVN

GH¿QH0$;%<7(6&$3785( 
/RDGWKH¿OWHUSURJUDPLQWRWKHSDFNHWFDSWXUH
GHYLFH

LQW7&3B567BVHQGWFSBVHTVHTWFSBVHTDFNXQVLJQHG SFDSBVHW¿OWHUGHVFU ¿OWHU
ORQJVUFBLS
XQVLJQHGORQJGVWBLSXBVKRUWVUFBSUWXBVKRUW ZKLOH^
GVWBSUWXBVKRUWZLQ^
SDFNHW SFDSBQH[WGHVFU SNWKGU

7KLVIXQFWLRQFUDIWVDFXVWRP7&3,3SDFNHWZLWKWKH
567ÀDJVHW LSKGU VWUXFWLS
SDFNHW
$VVXPLQJLV
DQGVHQGVLWWKURXJKDUDZVRFNHW&KHFN (WKHUQHW

KWWSZZZSURJUDPPLQJSFDSDOGDEDNQRFNLQJFRPIRU WFSKGU VWUXFWWFSKGU
SDFNHW
$VVXPLQJ
WKHIXOOH[DPSOH
 QR,3RSWLRQV

SULQWI?Q

>@
 SULQWI5HFHLYHG3DFNHWG?QFRXQW
SULQWI$&.X?QQWRKOWFSKGU!WKBDFN
UHWXUQ SULQWI6(4X?QQWRKOWFSKGU!WKBVHT
` SULQWI'67,3V?QLQHWBQWRDLSKGU!LSBGVW
SULQWI65&,3V?QLQHWBQWRDLSKGU!LSBVUF
LQWPDLQLQWDUJFFKDU
DUJY>@^ SULQWI65&3257G?QQWRKVWFSKGU!WKBVSRUW
SULQWI'673257G?QQWRKVWFSKGU!WKBGSRUW
LQWFRXQW  SULQWI?Q
ESIBXBLQWQHWDGGU PDVN 
SFDSBW
GHVFU 18// 7&3B567BVHQGWFSKGU!WKBDFNLSKGU!LSBGVWVBDGGU
VWUXFWESIBSURJUDP¿OWHU LSKGU!LSBVUFVBDGGUWFSKGU!WKBGSRUW
VWUXFWLS
LSKGU 18// WFSKGU!WKBVSRUW
VWUXFWWFSKGU
WFSKGU 18// `
VWUXFWSFDSBSNWKGUSNWKGU UHWXUQ
FRQVWXQVLJQHGFKDU
SDFNHW 18// `

