OPERATIONS FORUM Eurex Clearing AG Central Counterparty Solution August 3 rd 2006 London Deutsche Börse AG / Eurex Clearing AG

Agenda Gruppe Deutsche Börse – Overview Value Chain Role of Eurex Clearing AG Clearing Functionality at Eurex Clearing AG –Eurex Risk Management –CCP Functionality –Clearing Services for Irish Stock Exchange Future Extension of the Eurex Clearing Functionality

Information TradingClearing Settlemen t Custody –Streaming data feeds –Physical terminals –Indices –Operate open electronic order books –Connectivity to international trading members –Verification of trade-related information –Central counterparty (CCP) –Risk Mgmt. –Delivery of securities –Financing services –Securities lending & borrowing –Physical custody of securities –Related services, e.g. tax, corporate actions, income Information Services FWB Eurex Clearing House Clearstream Banking (Frankfurt and Luxemburg) Eurex IT services and software development (DB Systems) Cash and Fixed Income market as well as Derivatives market instruments are subject to the value chain of Gruppe Deutsche Börse (GDB) Gruppe Deutsche Börse – Overview Value Chain

Agenda Gruppe Deutsche Börse – Overview Value Chain Role of Eurex Clearing AG Clearing Functionality at Eurex Clearing AG –Eurex Risk Management –CCP Functionality –Clearing Services for Irish Stock Exchange Future Extension of the Eurex Clearing Functionality

Eurex Clearing AG provide sustainable Benefits Counterparty Risk Reduction Processing Efficiency Standardised post-trading approach Post-trade functionalities for trade management (e.g. give-up / position transfers / trade split) Netting of settlement instructions and volumes, STP- processing Reduction of back office complexity Reduction in fails and financing needs Eurex Clearing AG becomes legal counterparty to all trades Reduction in counterparty and credit risk due to multilateral netting and decreased probability of counterparty default Counterparty risk reduction until settlement for equities / bonds, underlying derivatives obligations, or until maturity for derivatives / repos Role of Eurex Clearing AG

Agenda Gruppe Deutsche Börse – Overview Value Chain Role of Eurex Clearing AG Clearing Functionality at Eurex Clearing AG –Eurex Risk Management –CCP Functionality –Clearing Services for Irish Stock Exchange Future Extension of the Eurex Clearing Functionality

Eurex Risk Management Admission Margin Collateral Intra Day Risk Management Lines of Defense  The risks of Eurex Clearing AG can be differentiated into three groups: Counterpart Risk Systemic Risk Operational Risk Coverage of the Counterpart Risk* * Systemic Risk and Operational Risk not considered in this presentation

Derivatives Bonds Repos Equities Capital* CAPITAL REQUIREMENTS AND PAYMENTS INTO GUARANTEE FUNDS GCM (DCM) 125 (12.5) 50 (5.0) 175 (17.5) 25 (2.5)** Guaranty fund Total 5 (1) in Mio. EUR Additional admission requirements Financial institution located within the European Union or Switzerland Securities Pledge Account at CBF or SIS Cash Account at BuBa or SNB * Minimum amounts, capital is dynamic (dependent on the risk) ** always additive Eurex Risk Management – Admission Requirements

Model is Eurex Risk Based Margining Margin requirements are calculated on level exchange member (NCM)/account type (client/proprietary) Calculation is based on current market prices -intraday- or settlement prices -close of business- Margin requirements are only applied on the net position of a specific series/ security Intraday Risk Management Permanent online monitoring of current positions based on exchange member (NCM)/account type level Alerts are triggered approx. every 10 minutes Eurex Risk Management – Eurex Risk Based Margining

Premium Margin Variation Margin It must be deposited by the writer of an option, it covers the potential loss that could occur if the writer were forced today to liquidate the position It is continuously adjusted, i.e. if prices fluctuate so that the potential loss upon liquidation increases, the writer will be obliged to deposit additional premium margin based on settlement prices For those products which are handled on a mark-to- market basis, Eurex Clearing AG books the trading- day profits and losses of all open positions held in an account Principal Elements of Risk-Based Margining I Eurex Risk Management – Eurex Risk Based Margining

Additional Margin Future Spread Margin Additional Margin serves to cover through the next trading any potential additional costs that could arise if the positions had to be liquidated immediately. Additional margin is imposed on traditional and future- style options as well as on non-spread futures Long or short positions which have expiration dates that are not identical,can be offset against each other (spreading) Counterbalanced positions through time-spread orders are subject of Futures Spread Margin Futures Spread Margin has the purpose of covering that risk until the next trading day Current Liquidating Margin addresses the realized loss at the end of day Long positions are valuated at the last exchange price Current Liquidating Margin Principal Elements of Risk-Based Margining II Eurex Risk Management – Eurex Risk Based Margining

Eurex calculates different types of margin Bonds/ Repos Equities Timeframe: yesterday to today Timeframe: today to tomorrow Equity-, Index Options Futures Options on Futures Additional Margin Future Spread Margin Cash Current Liquidating Margin Premium Margin Variation Margin Eurex Risk Management – Eurex Risk Based Margining Principal Elements of Risk-Based Margining III

