1. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 SINGLE STOCK FUTURES: TAKING ADVANTAGE OF EUROPEAN EXPERIENCE

2. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 Single Stock Futures : Taking advantage of European Experience In most cases in Europe, Equity derivatives and Futures have been traded, cleared and regulated by the same actors.

3. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 Equity Futures are already traded and cleared in Europe on: MEFF (Spain) LIFFE (UK) Single Stock Futures : Taking advantage of European Experience

4. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 Cross margining of Index, Equity Options and Stocks has been available for years in Europe (Euronext/France) Single Stock Futures : Taking advantage of European Experience

5. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 Some European initiatives to integrate different Cash and Derivatives businesses : Eurex Equity CCP Clearnet SA Cash & Derivatives Single Stock Futures : Taking advantage of European Experience

6. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 Europe went through major steps : 1. Regulatory environment 2. Settlement system openness Single Stock Futures : Taking advantage of European Experience

7. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 Regulatory environment Only one regulatory body for cash and derivatives Different asset classes in one single customer account One single margin method for different asset classes (Span, Tims, Rbm, etc) Single Stock Futures : Taking advantage of European Experience

8. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 Settlement system openness Seamless communication between settlement systems (Futures, Equity, etc) Database repository containing different asset classes Ability to perform portfolio based margin across different asset classes Single Stock Futures : Taking advantage of European Experience

9. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 Single Stock Futures : Taking advantage of European Experience FuturesSecuritiesRepos OTC (SW,Fra) Margin Engine

10. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 Single Stock Futures : Taking advantage of European Experience CME / GSCC Euronext Cash / Deriv. Eurex CCP Margin Engine TIMS RBM SPAN Margin Methods Margin Rules

11. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 Trading & Book Keeping Systems Futures Securities Bonds Margin Engine Collateral Allocator Fees & Commissions Interest Calculator Ledger Cash Management Cash Management Credit Application Credit Application Securities Management Securities Management Risk Arrays Risk Arrays Market Data Market Data Reference Data Methods Risk Parameters Reference Data Methods Risk Parameters Transient DATA Transient DATA Risk Positions (F&O, Bonds, Equities, Repos, …) OTCs Single Stock Futures : Taking advantage of European Experience

12. s o l u t i o n s f o r e - c a p i t a l m a r k e t s FIA 11/8/02 European experience demonstrates that Single Stock Futures initiative built a bridge between Cash and Derivatives and that software suppliers were among the bridge builders. Single Stock Futures : Taking advantage of European Experience