ZZZKDNLQRUJHQ KDNLQ 
 $WWDFN

NHUQHOWKDWSURYLGHVWKLVIXQFWLRQDOLW\
LVWKHV\VWHP
VSDFNHW¿OWHU $ERXWWKH$XWKRU
$SDFNHW¿OWHULVEDVLFDOO\DXVHU /XLV0DUWLQ*DUFLDLVDJUDGXDWHLQ&RPSXWHU6FLHQFHIURPWKH8QLYHUVLW\RI6DODPDQ
GH¿QHG URXWLQH WKDW LV FDOOHG E\ WKH FD6SDLQDQGLVFXUUHQWO\SXUVXLQJKLV0DVWHU
VGHJUHHLQ,QIRUPDWLRQ6HFXULW\+HLV
QHWZRUNFDUGGULYHUIRUHYHU\SDFNHW DOVRWKHFUHDWRURI$OGDEDDQRSHQVRXUFH3RUW.QRFNLQJDQG6LQJOH3DFNHW$XWKRUL]D
WKDW LW JHWV ,I WKH URXWLQH YDOLGDWHV WLRQV\VWHPIRU*18/LQX[DYDLODEOHDWKWWSZZZDOGDEDNQRFNLQJFRP
WKHSDFNHWLWLVGHOLYHUHGWRRXUDS
SOLFDWLRQRWKHUZLVHLWLVRQO\SDVVHG
WR WKH SURWRFRO VWDFN IRU WKH XVXDO
SURFHVVLQJ 2QWKHµ1HW
(YHU\ RSHUDWLQJ V\VWHP LPSOH
‡ KWWSZZZWFSGXPSRUJ±WFSGXPSDQGOLESFDSRI¿FLDOVLWH
PHQWVLWVRZQSDFNHW¿OWHULQJPHFKD ‡ KWWSZZZVWHDUQVRUJGRFSFDSDSSVKWPO±OLVWRIWRROVEDVHGRQOLESFDS
QLVPV +RZHYHU PDQ\ RI WKHP DUH ‡ KWWSIWSJQXPRQNVRUJSXEGRFSDFNHWMRXUQH\KWPO±WKHMRXUQH\RIDSDFNHW
EDVHGRQWKHVDPHDUFKLWHFWXUHWKH WKURXJKWKH/LQX[QHWZRUNVWDFN
%6' 3DFNHW )LOWHU RU %3) /LESFDS ‡ KWWSZZZWFSGXPSRUJSDSHUVESIXVHQL[SGI ± SDSHU DERXW WKH %3) ¿OWHU
SURYLGHV FRPSOHWH VXSSRUW IRU %3) ZULWWHQE\WKHRULJLQDODXWKRUVRIOLESFDS
EDVHG SDFNHW ¿OWHUV 7KLV LQFOXGHV ‡ KWWSZZZFVXFUHGXaPDULRVHWKHUHDOWFSGXPSSGI±DWXWRULDORQOLESFDS¿OWHU
SODWIRUPV OLNH
%6' $,; 7UX H[SUHVVLRQV
0DF 26 RU /LQX[ 2Q V\VWHPV WKDW
GR QRW DFFHSW %3) ¿OWHUV OLESFDS LV
QRWDEOHWRSURYLGHNHUQHOOHYHO¿OWHU SDFNHWVZLWKWKH6<1ÀDJVHWDQG FKDU
GHYLFHESI B X B LQW
QHWS
LQJEXWLWLVVWLOOFDSDEOHRIVHOHFWLQJ ZKRVH GHVWLQDWLRQ SRUW LV HLWKHU ESI B X B LQW
PDVNSFKDU
HUUEXI
WUDI¿F E\ UHDGLQJ DOO WKH SDFNHWV RU ZLOOGRLWIRUXV
DQG HYDOXDWLQJ WKH %3) ¿OWHUV LQ ‡ LFPS>LFPSW\SH@ LFPSHFKRUHSO\ 2QFH ZH KDYH D FRPSLOHG %3)
XVHUVSDFH LQVLGH WKH OLEUDU\ 7KLV RU LFPS>LFPSW\SH@  LFPSHFKR SURJUDP ZH KDYH WR LQVHUW LW LQWR
LQYROYHVFRQVLGHUDEOHFRPSXWDWLRQDO UHWXUQV ,&03 SLQJ UHTXHVWV DQG WKH NHUQHO FDOOLQJ WKH IXQFWLRQ LQW
RYHUKHDGEXWLWSURYLGHVXQPDWFKHG UHSOLHV SFDS B VHW¿OWHUSFDS B W
S VWUXFW
SRUWDELOLW\ ‡ HWKHU GVW HFH ESI B SURJUDP
IS ,I HYHU\WKLQJ
UHWXUQV (WKHUQHW IUDPHV ZKRVH JRHV ZHOO ZH FDQ FDOO SFDS B ORRS
6HWWLQJD)LOWHU GHVWLQDWLRQ0$&DGGUHVVPDWFK RU SFDS B QH[W DQG VWDUW JUDE
6HWWLQJD¿OWHULQYROYHVWKUHHVWHSV HVHFH ELQJ SDFNHWV /LVWLQJ  VKRZV DQ
