Latest Trends of Global Equity Trading:The New Technology, the Players, and the New Legislation;

Differences Between the US and the Rest of the World

25th September 2007

Dr. Stavros Siokos

1

Introduction

What can be learnt from the US

Current European landscape

Practical implications for a dealing desk

Broker solution to a post MiFID environment

2

US

The US highlights many similarities to Europe

Regulation driven market change

Competitive Opportunities

3

What Is Reg NMS?

An SEC Mandate

Largest Market Structure Change in 30 Years

More Fragmentation (BATS, Regional Exchanges, EDGX, TRAC, FLOW)

More Consolidation (NYSE/ARCA, NASDAQ/INET/BRUT)

New Market Data Revenue Distribution reward posting/adding liquidity

Key NMS Drivers

Harmonisation of listed and OTC markets

Order Handling Rules of 1996/Rise of ECNs

Decimalization

Slow Markets Frustrating Trends Toward Electronic Execution

Algorithms

4

US Example of Market Fragmentation

Primary Exchanges NYSE Group

NASDAQ

ECNs and ATS

(11+)

Regional Exchanges

(7) Broker/Dealer Algos

(15+)

Other BrokerDesks & Networks

Bulge Bracket Crossing Engines

(9)

Crossing Networks

(10)

Dark an

d Visible

Liquidity

Visible Liquidity

Dark Liquidity

5

Institutional Equity Trading (US)

Percent Traded via Execution Venues (shares)

0 10 20 30 40 50

Sales Desk

Program Desk

DMA

Algorithms

CrossingNetworks

Percent Traded via Execution Venues (shares)

0 10 20 30 40 50

Sales Desk

Program Desk

DMA

Algorithms

CrossingNetworks

Source: TABB GroupSource: TABB Group

CAGRCAGR

+19%+19%

+9%+9%

+10%+10%

+3%+3%

-13%-13%

20062006 20082008

6

51.08%50%

55%

60%

65%

70%

75%

80%

85%

Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07

% N

YS

E o

f All

Mar

ket S

hare

Vol

ume

Data through Jan, 2007. Data represents percentage of total share volume reported to the consolidated tape.Source: NASDAQ Market Center Trade Reporting, CTA Tape A Data

NYSE Share Volume in NYSE-Listed Securities

7

Flow Per Venue – US Algorithms

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Li

sted

Oth

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List

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List

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OTC

SC

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TER

OTC

Opp

ortu

nist

ic

ETF

Oth

er

ETF

DA

GG

ER

ETF

SC

OU

TER

ETF

Opp

ortu

nist

ic

OtherATSBATSAMEXBRUTARCAINETNNMSNYSE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Li

sted

Oth

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List

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AG

GE

R

List

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List

edO

ppor

tuni

stic

OTC

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OTC

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OTC

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TER

OTC

Opp

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ic

ETF

Oth

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ETF

DA

GG

ER

ETF

SC

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TER

ETF

Opp

ortu

nist

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OtherATSBATSAMEXBRUTARCAINETNNMSNYSE

8

Citi US Access to Liquidity

Citigroup delivers innovative aggregation of liquidity:

LIQUIFI –The Citi Crossing Network•Direct, anonymous access to Retail, Institutional, and Proprietary order flow•A true dark pool. LIQUIFI is completely blind to internal and external trading desks•Price Improvement – orders executed at, or better, than the NBBO.•A fully registered and SEC compliant ATS

LEVEL ATS – Boston Stock Exchange•Partnership with Citi, Lehman Brothers, Merrill Lynch, CSFB, and Fidelity•Participating brokers can aggregate their internal liquidity on one platform•Pure order matching - no negotiation

BIDS – Block Interest Discovery Service•Partnership with Citi, Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley, andUBS•An alternative to Liquidnet – BIDS offers both negotiation and automatch functionality

LAVA•Technology driving all of the above initiatives and managing one billion shares of order flow eachday; creating Lava’s “DarkBook” hidden liquidity pool

BEX, PHLX, NSX, BOX• Investments in multiple exchanges and Alternative Trading Systems (ATS)

Flow, Citi ECNAccess to ATD liquidity

•Citi now has 12% market share in the US.

