Rainer Riess Sofia, 16 September 2008 A View from Outside: The Developed Exchanges as Partners and Providers of Innovations Framework - The presented offering includes all components of Deutsche Börse IT (from consultancy over application development to data center services) and aggregates the offering of all entities in the IT segment - The addressees are executives on board level and other decision-makers - The presentation will be updated on a regular basis (for potential customers in Luxembourg we have to make a few changes to focus more on the regulatory issues (PSF-approval)) Rainer Riess Sofia, 16 September 2008

Agenda 1. Brief Introduction of Deutsche Börse 2. International Stock Market Trends 3. Partnership in South-East-Europe

Deutsche Börse Group – Innovation and Growth 1585 Foundation of Frankfurt Stock Exchange 1992 Deutsche Börse AG established as a joint stock company 1997 Launch of the electronic trading platform Xetra® 1998 Derivatives exchange Eurex established on the basis of a merger of DTB Deutsche Terminbörse and Swiss Soffex 2000 Merger of Deutsche Börse Clearing and Cedel to form Clearstream International 2001 IPO of Deutsche Börse AG, one year later share of Deutsche Börse AG included in the DAX® index 2003 Introduction of the Equity Central Counterparty 2006 Deutsche Börse and SWX form structured products JV “Scoach” 2007 Market capitalization of about EUR 25 bn, Deutsche Börse AG included in EuroStoxx 50 index 2008 Eurex takes over International Securities Exchange (ISE)

Deutsche Börse Group – Integrated Transaction Processing Trading Clearing Settlement Custody Cash Market: Xetra Eurex Clearing Clearstream Derivatives: Eurex Operation of open electronic order books Connectivity to international trading participants Verification of trade-related information Central counterparty (CCP) Risk management Delivery of securities (delivery vs. payment) Financing services Physical custody of securities Related services, e.g. tax, corporate actions Market Data & Analytics Streaming data, data terminals, indices, reference data Information Technology External IT services, internal IT services, software development

Agenda 2. International Stock Market Trends 1. Brief Introduction of Deutsche Börse 2. International Stock Market Trends 3. Partnership in South-East-Europe

 Cross Border Trading: Diversification leads to Internationalization of Markets Remote and world wide distribution of market data allow investors to access international liquidity pools at reasonable costs Physical location of trading does not matter anymore Intermediaries enlarge their product portfolio in securities services; limitations for cross border capital flows are reduced; Investors can diversify their portfolios more efficiently Exchanges internationalize their customer bases Largest active fund pool About 3,500 active funds Deutsche Börse: USA Ireland Belgium France Spain UK* Germany Gibraltar Italy Portugal Denmark Finland Nether- lands Luxembourg Sweden Singapore Australia Hungary Host Access point Participants Cyprus* Greece Czech Republic Slovenia Austria U.A.E. Switzerland Equity futures and options About 600 equity derivatives Largest stock market About 9,000 shares traded thereof about 8,000 international companies from 70 countries Joint liquidity network About 300 Xetra members and 400 Eurex members Across 25 countries Largest listed ETF universe in Europe Over 300 Exchange traded funds Highest market share in Europe Index futures and options 100 index/ETF derivatives 3 Volatility Index futures Largest bond offering 10,000 bonds; thereof 2,000 international bonds Largest settlement network Settlement links into more than 45 international markets

 Consolidation and Competition: Maintaining and increasing Liquidity is Key for Exchanges Very active market consolidation in 2007 including first cross-Atlantic deals (e.g. NYSE-Euronext, Nasdaq-OMX, Eurex-ISE) while economies of scale drive for increased system load Competition increases as investment firm groups become marketplace operators (e.g. Turquoise) and new entrants emerge (e.g. Chi-X), supported by regulatory focus on Customer Protection and Interoperability OTC markets capture large parts of the total order flow. Various so-called “Dark Pools” were established Challenge for exchanges is still to uphold efficiency of public price discovery, to avoid the fragmentation of liquidity and to integrate OTC markets Deutsche Börse: Deutsche Börse actively manages the liquidity of its markets by continuously measuring liquidity costs and selecting the right market model for each instrument Furthermore, Deutsche Börse consistently introduces new innovative products, e.g. Exchange-Traded Commodities (“ETCs”) and “Xetra-Gold” recently Last but not least, cooperation and partnerships with other exchanges ensure economics of scale for Deutsche Börse's trading platforms. On June 16, 2008 the Bulgarian Stock Exchange with its 81 members successfully went live on Deutsche Börse’s Xetra platform

 Algorithmic Trading: The Need for Speed – A Race to the Bottom? Algorithmic Trading is - a trading service that enables order submissions - without human intervention - via direct market-access channels - based on quantitative models - and a predefined benchmark concept. Requirements: Ultra fast market data feed Low latency, high speed trading platforms Proximity hosting services Pricing models designed for high frequency trading Deutsche Börse: While the share of algorithmic trading increased to more than one third of trading volume and trading activity increased to more than 2 mn trades per day, Xetra latency (order action roundtrip time) could be reduced to 2 milliseconds for the fastest orders per day

