1. Development Benefits of Equity Markets  Countries with more liquid stock markets enjoy faster growth rates of real per capita GDP over subsequent decades  Stimulate employment: 92% of a typical U.S. company’s employment growth comes post-IPO  Critical to the development of venture equity financing  Innovations that lower equity trading costs lower the cost of capital to listed companies  Dramatically increase the scope for foreign financing  Equity investments in developing countries have historically offered a more attractive risk- return profile than debt

2. Global Trading is Fueling Domestic Exchanges  Europe Foreign investors are increasingly trading in local markets, reducing need for companies to list abroad

3. European ADR vs. Domestic Volumes Nokia ADR volume as % of total underlying value traded Source: ERDesk, Efficient Frontiers, Bloomberg 0% 10% 20% 30% 40% 50% 60% 70% Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-00 Jan-01 Mar-01 May-01 Jul-01 Sep-01 Nov-01 Jan-02 Mar-02 May-02 Jul-02 Sep-02 Nov-02 Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07

4. Global Trading is Fueling Domestic Exchanges  Europe  Latin America Foreign investors are increasingly trading in local markets, reducing need for companies to list abroad

5. BrazilBrazilian ADRs $550m $3,200m Source: ERDesk, Efficient Frontiers, Comissão de Valores Mobiliários Funds Raised in Brazilian Equity Offerings 1995-1999

6. Brazilian ADR vs. Domestic Volumes Source: ERDesk, Efficient Frontiers, Bloomberg, BVMF3

7. Latam ADR vs. Brazilian IPOs Bovespa IPOs Latam ADR IPOs Source: ERDesk, Efficient Frontiers, NYSE, Bovespa, WFE, BNY Mellon

8. Brazilian Public Offerings Source: ERDesk, Efficient Frontiers, Bovespa

9. Algorithmic Trading in Brazil Participation of algorithmic trading by exchange In terms of number of trades 60% 55% 50% 40% 35% 30% 35% BATSNASDAQNYSE ArcaDirectEdgeXetraLSETokyo SETMX 18% Bovespa Source: ERDesk, Efficient Frontiers, Finextra, Traders Magazine, FT, Reuters, BM&FBovespa

10. High Frequency Trading in Brazil 0.31% 0.57% 0.97% 1.45% 1.99% 1.63% 1.79% 2.10% 2.64% 4.69% 5.44% 5.56% 4.16% 3.47% 4.69% 5.18% 3.87% 4.26% 6.89% 5.50% 5.93% 6.66% 4.97%4.73% 4.47% 4.04% 5.66% 6.63% 5.86% 5.89% 8.69% 7.59% 8.57% 11.35% 10.41% 10.29% Nov-10Dec-10Jan-11Feb-11Mar-11Apr-11May-11Jun-11Jul-11Aug-11Sep-11Oct-11 In terms of value traded Volume from Co-located Other HFT Source: ERDesk, Efficient Frontiers, BM&FBovespa

11. Global Trading is Fueling Domestic Exchanges  Europe  Latin America  China Foreign investors are increasingly trading in local markets, reducing need for companies to list abroad

12. Financial Statecraft  United States: Financial sanctions Exchange rate policies Capital flow policies  Europe: Tobin tax

13. Tobin Tax Derivatives exchange fees Rate per million of value traded CME Eq mini ICE US Fin CME Eq std NYMEX Core COMEXICE UE Futures CME Eurodollar CME T-Bonds Proposed Tobin tax 200.00 9.63 15.63 3.86 11.97 18.26 11.70 0.48 5.16 417x 39x 18x11x52x21x13x17x Source: ERDesk, Efficient Frontiers, CME

14. Financial Statecraft  United States: Financial sanctions Exchange rate policies Capital flow policies  Europe: Tobin tax  India?

15. Internationalization Strategies  Intra-SAARC potential limited  Key is U.S. & European flows

16. U.S. Portfolio Holdings of Indian Securities Source: U.S. Department of the Treasury Holdings in $ millions % of total U.S. foreign holdings

17. Internationalization Strategies  Intra-SAARC potential limited  Key is U.S. & European flows  India seen as a BRIC, not South Asian