October 2011AMEDA Conference, Cairo

Joint Venture partnersJoint Venture partners

Ten leading CSDs

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Link Up Markets

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Efficiency by interoperabilityEfficiency by interoperability

DIRECT CROSS-BORDER ACCESS via local CSD infrastructures

Single point of access for CSDs to participating markets

Easy implementation of enhanced CSD-links

Reuse of efficient local infrastructures

Absorbing differences in market standards

Best-in-class CSD services for all asset classes and multiple currencies

Continuous harmonisation of market practices

Flexible extension of market coverage in Europe and beyond

Successful launch on 30 March 2009

Link Up Markets model has replaced inefficient set-up

Other CSDs

Past

Today

Link UpMarkets

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Business opportunities for Issuer CSDBusiness opportunities for Issuer CSD

Become counterparty of foreign Investor CSD

Expansion of customer base

Efficient management of incoming link portfolio

Attract more inflow by providing efficient services

“As close to market as possible”

Upgrade of existing CSD links to full service

Participate in market harmonization efforts

Position themselves as gateway into the region

Own domestic market

Single window into their regional network

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Business opportunities as an Investor CSDBusiness opportunities as an Investor CSD

Transform business model to become specialised custodian for outbound business

Diversify services

Generate new revenue stream

Build cross-border capabilities in-house

Streamline existing cross-border business

Direct access to markets at domestic CSD cost

Simplify setup and maintenance of links

Harmonization as a result rather than a pre-requisite

Access 50% of European, 90% of African markets

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Strategic Positioning for CSDsStrategic Positioning for CSDs

“Close the gap” reasons Opportunity to “benchmark” service offering to other

CSDs in the fast evolving post-trading environment. Independence

Strengthen market and product position, while still options available for regional strategy

Educational factor and Know-How transfer Joining Link Up Markets offers comprehensive and more

useful “hands-on” involvement and knowledge transfer. Harmonisation and community effect

Harmonising connectivity, standards, formats and services between the partner CSDs.

Platform for identifying other business opportunities between the CSDs for new product development or new partnerships.

“Develop once and use many” interoperability concept.

Customer BenefitsCustomer Benefits

Features Benefits for market participants

Pooling of domestic and international business

Direct access to domestic and international markets via single, familiar interface

Increased liquidity pool allowing for greater securities financing and collateral management product usage

Greater scale and price advantage with preferred CSD gateway

Unbundling of custodian services

Significant fee saving potential* in Cross-border settlement fees Safekeeping fees for non-domestic assets

Risk reduction Supply chain consisting of market infrastructures only, no intermediaries

* Pricing at discretion of each CSD -7-

Solution delivered as promisedSolution delivered as promised

Successful launch in March 2009 with just 12 months time-to-market

Development cost well within announced budget of EUR 10 million

10 CSDs live: CBF, CSE, Helex, Iberclear, OeKB, SIX SIS, VP, VP LUX, CSE, Strate and MCDR – joined already, strong interest from other CSDs globally with highest focus in Europe

6 CSDs already transformed their business model into Investor CSD.

Solution well positioned as showcase for interoperability as well as facilitator for T2S

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Growing demand for CSD interoperabilityGrowing demand for CSD interoperability

17.5 mio messages since the beginning of Link Up Markets and 5.4 mio messages in H1 2011

17.5 mio messages representing approx. 4.4 million settlement instructions

>80% of settlements against payment

47% growth over 2010

Each new market with additional volume potential – inbound & outbound

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Key objectives in 2011Key objectives in 2011

CSDs that joined in 2010 and 2011 to become

active as both issuer and investor CSDs

Finalise positioning for post-T2S world, i.e.

Link Up Markets as common interface to T2S

and develop common solution

Further extension of market coverage in

Europe and beyond

!

Clive CherryCSD Implementation Manager

Link Up MarketsPlaza de la Lealtad, 128014 MadridEspana

Tel.: +34 91 709 5031

info@linkupmarkets.com