 Risk Management: Central and Integrated Clearinghouses generate Trust Risk management capabilities are becoming more important to every single market participant but also to the financial stability of the whole market Introduction of central counterparties (CCP) can be seen as a logical consequence of electronic trading Traders can build up heavy market exposure and positions change from long to short within milliseconds This requires real-time risk management capabilities, fully electronic and seamlessly integrated with trading to allow for a continuous mark-to-market and risk based margining of trading positions Deutsche Börse: Deutsche Börse has ample experience in setting up and operating clearing and CCP services since Eurex Clearing AG, Deutsche Börse Group's integrated clearinghouse was founded in 1998 Eurex Clearing serves more than 114 clearing members located in 10 European countries and manages a collateral pool of approximately EUR 45 bn In 2007, Eurex Clearing processed more than 2 bn transactions, ranking it the largest CCP in Europe

Agenda 3. Partnership in South-East Europe 1. Brief Introduction of Deutsche Börse 2. International Stock Market Trends 3. Partnership in South-East Europe

Partnership in South-East Europe Motivation Leading exchanges like Deutsche Börse are mostly active across various asset classes and the whole value chain of exchange trading Their international network of trading & clearing member as well as settlement institutions, CSDs and data vendors provides high synergies and unique potential for smaller exchanges Joint marketing & sales activities (e.g. road shows and investor conferences in major international financial centers) highly valued by local issuers Re-using exchange infrastructure of an exchange partner comes only at marginal costs for smaller exchanges Difficult projects (e.g. setting up derivatives trading and/or a full fledged clearing house) become feasible for smaller exchanges in a much shorter timeframe Deutsche Börse's Approach Concept of "Partner Exchanges" with various options and close integration into Deutsche Börse's infrastructure Various success stories (latest: Bulgarian Stock Exchange) demonstrating development of time of such a partnership (first cash market infrastructure, expansion of asset classes, set-up of a CCP, CSD linkage) Flexible engagement models offered Highly attractive pricing possible due to synergies (re-using of existing hardware and trading networks) Lessons Learnt Trustful and long-term partnership required as well as strong commitment from both sides Focus shall be on the whole value chain, not only on cash trading – right from the beginning Exchange partner needs to be willing to act as a mentor rather than solely as a provider of trading software Share of risks and benefits as a superior way to achieve full commitment on both sides

Co-operation has been started Partnership in South-East Europe Bulgarian Stock Exchange & Deutsche Börse The co-operation between the Bulgarian Stock Exchange and Deutsche Börse combines the experiences from both partners to expand the Bulgarian capital market. Phase 1: Co-operation has been started Phase 2: Outlook Successful implementation of a common state-of-the-art trading platform (Xetra) on 16 June, 2008 Acquisition of further international vendors for BSE market data; distribution of BSE data via Deutsche Börse’s network in parallel to BSE Joint analysis of the product portfolio and potential business opportunities (e.g. derivatives listing) Improvement of settlement infrastructure esp. for foreign members, e.g. by creating a CSD link between Clearstream and CDAD Enlargement of member and end-customer base by attraction of foreign investors Increase liquidity by potential introduction of specialists, joint marketing efforts etc. Introduction of a derivatives market on a common trading platform considering local requirements Joint cash market and product development (e.g. ETFs, certificates and warrants) Setup of a clearinghouse and central counterparty for the Bulgarian Market

Thank you for your attention!

Scoach: The new European Exchange for Structured Products SWX Group and Deutsche Börse AG have integrated their current business in structured products to become Scoach, the largest European trading venue for structured products Scoach holding company is located in Luxembourg Structured products are securitized derivatives (e.g. certificates or warrants*) on various underlyings, issued by a bank Issuers of structured products have the choice of two different trading models (Issuer Trading Model or Specialist Trading Model) per instrument. Trading takes place on Deutsche Börse‘s Xetra trading platform between 9.00 a.m. and 8.00 p.m. CET All Xetra trading members (about 300 banks and brokers from 19 different countries) can trade structured products on Xetra or become issuer of structured products** More than 300.000 different structured products are currently offered for trading on Xetra Overview 50% + 1 share -1 share 100% FWB segment Structured Products D/EU Agent (partly) for FWB Scoach Schweiz Exchange Structured Products CH Scoach Holding SA Europa Schweiz * e.g. reverse convertibles, basket, bonus, discount, guaranteed, index/tracker, outperformance and other; plain vanilla, knock outs, exotic ** EU-wide listing enabled via EU-passporting procedure

International Securities Exchange (ISE): Creating the Largest Transatlantic Derivatives Marketplace Purchase price of ISE was about USD 2.8 bn and deal was closed in December 2007 Largest transatlantic derivatives marketplace with about 600 exchange members and more than 2.7 billion contracts traded in 2007 was created Combines two innovation leaders offering significant cross-selling and new product development opportunities Provides new geographic expansion opportunities across multiple asset classes Trading and clearing link planned providing access to ISE products through existing Eurex technical infrastructure, network and processes Execution in ISE’s order book building on home market liquidity Access through existing Eurex Clearing relationship and efficient use of collateral

Link-Up Markets: Direct Cross-Border Access facilitated by integration of European CSDs Single point of access for CSDs to participating markets Easy implementation of enhanced CSD-links in Central Bank Money leveraging TARGET2-Cash Reuse of efficient local infrastructures Absorbing differences in market standards Best-in-class CSD services for all asset classes (excluding derivatives) and multiple currencies Continuous harmonization of market practices Flexible extension of market coverage in Europe and beyond Launch in 1st half 2009