Omgeo - Industry Update

Presented by:

Vicki Mazza – Relationship Manager

BDUG Conference October 2006

Agenda

• Evolution of Omgeo’s Strategy• Industry Update on Matching• STP – Omgeo Solutions carving the way for STP• Fixed Income / TradeHub• Alert on the Web/ Alert Plus• Omgeo Central Trade Manager

• Questions / Answers

Omgeo Overview

• Orchestrator of post-trade pre-settlement trade management within the global securities industry

• Process over 1 million fixed income and equity trades/day

• 6,000 investment manager, broker/dealer and custodian bank users in more than 40 countries

• Combined 30 years experience, Omgeo is the result of a global joint venture between the DTCC and Thomson Financial

Omgeo’s Strategy: 2006+

• Automate Investment Manager allocations across multiple asset classes

• Provide IM’s 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 Update on Matching

Omgeo TradeSuite Product VolumesAugust 2006

• Average Daily Trades/Confirms: 1,025,000

• Daily Equity Average: 923,000• Daily Fixed Income Average: 102,000*

• Confirm/Affirm (TradeSuite): 950,000• Central Matching Daily Average: 75,000

* Automated allocation to electronic confirm rate still low for Fixed Income, approximately 10%

Oasys and Fixed Income

WHAT’S NEW FOR VERSION 5.0 – FIXED INCOME UPDATE

• Added automation and expanded instrument coverage• Ability to submit user-defined CUSIPS• Processing of To Be Announced (TBA) contracts for

Mortgage Backed Securities (MBS)• Improved fixed income processing via security type and

standardization across OASYS, TradeMatch and ALERT

WHAT’S NEW FOR VERSION 5.0 – CUSTODIAN BANKS UPDATE

• Enhanced communication minimizes inefficiency and operational risks.

– Expanded connectivity includes ability to allocate to custodians via TradeHub or by-pass in TradeMatch

Oasys Fixed Income Community Update

Community tracking at a 45% increase in automated allocations over YTD 2005

Commercial Paper continues to trend upwards month over month MBS traffic on the rise; and TBA traffic anticipated with OASYS 5.0 uptake

• Uptake and use of OASYS 5.0• Broker coverage is increasing – outreach to counterparties is key• Code of Practice/standards adherence

• Cash Trades/Money Market Instruments

• Metrics: client specific data

• Standardized Repo processing

• New and continuing partnerships with Blackrock Solutions, CRD, Bloomberg as well as many others..

Alert Enhancements – Alert Plus

ALERT Plus

ALERT Plus will allow IMs and IMOs the ability to create and manage their high-volume account

and settlement data more efficiently.

Upload and global search and replace functionality will help greatly reduce resource restraints, manual intervention, settlement errors and

operational costs.

ALERT PlusKey Features

Ability to make changes to all account and settlement instruction data across all markets available

• Bulk Data Import • Bulk import account and settlement instruction data from

a file instead of manually updating one-by-one

• Global Search and Replace• Change instances of the same data across multiple

accounts or settlement instructions

ALERT PlusKey Features

• Broker list attachment• Attach broker lists to accounts via import and view

through user interface

• Market activation • Helps facilitate the activation of selected markets on an

account-level basis

Omgeo Central Trade Manager

Omgeo Central Trade Manager

• Increase in investment manager usage of CTM for allocations to brokers:• August 2005 – 395,674 trades• August 2006 – 720,367 trades

• Increase in Settlement Notifications to Custodians via Omgeo’s Closed User Group with SWIFT:• August 2005 – 13,188• August 2006 – 55,210

Questions?