Electronic Execution Suite of Products

9

EUROPE

10

Current European Situation

Primary Exchanges Euronext, LSE,

Deutsche Bourse, Borsa Italiana

MTF’s(3 announced) Broker/Dealer

Algos(15+)

Bulge Bracket Crossing Engines

(5)

Crossing Networks(3)

Dark an

d Visible

Liquidity

Dark Liquidity

Visible Liquidity

POSITLIQUIDNET

NYFIX (Euro-Millennium)

POSITLIQUIDNET

NYFIX (Euro-Millennium)

TURQUOISECHI-X

EQUIDUCT

TURQUOISECHI-X

EQUIDUCT

LIQUIFIPINLX

Sigma-XCrossfinder

LIQUIFIPINLX

Sigma-XCrossfinder

11

MiFID: Impact overview

Organisational requirements• Compliance arrangements and internal systems and controls changes (i.e.

conflicts of interest, outsourcing, etc)Conduct of business• Client classification changes and repapering tasks (i.e. TOB, best execution

policy)• Client communication changes affecting financial promotions and marketing

functions• Additional client suitability and appropriateness requirements• Best execution requirements• Client order handling requirements

Pre-trade transparency•Quoting obligations for systematic internalisers

Post-trade transparency requirements• Extended post-trade transparency requirements when executing outside regulated

markets or multilateral trading facilitiesCross-border business, branching & passporting• Extension of the range of activities and instruments covered by the passport•MiFID covers the European Economic Area (30 Countries)

Pan European Settlement

Organisational requirements• Compliance arrangements and internal systems and controls changes (i.e.

conflicts of interest, outsourcing, etc)Conduct of business• Client classification changes and repapering tasks (i.e. TOB, best execution

policy)• Client communication changes affecting financial promotions and marketing

functions• Additional client suitability and appropriateness requirements• Best execution requirements• Client order handling requirements

Pre-trade transparency•Quoting obligations for systematic internalisers

Post-trade transparency requirements• Extended post-trade transparency requirements when executing outside regulated

markets or multilateral trading facilitiesCross-border business, branching & passporting• Extension of the range of activities and instruments covered by the passport•MiFID covers the European Economic Area (30 Countries)

Pan European Settlement

12

The Practicalities of MiFID

Best execution policies are not all the same.• Best execution is driven by clients not regulation• Execute only the national exchange?• Broker selection becomes crucialNew trade reporting requirements• Must report within 3 minutes• Reporting target is realtimeAre data vendors ready?• Need for a LAVA style amalgamated order book• Bloomberg

– Enabled selection of venues for combined order book and quote recap– Combined orderbook does not merge venues

• Reuters– Includes Boat Quotes

Data capacity issues• Forced market making in liquid names.Settlement on multiple venuesNeed for European smart order routing technology• Does it already exist?Benchmarking across multiple venues

Best execution policies are not all the same.• Best execution is driven by clients not regulation• Execute only the national exchange?• Broker selection becomes crucialNew trade reporting requirements• Must report within 3 minutes• Reporting target is realtimeAre data vendors ready?• Need for a LAVA style amalgamated order book• Bloomberg

– Enabled selection of venues for combined order book and quote recap– Combined orderbook does not merge venues

• Reuters– Includes Boat Quotes

Data capacity issues• Forced market making in liquid names.Settlement on multiple venuesNeed for European smart order routing technology• Does it already exist?Benchmarking across multiple venues

13

Post MiFID Landscape

Deadlines will almost certainly not be met by several member states

Higher Compliance costs and greater operational complexity

Consolidation in brokerage and Exchanges arena

Increased demand for reliable multi source market Data, better Connectivity /DMA / Algorithmic Trading

