How to enter the Fishpool Market?

CACEIS Solution

Q2 2015

Focus on Clearing of the

Fishpool contracts

CACEIS, a Solid Partner 1

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CACEIS Key Figures

CACEIS, a leader in the Asset Servicing World

CACEIS is a banking group which serves a diverse client base:

Asset Managers, Hedge Funds, Investment Banks, Corporates…

Shareholders: 85% + 15%

Staff: 3,300 employees

Located in 12 countries, 85 markets covered

A Leading Player

N° 1 Fund Administrator in Europe €1.4tr

N° 2 Depositary Bank in Europe €823bn

N° 7 Custodian worldwide €2.4tr

An Extensive Product Offer

Custody

Clearing & Execution

Hedge Funds services

Fund distribution

Depositary

Fund Administration

Capital markets

Collateral Management

A / A-1

A2 / P-1

A / F1

CACEIS

Crédit Agricole S.A.

Quality Management System

ISO 9001 Certified

Industry Recognition – Securities Lending

Awarded

Procedure and Control Optimisation

Type II Audited

Execution and Clearing Services 2

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CACEIS Execution & Clearing Service

One Stop Shop for your Business

Execution • Cash Equity Markets: Equities and ETFs (regulated exchanges, MTFs, Darkpools, ...etc)

• Derivatives Markets:

- Futures and Options on financial instruments (Index, Equity, Fixed Income, FX, ... etc)

- Futures and Options on commodities instruments (Grains, Softs, Milk & Meat, ...etc)

Clearing • Clearing of all listed derivatives markets instruments (financial and commodities instruments)

• Direct Access to the major Clearing Houses (Eurex, LCH, NASDAQ OMX...)

• Intraday Risk Monitoring

• Back Office and Client Support Team in house (Paris based)

• Collateral Management Solutions

Global & Multi Asset Class Coverage 60 Cash and Derivatives Markets Connection

Large Client Base Institutionnal Clients (asset management firms, banks, insurance companies)

Corporate Clients (manufacturers, farmers, cooperatives, trade houses...etc)

Commodities Offering 3

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CACEIS Commodities Offering

A Complete Offering

• As subsidiary of the Credit Agricole Group, CACEIS has a natural client

base to serve (farmers, cooperatives, manufacturers,...)

• With over 10 years of experience in commodities trading, the CACEIS

execution team has a strong expertise in advising clients with strategies

for hedging and speculative purposes.

• CACEIS is NOT an investment bank and has a very limited risk profile.

• CACEIS represents an alternative solution to commodities clients who

are very attentive to have their accounts in a safe place.

• CACEIS has the ambition to become a leader in commodities trading

and clearing

• France is the second largest market for salmon in the world

• The use of derivatives instruments is becoming essential in order to

protect against market fluctuations

• In order to complete our offering, CACEIS has become member of the

Clearing House NASDAQ OMX, the CCP of the Fishpool market

Clearing of Fishpool Contracts 3

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Clearing of Fishpool contracts

The Operationnal Set up

Client

Clearer

Exchange

Clearing House

TRADING

CLEARING

The Client sends an order via telephone to

Fishpool

Fishpool confirms the execution to the Client

Fishpool enters the transaction into the

NASDAQ system

The Client (and the Counterparty) must confirm

the transaction via email to the Clearer

Fishpool sends the transaction details to the

Clients and its Clearer

The Clearer checks the transaction details and

confirms the transaction into the NASDAQ

system

NASDAQ checks there is sufficient cash

(collateral) on clearer accounts to cover the

client exposure.

NASDAQ proceeds to the novation fo the

transaction

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2

3

5

6

4

7

8

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Clearing of Fishpool contracts

Risk Management

Clearer

CCP

NASDAQ CCP* calculates the Initial

Margin Requirement (amount needed to

cover the Client exposure) and sends

the amount to be paid to the Clearer

CACEIS proceeds to the payment of the

Initial Margin Requirement to NASDAQ

CCP

CACEIS debits the amount on the Client

account

CACEIS sends reports to enable the

client to reconcile its cash and positions

accounts

The Client will be debited/ credited next

day of the Variation Margin (Markt to

Market procedure: a daily offsetting of

profits and losses resulting from the

price changes in open positions)

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5

1

2

3

Client

Cash account (minimum amount to be

defined)

Securities

Account Booking of Client positions

Client Service • Hotline available from

08am until 8pm

• 10y experience team

• Team located in France

REPORTING

available to Client (daily distribution via email or FTP conection)

• Global Statement Report (pdf)

• Transactions Report (xls)

• Open Positions Report (xls)

• Cash Balance Report (xls)

