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Omgeo An Industry Update Presented by: Victoria Mazza Relationship Manager BDUG October 25, 2005

Agenda. Evolution of Omgeo's StrategyIndustry Update on MatchingSTP

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Omgeo An Industry Update Presented by: Victoria Mazza Relationship Manager BDUG October 25, 2005

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    1. Omgeo – An Industry Update Presented by: Victoria Mazza – Relationship Manager BDUG October 25, 2005

    2. Agenda Evolution of Omgeo’s Strategy Industry Update on Matching STP – Omgeo Solutions carving the way for STP Fixed Income ALERT on the Web Omgeo TradeHub Omgeo Central Trade Manager Omgeo Connect Questions / Answers

    3. Omgeo’s Strategy: 2005+ Automate Investment Manager allocations across multiple asset classes Provide IMs with a single point of access to Omgeo and 3rd party trade management solutions for trades across multiple asset classes Facilitate efficient trade management and settlement through Omgeo CTM and Open SI/SN Strengthen strategic relationships with key clients and partners Increase our capability and capacity by adopting a global sourcing model Industry Partnership Board of Managers Global Advisory Boards and Working Parties Industry Partnership Board of Managers Global Advisory Boards and Working Parties

    4. Industry Update on Matching

    6. Average Daily Trades: 916,000 Equity: 812,000 Fixed Income: 104,000 Confirm/Affirm (TradeSuite): 837,000 Central Matching 79,000 So with Central Matching now a reality, let me try and provide you with some statistics that make the case for Central Matching. As you can see from this chart, central matching already accounts for 40,000 transactions a day. And while only a small fraction of the total confirm volume going through TradeSuite, it is enough to make a difference in the Same-day-affirmation rates, which, as you recall is the gateway to STP. So with Central Matching now a reality, let me try and provide you with some statistics that make the case for Central Matching. As you can see from this chart, central matching already accounts for 40,000 transactions a day. And while only a small fraction of the total confirm volume going through TradeSuite, it is enough to make a difference in the Same-day-affirmation rates, which, as you recall is the gateway to STP.

    7. The Case for Central Matching This is the best case I can make for central Matching. These stats show: - Aggregate results for US market - Results for firms using traditional confirm/Affirm ETC - Results for firms using Omgeo’s current US central matching offering – OASYS/TradeMatch - And the results of one client (LSV) who has applied best practices and maximized it’s processing efficiency following a move to central matching. SDA rates 26% overall, 16% for Confirm/affirm & 85% for central matching clients (LSV = 90%) On Noon of T+2 confirm/affirm clients had 15% of their trades unaffirmed vs. 7% for centrally matched clients (& less than 1% for LSV). OK, so why is a lower unaffirmed rate important to you????This is the best case I can make for central Matching. These stats show: - Aggregate results for US market - Results for firms using traditional confirm/Affirm ETC - Results for firms using Omgeo’s current US central matching offering – OASYS/TradeMatch - And the results of one client (LSV) who has applied best practices and maximized it’s processing efficiency following a move to central matching. SDA rates 26% overall, 16% for Confirm/affirm & 85% for central matching clients (LSV = 90%) On Noon of T+2 confirm/affirm clients had 15% of their trades unaffirmed vs. 7% for centrally matched clients (& less than 1% for LSV). OK, so why is a lower unaffirmed rate important to you????

