February 1, 2006 Page 1

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New Application Introduced to USFor Electronic
Transmission TrackingOf Equity Trade Ideas
Featuring Guests Representing
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Todays Speakers
Rich Koppel, youDevise
Colin Berthoud, youDevise
Duncan Paterson, Trade Ideas Limited
Barry Marshall, former COO (Invest Div), Gartmore
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Todays News

• US Introduction of Trade Idea Monitor (TIM)
• First open web-based application for electronic
  distribution ranking of equity trade ideas
• Sell-side institutional brokers can send ideas
  simultaneously to all customers another first
• Buy-side can track ideas from all their brokers
  on a single screen another first
• Leverages Repository Distribution Center (RDC)
• Web-based server hub operated by Trade Ideas
  Limited
• Founded, financed and jointly owned by Citibank,
  Credit Suisse, Dresdner, Merrill Lynch
• TIM Available Immediately
• Free to buy-side
• Designed to appeal to wide variety of financial
  institutions

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Significance

• Trade Ideas
• Influence 20 of Institutional Share Volume
• Puts research into action for customers
• Buy-Side Ideas Drive Performance
• Research- and trading-driven hedge funds
• Proprietary trading desks
• Other money managers (momentum, event-driven,
  etc.)
• Sell-Side Ideas Drive Commissions
• Cash equity commissions more than 17 B worldwide
  (8 B in the US)
• Movement to expand buy-side allocations
• Increased Need for Compliance
• UK CP176 (unbundling), IMA disclosure code
• US SEC 28(e) (soft dollars)

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Current Process Highly Informal

• Sell-Side Problems
• Ideas sent via phone or email, keyed into
  multiple custom systems
• Time consuming duplicate entry
• Difficult to measure value created for clients
• Pressure to send ideas at the same time (or
  later) to proprietary trading and external
  accounts
• Buy-Side Problems
• Ideas tracked via paper, spreadsheets or custom
  systems
• Time-consuming to view ideas and track
  performance
• Value lost measurements and recommendations not
  standard
• Difficult to measure broker contribution for
  commission allocation

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The TIM Solution
Converts authoring, sending, receiving and
tracking trade ideas into a fast, semi-automated
and transparent process
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How The TIM Works

• For Authors (Primarily Sell-Side Institutional
  Brokers)
• Enter symbol, transaction, size, reason,
  confidence
• Attach research report, spreadsheet or news
  release
• Select customers for receipt
• Ideas price stamped (via Reuters data) and time
  stamped (via RDC)
• For Recipients (Primarily Buy-Side, Prop Trading
  Desks)
• Set alerts or action triggers on new ideas
• Sort and filter new and old ideas from all
  participating brokers
• Measure performance external or internal research
• Use idea statistics to analyze market momentum
• API enables integration with trade execution
  systems

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Authors Create Send Ideas
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Recipients View Idea Performance
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Recipients View Portfolio Analytics
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Recipients Select Favorite Brokers
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Recipients Review Idea Details
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Benefits

• Productivity
• Significantly increased
• Value
• Better measurement and documentation for
  commission allocation, internal purposes
• Compliance
• Access past and current ideas for regulatory and
  auditing purposes

API enables the TIM to be integrated with trade
execution or other systems
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The TIM Roll Out

• Roll Out
• UK October 2005
• US February 2006
• UK Expansion
• Large brokerage firms, hedge funds, asset
  managers
• Growing following among niche brokers and
  specialist funds
• Volume of trade ideas covering 3,000 stocks on
  100 exchanges
• Signing new clients and brokers
• Initial Objectives
• 100 sell-side firms and their clients after a
  full year of operation
• More through distributors

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Repository Distribution Center (RDC)
Web-based hub that makes the distribution of
trade ideas simpler, faster and more efficient
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Industry Utility

• Exchange
• Facilitates simultaneous exchange of trade ideas
  between sell- and buy-side
• Information
• Structured formats allows value-added information
  to be transmitted
• Requires Interfacing Application
• The TIM is the first commercially available
• Launched October 2005
• Operating successfully

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Strong Security

• Passed penetration tests by big four accounting
  firm
• No broker can access anothers ideas
• No investor can access anothers ideas
• Buy-side controls which sell-side firms can send
  them ideas
• Unauthorized users cannot gain access
• Housed in a Nuclear Hardened Bunker
• Real time replication
• Nightly offsite back up

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Industry Reaction

• Trade Ideas
• Measure added value a broker delivers
• Funds Managers
• Tool for demonstrating client commission spent
  wisely
• Assess "make or buy" - external analyst
  contribution versus internal analyst
• Brokers
• Management information on own analyst
  effectiveness  
• Audit trail for compliance

• Barry Marshall
• Former COO (Invest Div), Gartmore
• EMEA co-chair for FIX Protocol
• youDevise Advisory Board

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Available Immediately in US

• For more information and a demonstration, visit
• www.youdevise.com/tradeideas
• Buy-side firms can apply on the site for a free
  username and password to access the TIM
• WAV file replay of call will be available on
  website
• Media Contacts
• US Jeff McKenzie, Anreder Company,
  1-212-532-3232
• UK Colin Berthoud, youDevise Limited,
  44-20-7826-4302

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New Application Introduced to USFor Electronic
Transmission TrackingOf Equity Trade Ideas
Featuring Guests Representing