1

• Focused on E-Trading, Hybrid-Voice technologies • Founded in 2005 • Independently owned • Connectivity to over 75 firms, including 9 out of the

world’s 10 largest banks • 6% of U.S. daily corporate bonds flow through an

InterDealer platform • 2,500,000 Corporate Bond Trades since 2010 • $5 trillion in trading transactions since 2005 (Bonds & CDS) • Products Covered: CDS, IRS, Futures on CDS, Corporate

Bonds, Municipals, EM, Agencies/Govts, Sovereigns

About Interdealer

2

Core Products

3

Name Description

CreditStation Central Limit Order Book - Aggregator - Matching Engine - HTML5 Trading User Interface

FIX Highway Connectivity to Dealers and Venues - Aggregated Order Book - Quoting, Trading, RFQ, Streaming, STP - Central Hub

Auto Quote Algorithmic Pricing - Market-Making Algo Trading – FI

Key Technologies

4

Capability About

FIX Connectivity Existing connectivity to major dealers

Aggregated Price Feed

• Dealers can direct quotes to a single endpoint • Fully Disclosed • Presented as aggregated order book • Axes, Retail, Firm Orders

Trade Negotiation

• Hit/Lift • RFQ • Structured Chat

5

Inside the CLOB

6

Intelligent Trading System

Risk Limits

Audit Trail / Logging

Reporting System

Filtering

Configurable Business Rules

RFQ Logic

Order Book

Mark-Up / Mark-Down

Embedded Fees

Trade Reconciliation

Broker Restrictions

Allocations STP Principal / Riskless Trading

User Classifications / Privileges

Best-Ex Data Capture Order Lifecycle

• Aggregated Internal & External Price Feeds

• Hybrid Voice/Agency Riskless Matched Principal Trading

• Bank Can Act as: - Principal - Riskless Principal Agent - Prime Broker - Liquidity Provider

• Systematically Internalize Order Flow

• Translate all Trading Protocols, Price vs

Spread to “Buyers and Sellers”

Central Limit Order Book

7

Dealer “A” Axes Buy-Side

OMS Orders

Q: How to Focus Resources Here?

Securities where Dealer “A” is Not “Axed”

But …Still can help

#1: Collect this Data #2: Limited

Sharing of Information with Trusted Dealers w/matching profile

Key to Voice Efficiency: Find the Nexus Between Portfolio Orders and Dealer Axes!

#3: Build “Counter-Party Profile”

FIX Highway Trading Gateway

9

Buy-Side Trading Firm

FIX Highway – Connectivity Hub

Central Limit Order Book (Aggregate / Filter / Execute)

FIX

HTML

5

JSON

210 Citi 3000 212 GS 5000 215 JPM 2000

206 JPM 8000 204 DB 6000

Dealer A Dealer B Dealer C

Profit Generator

Each trade executed using the dealer instance of the InterDealer order matching engine can produce profits for the trading desk.

Back-to-Back Matched Principle Trade Execution Example

10

•Expand Breadth of Price Distribution Coverage

•Manage Order Book Across Continents

•Bloomberg Page Integration – Instant Results

•Commission Generation / Custom Mark-up

• Improve Sales Desk Reputation and Responsiveness

•Direct Connection to Customers vs. Third Party

Distribution

11

•Gains Improved Risk Transfer Efficiency

•Gains Improved Responsiveness

•Gains More Liquidity and More Firm Pricing

•Gains Enhanced Dealer Relationship w/o Disintermediation

•Gains Efficiencies on Trading Desk

•Gains More Disciplined Achievement of Best Ex

Your Client

12

• Connectivity - Aggregation of Liquidity sources - Straight Thru Processing

• Fixed Income / Credit - Calculations - Trading Protocols - Speed

• Cloud - Speed of Implementation - Existing Connectivity - Speed of Technical Support - Transparency with Solid Operational Tools

InterDealer Services & Strengths

13

• InterDealer Supported Trading Protocols – Bid/Offer/Hit/Lift – Last Look or Firm – Sessions/workup/auction – RFQ – Staged order book – Bi-lateral trade negotiation (via chat) – Bond Dating/Grey Matching – Indication of Interest – Preferred Dealer Showcase

Trading Protocols

14

Institutional Trader Workstation

15