Gil Mandelzis - CEO, Traiana Inc.

February 2012

Traiana: Business & Product Overview

Traiana Background

• Market leader in post trade, pre-settlement

• FX, Exchange Traded Derivatives (ETDs), CFDs/Equity Swaps, and Cash Equities

• Averaging $1T processed daily, more than 2M messages per day

• Open to and partner with every market participant

– ECN platforms

– Prime Brokers

– Executing Banks

– Buy-side firms

• Low-cost, scalable, robust infrastructure

• 230 employees

– New York, Chicago, London, Tokyo, Hong Kong and Tel Aviv

• An independently operated ICAP Company

2

Cost Reduction Drives Additional Growth in Tickets

3

Cash equities

Listed Derivatives

FX

Rates

FX Derivatives

Rates Derivatives

Credit Derivatives

Commodity Derivatives OTC Equity

Derivatives

R2 = 0.92

Post-trade enables

market growth

Lower cost drives

more volume

• 50% decrease in

average costs in

line with a 175%

increase in

volume

‘10 FXPB Market Larger Than Entire FX Market from ‘04

1.9

3.2

3.9

0.1

0.9

2.0

2004 2007 2010

FX Market

FXPB

Source: BIS, BCG

CAGR ‘07-’10

FX market 7%

FXPB 30%

4

($T per Day)

End-to-End Post Trade Solutions

5

• From manual to electronic

• From T+1 to real-time

• Over 900 Firms, 15,000 Connections

• 75+ banks, primes

• 10 banks on CLS Aggregation

• 18 liquidity providers/banks

• 25 retail brokers

• 8 prime brokers

• Real-time, Intraday Risk monitoring

• 27 Banks and PBs on CreditLink for Tri-party Limits, ECN limits

Exchanges/ECNs

Dealer-Dealer/Prime

Client-Dealer/Prime

Messaging, Matching

(Message Center)

Aggregation/ Netting

(NetLink, CLS JV)

Retail

Client

Interbank

Real-time Risk (CreditLink)

Designation Notices

ECN Limits/Killswitch

Tri-party limits

Clearing & Regulation

(CCP Connect)

SEF/MTF Limits

SDR

CCP Connectivity

• Delivering OTC trades to top clearing houses - LCH, CME, ICE, SGX, others

• Reporting to SDRs

Leading Banks and Brokers

6

Leading Platforms and ISVs

7

Diverse, Growing Network of Customers

• 60+ Top Banks, Prime Brokers, Clearers

• Over 900 Connected Firms/Funds across:

– FX

– Equities

– CFDs

– ETDs

• 15,000+ Trading Relationships (Connections)

– Banks serving clients, connecting to counterparties

– Hedge Funds, Asset managers, CTAs

Corporates, Tier 2 banks, etc.

• Partner to top HFT firms

• Connected to top fund administrators and ISVs

8

AVERAGE DAILY VOLUMES: DEC 2008 – SEPT 2011

Traiana Harmony Growth

9

7X volume growth in 3 years

1.5 to 2 million daily messages

Over 1 million daily trades ($700 billion to $1.6T each day)

CLS Aggregation: CLS/Traiana Joint Venture

• April 2009: JV with CLS formed

• Jan 2010: Service goes Live in 9

months

• Dec 2010: All 8 Founder Banks live

in less than 1 year

• 2 Additional banks join – Barclays,

Rabobank

• Processing 250,000+ trades per

day, with compression of 95%+

10

Harmony NetLink

• Industry leading solution for client-side netting, used by 18 Banks and

Liquidity Providers

• Most major retail forex brokers (25 Retail Brokers)

• 30+ HFT clients, Top ECNs and Single Bank Platforms

11

CreditLink ECN/Exchange KillSwitch Initiative

• Launched June 2010

• Supported by leading Prime

Brokers/Clearers

• Partnership with top ECNs

• Live with EBS, HotSpot, Bloomberg,

Currenex

12

Impact of New Regulations in OTC

• US and European regulators mandating clearing and public reporting

for FX derivatives

• Traiana providing connectivity and automation to ease compliance

with these regulations

– Existing connectivity to FX market participants and trading venues

• Complexity of clearing processes and multiple clearing houses favors

a central connectivity service: Harmony CCP Connect

• Working with leading clearers and CCPs

13

Growth in Additional Asset Classes

• Equities and Equity Derivatives

– Largest provider in Equity Swap/CFD market

– Over 60 equity Brokers, 11 swap counterparties

– Expanded to Buy-side, fueling additional growth

• Exchange Traded Derivatives (Listed Futures/Options)

– Signed 3 large Clearing Brokers in 2010/2011

14

Scalable Business Model

• Focus on ‘Flow’ business which provides large market opportunity, high

transaction volume

• Drives costs lower through automation, enable growth by adding capacity and

reducing risk

• Participate in savings and growth with per-message and subscription revenue

models

15

Connect Market

Participants Automate the Flow

Value-added

Services

• Automate internal operations and client servicing

• Trade processing, matching, risk management, margining

• Subscription and software-as-a-service solutions

• Connect market participants in end-to-end post-trade

• Automate Bank-to-client, bank-to-bank flows

• Per-message pricing model with tiered fees, minimum commitments

• Add value with services for credit, clearing, aggregation, compliance

• Enables more volume growth, reduces risk

• Enhances per-message fees and adds subscription revenue

16

These materials do not constitute an offer to sell or the solicitation of an offer to

purchase any security. These materials contain "forward-looking statements" as

defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements

are based on current Company expectations and are subject to risks and uncertainties,

which could cause actual results to differ materially. Such risks and uncertainties

include, but are not limited to: fluctuations in interest rates and foreign currency

exchange rates; market acceptance of new trading technologies; global and regional

economic conditions and legislative, regulatory and political developments; and

domestic and international competition in the Company's global markets. Additional

information regarding these and other factors is available in the Company's

reports available on request from the Company.

............................................................................................................................................

This document may not be distributed where to do so would be unlawful. This

document may not be distributed in the UK except to persons falling within article 19 of

the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001.