Trading Volumes will increase due to competition of execution venues

• Reduced bid ask spread

• Reduced execution costs

OTC markets will be more heavily regulated

Search for less Stringent Regimes (e.g. UCITS III)

14

Boat & Turquoise

MiFID InitiativesBOAT• Pan European trade reporting facility which will satisfy the Broker Dealers’ regulatory requirements for pre-trade transparency and post-trade reporting• ABN AMRO, CITI, CS, HSBC, MS, ML, GS, UBS, DB• BOAT aims to attract other pan European participants as well as market

data distributors• Market making on MiFID liquid list required for systematic internalisationTurquoise• Pan European Multilateral Trading Facility (MTF) as envisaged by MiFID• Turquoise will have enhanced functionality and will transact large and small

orders on a pan-European basis• CITI, CS, MS, ML, GS, UBS and DB• Turquoise will feature an open architecture model, encouraging participation

from any qualified market participants• Visible and hidden order books• Expected Q2 2008• Settlement via standard domestic route

MiFID InitiativesBOAT• Pan European trade reporting facility which will satisfy the Broker Dealers’ regulatory requirements for pre-trade transparency and post-trade reporting• ABN AMRO, CITI, CS, HSBC, MS, ML, GS, UBS, DB• BOAT aims to attract other pan European participants as well as market

data distributors• Market making on MiFID liquid list required for systematic internalisationTurquoise• Pan European Multilateral Trading Facility (MTF) as envisaged by MiFID• Turquoise will have enhanced functionality and will transact large and small

orders on a pan-European basis• CITI, CS, MS, ML, GS, UBS and DB• Turquoise will feature an open architecture model, encouraging participation

from any qualified market participants• Visible and hidden order books• Expected Q2 2008• Settlement via standard domestic route

15

BECS Impact Example

• Buy 10000 Fortis, current price 26.46• Buy 10000 Fortis, current price 26.46

16

Bloomberg – Market Depth Monitor

17

Citi’s European Smart Order Router

Citi’s Smart Order Router will control the posting and removal of liquidityacross multiple markets

Citi benefits from the many years of development experience andintellectual property of LAVA Trading.

LAVA Trading operates and maintains the premier smart order routingtechnology in the US

Key requirements of a Smart Order Router

• Speed

• Intelligence

• Reliability

Communication with upstream systems for optimal execution andinternalisation - LIQUIFI

18

SOR – Order Types

The user will have the ability to post to a single venue at a limitprice, but Sweep to a price determined by the discretion offsetparameter (as a number of ticks).

Discretion

Probe is sends the entire order as a Fill-and-Kill order to each venuein turn, with priority determined by price and typical levels of darkliquidity. This is designed to capture hidden volume on each venue.

Probe

A series of sweep orders, but with an instantaneous limit pricepegged to the best available price across European markets are sentout sequentially - i.e. a buy market order will not trade through theEBBO, unless a 'discretion offset' is specified. MARKETS ARE ABLETO REACT TO THE FIRST SWEEP.

Market

The most aggressive strategy. This will route orders to multiplevenues simultaneously up to a limit price, with the quantities routedto each venue depending on price, visible volume and historical darkliquidity profiles.

Sweep

Each of these three strategies is available as a 'Wait and Pounce' style order, a Fill and Killorder or with posting. Posting can be 'vanilla' - the residual will be posted to the top-rankedvenue, or 'Strategic Post‘. SP will distribute volume across multiple venues and re-allocatedynamically based on fill rates.

Ability to target single venue – It is expected all orders will be routed using the primaryidentifier and chosen destination.

