Omgeo’s Role in the US and Global Settlement Landscapes Marianne Brown, Omgeo 8 October, 2007

Agenda Who is Omgeo? An Institutional Trade Omgeo and the Institutional US Tradeflow Measuring Success

Who is Omgeo? Leading provider of post-trade, pre-settlement automated services and products to Investment Managers (“IMs”), Broker- Dealers (“BDs”) and Custodians Global joint venture between DTCC and The Thomson Corporation’s post-trade, pre-settlement businesses. Established in May 2001 Over 6,000 clients in 44 countries Process 1.5 million trades a day globally Manage settlement information on over 4.8M accounts 15 office locations globally 500+ Employees

Who is Omgeo? Governance DTCC and Thomson Financial are 50/50 joint owners As the regulated entity, DTCC maintains control over any matters related to US regulated aspects of Omgeo Omgeo’s industry controlled Board of Managers: Has 7 of 11 voting Managers from industry (e.g., Merrill Lynch, Morgan Stanley, Northern Trust Company) Plays vital role in ongoing governance and industry oversight Represents interests of clients in decisions about strategy and operations

Who is Omgeo? Governance Board Of Managers: 1.Rick Macek, Chairman - DTCC representative 2.Michael Bodson, DTCC representative 3.Sharon Rowlands, TF representative 4.Jim Toffey, TF representative 5.Taylor Bodman, Brown Brothers Harriman 6.John Devine, Merrill Lynch 7.Marianne Doan, Northern Trust 8.Robert Gartland, Morgan Stanley 9.Robert Kaplan, State Street Corporation 10.JP Marson, BNP Paribas 11.Marcus Ruetimann, Schroeder Investment Trust 12.Marianne Brown, Omgeo (CEO) - Non-voting member

6 Who is Omgeo? Where We Fit in the Institutional Trade Lifecycle Pre-Trade Order Processing Trading Post-ExecutionOperations Settlement Notice of Execution Notice of Execution Trade Allocation Trade Allocation Trade Acceptance Trade Acceptance Trade Confirmation Trade Confirmation Trade Affirmation Trade Affirmation Bank Notification Bank Notification Omgeo

Investment Manager Broker/Dealer Custodian Depository (DTC) Purchasing Investor Investment Manager Buy Order Buying Broker Exchange or OTC Pre-Trade Post-Execution Settlement Omgeo OASYS Omgeo ALERT Omgeo TradeMatch and TradeSuite Investment Manager sends trade block (total) and allocation details Broker/Dealer accepts trade block and allocation details OASYS sends trade blocks and allocation details to TradeMatch 3 Broker sends data to TradeSuite to create confirm 4 TradeMatch compares OASYS allocation to TradeSuite confirmations 5 Matched or matched affirmed confirmations distributed to all parties of a trade For DTC-eligible securities, trade information is sent from Omgeo to DTC; settlement of DTC-eligible trades, including transfer of cash and securities, occurs at DTC Omgeo and the Institutional US Trade Flow Notice of Execution

Measuring Success With the Omgeo TradeSuite/DTCC model: Affirmed trades are 75 times less likely to be reclaimed than unaffirmed trades 91% of trades are settled by noon on T+2 –This allows a full day to reconcile trades, detect any errors, failures, etc. –Other methods often don’t reach DTCC until T+3 – less time rectify any errors/trade fails –Failed trades cost institutions 250 USD per domestic trade and 535 USD per cross-border trade Trades are sent to DTCC in real-time: better business continuity, greater efficiency, lower costs Since Omgeo’s inception, volumes through TradeSuite have doubled, but affirmation rates remain constant