FRQVWUXFWLQJ WKH ¿OWHU H[SUHVVLRQ ‡ LS>@  UHWXUQV SDFNHWV ZKRVH H[DPSOH RI D VLPSOH DSSOLFDWLRQ
FRPSLOLQJ WKH H[SUHVVLRQ LQWR D ,377/YDOXHHTXDOV WKDW FDSWXUHV $53 WUDI¿F /LVWLQJ
%3) SURJUDP DQG ¿QDOO\ DSSO\LQJ  VKRZV D ELW PRUH DGYDQFHG WRRO
WKH¿OWHU 2QFH ZH KDYH WKH ¿OWHU H[SUHVVLRQ WKDW OLVWHQV IRU 7&3 SDFNHWV ZLWK
%3) SURJUDPV DUH ZULWWHQ LQ D ZH KDYH WR WUDQVODWH LW LQWR VRPH WKH$&.RU36+$&.ÀDJVVHWDQG
VSHFLDOODQJXDJHVLPLODUWRDVVHP WKLQJ WKH NHUQHO FDQ XQGHUVWDQG UHVHWVWKHFRQQHFWLRQUHVXOWLQJLQD
EO\+RZHYHUOLESFDSDQGWFSGXPS D %3) SURJUDP 7KH IXQFWLRQ LQW GHQLDORIVHUYLFHIRUHYHU\RQHLQWKH
LPSOHPHQW D KLJK OHYHO ODQJXDJH SFDS B FRPSLOHSFDS B W
S VWUXFW QHWZRUN (UURU FKHFNV DQG VRPH
WKDWOHWVXVGH¿QH¿OWHUVLQDPXFK ESI B SURJUDP
IS FKDU
VWU LQW SRUWLRQV RI FRGH KDYH EHHQ RPLW
HDVLHU ZD\ 7KH VSHFL¿F V\QWD[ RI RSWLPL]H ESI B X B LQW QHWPDVN  WHG IRU FODULW\ )XOO H[DPSOHV FDQ
WKLV ODQJXDJH LV RXW RI WKH VFRSH FRPSLOHV WKH ¿OWHU H[SUHVVLRQ EH IRXQG LQ KWWSSURJUDPPLQJ
RIWKLVDUWLFOH7KHIXOOVSHFL¿FDWLRQ SRLQWHG E\ VWU LQWR %3) FRGH 7KH SFDSDOGDEDNQRFNLQJFRP
FDQ EH IRXQG LQ WKH PDQXDO SDJH DUJXPHQW ISLVDSRLQWHUWRDVWUXF
IRU WFSGXPS +HUH DUH VRPH H[ WXUHRIW\SHVWUXFW ESI B SURJUDPWKDW &RQFOXVLRQ
DPSOHV ZHVKRXOGGHFODUHEHIRUHWKHFDOOWR ,Q WKLV DUWLFOH ZH KDYH H[SORUHG WKH
‡ VUF KRVW  UHWXUQV
SDFNHWV ZKRVH VRXUFH ,3 DG
GUHVVLV
‡ GVW SRUW  UHWXUQV SDFNHWV
ZKRVH7&38'3GHVWLQDWLRQSRUW
LV
SFDS B FRPSLOH 7KH RSWLPL]H ÀDJ
FRQWUROV ZKHWKHU WKH ¿OWHU SURJUDP
VKRXOG EH RSWLPL]HG IRU HI¿FLHQF\
RUQRW7KHODVWDUJXPHQWLVWKHQHW
PDVNRIWKHQHWZRUNRQZKLFKSDFN
HWVZLOOEHFDSWXUHG8QOHVVZHZDQW
WRWHVWIRUEURDGFDVWDGGUHVVHVWKH
EDVLFVRISDFNHWFDSWXUHDQGOHDUQHG
KRZ WR LPSOHPHQW VLPSOH VQLI¿QJ
DSSOLFDWLRQV XVLQJ WKH SFDS OLEUDU\
+RZHYHU OLESFDS RIIHUV DGGLWLRQDO
IXQFWLRQDOLW\ WKDW KDV QRW EHHQ FRY
HUHGKHUHGXPSLQJSDFNHWVWRFDS
WXUH ¿OHV LQMHFWLQJ SDFNHWV JHWWLQJ
‡ QRW WFS 5HWXUQV DQ\ SDFNHW WKDW QHWPDVN SDUDPHWHU FDQ EH VDIHO\ VWDWLVWLFV HWF )XOO GRFXPHQWDWLRQ
GRHVQRWXVHWKH7&3SURWRFRO VHWWR]HUR+RZHYHULIZHQHHGWR DQG VRPH WXWRULDOV FDQ EH IRXQG LQ
‡ WFS>@  [ DQG GVW SRUW GHWHUPLQH WKH QHWZRUN PDVN WKH WKH SFDS PDQ SDJH RU DW WFSGXPS
V
 RU GVW SRUW UHWXUQV7&3 IXQFWLRQ LQW SFDS B ORRNXSQHWFRQVW RI¿FLDOVLWHz

 KDNLQ ZZZKDNLQRUJHQ