19

Smart Order Routing

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

Brussels Belgium

20026.5026.43900

50026.4926.44500

100026.4826.45500

SizeAskBidSize

AEX NETHERLANDS

200026.4926.444000

300026.4826.456000

300026.4726.463000

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.465000

SizeAskBidSize

20026.5026.43900

Single central limit orderbook• Visible • Fair

20

SOR Example - Buy 10000 Fortis

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

Brussels Belgium

20026.5026.43900

50026.4926.44500

100026.4826.45500

SizeAskBidSize

• Assumption - AEX is highest ranking order destination market, Turquoise second,Belgium third; for posting, theoretical ranking is AEX, Turquoise, Brussels, split60%, 30%,10%.

• Assumption - AEX is highest ranking order destination market, Turquoise second,Belgium third; for posting, theoretical ranking is AEX, Turquoise, Brussels, split60%, 30%,10%.

AEX NETHERLANDS

200026.4926.444000

300026.4826.456000

300026.4726.463000

SizeAskBidSize

• Buy 10000 FORA NA with a limit of 26.48• Sweep• Market• Probe

• Buy 10000 FORA NA with a limit of 26.46• Sweep Post• Market Post• Probe Post

• Buy 10000 FORA NA with a limit of 26.48• Sweep• Market• Probe

• Buy 10000 FORA NA with a limit of 26.46• Sweep Post• Market Post• Probe Post

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.465000

SizeAskBidSize

20026.5026.43900

21

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

SOR Sweep - Buy 10000 Fortis

Brussels Belgium

20026.5026.43900

50026.4926.44500

100026.4826.45500

SizeAskBidSize

AEX NETHERLANDS

200026.4926.444000

300026.4826.456000

300026.4726.463000

SizeAskBidSize

• Buy 10000 FORA NA with a limit of 26.48• Sweep

• Buy 10000 FORA NA with a limit of 26.48• Sweep

AEX NETHERLANDS

200026.4926.444000

300026.4826.456000

300026.4726.463000

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.465000

SizeAskBidSize

20026.5026.43900

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.465000

SizeAskBidSize

20026.5026.43900

Ticker

• 10:00.000 buy 2000 Fortis @ 26.47 TUR• 10:00.000 buy 5000 Fortis @ 26.48 TUR• 10:00.000 buy 3000 Fortis @ 26.47 AEX

Ticker

• 10:00.000 buy 2000 Fortis @ 26.47 TUR• 10:00.000 buy 5000 Fortis @ 26.48 TUR• 10:00.000 buy 3000 Fortis @ 26.47 AEX

22

TURQUOISE

26.441000

26.455000

100026.4926.462000

SizeAskBidSize

SOR Sweep - Buy 10000 Fortis

Brussels Belgium

20026.5026.43900

50026.4926.44500

100026.4826.45500

SizeAskBidSize

AEX NETHERLANDS

26.444000

200026.4926.456000

300026.4826.463000

SizeAskBidSize

Combined Order Book

20026.5026.445500

350026.4926.4511500

400026.4826.465000

SizeAskBidSize

26.43900

• Buy 10000 FORA NA with a limit of 26.48• Sweep

• Buy 10000 FORA NA with a limit of 26.48• Sweep

Ticker

• 10:00.000 buy 3000 Fortis @ 26.47 AEX• 10:00.000 buy 2000 Fortis @ 26.47 TUR• 10:00.000 buy 5000 Fortis @ 26.48 TUR

Order Complete buy 10,000 Fortis @ 26.475

Ticker

• 10:00.000 buy 3000 Fortis @ 26.47 AEX• 10:00.000 buy 2000 Fortis @ 26.47 TUR• 10:00.000 buy 5000 Fortis @ 26.48 TUR

