Capital Markets Group

Oliver McMahonHead of Product, iShares BlackRock Canada

May 2011

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iShares® Capital Markets Group

Manage iShares relationships with broker/dealer trading desks• Expand liquidity providers to support client use of iShares ETFs• Advocate liquidity platform ETF functionality

Represent “market perspective” to internal portfolio management and product teams• Promote product/process enhancements that drive asset gathering and

improve market quality• Portfolio management oversight and primary market trade facilitation

Support client service platform with execution services and product insights• Transaction cost analysis• ETF product structure comparison

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Level II Data is an Essential Tool

Source: Bloomberg L.P. As of 11 April 2011

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Trading Best Practices

Order Type Price Risk Priority

Market OrderExecute at the best currently available price

Final execution price may differ from the price the order was entered if quote changes significantly

Speed

Limit OrderExecute at or below/above a specified price

If the market moves the order may not be executed due to price limitation.

Price

Marketable Limit

Execute at a limit around current market price, taking into consideration trading value of underlying basket

If the market moves the order may not be executed due to price limitation.

Unfilled portion remains in the book at the specified price, which may become stale.

Fill a large order that is larger than the bid/offer displayed, but able to be executed within the bounds of the current market

Limits and Marketable Limits have significant advantages when trading ETFs especially if trading near the open and close of the market

Since market makers are risk averse, volatility increases the cost of liquidity; the open and close tend to be the most volatile times of the day

5Source: Bloomberg L.P. As of 11 April 2011

iShares Capital Markets Group

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THANK YOU

For more information, visit

www.iShares.ca

1-866-486-4874

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This presentation is intended for accredited investors in Canada only.

iShares® Funds are managed by BlackRock Asset Management Canada Limited. Commissions, management fees and expenses all may be associated with investing in iShares Funds. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

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