1 Central Market Wholesale market Istanbul, 7 April 2006 Alan van Griethuysen Executive Director, Sales Euronext.liffe Equity Derivatives Overview

2 Euronext.liffe Liquidity Provider System (ELPS) Market Maker Program  Provides continuous on-screen liquidity  A significant number of liquidity providers, quoting specific bins of options (ECC- Euronext.liffe Class Combinations) ­ Selected through competitive auction process ­ Up to 3 Primary Market Makers (PMM) per ECC ­ Up to 20 Competitive Market Makers (CMM) per ECC  Obligations of Market Makers ­ Quote in all (PMM) or subset (CMM) of ECC for > 90% of trading day ­ Quotes must be present prior to daily open and on day of expiry for all contracts within ECC ­ All under the condition as agreed in the auction  Benefits to Market Makers ­ Market Maker functionality: ability to update all series simultaneously ­ Delta Protection functionality ­ Fee incentives ­ Ability to interact with a broad end user base

3 ELPS Benefits to Market  A Vibrant, liquid CLOB ­ Quotes available within all series of an option class throughout the trading day ­ Attracts significant institutional and retail participation ­ Retail base especially important in Amsterdam- approx 250,000 participants  A network of e-brokers and banks that promote the on-screen options market  Straight Through Processing

4 ELPS Implementation Timetable  Amsterdam ­ ELPS introduced November 2001 ­ Incorporated in LIFFE CONNECT® migration, Q ­ 2006 ADV= 538k up 50% from 2005  Brussels ­ New market model based on ELPS adopted January 2006 ­ Since launch volumes in IEOs up more than 50%  Paris ­ Plans to adopt offering in Equity Derivatives from Q  London ­ Plans to adopt offering in Equity Derivatives Q4 2006/Q1 2007

Wholesale Services for Equity Derivatives

6 Background Issues The OTC market for European equity options is three times larger than the listed equity derivatives market -Existence of multiple European derivative exchanges makes trading of certain regional products difficult -OTC market is perceived as cheaper. However, operational and legal costs can be significant to participants. -Standardized products listed on exchange Irrespective of market size, the European OTC market is operationally inefficient and counterparty credit risk exists Solutions November 2005: introduction of a range of wholesale services offering exchange style efficiencies to the OTC market

7 New Wholesale Services Launched (ABC) November 2005 Afirm Automated “off-exchange” post-trade affirmation and matching solution under ISDA rules Bclear Simple booking and processing solution for OTC trades through Euronext.liffe to clearing at LCH.Clearnet Ltd avoiding counter party risks Cscreen Pre-trade price-discovery platform for OTC participants

8 Liquid Central Market + ABC Services The best of both worlds -More precise risk management capabilities -Complimentary products for wholesale and retail participants e.g. custom tailored products on Bclear, weekly options on central market As a compliment to the central market, ABC services provide: -Exchange-style efficiencies to OTC transactions -Broad coverage across major European underlying shares and indices -Choice: “on-exchange” cleared service (Bclear) or “off-exchange” OTC post- trade matching service (Afirm) -Simplicity and efficiency: from pre-trade to post-trade (STP) -Flexibility: user can specify maturity, exercise and settlement style -Choice of publishing or not publishing

9 Coverage by Market  300+ pan-European blue-chips from 16 countries and 12 country and pan-European indices  All components of AEX, CAC 40, Eurostoxx 50, FTSEurofirst 80 and Dax 30  All futures and options contracts 100 shares per lot apart from UK and Italy (1,000)

10 Bclear Facts and Figures (31 March 2006) 3,683 trades since launch 9m contracts traded since launch (2006 ADV of 122k) -52% of volume is in IEO, 48% in index products 49% of all Bclear trades are not published For IEOs: 4.68m lots have traded of which 2.25m are in UK names and 2.43m in European names Trades have been undertaken in Austrian, Dutch, French, German, Italian, Spanish, Swiss, Swedish and UK equity options Client volume is 54% of total, 46% is proprietary volume For Index Options (all FTSE 100 options) : Client volume is 46% of total, 54% is proprietary volume

11 What’s new?  Afirm ­ Continue to expand distribution  Bclear ­ Introduction of Standard and Flexible USFs (March 1, 2006)  Over 300 pan-European blue-chips from 16 markets  Only platform to offer futures and options on over 300 European blue-chips ­ Addition of a FpML-based API to facilitate ease of integration with member internal and end user order-routing systems (Q2/Q3) ­ Continue to expand the range of underlying equities to meet demand  Cscreen ­ Full integration with Afirm & Bclear (single API)