Order Complete buy 10,000 Fortis @ 26.475

23

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

SOR LAVA Market - Buy 10000 Fortis

Brussels Belgium

20026.5026.43900

50026.4926.44500

100026.4826.45500

SizeAskBidSize

AEX NETHERLANDS

200026.4926.444000

300026.4826.456000

300026.4726.463000

SizeAskBidSize

• Buy 10000 FORA NA with a limit of 26.48• LAVA Market

• Buy 10000 FORA NA with a limit of 26.48• LAVA Market

AEX NETHERLANDS

200026.4926.444000

300026.4826.456000

300026.4726.463000

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.465000

SizeAskBidSize

20026.5026.43900

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.465000

SizeAskBidSize

20026.5026.43900

Ticker

• 10:00.000 buy 3000 Fortis @ 26.47 AEX• 10:00.000 buy 2000 Fortis @ 26.47 TUR

Ticker

• 10:00.000 buy 3000 Fortis @ 26.47 AEX• 10:00.000 buy 2000 Fortis @ 26.47 TUR

24

Brussels Belgium

20026.5026.43900

50026.4926.44500

100026.4826.45500

SizeAskBidSize

Brussels Belgium

50026.4926.43900

100026.4826.44500

100026.4726.45500

SizeAskBidSize

Combined Order Book

20026.5026.445500

350026.4926.4511500

900026.4826.465000

SizeAskBidSize

26.43900

TURQUOISE

26.441000

100026.4926.455000

500026.4826.462000

SizeAskBidSize

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

SOR Market - Buy 10000 Fortis

AEX NETHERLANDS

26.444000

200026.4926.456000

300026.4826.463000

SizeAskBidSize

• Buy 10000 FORA NA with a limit of 26.48• LAVA Market

• Buy 10000 FORA NA with a limit of 26.48• LAVA Market

Ticker

• 10:00.000 buy 3000 Fortis @ 26.47 AEX• 10:00.000 buy 2000 Fortis @ 26.47 TUR• 10:00.642 buy 2000 Fortis @ 26.47 TUR• 10:00.642 buy 1000 Fortis @ 26.47 BEL• 10:01.284 buy 2000 Fortis @ 26.48 TUR

Order complete buy 10,000 Fortis @ 26.472

Ticker

• 10:00.000 buy 3000 Fortis @ 26.47 AEX• 10:00.000 buy 2000 Fortis @ 26.47 TUR• 10:00.642 buy 2000 Fortis @ 26.47 TUR• 10:00.642 buy 1000 Fortis @ 26.47 BEL• 10:01.284 buy 2000 Fortis @ 26.48 TUR

Order complete buy 10,000 Fortis @ 26.472

Combined Order Book

150026.4926.445500

800026.4826.4511500

300026.4726.465000

SizeAskBidSize

20026.5026.43900

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

Brussels Belgium

50026.4926.43900

100026.4826.44500

100026.4726.45500

SizeAskBidSize

Combined Order Book

150026.4926.445500

800026.4826.4511500

300026.4726.465000

SizeAskBidSize

20026.5026.43900

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

Brussels Belgium

50026.4926.43900

100026.4826.44500

100026.4726.45500

SizeAskBidSize

Combined Order Book

150026.4926.445500

800026.4826.4511500

300026.4726.465000

SizeAskBidSize

20026.5026.43900

TURQUOISE

100026.4926.441000

100026.4926.455000

500026.4826.462000

SizeAskBidSize

Brussels Belgium

20026.5026.43900

50026.4926.44500

100026.4826.45500

SizeAskBidSize

Combined Order Book

20026.5026.445500

350026.4926.4511500

800026.4826.465000

SizeAskBidSize

20026.5026.43900

TURQUOISE

26.441000

100026.4926.455000

500026.4826.462000

SizeAskBidSize

Combined Order Book

20026.5026.445500

350026.4926.4511500

900026.4826.465000

SizeAskBidSize

26.43900

TURQUOISE

26.441000

100026.4926.455000

300026.4826.462000

SizeAskBidSize

Combined Order Book

20026.5026.445500

350026.4926.4511500

700026.4826.465000

SizeAskBidSize

26.43900

25

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

SOR Probe - Buy 10000 Fortis

Brussels Belgium

20026.5026.43900

50026.4926.44500

100026.4826.45500

SizeAskBidSize

AEX NETHERLANDS

200026.4926.444000

300026.4826.456000

300026.4726.463000

SizeAskBidSize

• Buy 10000 FORA NA with a limit of 26.48• Probe

• Buy 10000 FORA NA with a limit of 26.48• Probe

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.465000

SizeAskBidSize

20026.5026.43900

Ticker

• 10:00.000 buy 3000 Fortis @ 26.465 TUR (hidden)• 10:00.000 buy 2000 Fortis @ 26.47 TUR• 10:00.030 buy 3000 Fortis @ 26.47 AEX• 10:00.030 buy 2000 Fortis @ 26.48 AEX

