Instinet Chi-X – An Overview The first order driven pan-European MTF

2 2 Instinet, Providing Innovative Trading Solutions for More Than 30 Years 1969 Instinet Founded ‘Institutional Networks’ founded. Instinet launches first electronic block-trading capability 1980 Direct Market Access Introduces PSE Scorex – first DMA to U.S. exchanges 1986 Equities Block Crossing Network Instinet establishes after-hours equities crossing networks 1988 Instinet Comes To Europe Takes electronic agency execution global 1993 Order Management System Instinet develops OMS, one of the first order management systems 1994 Market-pegging – The First Algorithms Instinet offers the first advanced order types, starting with market-pegging 1997 First ECN Instinet becomes the first recognised ECN under SEC order handling rules 2003 Business Split, BrokerShare, CBX Separates sell-side ECN from buy-side brokerage. Invents BrokerShare – the pre-cursor to commission sharing. Launches CBX, institutional block market 2005 Silver Lake Partners SLP buys Instinet brokerage. NASDAQ acquires Inet ATS 2006 Instinet Europe Launches New Products Instinet launches Chi-X, a pan-European ATS and Instinet Block Match 2007 Instinet Acquired by Nomura Instinet bought by Japanese Investment Bank, Nomura

3 The first order driven pan-European MTF 3 Our Core Principles  We trade only on behalf of our customers – a pure agency broker  We provide unbiased, transparent and efficient brokerage services – traditional and electronic  We are committed to delivering best execution for our customers  We use our electronic trading expertise to lower execution costs by developing better ways to trade Instinet pioneered electronic trading and we are the largest global agency broker We have a unique combination of the best traders and the best technology which work for you, not against you

4 The first order driven pan-European MTF 4 Developing Tools to Cope with Dramatic Change

5 The first order driven pan-European MTF 5 6 Regulatory Hurdles FSA needed to rule on outstanding policy issues – January 2006 HM Treasury approval for SDRT – February 2006 ISO-Swift needed to issue us with a MIC – CHIX – March 2006 Crest needed to establish a TSO designation: Flag ‘N’ – May 2006 LSE needed to admit Instinet Chi-X to the list of approved ATSs allowing LSE members to deal with us – May 2006 License application approved by FSA – June 2006 

6 The first order driven pan-European MTF 6 Increase in Competition will Change the Dynamics of Trading

7 The first order driven pan-European MTF 7 Key Benefits Of Chi-X High speed – Over 10 times faster than major European exchange order driven systems Low cost – At least 90% cheaper than trading on major European markets Standardised connectivity – FIX 4.2 Liquidity provision model from high volume trading houses to ensure flow Natural liquidity of Instinet and other brokers who can smart route to Chi-X as part of a MiFID compliant best execution policy Instinet has been a pioneer of electronic trading services having built a number of ATSs before

8 The first order driven pan-European MTF 8 Speed: Roundtrip Latency By Venue April 2007 Trading Venue Average Latency (milliseconds) Chi-X2 Deutsche Börse Xetra60 Euronext85 OMX137 Borsa Italiana174 LSE SETS191 SWX284 virt-x291 Source: Instinet Europe Exchange Linkages

9 The first order driven pan-European MTF 9 Speed: Trading System Capacity Chi-X is built on scaleable low cost hardware enabling increases in current capacity quickly and easily at low cost No throttle, ‘brown out’ or other restrictions to access or indeed costs to access Trading Venue Core cash equity system order flow capacity (messages per second) Instinet Chi-X*10,000 London Stock Exchange**600 virt-x***65 Source: *Chi-X internal performance benchmarking statistics ** London Stock Exchange *** virt-x

10 The first order driven pan-European MTF 10 Trading Tariff Trading fees on Chi-X for execution will be: – 0.20bps rebate for passive execution – 0.30bps charge for aggressive execution Trade reporting charges are £210 pcm Market data: no charge

11 The first order driven pan-European MTF 11 Market Data Costs Chi-X Market Data is non fee liable with no license fees The following market data costs apply for members of each exchange for domestic data. All charges are in local exchange currency. Trading Venue License Fee (per annum) Per workstation per annum fee for level 2 data Instinet Chi-X£0 Euronext€ 36,750€ 696 Deutsche Börse Xetra€ 32,400€ 816 London Stock Exchange£66,000£1,260 Source: Exchange websites

12 The first order driven pan-European MTF 12 Trade Reporting Costs Trade reporting off exchange trades to each trading venue: Trading Venue Reporting costs Monthly fee Reporting costs per trade report Instinet Chi-X£210£0 London Stock ExchangeN/A£2.75* virt-x £2,100 min activity charge £0.10** *Maximum charge **High Volume Service Chi-X will allow systematic internalisers to use trade reporting services to meet their MiFID Article 28 post trade disclosure requirements

13 The first order driven pan-European MTF 13 Trading Costs: Chi-X ‘vs’ Exchanges Trading VenueTrading Costs (bps) Instinet Chi-X0.05* London Stock Exchange0.51* Deutsche Börse Xetra0.57* Euronext Paris0.50* * based on a passive/aggressive execution ratio of 50:50. Source: Instinet Europe internal statistics based on average daily DMA trades, volume and consideration.

