OTC Derivatives Execution and Central Clearing Forum

1. OTC DerivativesExecution and Central Clearing Forum Toronto, Montreal November 2010

2. Core Principles:Adapting the Futures Model to CCP OTC Derivatives • Risk based capital and risk based margin • Broadens participation, enhances liquidity • Open access principles • No artificial barriers • History of safety and soundness; protection in crises • OTC clearing and execution venues not new for Futures Commission Merchants, some Clearinghouses or Newedge • ClearPort, ICE Europe, Singapore Exchange, IDCG, Eris

3. Benefits of Centrally Cleared Derivatives Systemic Benefits • Takes debt out of system • Provides transparency of OTC participants’ obligations • A structure favored by regulators to reduce systemic risk Buyside Benefits • Substantially eliminates counterparty risks • Eliminates or reduces direct and indirect costs of bi-lateral OTC, including: • Uncertain credit charges • Transaction unwind-related charges • Potential replacement cost in event of counterparty failure • Counterparty credit valuation haircuts • Enjoy position portability • Transact with more dealers • Benefit from clearinghouse performance guarantee; security of futures market protections • Independent valuation / transparency from CHs • Ease of documentation: no ISDA/CSA required Sellside Benefits • Substantially eliminates counterparty risks • Reduces capital use; eliminates need to hedge bi-lateral counterparty credit risk • Ease of documentation: no ISDA/CSA required • Reduced operational risk; ease of administration • Viable OTC CCP platforms for largest OTC derivative asset class – IRS • Preserve market bid / ask

4. Clearing and Execution Platform - Client Considerations • Platform objective • Clearing • Execution • Market adoption • Contract design – implicit target market • Product scope – potential margin / capital efficiencies • OTC • Futures • Securities • Governance • Clearing member criteria • Access principles, access implications for: • FCMs / Clearing Brokers • Other Liquidity Providers • End Users • Incumbent Dealers • Economic interests • Product adoption • Independence

5. Clearing and Execution Platform - Client Considerations • Financial resources • Margin methodology • Default fund • Regulatory • Status • Jurisdiction • Default Management • Operations scalability • Feedisaggregation • Clearing house fees • Clearing firm fees • Liquidity provider (dealer) bid / ask, exclusive of credit and bi-lateral OTC operations • Execution Facilities • Sponsorship • Clearing platform Integration • Format • Voice • RFQ • CLOB

6. IRS: Execution and Credit Intermediation trend trend trend

7. CCP IRS Platforms

8. CCP On-boarding Requirements • Global Terms of Business Clearing Account • Accommodates futures, OTC, securities • Newedge credit approval • KYC review • Client authorizations; approved traders • Clearing house Terms of Use or registration / participation agreement • Estimated on-boarding time – 3 to 5 weeks

9. Newedge is at the Intersection of 3 Secular Trends in Financial Services Globalization OTC Clearing / Transparent Execution Electronification & SEFs REGULATION • Capital flows and trades have moved to point where capital is deployed • Customers seek cross border trading • Alpha available in emerging markets • Increased liquidity on exchanges • Open and broad access to reduce systemic risks • Lower transaction costs and spreads • Unlike equities, futures markets are presently, vertically integrated • Dodd-Frank • Customers • Exchanges • Products

10. Formed in 2008 from the merger of Fimat and Calyon Financial businesses History going back over 30 years 50/50 ownership by Société Générale and Crédit Agricole CIB Agency model Leader in market share on most Global exchanges 2,800 employees 23 locations in 17 countries 85+ exchanges €40 billion in client assets Futures, Options & Equities Clearing and Execution Leading Futures, Equities and OTC execution Leading CME market share Fixed Income, Currencies & Commodities Clearing and execution across a Broad range of products and services that include Fixed Income strategies, inter-dealer brokerage, commodities, energy, metals, FX, repos, derivatives and margin financing Clearing & Professional Trading Group Provides global clearing services to the world’s largest banks, financial institutions as well as high frequency / DMA firms New liquidity providers for OTC derivatives with CCP Prime Brokerage Robust prime brokerage offering and ability to further leverage VAR margining capabilities Leading Global Multi-Asset Broker Newedge Group Business Lines

11. PRODUCTS LOCATIONS Newedge Has a Complete Global and Multi Asset Platform CLIENTS MARKET COVERAGE Futures Fixed Income / Rates Foreign Exchange Equities and Indexes Options and Repos Agricultural and Softs OTC/Listed Energy Metals BROKERAGE SERVICES Execution Clearing Prime Brokerage Financing / Margining Capital Introductions Advisory Electronic Trading / DMA Research Institutional Asset Managers Hedge Funds / CTAs / Investors Financial Institutions Corporations Professional Trading Groups THE AMERICAS ChicagoNew YorkKansas CitySan FranciscoSao Paulo Montréal Toronto Calgary EUROPE & MIDDLE EAST London ParisFrankfurtZurich GenevaMadrid Dubai ASIA- PACIFIC Hong KongSingaporeShanghaiTaipeiTokyo SeoulSydneyMumbai

12. Newedge: a Leading Clearing Broker Top FCMs Based on Client Segregated Funds (1) Source : CFTC (2) Prior Sep. 2008 data reflects Newedge Financial Inc., Newedge USA LLC., Calyon Financial Inc., and FIMAT USA LLC

13. Leading Market Share in Both Execution and Clearing Newedge global market share in listed derivatives11.1% Financials 17.1% Commodities * Rankings as of 31 January 2010 Source: Rankings provided by derivatives markets. Market share computed internally using our own methodology as of 30 June 2010.

14. CME Clearport Benefits of Agency Model / Non-Proprietary Trading • Clients interests first • Newedge acts as a pure intermediary without economic interests in clearing platforms • Facilitate with unbiased information • Diverse range of platforms ensures best access and execution and best of breed technology • Expertise in many platforms supported by Newedge – agnostic Liquidity Provider Clients X, Y, Z, … • Finds interest in the market • Crosses the deal in the • Exchange • bi-laterally or • directly intermediates Exchanges & Clearinghouses

15. #1 Futures Broker – Futures Magazine, December 2009 Best Multi Asset Prime Broker Award – 2010 HFMWeek US Hedge Fund Services Awards Newedge Prime Brokerage agency model ranked #7 overall, #5 Europe – 2010 HFMWeek “Most innovative prime broker” – 2009 HFMWeek Service Provider Award Best in Class in 8 out of 10 categories – Global Custodian, June 2009 Recognized Market Leader Top 5 Futures Commission Merchants by Customer Funds Source: CFTC (U.S. regulator) as of 31 August 2010

16. Diversified Financial Strength 2009 Net Banking Income by Business Line 2009 Net Banking Income € 949 million Source: Newedge Financial Report 2009

17. Newedge Contacts • Marc Katz, SVP Newedge USA, LLC 550 W. Jackson Blvd, Suite 500 Chicago, IL 60661 Phone: (312) 762-1338 Email: marcus.katz@newedge.com • Rod Wilmer, CEO Newedge Canada Inc. Exchange Tower, Suite 580 130 King Street West Toronto ON M5X 1B1 Phone: (416) 682-5101 Email: Rod.Wilmer@newedge.com