A permanent margin process covers net exposure with securities Change of positions, prices and volatility Calculation of overall risk requirements after cross margining Calculation of risk on net exposure Daily calculation of risk haircuts on deposited collateral Comparison of margin requirement with collaterals Debit or credit of securities* *Credit only once a day Intraday- Margining allows monitoring every 10 minutes Eurex Risk Management – Eurex Risk Based Margining

Lines of Defense have survived stress tests 0% 5.2% 5.7% 3.4% 85.6% * Basis: 348 cases** Assumption: Default of the member with the largest credit balance Frequency of utilization during stress tests* Underlying assumptions**  Extreme market movements  Money market: +/– 0.5 points  Bonds: +/– 2 points  Stock: +/– 25%  Varying scenarios (e. g. falling prices of stocks or bonds) Eurex Clearing AG equity capital General clearing funds Eurex reserves Contribution to clearing funds for defaulting members Collateral of defaulting member Closing out positions Lines of Defense Eurex Risk Management – Eurex Risk Based Margining

Agenda Gruppe Deutsche Börse – Overview Value Chain Role of Eurex Clearing AG Clearing Functionality at Eurex Clearing AG –Eurex Risk Management –CCP Functionality –Clearing Services for Irish Stock Exchange Future Extension of the Eurex Clearing Functionality

CBF CBLSIS Clearing Trading Settlement EB EURCHF GBP Eurex Ex/ Ass / Not/ All CrestCBF Cash Market Eurex Bonds Eurex Repo Bond/ Repo Market SISCBF Integrating all markets at GDB Connecting different security depositories Reducing counterparty risk by effective risk & collateral management Reducing cross border settlements Offering service to additional markets outside Group Deutsche Börse (e.g. ISE) Planned for begin of 2007 Market Participants Eurex Clearing CCP Functionality – Infrastructure Xetra/ Xetra OTC Floor FWB

CCP Post Execution Functions Inquiry of trades (filter, details) Blocking of trades Full and partial release of trades Settlement forecast & results overview Reporting Making for gross/net processing Linking of Trades (man./ autom.) Basic functions Optional functions The CCP provides centrally the full set of information (from time of registration until settlement) on gross trade basis The CCP performs Corporate Actions on pending trades Forecast of security and cash settlement online available Optionally, disposition management for settlement available CCP Functionality – Trade Management

B4 B1 B3 B2 S6 S1 S5 S2 S3 S4 Netting S6 S1 S5 S2 S3 S4 B4 B3 B2 B1 Surplus: Net delivery instruction to (i)CSD Offsetting block: Cash settlement via cash correspon- dent Settlement Netting significantly reduces the number of delivery instructions: Principle –On the evening of S - 1, Settlement Netting is performed for the first time, so that the generated delivery instructions will be available for (i)CSD settlement in the night time settlement run Surplus –Generation of DVP instruction for (i)CSDs (booking of surplus) Offsetting Block –Booking of offsetting block via cash correspondent (e.g. Deutsche Bundesbank) Trades CCP Functionality – Delivery Management The introduction of the CCP netting algorithm led to a Settlement Netting efficiency of 96 % and Settlement efficiency increased from approx. 93% to 97% on the cash market

Agenda Gruppe Deutsche Börse – Overview Value Chain Role of Eurex Clearing AG Clearing Functionality at Eurex Clearing AG –Eurex Risk Management –CCP Functionality –Clearing Services for Irish Stock Exchange Future Extension of the Eurex Clearing Functionality

Clearing Trading Settlement Position data Reference data ECH offer Clearing Services to ISE:  Trades can be routed to CrestCo Irish system by members (as is)  CrestCo will support clearing services (e.g. trade validation & netting) as in today’s UK market  CrestCo will continue to provide settlement services  ECH will receive position data from CrestCo for margin calculation  Margin calls and collateral will be collected by ECH  Reference data will be exchanged between ISE, ECH and CREST CBF/SISBuBa/SNB Transaction data Collateral Margin Calls - Trade validation & enrichment - Position management - Corporate action processing - Tax reporting (e.g. SDRT) - Member reports/enquiries - Settlement - Central Counterparty - Risk Management - Buying-In - Member Reporting Settl. prices Margin req. The Irish Stock Exchange chooses Eurex Clearing House (ECH) as the central counter-party provider for equities and ETFs traded on the Xetra ISE trading platform Clearing Services for Irish Stock Exchange

Agenda Gruppe Deutsche Börse – Overview Value Chain Role of Eurex Clearing AG Clearing Functionality at Eurex Clearing AG –Eurex Risk Management –CCP Functionality –Clearing Services for Irish Stock Exchange Future Extension of the Eurex Clearing Functionality

New CCP Release planned for end of Q3/ 2007 Trade Management Services for Certificates & Warrants – Settlement of Certificates & Warrants via CCP infrastructure without involvement of Eurex Clearing AG as Central Counterpart (CCP) offers a harmonized process for CCP and Non-CCP instruments Multi Currency Clearing in the CCP – Offering of multi currency clearing for the various trading locations via the CCP of Eurex Clearing AG Open Repos & Variable Repos – Introduction of clearing and CCP services for open and variable repos traded at Eurex Repo GmbH Additional Post Trade Services for MiFID Future Extension of the Eurex Clearing Functionality