14 The first order driven pan-European MTF 14 Basis Points Savings On Chi-X Date % of Trade between the spread Improvement (BPS) 02 May % May % May %1.08 Weekly Average May % May % May % May % May %1.58 Weekly Average May % May % May % May % May %1.70 Weekly Average 1.80

15 The first order driven pan-European MTF 15 Trading Trend Analysis Source: Instinet Europe Exchange Linkages

16 The first order driven pan-European MTF 16 Trading Activity

17 The first order driven pan-European MTF 17 Trading Functionality A venue for professional investors to trade pan-European equities Chi-X takes into account functionality of the local market with additional functional enhancements Trading hours of 07:35 – 17:35 CET Chi-X is a pan-European Central Limited Order Book Non-matching orders may be added to the Chi-X Central Limit Order Book, a database of available limit orders, where they wait to be matched in price- time priority All Chi-X orders are anonymous on the order book Market monitoring based on dynamic price range checking, capitalisation per order checking and percentage of volume checks An Clearly Erroneous Trades policy protects participants All Chi-X orders are valid for the day by default with unexecuted open orders automatically cancelled at the end of the trading day

18 The first order driven pan-European MTF 18 Clearing & Settlement An open market model. Trading access rights uncoupled from clearing and settlement Dedicated solution for wholesale cash equity financial markets Focus on an efficient, maximum STP / minimum touch solution Use of domestic CSDs An interoperable solution respecting the interests and trade flows of the wholesale market participants

19 The first order driven pan-European MTF 19 Domestic CSD Domestic CSD Settlement Participant Settlement Participant Trading Participant Trading Participant Market Model Trading Participant Clearing Participant Trading Participant Domestic CSD Settlement Agent Settlement Participant Trading Participant Clearing Participant Settlement Agent Structure Relationships Every Trading Participant requires a Clearing Participant (GCM equivalent) to guarantee trades / credit risk Every Clearing Participant will need to execute a Clearing Service Agreement Every Clearing Participant will need to have a Settlement Agent at the domestic CSD Clearing Settlement Trading MTF Clearing Participant MCF Clearing Participant Multilateral Clearing Facility

20 The first order driven pan-European MTF 20 Early Results From Chi-X Launching Chi-X is a process, not an event Trading highlights –Royal Dutch Shell A - 25/04/07 – 1.96% of total volume –BASF - 07/05/07 – 4.27% of total volume –Hanson – 18/05/07 – 4.17% of total volume Since 30 th March, Chi-X has traded a total volume of 83 million shares with 68,538 executions and a total consideration of over 1 billion Euros

21 The first order driven pan-European MTF 21 Next Steps UK stocks go live Q2 French, Belgium, Swiss and Scandinavian securities are scheduled to go live Q4 –N/B -These markets represent 79% of trading activity on a pan-European basis by turnover New website Physical separation from Instinet Europe Limited Source: Federation of European Stock Exchanges

22 The first order driven pan-European MTF 22 Additional Information To learn more about the Chi-X value proposition, please contact: Peter Randall F.S.I.Director +44 (0) Hirander MisraDirector & Product Development +44 (0) Scott RileyDirector & Operations +44 (0) Graham DickDirector, European Business Development +33 (1) Websitewww.chi-x.comwww.chi-x.com

23 The first order driven pan-European MTF 23 ©2007 Instinet, LLC. All rights reserved. INSTINET is a registered mark in the United States. Approved for distribution in Europe by Instinet Chi-X Limited which is authorised and regulated by the Financial Services Authority. Instinet, LLC, member NASD/SIPC. Instinet Europe Limited is a subsidiary of Instinet Incorporated. This information is provided for informational purposes only. It does not take into account the particular investment objectives, financial situation, or needs of any individual or entity. Under no circumstances is it to be used or considered as an offer to purchase or sell any security, or as a solicitation or recommendation of the purchase, sale, or offer to purchase or sell any security. While the information has been obtained from sources deemed reliable, neither Instinet nor its licensors, nor any other party through whom the user obtains any such information: (i) makes any guarantees that it is accurate, complete, timely, or contains correct sequencing of information; (ii) makes any warranties with regard to the results obtained from its use; or (iii) shall have any liability for any claims, losses, or damages arising from or occasioned by any inaccuracy, error, delay, or omission, or from the use of the information or actions taken in reliance on the information. Reproduction or redistribution of this information is prohibited except with written permission from Instinet. System response times may vary for a number of reasons including market conditions, trading volumes and system performance