Putting STP Theory into STP Practice Introductions Agenda

Putting STP Theory into STP Practice

Introductions & Agenda n Agenda — Overview — Q&A

Introduction n FMCNet is a real-time, single system solution for the communication of trade information between — Investment Managers — Brokers — Custodians n Broker allocations, confirms, matching and delivery of settlement instructions across multiple instrument types n FMCNet is an ASP service that provides: — Automated ETC, Local and Central Matching — Integrated SSI Database — Industry standard formats, XML and ISO 15022 — Integrated middleware, translations and format transformations — Supports trade & settlement (Omnibus) blocks

Hosted STP Infrastructure NOE Manager FIX Allocations NOE Allocations Confirm Broker Confirm ETC, Local & Central - Match Swift Interested parties Pre and post match advice FMCNet Other networks or media e. g. fax Delivery Instruction Data Base Settlement advice Custodian Affirm Match Trade. Suite & MISYS

The Services You Need minus the Complexity Non-Sequential Trade Flow NOE Manager FIX Allocations NOE Allocations Confirm Broker Confirm Transformation Layer Swift Interested parties Pre and post match advice Settlement advice Custodian FMCNet Services Matching SSI Rules Other networks or media e. g. fax Affirm Match Trade. Suite & MISYS

Instruments Processed (include) Equity Bonds • MBS Notes Options n. Common n. Preferred n. Convertible Pref n. Unit n. Convertible n. Interconvertible n. Common n. Sinking Fund n. Extendible / Retractable n. Convertible n. Perpetual n. Pass Through Cert n. Level Principal Interest n. Callable n. Single Coupon, etc n. Residue Only n. Gilts n. Step n. Serial n. Floating Rate n. Index Part of Equity n. Swap n. Floating Part of Equity n. Swap Notional n. Payment in Kind n. Fixed Rate n. Adjustable Rate n. Interest onlyn. Principal & Notional n. Principal Only Strip n. Graduated ABS n. Interest Bearing n. Term Deposit n. Cert of Deposit n. SWAP Deposit n. Municipal Note n. Discount Loan n. Provisional T Bill n. Treasury Bill n. Disc Commercial n. Paper n. Disc Promisory n. Bearer Depository n. Banker’s Acceptance n. Short-term Inv Fund n. Call Loan n. Call & Puts for: n. Commodities n. Futures n. Bonds n. Currency n. American n. European n. Eligible Bills n. Forward Rate n. Agreement n. Floating Rate n. Agreement n. FX: n. Same Day n. Next Day n. Spot n. Forward n. Curr Swaps FX / Deal n. Asset-Backed Sec n. Accrual Bond n. Principal Only Strip n. Interest Only n(Notional & Principal) n. Value n. Price n. Average n. Level Principal n. Interest CMO • Mortgage Index

FMCNet – SSI Database (DIDB) — Dynamic enrichment of trades with counterparty SSIs — Fully integrated and free of charge — Counterpart settlement instructions easily maintained in a single location — Fully structured and ISO 15022 compliant — Comprehensive on-line help

– SSI Database (DIDB)

The Need to Harmonize Standards NOE Manager Allocations Confirm • FIX 4. 0 -4. 4 • ISO 15022 Local - • Proprietary • Flat Interested parties Pre and post match advice file • XML Custodian NOE Delivery Instruction Data Base Match Confirm • FIX 4. 0 -4. 4 • ISO 15022 - Central • Proprietary SWIFT • Flat file FMCNet • Match Settlement advice Broker Allocations FMCNet Middleware Affirm Other XMLnetworks or media e. g. fax DTC* & MISYS

Single global post-trade solution n n Greater instrument & SSI support Fully integrated solution — n Enterprise wide processing from a single business unit — n Single development effort Business & user segregation Single ‘pipe’ from block to Custodians, sub custodians and interested parties —FMCNet moving into the pre-trade space

Ease & Speed of Deployment n n Rapid integration through FMCNet middleware ASP web-hosted solution Global implementation with no hardware or software requirements — Leverage of existing infrastructure — n n Single global business unit Limited client IT resource requirements Proven FMC implementation experience Web training

Aggregation for Omnibus Trading n Trade & Settlement Blocks for program / trust / bulk / omnibus trading Reduction – confirmation volumes — Reduction – depository & settlement costs — Reduction – FMCNet message costs — Reduction – investment manager costs — 37% of 810, 000 trades per day in USA

Flexible Web-Based Reporting n Customized intra-day & inter-active reporting system that is flexible, easy to use & affordable. — Settlement Reporting — Billing Reconciliation — Affirmation Analysis — Commission Reporting — Archive Confirm Records

Greater Flexibility n FMCNet is a non-prescriptive solution that supports the requirements of each individual client ETC, Local or central matching (by market, by counterpart, by instrument type – ‘mix & match’) — User and market defined matching tolerances — Preferred client data formats / standards — Single or multiple business units —

Paying For Post-Trade ETC and ETS Services Today KIT Hardware Middleware Software upgrades IT Network CEO / CTO / CFO OPS Typical costs Transaction costs IT Support License fees Annual / monthly SSI base fee database Other IT project resource BCP Time

Not Paying For With Post-Trade Services Tomorrow By outsourcing the IT process to ASP, you outsource the pain ! KIT Hardware Middleware Network IT Support Software upgrades IT CEO / CTO / CFO OPS Typical costs Typical cost SAVINGS Transaction costs License fees Annual / monthly SSI base fee database Other IT project resource BCP Time

FMCNet Contact Info · Jose Manso · · Vice President, FMCNet, USA +1 (646) 213 -7178 (office) +1 (917) 658 -1131 (mobile) jmanso@fmco. com · Website: www. ssctech. com