FPL Americas Regional Quarterly Wednesday, April 20 th , 2005

1. FPL Americas Regional Quarterly Wednesday, April 20th, 2005 Hosted by: Banc of America Securities

2. Agenda • Welcome • FPL Membership Update • Global Steering Committee   • Education & Marketing Subcommittee  • Business Practices Subcommittee • Technical Subcommittee • Global Fixed Income Committee • Global Derivatives Committee • Foreign Exchange Working Group • Executive Director Update • “Reg NMS and the Trade Through Rule - Are we heading in the right direction?“ • Guest Speaker – Robert A. Schwartz

3. Welcome Christian Hauff – Banc of America Securities

4. FPL Membership Update John Goeller – Lehman Brothers Martin Koopman – Cameron Systems FPL Americas Committee Co-Chairs

5. Update on FPL Organizational Growth • Total Member Firms = 141 • New members since last quarterly meeting: • Peresys • Baxter Financial Services Ltd. • EXTOL • Accenture Services Ltd. • Liontrust Investment Services Limited • Upgraded to premier membership since last meeting: • HSBC • Banc of America Securities

6. Premier Members MacGregor Merrill Lynch Morgan Stanley NYFIX/Javelin Technologies Omgeo Radianz Reuters Royal Blue State Street Global Markets SUN Microsystems SWIFT Thomson Financial Transaction Network Services UBS Investment Bank Ullink Banc of America Securities Barclays Capital Bloomberg Cameron Systems Chicago Mercantile Exchange Citigroup Global Markets Inc. CSFB Deutsche Securities EBS Dealing Resources Fidelity Investments GL Trade Goldman Sachs HSBC Instinet JP Morgan Securities Lehman Brothers Note: Data as of April 19th, 2005

7. FPL Members Daiwa SB Investments Daiwa Securities Group Inc. DCE Consultants Ltd. Deutsche Asset Management Doherty IT Consultants Dresdner Kleinwort Wasserstein DST International eClientscope E*TRADE Group Euronext·Liffe Eze Castle Software EZX EXTOL F&C Management Ltd Fidelity Capital Markets Fimat Financial Fusion Financial Models Company Inc. FIX CITY FIX Express Corp FIXML Flyer Flextrade 4th Story Franklin Templeton Investments Fxall Gartmore Investment Management Greenline Financial Technologies Hitachi HypoVereins Bank AG i-deal LLC Implementation Solutions ING International Securities Exchange Investec Securities ITG JF Asset Management Jordan & Jordan Knight Securities KnowSTP KSoft Systems Limited LatentZero Linedata Services Liontrust Investment Services Limited London Stock Exchange Macdonald Associates Ltd. Market Axess Marshak Associates West Massachusetts Financial Services MEFF Microsoft Morgan Stanley Investment Management Nasdaq Stock Market NET2S Group New York Stock Exchange Nikko Asset Management Nomura Asset Management ABN Amro Accenture Services Limited Actuare Software Aegis Alliance Capital AlotSoft American Century Apt Archipelago Exchange AXA Rosenburg B2BITS Baillie Gifford Barclays Stockbrokers Baring Asset Management Baxter Financial Services Limited Bear Stearns Brook Path Partners Calyon Financial Capital Group Cazenove CBOE CBOT Charles River Development CLSA Limited Commerzbank Securities Communicator Northern Trust NYMEX Objective Concepts, LLC Options Clearing Corporation (OCC) Patsystems Peresys Pivot Solutions Portware Pragma Financial Systems Putnam Investments QUICK Rapid Addition Ltd. Shanghai Stock Exchange SimCorp SmartStream Spryware SunGard Svenska Handelsbanken AB Syntegra The Sumitomo Trust & Banking Co., Ltd Townsend Analytics TradeWeb Trading Technologies TransactTools, Inc. UNX Virt-x Worldwide Business Research

8. 2005 FPL Membership by Firm Type Note: Data as of April 19th, 2005

9. FPL Global Steering Committee Update John Goeller – Lehman Brothers Martin Koopman – Cameron Systems FPL Americas Committee Co-Chairs

10. Recent Activities • Welcomed Chris Pickles of Radianz to the Global Steering Committee as Global Education & Marketing co-chair • Completed the legal restructuring exercise and process of implementing it. • Convened a meeting onsite of the GSC and FPL Directors to discuss strategy. • Announced first meeting of MiFID Joint Working Group to be held on Tues 3rd May in London.

