1. FIRMA 2006 Audit and Risk Management Seminar Trading Desk Risks  Sell Side vs Buy Side Considerations Presented By: Danny Hirce April 12, 2006

2. Trading Desk Risks Understanding the Desk  Sell Side  Proprietary Market/Credit Risk Pricing/P&L Determination  Non-Proprietary Sales Suitability Structured Products  Clients Individuals Institutions  Securities Traded Equities Fixed Income Derivatives Commodities  Locations/Exchanges Americas Europe Asia Emerging Markets Clients/Securities/Locations  Buy Side  Clients Funds Individuals Institutions Pension/Retirement  Products 40 Act/2a-7/Pools Separate Accounts Foreign Products Alternative Investments  Securities Traded Equities Fixed Income/FX Money Markets Derivatives  Locations/Exchanges Americas Europe Asia Emerging Markets Clients/Products/Securities/Locations

3. Trading Desk Risks Understanding the Risks Associated with the Desk  Market  Credit  Operational - (Allocation, Confirmation, Settlement, Reconciliation, Cash Management, Performance, Reporting)  Regulatory  Compliance  Client - (AML/OFAC, Suitability, Credit, Contractual Obligations)  Disaster Recovery/Contingency Planning/System Security  Chinese Walls/Information Barriers/Side by Side Management  Compensation/Incentives