Eurex Clearing Lending CCP Overview on the CCP service for securities lending December 2015

Content What services does Eurex Clearing provide? Why is the Lending CCP beneficial for you? What is the Lending CCP service offering? What is required to participate in the Lending CCP? How to get in contact?

Eurex Clearing offers central counterparty services for multiple asset classes across multiple markets Market participants Eurex Exchange (Derivatives) EurexOTC (IRS) Frankfurt Stock Exchange (Equities, ETFs) Irish Stock Exchange (Equities) Eurex Bonds (Bonds, Basis) Eurex Repo (Repo, GC Pooling) Securities Lending Eurex Clearing Central Securities Depositories International Central Securities Depositories Eurex Clearing is part of Eurex Group, which is a full subsidiary of Deutsche Boerse Group and has one of the strongest rating profiles of financial market infrastructure providers in the world; S&P rates Deutsche Boerse Group with AA. Eurex Clearing is licensed as a credit institution under the supervision of the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin). Eurex Clearing is an approved QCCP; the national competent authority BaFin approved Eurex Clearing as in accordance with the European Market Infrastructure Regulation (EMIR) effective 10 April 2014. Eurex Clearing is fully compliant with CPMI and IOSCO Recommendations for CCPs.

Lending CCP’s unique service offering benefits the securities lending marketplace Simplifies your multiple counterparty credit structure to a single CCP relation for all novated loans Improved distribution for borrowers and lenders with restrictive counterparty parameters Maintains bilateral trading relationships Transparent and standardized risk management & default procedures Lending CCP guarantees the return of the loan and collateral securities Offers protection from counterparty default Beneficial regulatory capital requirements Capital costs reduced for CCP loans Operational efficiency by CCP-managed post-trade services Settlement flows controlled by CCP (based on Power of Attorney) Lending CCP operates as the ‘golden source’ for loan valuation and centralized billing Membership structure for Lenders allows for Agency and Principal roles Specific Lender License supports the Agent Lender / Beneficial Owner relationship; utilizes a ‘pledge model’ for non-cash collateral – Beneficial Owners do not pay margin for the related transactions Lenders can act as Principal using either a Direct or General Clearing Membership 4

Lending CCP delivers a combined platform to connect bilateral and electronic markets Securities lending market participants Bilateral market (OTC) Electronic securities lending trading platforms EquiLend*, Pirum Real-Time Service Eurex Repo-SecLend Market Eurex Clearing Lending CCP Central Securities Depositories International Central Securities Depositories Clearstream Banking Frankfurt Euroclear BE, FR, NL SIX SIS Clearstream Banking Luxembourg Euroclear Bank *EquiLend planned start date in March 2016

Lending CCP serves the key elements of the securities lending market Bilateral transactions (OTC) Electronic markets Bonds – European corporate & government bonds Equities – coverage of key European markets Exchange Traded Funds (ETFs) Loans against cash collateral Loans against non-cash collateral - bonds & equities Clearstream Banking Luxembourg Euroclear Bank Loan Deliveries, Mark-to-Marks, Re-rates, Recalls, Returns, Buy-ins Corporate Actions, dividend payments Automated billing (lending fees & rebates) Transactions Markets Collateral Tri-party collateral agents Post-trade functionality

Lending CCP operates an integrated solution for your securities lending transactions Lending CCP System Loan capture Loan validation Loan novation Loan confirmation Loan recalls Loan returns Loan re-rates Buy-ins Corporate Actions Rebate / lending fees Clearing fees Reporting Instruction of securities deliveries (on behalf) Instruction of cash payments (on behalf) Fee settlement (Rebate / Lending Fees) Information on settlement results Procedure to control collateral compared to risk exposure Collection and release of cash and non-cash collateral Daily mark-to-market Intraday calculation of margin requirements Margin requirements consider deposited principal collateral Trade management Position management Delivery management Risk management Collateral management 7

Real-time trade validation Loan life-cycle management Lending CCP incorporates STP trade-flow for your securities lending activity Loan negotiation Lender Flow Provider* Borrower Trading Loan information Loan information Real-time trade validation Data transmission Eurex Clearing Clearing Member Clearing Member Validation Clearing Clearing Membership Clearing Membership Novation Confirmation Loan life-cycle management Payment bank Cash Tri-party agent Non-cash CSD Equities ICSD Bonds Settlement Principal Collateral Loan securities *Flow Provider used as the entry channel from market participants to Eurex Clearing e.g. for New loan transactions, Re-rates, Recalls, Returns etc. 8

Lending CCP’s Specific Lender License supports the Beneficial Owner’s role and Agent Lender relationship Agent Lender Loan negotiation Borrower Beneficial Owner Loan securities Eurex Clearing Loan securities Clearing Member Non-cash Principal Collateral Non-cash Principal Collateral Specific Lender License Margin Collateral Key: Pledge to Lender Pledge to the CCP Transfer of Title Beneficial Owner maintains business relationship with Agent Lender Agent Lender continues to arrange loans for CCP eligible transactions Operational links with flow provider and CCP maintained by Agent Lender Agent Lender reports loans and collateral through existing reporting set Beneficial Owner uses an approved Specific Lender License with a distinctive CCP membership No requirement to clear through a General Clearing Member No requirement to pay margin No default fund contribution Dedicated requirements for Specific Lender License Supervised financial sector entity located within the EU, Switzerland, USA* and other selected countries Permission to perform securities lending business Pre-requisite is collateral pledge model with Tri-party Collateral Agent *Pending legal analysis

