© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

IR Symposiet

October 2, 2008

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A World in Transition

Every day media tells us that we need to do something...

What?

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SmartPool

Baikal

Competitive EU Landscape: Trading-Clearing-Settlement

Clea-ring

Settle-ment

NASDAQ OMX Europe

Burgundy

Derivatives trading

Equities trading

EDX

NASDAQ OMX

DMIDEM

Eurex Clearin

g

FWB/DB

Eurex

LCH Clearn

et

LSE

Borsa Italian

a

Turquoise

NYSE Euronex

t Liffe

Liffe Clearing

CC&G

EMCF

Euroclear NCSD

Clearstream

Monte Titoli

NASDAQ OMX

DM Clearing

Central Bank

Central Bank Central Bank

Euro

CCP

NYSE Euronex

t

Euro Milleniu

m

Liquidnet

BATS

MiFID

MiFID

The Code

T2S

T2S

The Code

The Code

The Code

Chi-X

NASDAQ OMX Nordic Exchanges

SWX

SISx-

clear

SIS

Octopus

Link-Up

POSIT

Project Rainbo

wBEST

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New Trading Venues

• Chi-X has emerged a serious competitor to established exchanges in Europe

- Has been able to take around 5% of all the share trading in Europe

- Has over 15% of all trading in FTSE 100 stocks listed on LSE

• Other new venues are:

- Turquoise

- BATS Europe

- NASDAQ OMX Europe

- Burgundy

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Chi-X Weekly Total Turnover

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Chi-X Market Share in the Nordic Markets

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NASDAQ OMX Europe

• Setup

- London based MTF (FSA regulated)

- Proven low latency matching engine (INET)

• Equities trading

- Total: 300 + European blue chips

- Cover all main European indices

- Composite displayed/non-displayed book

- Pre and post-trade anonymity

- Consolidated European Best Bid Offer

- Order routing functionality

• Market data

- Low latency data feed

- Full depth order book access

- Members and vendors treated equally

• Connectivity services

- Co-location in the City of London

- Carrier of choice

• Value based fees

- Liquidity provider-taker model

• Market coverage

- Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Sweden, Switzerland, UK

• All stocks traded in local currency:

- DKK, EUR, GBP, NOK, SEK, SFR

• Post trade

- CCP partnership

- Domestic settlement

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The Way Forward for the Nordic Market

• CCP for cash trading

• Improved latency – Inet Nordic

• EDX – developing the Nordic clearing house

• Part of a global exchange

• Multi asset class exchange

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Not only threats – a lot of possibilities

New assetsClearingNew segmentsListing

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Business Opportunities

OTC Exchange

Business

Opportunities

• High transparency

• High standardization

• High regulation

• Low transparency

• Low standardization

• Low regulation

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Exchange Traded vs. OTC Traded

• Transparency

• Liquidity

• Standardization

• Security

• Legal framework

• Concentration of order flow

• Ease of valuation

• Independent

• Limited liquidity

• Low grade of standardization

• Counterparty risk

• Problematic valuation

• No concentration of order flow

• Low transparency

• Not independent

Stock Exchange Marketplace operator

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.