Order complete buy 10,000 Fortis @ 26.4705

Ticker

• 10:00.000 buy 3000 Fortis @ 26.465 TUR (hidden)• 10:00.000 buy 2000 Fortis @ 26.47 TUR• 10:00.030 buy 3000 Fortis @ 26.47 AEX• 10:00.030 buy 2000 Fortis @ 26.48 AEX

Order complete buy 10,000 Fortis @ 26.4705

TURQUOISE

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.465000

SizeAskBidSize

20026.5026.43900

TURQUOISE

100026.4926.441000

100026.4926.455000

500026.4826.462000

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

300026.4726.465000

SizeAskBidSize

20026.5026.43900

AEX NETHERLANDS

200026.4926.444000

300026.4826.456000

300026.4726.463000

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

300026.4726.465000

SizeAskBidSize

20026.5026.43900

Combined Order Book

20026.5026.445500

350026.4926.4511500

700026.4826.465000

SizeAskBidSize

20026.5026.43900

AEX NETHERLANDS

200026.4926.444000

200026.4926.456000

100026.4826.463000

SizeAskBidSize

26

TURQUOISE30%

100026.4926.441000

500026.4826.455000

200026.4726.462000

SizeAskBidSize

SOR Sweep-Post - Buy 10000 Fortis

Brussels Belgium10%

20026.5026.43900

50026.4926.44500

100026.4826.45500

SizeAskBidSize

AEX NETHERLANDS60%

200026.4926.444000

300026.4826.456000

300026.4726.463000

SizeAskBidSize

• Buy 10000 FORA NA with a limit of 26.46, display max 5000.• Sweep-Post

• Buy 10000 FORA NA with a limit of 26.46, display max 5000.• Sweep-Post

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.465000

SizeAskBidSize

20026.5026.43900

Ticker

• Buy 1500 Fortis @ 26.46 TUR• Buy 500 Fortis @ 26.46 BEL• Buy 2000 Fortis @ 26.46 TUR

Ticker

• Buy 1500 Fortis @ 26.46 TUR• Buy 500 Fortis @ 26.46 BEL• Buy 2000 Fortis @ 26.46 TUR