Collateral Giver & Receiver Lending CCP incorporates a Tri-party collateral process for the management of your non-cash collateral Lender CCP Borrower Clearing Member Eurex Clearing Clearing Member Reporting Reporting Tri-party agreement* Collateral Receiver Collateral Giver & Receiver Collateral Giver Lender Tri-party a/c CCP Tri-party a/c Borrower Tri-party a/c Transfer of Title or Pledge Transfer of Title Integrated and enhanced collateral management Exposure management undertaken by Lending CCP Lender eligibility profiles (bonds & equities) maintained by Lending CCP and Tri-party collateral agent Borrower substitutions of Principal Collateral undertaken by Tri-party collateral agent Tri-party collateral agents ensures substitution of Principal Collateral prior to Corporate Actions Re-use of Principal Collateral within the regulations of Tri-party collateral agent (for transfer of title) *Borrower, Lender and the CCP make use of the same Tri-party Collateral Agent e.g. Clearstream Banking Luxembourg or Euroclear Bank 10

Lending CCP includes an integrated solution for Corporate Action processing on novated transactions Management of Corporate Actions Mandatory Voluntary Cash Distributions Automatic processing of compensation payments based on the payment rate as agreed in the loan transaction Securities Distributions Automatic distribution of stock dividends and bonus shares processed as an opening of a new loan or an update to the existing loan Mandatory Reorganizations Automatic nominal and/or ISIN changes processed as an opening of a new loan or an update to the existing loan; Squeeze-out/Redemptions/Liquidations lead to closing of the loan and an automatic cash settlement Distributions with Options Automatic distribution of Rights processed as an opening of a new Rights loan Lender can recall the Rights to execute/sell; non-recalled/returned Rights will be automatically cash settled at the end of the subscription period Voluntary Reorganizations Corporate Action CCP Transformation* function allows market participants to arrange for all types of voluntary corporate actions bilaterally while keeping the loan within the CCP Eurex Clearing’s Graphical User Interface** allows Borrowers and Lenders to electronically communicate, agree and transmit the expected outturn instructions towards Eurex Clearing Dispute Resolution Committee provides independent deliberation on disputed voluntary corporate actions *Transformation via Pirum Real-time Service; ** GUI via Eurex Clearing web portal

Summary of the Lending CCP’s participation and set-up requirements Clearing Membership - Securities Lending license Clearing Conditions of Eurex Clearing - Chapter IX Clearing of Securities Lending Transactions ‘Full’ clearing membership (GCM/DCM) or Specific Lender License for Beneficial Owners Technical connectivity to Lending CCP flow provider & reporting infrastructure Eurex Repo-SecLend Market and/or Pirum Real-Time Service Eurex Clearing Common Report Engine Securities accounts for loan securities at (I)CSDs Equities - Clearstream Banking Frankfurt, Euroclear Belgium/France/Netherlands (ESES) and/or SIX SIS Fixed income - Clearstream Banking Luxembourg or Euroclear Bank Cash accounts for loan related activities Cash accounts for fee/rebate and compensation payments (CHF, EUR, USD) Collateral accounts for Principal Collateral Cash accounts for EUR and USD for cash collateral (EUR, USD) Tri-party collateral profile/account at Clearstream Banking Luxembourg and/or Euroclear Bank for non-cash collateral Collateral accounts for Margin Collateral Cash accounts (CHF, GBP, EUR, USD) for additional margin payments and/or Pledge securities account at Clearstream Banking Frankfurt, Clearstream Banking Luxembourg or SIX SIS 12

Eurex Clearing continues to advance its Lending CCP for the securities lending market Lending CCP service offering: Asset classes Flow Providers Cash, Bonds, Equities & Exchange Traded Funds EquiLend*, Eurex Repo-SecLend Market & Pirum Real-Time Service Loan securities Settlement locations European fixed income: Government bonds Supranational bonds Regional bonds Local government bonds Corporate bonds ICSD: Clearstream Banking Luxembourg & Euroclear Bank Equities: Belgium France Germany Netherlands Switzerland CSD: ESES / Euroclear Belgium ESES / Euroclear France Clearstream Banking Frankfurt ESES / Euroclear Netherlands SIX SIS Exchange Traded Funds: Replicated ETFs Non-cash Principal Collateral Tri-party Collateral Agents Bonds, equities & ETFs Cash Principal Collateral Payment locations EUR USD TARGET2 account Payment banks *EquiLend planned start date in March 2016 13

Lending CCP information Contact Frankfurt Paris Efthimia Kefalea T +49 (0) 69 2111 7275 M +49 (0) 172 299 0628 efthimia.kefalea@eurexclearing.com Thomas Wißbach T +49 (0) 69 2111 7992 M +49 (0) 172 619 9850 thomas.wissbach@eurexclearing.com Ebru Ciaravino T +33 (0) 155 27 6768 M +33 (0) 685 93 1333 ebru.ciaravino@eurexclearing.com London USA Gerard Denham T +44 (0) 207 862 7634 M +44 (0) 787 688 5276 gerard.denham@eurexclearing.com Jonathan Lombardo T +44 (0) 207 862 7559 M +44 (0) 746 915 8310 jonathan.lombardo@eurexclearing.com Tim Gits T +1 312 544 1091 M +1 312 929 8588 tim.gits@eurexclearing.com Connect Web Twitter www.eurexclearing.com @EurexGroup E-mail LinkedIn LendingCCP@eurexclearing.com www.linkedin.com/company/eurex

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