    8. CTM Trade Volumes Approx 18 new clients live globally on CTM since July (I don’t have final Sept numbers from integration yet).  IBT and Bank of New York now live as IMOs on CTM. 1 client upgraded from AI to MTI for their Equity business and volume has increased significantly for that client.  They are now using their existing AI to process their Fixed Income business. Although August was a quieter month for some of our European clients, the CTM volumes continued to trend upwards due partly to the adoption of new clients, and also some of our larger US clients had volume increases in August namely; The Boston Company, Lazard and UBS O’Connor. SN – volume held steady through the summer months.  We have a healthy pipeline of SN clients in integration; the challenge continues to be the time it takes to get them live. We are working on the SMPG project which now includes handling DC and FedWire, once launched (Q1 2006), we expect to see significant volume increases – this functionality is also required by ABP. The SN billing issue is on track for resolution.  We have no issue with the SN piece but we did have with billing the underlying SWIFT cost as we had been doing the extract based on recipient BIC and it needs to be by Sender BIC (the sender = IM – they pay). This as been approved to be fixed in a change control and is expected to be completed by Dec. Approx 18 new clients live globally on CTM since July (I don’t have final Sept numbers from integration yet).  IBT and Bank of New York now live as IMOs on CTM. 1 client upgraded from AI to MTI for their Equity business and volume has increased significantly for that client.  They are now using their existing AI to process their Fixed Income business. Although August was a quieter month for some of our European clients, the CTM volumes continued to trend upwards due partly to the adoption of new clients, and also some of our larger US clients had volume increases in August namely; The Boston Company, Lazard and UBS O’Connor. SN – volume held steady through the summer months.  We have a healthy pipeline of SN clients in integration; the challenge continues to be the time it takes to get them live. We are working on the SMPG project which now includes handling DC and FedWire, once launched (Q1 2006), we expect to see significant volume increases – this functionality is also required by ABP. The SN billing issue is on track for resolution.  We have no issue with the SN piece but we did have with billing the underlying SWIFT cost as we had been doing the extract based on recipient BIC and it needs to be by Sender BIC (the sender = IM – they pay). This as been approved to be fixed in a change control and is expected to be completed by Dec.

    9. Settlement Notification Volumes

    10. Fixed Income Initiative

    11. Economics: Est. Cost per Fixed Income Trade Chart depicts the high cost of not automating trade processing methods. Chart depicts the high cost of not automating trade processing methods.

    12. Recent Highlights

    13. Omgeo ALERT on the Web

    14. Key Benefits to the Web Interface Portable access to ALERT Individual user ids and passwords The option to authorize individual users for either full access or read-only access to the information on ALERT Click-through links to fields that need to be updated to comply with the latest validation rules Easily accessible definitions for settlement instruction fields “QUICK Fields” tab that provides immediate access to the 20 most commonly used ALERT fields A new homepage with quick access to main functions, documentation and important product notices from Omgeo Ability to quickly switch from one acronym to another (provided client’s username is entitled to multiple acronyms)

    15. ALERT via the Web Design

    16. Omgeo TradeHub

    17. Omgeo TradeHub Omgeo TradeHub: Facilitating Trade Instructions / Reconcilements Provides IMs and Custodians with a single point of access to reliable domestic and international messaging. Settlement messages as well as reconcilement messages Provides an open, timely and cost-effective environment Partnerships with both Reconcilement Vendors and Trust System Vendors Sample Trust System Vendors: SEI and ATS Sample Reconcilement Vendors: SmartStream and Checkfree Automate Omnibus/Trust trades Standard messages supported - ISO 15022

    18. Omgeo Connect

    19. Omgeo Connect Overview Solution Overview A single point of connectivity for investment managers to access Omgeo and other post-trade solutions, enabling the trade and settlement management of multiple asset classes via an ASP environment. So what is Omgeo Connect. Key points: Single point of connectivity Trade and Settlement Management – ability to provide full trade lifecycle management Enables asset class expansion by partnering with complimentary third parties ASP environment allowing clients to access a hosted service and reducing internal infrastructure complexity So what is Omgeo Connect. Key points: Single point of connectivity Trade and Settlement Management – ability to provide full trade lifecycle management Enables asset class expansion by partnering with complimentary third parties ASP environment allowing clients to access a hosted service and reducing internal infrastructure complexity

    20. Omgeo Connect Overview Solution Components Hub solution for all trades Common dashboard and workflow management Trade Management Single point of access to Omgeo services Third party connectivity (e.g. Deriv/SERV, TradeWeb) Settlement Management Support SWIFT and non-SWIFT workflow Settlement status confirmation So the key solution components: Ability to take all trades into the solution and provide common workflow management and exception processing irrespective of final destination e.g. Omgeo, SWIFT, third party services Trade Management – offering full asset class and counterparty coverage via connectivity to both Omgeo and third party services Settlement Management – support SWIFT and non-SWIFT messaging (again via third party partnerships) to provide trade lifecycle management through to the final settlement Any Questions? So the key solution components: Ability to take all trades into the solution and provide common workflow management and exception processing irrespective of final destination e.g. Omgeo, SWIFT, third party services Trade Management – offering full asset class and counterparty coverage via connectivity to both Omgeo and third party services Settlement Management – support SWIFT and non-SWIFT messaging (again via third party partnerships) to provide trade lifecycle management through to the final settlement Any Questions?

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