11. Next Steps • To follow-up on action items addressed during recent strategy session. • The schedule of Quarterly meetings around the world has been coordinated so FPL leadership can travel around the world and attend various events – this will begin in July. • Goals for 2005 include: • Support and enhance FPL’s education and marketing efforts promoting the use and increase the penetration of the FIX Protocol • Expand the product and functionality supported by the FIX Protocol • Improve the effectiveness of FPL’s working parties • Enhance FPL’s operational efficiency • Develop an effective strategy for coordination activities with other industry standards bodies, industry associations, and regulatory bodies • Establish proper and effective legal protection for the FIX Protocol and FPL • Establish non-membership sources of revenue to help fund FPL’s operations as a non-profit, user-led standards organization

12. FPL Americas Education & Marketing Subcommittee Update Ross Hutcheon – UBS Investment Bank Bill Hebert – Fidelity Capital Markets FPL Americas Education & Marketing Subcommittee Co-Chairs

13. Recent Activities • FIXGlobal Issue # 5 released and distributed • Global Survey content completed - pending coding, distribution and analysis • FPL Booth for conferences finalized • FPL representation on FIX panel discussion at 1st TradeTech USA Conference, April 6

14. Next Steps • FIXGlobal Issue # 6 in planning stages – proposed theme “Evolving Market / Exchange Structure and Impact of Electronic Trading” • Finalize details for completion of global survey • 1st FPL Canadian Conference on track for June 7 – currently confirming speakers • 2nd FPL U.S. Conference in planning stages for November 2005

15. FPL Americas Business Practices Subcommittee Update Greg Arnold – Lehman Brothers FPL Americas Business Practices Subcommittee Co-Chair

16. Recent Activities • REG SHO follow-up meeting in January, 2005 • The meeting went over what sell-side firms and OMS vendors were doing to become compliant regulation SHO. • Most OMS vendors felt they would be compliant by the end of the 2nd quarter. • The sell-side would continue to have SLA’s in place until they were compliant. • Erick Valdes resigned as co-chairman of the Business Practices Subcommittee. • Due to Erick’s new responsibilities he was unsure if he would have the time to be fully involved in the Business Practices Committee, as he has in the past, so he felt it was best to resign. • Erick will continue to participate and add value as he always has. I would like to thank Erick for all of his time and effort over the years to the FPL organization.

17. Next Steps • IPO Allocation Working Group • Nicole Goudey-Rigger will be scheduling a meeting in the coming months to kick-off the IPO Allocation Working Group. • Reg SHO Buyside Follow-up Meeting • The previous two Reg SHO meeting have consisted of mostly sell-side firms and OMS vendors. This follow-up, which will be conducted in the beginning of May, will try to get greater participation from the buy-side, as well as, receive an update from previous participants on where they are with being compliant with the regulation.

18. FPL Americas Technical Subcommittee Update Ryan Pierce – Townsend Analytics FPL Americas Technical Subcommittee Chair

19. Recent Activities • Ongoing FIX Repository work • Ongoing work with Market Data Optimization WG • Approval of FIX 4.4 Errata for Reg SHO and creation of "Unapplied Errata" document • European Business Practices Committee's Functionality Matrix • FPL-FpML Collaboration Working Group's proposal for embedding FpML in FIX • FIA Extensions 1.0 and 1.1

20. Next Steps • Improve specification revision process • Support extension of FIX 4.4 with “service packs” • Extend the Repository and integrate with Certification • Enhance FIXimate • Foreign Exchange Working Group collaboration with TWIST • Evaluating Web Services • Data Security Working Group recommendations

21. FPL Global Fixed Income Committee Update Dan Doscas – HSBC FPL Global Fixed Income Committee Chair

22. Recent Activities GFIC Co-Chair Nominations • A Co-Chair is being sought for the GFIC. The role requires working with Dan in three main areas. • Administration—organizing conference calls, meetings and agendas; • Conferences and Collaborations—various marketing activities; • Internal Communication—liaising with other FIX committees and working groups, the GFIC sub-committees and representation at the GSC. European Fixed Income Working Group • Stuart Taylor from Merrill Lynch accepted the new role as Chair of the European Fixed Income Working Group. GFIC thanked Natasha Bonner-Fomes for all the work she has done over the past two years in this role. From championing the Implementation Guide, to the coordination of trade conferences and organizing the FPL Scandinavian Fixed Income Conference, Natasha has been instrumental in the progress that has been made to date. GFIC Education & Marketing Co-Chair • The GFIC Business Practices and Education & Marketing sub-committees are exploring ways of capitalizing on the synergies between the groups. Certification Working Group • Max Mansur of SWIFT announced he will step down as chair of the Certification Working Group as soon as nominations and a newly elected chair is voted upon.