UBIX CACEIS Back Office Tool

Booking of Positions

Calculation of Client Margin Requirement

Instant Control CACEIS Risk Management Tool

Monitoring of open Client Positions

Monitoring of financial impact

Please note that NASDAQ requires prefunding, i.e sufficient cash on Client account

The Legal Set Up 4

12

Clearing of Fishpool contracts

The Legal Set up

Client

Clearer

Exchange

Clearing House

Fishpool Trading

Membership Agrement

CACEIS

Clearing Agreement

NASDAQ

Global Clearing

Membership Agrement

Fishpool tripartite

agreement with the

Client

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Clearing of Fishpool contracts

The Legal Set up

Documents to be provided (non-exhaustive list):

- Audited financial statements

- ID cards copies of the managing directors

- Commercial register extract

- Company’s articles of association/ incorporation

- List of authorised signatures (incl. specimens)

- Company org chart

- List of beneficial owners

- FATCA Status

- LEI (EMIR reporting)

- Anti-Money Laundering Questionnaire

- CACEIS Clearing Agreement

Please note that all documents should be translated in English/ French (certified translation needed)

CACEIS Value Proposition 5

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CACEIS Value Proposition

1. Historical and Strong presence in Commodities

2. Financial Strength

3. Non risk taker, No proprietary trading

4. Financing solutions with the Credit Agricole Group

5. Front to Back-Office teams experience

6. Back Office Teams inhouse (no outsourcing), located in France

7. A reactive Client Service team dedicated to you

8. Competitive commission fees

9. Flexible Collateral Management

10. Diversified client panel

10 reasons to clear Fishpool contracts with CACEIS

Contacts 6

CONTACTS

Florence Besnier

Business Development Manager

Prime Fund Solutions

Execution and Clearing Services

florence.besnier@caceis.com

Tel: +33 (0)1 57 78 03 24

Agnès Dambreville

Head of Onboarding

Prime Fund Solutions

Execution and Clearing Services

agnes.dambreville@caceis.com

Tel: +33 (0)1 57 78 12 32

Appendix 7

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Appendix

Fishpool Order Confirmation

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Appendix

Fishpool Pending Clearing

Confirmation

Please note that the Clearer can accept a transaction for clearing until T+1 (7pm)

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Example of Initial Margin Requirement (IMR) Calculation

NASDAQ OMX IMR indicative rates

If a client holds a position of 200 tonnes of FPSA_AUG14

-> The IMR is NOK 700 212 (200 contracts x 1000 kg x NOK 35,4 x 9,89%),

-> The VM (daily Markt to Market settlement) from 06.06.2014 to 10.06.2014 is NOK -60 000 (200

x 1000 x NOK -0,3).

1 contract/ lot= 1000 kg

Appendix

Please note that the above calculation is for information purpose only

Market Series Margin %

Seafood FPSA_AUG14 9,89

Seafood FPSA_DEC14 9,01

Seafood FPSA_JUL14 11,04

Seafood FPSA_JUN14 11,51

Seafood FPSA_NOV14 9,01

Seafood FPSA_OCT14 9,01

Seafood FPSA_SEP14 9,36

Seafood FPSA15_APR15 9,02

Seafood FPSA15_AUG15 7,94

Seafood FPSA15_DEC15 7,93

Seafood FPSA15_FEB15 9,01

Seafood FPSA15_JAN15 9,01

Seafood FPSA15_JUL15 8,02

Seafood FPSA15_JUN15 8,34

Seafood FPSA15_MAR15 9,01

Seafood FPSA15_MAY15 8,49

Seafood FPSA15_NOV15 7,94

Seafood FPSA15_OCT15 7,94

Seafood FPSA15_SEP15 7,93

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Appendix

Example of Daily Statement Report sent to the Client

CACEIS reports are available in English or French

Disclaimer

This non-contractual document has been sent by CACEIS Bank France (« the company »), authorized and

regulated as investment service provider by French Autorité des Marchés Financiers and Autorité de

Contrôle Prudentiel.

It is a promotional document that has not been elaborated accruing to the regulation on independent

research; hence this document does not constitute any investment recommendation or any financial advice

and must not be considered as an offer to buy or sell any financial instrument or product.

This document has been produced for the exclusive use of its addressees and to be circulated in France.

Any communication of this document to a third party must be first approved by the company. The

information and the views presented in this document are those of the authors cited.

They try to use as much as possible sources, assumptions and the most reliable valuation methods, which

are, however, no warranty, express or implied, as to accuracy, completeness and perfection. Also the views

were developed based on market conditions and levels which may vary at any time significantly. Investors

are therefore asked to self-evaluate risks that may be important in certain financial products and the

opportunity to invest. More generally, all the opinions and estimates contained in this document are from

judgments made at the time of publication and may be changed or discontinued without prior notice.

The Company assumes no liability whatsoever for any direct or indirect losses resulting from any use of

this document or its contents.