CHEUVREUX

1
CHEUVREUX Execution services

• Direct Market Access
• FIX Connectivity
• Algorithmic Trading
• Program trading
• CFD

2
A unique access for global market coverage

• A network of memberships in Europe / Eastern
  Europe

• Asian Access through

• US Access through Calyon Securities

• Stockholm
• Oslo
• Helsinki
• Milan
• Madrid
• London
• Vienna

• Paris
• Brussels
• Amsterdam
• Lisbon
• Virt-X
• SWX
• Frankfurt
• Copenhagen

• NYSE
• NASDAQ
• ECNs
• AMEX

• Coming soon Poland, Hungary, Czech Republic

• Tokyo
• Osaka
• Hong Kong
• Singapore
• Taipei
• Australia
• New Zealand

3
An international client base

• Our clientele is HIGHLY INTERNATIONAL
• Asset managers
• Hedge funds
• Proprietery traders
• Private banks
• Brokers

Breakdown of Cheuvreuxs brokerage by client
country - YTD 2005
4
Platform Overview
GL Net

Direct Market Access
GL Win

TradingScreen,ORC, Flextrade, RealTick, (FIX
compliant GUIs )
FIX
GL protocol
T.N.S. Radianz WWW
Client O.M.S.
Order Routing
FIX
DMA
ROR, TAL GlobalTopic Bloomberg Tradingscreen
FIX
ROR Tradingscreen Autex Connect/ATR
Connectivity
Routing
T.N.S., Radianz SwiftNet WWW
O.M.S.
Sales-traders Program Trading Algorithms
Exchange Specific Gateways
CAC
Exchanges
Client
5
Full range of service in a STP world
6
A wide spectrum of connectivity solutions

• Direct Market Access
• Fast, accurate and empowered execution
• No interference with your trading Straight
  order delivery to the market
• Cost effective and highly competitive
• Order Routing Facilities
• Easy to connect
• Secure delivery to the market Real time
  monitoring of your intraday order flow
• A dedicated platform providing for independence
  of execution
• Connectivity Services
• Orders delivered to a centralized order book
• Quality execution through a dedicated sales
  trading team
• Expertise

Enabling you to optimize the management of your
order flow!!!
7
Performance, reliability and security

• Performance
• Latency 500 ms round trip (from sending order to
  acknowledgement)
• More than 200 institutions trading on a daily
  basis
• Reliability
• Centralized Order Book
• Fault resilient back-up servers
• System of alerts to better streamline your flow
• Full redundancy
• Security
• Disaster Recovery site ensuring smooth transition
  and retention of trading data
• End to end monitoring of your order flow

Ensuring Continuity of Trading
8
Availability (2004)

• Market Access Availability
• (as a percentage of exchange Continuous
  trading time)
• Euronext 99.662
• Xetra 99.58
• VirtX SWX 99.633
• SAX HEX 99.898
• Spain 99.593
• Italy 99.615
• UK - SETS 99.643
• FIX connection system availability
• FIX DMA 99.89

9
Connectivity a flexible choice

• A wide range of connectivity options tailored to
  your trading needs and preferences
• Standalone systems
• GL Net (GL Win, GL API)
• Bloomberg
• Reuters
• TradingScreen
• Orc
• Realtick
• Royal Blue - Fidessa
• Thomson Global Topic Trader
• Flextrade
• Trader Force
• Ullinknet

• Networks
• Radianz
• TNS
• VPN (www)

• OMS
• MacGregor
• Charles River
• Decalog

• Network Hubs
• SWIFT net
• NYFIX
• London Stock Exchange Network
• Tradeware

• Coming soon
• Latent Zero

• FIX versions
• 4.0, 4.1, 4.2

10
Algorithmic Trading
Connectivity

• Available through
• Bloomberg
• FIX
• Coming soon
• Reuters
• GL
• Tradingscreen
• Fidessa

• Notes
• N/A non available

11
Program trading Reducing Market Impact

• A Specialist
• Specialist in mid caps/small caps flow
• Dedicated program traders within the trading team
• Dedicated Back office for program confirmation
  and settlement
• Efficiency
• High cross-rate ratio reducing market impact
• Access to flow from 1,000 active institutional
  clients
• Flexibility
• Taylor-made service to clients, covering a wide
  variety of programs Pure agency, Benchmark
  agency, Incentive or guaranteed benchmarks, Long
  short or capital neutral programs
• Choice of centralised trading in Paris or via
  local specialised traders to capture flows from
  domestic clients
• A large choice of connectivity solutions GL
  Trade, trading screen, TNT, Mac Gregor,
  Bloomberg, Thomson, Reuters, SwiftNet, Internet,
  A dedicated platform providing for independence
  of execution
• Reliability
• Constant monitoring throughout the day for market
  impact
• Reports against your benchmark
• State of the art settlement services

12
CFD Product overview - Characteristics

• Definition

• A Contract for Difference is an agreement
  between two parties to exchange, at the close of
  the contract, the difference between the opening
  price and the closing price, multiplied by the
  number of shares specified within the contract.
• Buy a CFD allows to benefit from a long position
  performance
• Sell a CFD allows to benefit from a short
  position performance

• Characteristics

• Financing
• A client holding
• of long CFD position is liable to overnight
  financing charge (Libor applicable spread)
  applied to the underlying value of the stock
• of short position will be credited from overnight
  financing (Libor - applicable spread) applied to
  the underlying value of the stock

• Maturity
• A CFD has no settlement date, it is an open-ended
  contract ? In practice CFDs are limited to 364
  days to avoid Tax on deposit remuneration

• Leverage effect
• To Buy/Sell a CFD, only a deposit is required
  (e.g. 10-20 of the underlying value of the stock)

• Tax
• CFD are not liable to UK Stamp Duty

• Daily PL margining
• CFD are revalued at the close of each business
  day
• Profits are credited from client account
• Losses are debited from client account with
  resulting margin call

• Dividends
• Dividends are
• credited to client for Long CFD position
• debited from client for Short CFD position

• Delivery
• CFD is a performance contract without physical
  delivery of the underlying