23. Next Steps European Fixed Income WG • Case study – Proof of Concept • It is expected to be about eight to ten firms in total. • The specific area of FIX to be addressed will be determined first. • Most of the FIX efforts with multi-dealer hubs are between the hubs and the buy-side. As a result the sell-sides have to connect to the buy-sides as well. It is hoped that with FIX v4.4 the multi-dealer hubs will begin to interact with the sell-side firms a bit more. Many of the hubs have proprietary protocols and any upgrades require a large IT effort for the sell side. BMA / GFIC Efforts • Fixed Income Derivatives • The BMA and the Asset Managers Forum created best practices for swap profiting. There are five different sub-committees focusing on different areas—compliance, confirm, legal, payments and collateral, trade execution and valuation. • The best practices are in the process of being documented and an executive summary will be provided. Best Practices • Allocations • The focus of the group is allocation and confirmation expense—both automated as well as manual. • SWAPS to Certification Guide • TradeWeb is working very closely with the IPMA and AFM (in the Allocations area) and have identified very practical questions. • Since TradeWeb is leading the development effort and FPL is simultaneously creating an Implementation Guide, it was suggested that the efforts should be coordinated. Joe will share the information gathered and meeting minutes thus far. There are immediate areas of focus that may lie in the FIX space. • eSyndicate • The e-syndicate Working Group has been reviewing the e-syndicate process and is currently focusing on invitations that could be sent electronically between syndicate members. Gap analysis efforts began in April with a resulting “Gap Analysis” document posted to FPL web site.

24. FPL Global Derivatives Committee Update Jim Northey – Jordan & Jordan FPL Global Derivatives Committee Chair

25. Recent Activities • There has been a great deal of progress with the following: • Market Data Optimization Working Group • Collaboration between FIXML/FpML • GDC/FIA Electronic Order Routing Standardization Sub-committee • FIA Extensions Working Group. • FIXML Training Sessions held in London and New York. • Business Practices Subcommittee – created a document on tic sizes, display formats and market data. • Education & Marketing Subcommittee - planning additional on-site meetings, content is being requested for the FPL GDC Newsletter.

26. Next Steps • Holding a joint meeting of the Global Derivatives Committee and the European Region Derivatives Business Practices Subcommittee at the end of June. • Upcoming events: • 29-30 June – FPL Breakfast Briefing (FIX for Derivatives and FIX for Securities) – Derivatives & Securities World, London • 11-12 October - Derivatives & Securities World, Singapore 2005 • 8-10 November – FIA Expo, Chicago • Creation of an executive advisory group for the GDC to provide a forum for senior executives to provide feedback to the GDC to help establish strategy, direction, and priorities.

27. FPL Foreign Exchange Working Group Update Jack Lemonik – FXall FPL Foreign Exchange Working Group Co-Chair

28. Recent Activities • Four subcommittees were created to address the topics listed below. • General Order Flow (Orders, Executions, Allocations, Confirmations) • Streaming Prices and the overall Quote process • FX Swaps • Non Deliverable Forwards (NDFs) • Phase I is to deliver plain English documentation around the business work flows

29. Next Steps • Conduct Gap Analysis against FIX protocol 4.4 using the documentation generated by the four subcommittees • Submit any required additional data elements to the technical committee for inclusion in next release of the protocol • Evaluate the role of the foreign exchange working group as an ongoing committee of FIX

30. FPL Executive Director Update Peter Randall FPL Executive Director

31. Executive Director - 1Q update • Commercial results for the ‘short’ year of 2004 were encouraging. Our overall financial resources grew by $210k to $731k. Our 1Q 2005 numbers show a further improvement of $222k. • Ownership structure of FPL and governance by-laws have been reviewed and agreed and are in the process of being executed. When this is complete we plan to try and boost ‘non subscription’ revenues. • Engagement with European regulators yield significant benefits, CESR, MiFID and Giovannini responses all show that FIX is in a sweet spot with respect to its educational and information activities. • South African conference resulted in the formation of a SA chapter and recent work in Germany may yield a SOU with the principal trade association of the German Asset Management community.

32. "Reg NMS and the Trade Through Rule - Are we heading in the right direction?" Guest Speaker: Robert A. Schwartz Marvin M. Speiser Professor of FinanceZicklin School of Business Baruch College, CUNY Book: Equity Markets in Action: the Fundamentals of Liquidity, Market Structure and Trading, Robert A. Schwartz and Reto Francioni, John Wiley and Sons, 2004. Conference at Baruch: The New Nasdaq Marketplace, May 3, 2005. Additional information found at: http://www.baruch.cuny.edu/conference/