26.463000 26.461500 26.46500

AEX NETHERLANDS60%

200026.4926.444000

300026.4826.456000

300026.4726.466000

SizeAskBidSize

TURQUOISE30%

100026.4926.441000

500026.4826.455000

200026.4726.463500

SizeAskBidSize

Brussels Belgium10%

20026.5026.44500

50026.4926.451000

100026.4826.46500

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.4610000

SizeAskBidSize

20026.5026.43900

TURQUOISE30%

100026.4926.441000

500026.4826.455000

200026.4726.463500

SizeAskBidSize

Brussels Belgium10%

20026.5026.44500

50026.4926.451000

100026.4826.46500

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.4610000

SizeAskBidSize

20026.5026.43900

TURQUOISE30%

100026.4926.441000

500026.4826.441000

200026.4726.455000

SizeAskBidSize

Brussels Belgium10%

20026.5026.44500

50026.4926.44500

100026.4826.451000

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.466000

SizeAskBidSize

20026.5026.43900

26.463000 26.46100026.46-2000

TURQUOISE30%

100026.4926.441000

500026.4826.455000

200026.4726.463000

SizeAskBidSize

Brussels Belgium10%

20026.5026.44500

50026.4926.451000

100026.4826.461000

SizeAskBidSize

AEX NETHERLANDS60%

200026.4926.444000

300026.4826.456000

300026.4726.464000

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.468000

SizeAskBidSize

20026.5026.43900

TURQUOISE30%

100026.4926.441000

500026.4826.455000

200026.4726.463000

SizeAskBidSize

Combined Order Book

350026.4926.445500

900026.4826.4511500

500026.4726.468000

SizeAskBidSize

20026.5026.43900

27

Conclusion

Learning from the US experience is essential but aEuropean solution is paramount

A brokers responsibility to provide Best Execution

Being MiFID compliant does not imply true Best Execution

Broker selection and evaluation is the key

28

Contact and Disclaimer

For further information please contact• eesales.eu@citi.com• +44 20 7986 0711

Disclaimer© 2007 Citigroup Global Markets Limited. This material has been prepared by individual sales and/or trading personnel of

Citigroup or its subsidiaries or affiliates and not by Citigroup's research department. It is not investment research or aresearch recommendation for the purposes of FSA rules, as it does not constitute substantive research or analysis. Thisdocument is for informational and discussion purposes only. It is not intended to constitute an offer or solicitation for thepurchase or sale of any financial instruments, trading strategy, product or service and does not take into account theinvestment objectives or financial situation of any particular person. Investors should obtain advice based on their ownindividual circumstances from their own tax, financial, legal and other advisors before making an investment decision,and only make such decisions on the basis of the investor's own objectives, experience and resources. Citigroup shallhave no liability, contingent or otherwise, to the user or to third parties, for the quality, accuracy, timeliness, continuedavailability or completeness of the data, calculations nor for any special, indirect, incidental or consequential damageswhich may be experienced because of the use of the data made available herein. This document and its contents areproprietary information and products of Citigroup and may not be reproduced or otherwise disseminated in whole or inpart without Citigroup’s written consent. For further information, please contact your local Citi representative directly ifyou are interested in buying or selling any financial instrument, pursuing any trading strategy or product or servicementioned in this document. Not all products and services are available in all geographic areas. Your eligibility forparticular products and services is subject to final determination by Citigroup and/or its affiliates.

© 2007 Citigroup Global Markets Inc. All rights reserved. CITI and Citi and Arc Design along with Dagger, Scouter, and ISShadow are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout theworld.

For further information please contact• eesales.eu@citi.com• +44 20 7986 0711

Disclaimer© 2007 Citigroup Global Markets Limited. This material has been prepared by individual sales and/or trading personnel of

Citigroup or its subsidiaries or affiliates and not by Citigroup's research department. It is not investment research or aresearch recommendation for the purposes of FSA rules, as it does not constitute substantive research or analysis. Thisdocument is for informational and discussion purposes only. It is not intended to constitute an offer or solicitation for thepurchase or sale of any financial instruments, trading strategy, product or service and does not take into account theinvestment objectives or financial situation of any particular person. Investors should obtain advice based on their ownindividual circumstances from their own tax, financial, legal and other advisors before making an investment decision,and only make such decisions on the basis of the investor's own objectives, experience and resources. Citigroup shallhave no liability, contingent or otherwise, to the user or to third parties, for the quality, accuracy, timeliness, continuedavailability or completeness of the data, calculations nor for any special, indirect, incidental or consequential damageswhich may be experienced because of the use of the data made available herein. This document and its contents areproprietary information and products of Citigroup and may not be reproduced or otherwise disseminated in whole or inpart without Citigroup’s written consent. For further information, please contact your local Citi representative directly ifyou are interested in buying or selling any financial instrument, pursuing any trading strategy or product or servicementioned in this document. Not all products and services are available in all geographic areas. Your eligibility forparticular products and services is subject to final determination by Citigroup and/or its affiliates.

© 2007 Citigroup Global Markets Inc. All rights reserved. CITI and Citi and Arc Design along with Dagger, Scouter, and ISShadow are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout theworld.