What is trueEX? TM TM TM is the first CFTC-regulated Designated Contract Market (DCM) for interest rate swaps (IRS). *CFTC designated 2012* SEF Temporary Registration *Received September 20, 2013* Link to DCM approval: http://www.cftc.gov/PressRoom/PressReleases/pr6371-12 CONFIDENTIAL © 2013 trueEX Group LLC. All rights reserved. Any unauthorized use, duplicaGon or distribuGon is strictly prohibited. 1 Designated Contract Market and Swap Execution Facility DCM v  CLOB (Central Limit Order Book) •  Made Available to Trade (MAT) Ø  8 vanilla spot-starting tenors Ø  9 SCSM tenors (MAC-style swaps) with 2 series •  Anonymous •  Pre-trade clearing certainty •  Choice of Clearing House (LCH & CME) v  Block Facility v  Request for Cross (RFC) v  trueEX Futures Contracts on S&P 150 Credit Spread Indices TM TM TM SEF v  PTC (Portfolio Terminations and Compactions) •  Terminations •  Compactions •  Backloading •  New Risk v  RFQ •  Single Position •  Strategy Position (butterfly, spread, etc.) •  New Risk Package Additional services like Allocations (Pre and Post trade) and Rebalancing CONFIDENTIAL © 2013 trueEX Group LLC. All rights reserved. Any unauthorized use, duplicaGon or distribuGon is strictly prohibited. 2 System Architecture Map TM TM TM Regional Banks Clearing Firms Insurance Companies Broadway ION Real-‐Eme conﬁrmaEon and reporEng of cleared trades Secure Direct Web FIX API Broadway ApplicaEon (FpML) Asset Managers Hedge Funds ConnecEvity OpEons ISVs ION Market Makers OMS FIX (Drop Copy) CSV File FTP Site (FpML) DCM* and SEF RegulaEon (*CFTC Registered) Clearing Firm Limit Hubs (Traiana) MarkitWire for OMS connecEvity (DropCopy) Sponsorship ExecuGon Single Dealer Pla?orms (Agent ExecuEon) Regulatory ReporGng CFTC Surveillance Direct API ConnecGvity LCH CME DCM: CLOB (14 semi-‐bond tenors, 9 SCSM), Blocks and Request for Cross (RFC) SEF: PTC (PorZolio TerminaGons and CompacGons) PlaZorm, RFQ Custom, FCM and CCP Margin OpGmizer DTCC Swaps Data Repository (SDR) CONFIDENTIAL © 2013 trueEX Group LLC. All rights reserved. Any unauthorized use, duplicaGon or distribuGon is strictly prohibited. NFA trueEX PTC (Portfolio Terminations and Compactions) Platform trueEX PTC is an automated solution designed for the efficient trade management of swap portfolios. PTC leverages direct CCP connectivity for precise trade recognition. Terminations •  Terminating preexisting trades. •  Cleared or Bilateral v  v  v  v  Compactions •  Terminating a set of cleared or bilateral trades and replacing with a smaller set of equivalent cleared swaps Backloading •  Submitting preexisting bilateral trades to be cleared at CCP New Risk •  Highly customized single line RFQ •  Multi-line item RFQ Allocations •  Post-trade bunched (block) orders electronically designated and allocated across subaccounts •  Pre trade allocations Key Benefits Fully automated on a regulated Dodd-Frank compliant entity (trueEX SEF) CCP agnostic service (CME & LCH) Compatibility for upload from CME trade register file and LCH position report guarantees precise trade recognition and netting All back-end processing handled by trueEX Platform o  Direct connectivity to CCP o  Direct connectivity to SDR o  Direct connectivity capabilities to OMS (custom) CONFIDENTIAL © 2013 trueEX Group LLC. All rights reserved. Any unauthorized use, duplicaGon or distribuGon is strictly prohibited. Patent Pending. 4 trueEX Differentiators DCM and SEF side-by-side within the same legal structure •  DCM legal structure allows trueEX to offer both swaps and futures •  Anonymous Central Limit Order Book (CLOB) on DCM •  Highly Customized and Package RFQ capability on SEF •  Stable Rulebook Pre-trade certainty of clearing and execution •  PUSH and PLUS (On/Off) credit limit management (PING for RFQ) •  Choice of clearing with direct connectivity (LCH and CME) •  Integration with Credit Limit Hubs •  Pre and Post-trade Allocations PTC (Portfolio Terminations and Compactions) platform •  Terminations, Compactions, Backloading, RWA Reduction •  Service Functions: Rebalancing, Pre and Post trade Allocations •  Compatibility with CME trade register file and LCH position report guarantees precise trade recognition and netting trueEX Team •  Scaled market innovative changes with the cooperation of dealers and buy-side: Creditex, T-Zero (now ICElink), DNA (Delta Neutral Auctions), Credit Event Fixings, ICE Trust •  Independently owned and governed CONFIDENTIAL © 2013 trueEX Group LLC. All rights reserved. Any unauthorized use, duplicaGon or distribuGon is strictly prohibited. Patent Pending. 5