1. Sales & Trading Breakout Michael Dalpe Finance Club 11/13/05

2. Agenda 1.Equity Cash Trading 2.Program Trading 3.Bank of America Summer Program

3. Equity Cash Trading Traditional method to trade stocks with liquidity concerns Lot’s of players involved = High Costs No guarantee of privacy = Potential front running Must have trust in individual to execute trade

4. Program Trading Topics (cont.) What is it? Who are the big players? What is required to compete? What % of the market is relegated to Program Trading?market

5. Program Trading (cont.) Roles on the Desk: 1.Program Trading Sales 2.Customer Facilitation 3.Agency Trading 4.Principal Trading 5.Index Arbitrage 6.Algorithm creation Role Responsibilities: 1 – 4 involve direct interaction with customer 4 – 6 involve detailed analysis and number crunching 3 – 5 considered “Trading” roles 5 – must be located off trading floor. Usually with proprietary trading group.

6. Program Trading (cont.) Terminology Utilized Liquidity Average Daily Volume Market Neutral, Sector Neutral Indexes, ETF’s, Futures S&P 500, Russell 2000, Nasdaq Index Rebalancing Algorithms TWAP, VWAP Bid Sheet

7. Bank of America Summer Program 10 Week Rotational Program 3 – rotations each lasting 3 weeks –10 week spent on desk of choice Rank order top choices that include –Sales & Trading & Research (FI only) –FI, Liquid products, Cash Equities, Derivatives My rotations –Mortgage Trading, Convertible Bond Sales, ETS Sales/Trading No unique projects given, must find ways to show your value