External Use Euroclear Interconnecting the CSD Presentation at

External Use Euroclear Interconnecting the CSD Presentation at AMEDA Marrakech, 21 October 2009 By Bernard Ferran

Agenda l Presentation of Euroclear Group l Focus on Euroclear Bank l To deliver a Domestic Market for Europe l Target 2 - Securities l Link Up Markets l External Use Connecting the CSD to Euroclear Bank 2

Euroclear group External Use Ownership structure 201 user shareholders Euroclear plc Sicovam Holding Euroclear SA/NV Euroclear Bank Euroclear Belgium Euroclear France Euroclear Finland * Euroclear Nederland Euroclear UK & Ireland Euroclear Sweden * 3 * NCSD Holding

Euroclear group Key Figures External Use 4

Euroclear group External Use In the world… Euroclear Finland Helsinki, Finland Representative office New York, USA EMXCo Hertfordshire, United Kingdom Euroclear UK & Ireland Xtrakter London, United Kingdom Euroclear Sweden Stockholm, Sweden Representative office Frankfurt, Germany Euroclear Nederland Amsterdam, The Netherlands Representative office Tokyo, Japan Representative office Beijing, China Euroclear Bank Euroclear Belgium Brussels, Belgium Euroclear France Paris, France Euroclear serves clients in their own language across time zones Euroclear Bank Branch Hong Kong, China Representative office Singapore, Singapore 5

Euroclear Group Reduces overall cost and risk for the market Industry with large economies of scale Unit Costs External Use Risks mitigation through - Harmonisation - Automation − Standardisation − Central Counter-Party Risk Scale STP Euroclear is an infrastructure services provider for commoditised post-trading services, aiming proactively at facilitating trading and post-trading in particular by way of risk and cost reductions in the market, including through cost efficiency measures and consolidation 6

Euroclear Group Today External Use • 869 European Participants • 576 non-European Participants • More than 50% of foreign holdings in European Government bonds • 22 European markets • 18 non-European markets • More than 60% of total German bond settlement • More than 400, 000 bonds, equities and funds • Approximately EUR 250 bn cross-market, cross-instrument triparty collateral • Close to 85% turnover market share vis-à-vis Clearstream 7 ST 008

Agenda l Presentation of Euroclear Group l Focus on Euroclear Bank l To deliver a Domestic Market for Europe l Target 2 - Securities l Link Up Markets l External Use Connecting the CSD to Euroclear Bank 8

Focus on Euroclear Bank Features l User-governed l External Use Belgian incorporated bank l Supervised by: – Belgian Banking and Finance Commission (“CBFA”) – National Bank of Belgium l EUR 2 billion of total shareholder’s equity – 4 times the BIS regulatory capital requirement – Strong financial ratios l Superior credit rating : AA+ (S&P, Fitch) 9

Focus on Euroclear Bank External Use Total: 1332 clients Japan 5. 2% Asia 13. 6% Africa 0. 9% Middle East 4% North America 11. 4% Latin America 4. 8% Europe 44. 2% UK 15. 9% 10 ST 009

Focus on Euroclear Bank Full services offered External Use 11

Focus on Euroclear Bank Your direct access to markets l External Use 40 major debt markets Argentina, Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Nasdaq Dubai, Finland, France, Germany, Greece, Hungary, Hong Kong, Indonesia, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Malaysia, Mexico, The Netherlands, The Philippines, New Zealand, Norway, Portugal, Romania, Russia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Thailand, U. K. , U. S. l 30 major equity markets Argentina, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Hong Kong, Ireland, Israel, Italy, Japan, Luxembourg, Malaysia, Mexico, Nasdaq Dubai, The Netherlands, Norway, Portugal, Singapore, Slovakia, Spain, Sweden, Switzerland, U. K. , U. S. 12 l 40, 000 mutual and hedge funds

Agenda l Presentation of Euroclear Group l Focus on Euroclear Bank l To deliver a Domestic Market for Europe l Target 2 - Securities l Link Up Markets l External Use Connecting the CSD to Euroclear Bank 13

Domestic Market for European trading, clearing and settlement still very fragmented External Use 14

Domestic Market for Europe The answer of Euroclear Group External Use 15

Domestic Market for Europe The implementation of the Single Platform is progressing well SSE ESES • Single Settlement Engine with technical netting • Common Communication Infrastructure providing a SPCM SPTM 73% 19% single entry point with ISO SMPG compliant messaging and harmonised user screens • Common Custody Platform with timely and accurate information on corporate actions, real-time credit of income proceeds, and consolidated reporting • Harmonised lifecycle management to allow internalisation of settlement across group markets • Group collateral management with single pool • Central bank money settlement with demand driven auto-collateralisation • Further service enhancements and standardisation across custody and settlement services Completion rate External Use 100% 16

Domestic Market for Europe External Use Delivering the building blocks of single platform. . . Communication Infrastructure Collateral Management Service Enhancements Benefits of full Single Platform Group account structure ISO messages Pooling of assets Transaction management Harmonised user screens Interoperability between full/domestic Matching at party level Dual network providers Access to central bank liquidity Improved interoperability with group markets Synchronous validation Harmonised validation and matching Dedicated Liquidity Model Harmonised settlement instruction lifecycle Internalisation of full & domestic settlement Group billing Partialling and splitting Dedicated liquidity Demand-driven autocollateralisation 17

Domestic Market for Europe Timelines External Use 18

Agenda l Presentation of Euroclear Group l Focus on Euroclear Bank l To deliver a Domestic Market for Europe l Target 2 - Securities l Link Up Markets l External Use Connecting the CSD to Euroclear Bank 19

TARGET 2 - Securities Scope of proposal External Use l In July 2006, ECB announced that it was evaluating opportunities to provide efficient settlement services for securities transactions in central bank money on a single platform (TARGET 2 -Securities or “T 2 S”) l In July 2008, ECB Governing Council decided to launch T 2 S (after intense consultation period on business requirements) l T 2 S deals with settlement in central bank money only, no custody or asset servicing, no issuer services, no settlement in commercial bank money (these services remain with the (I)CSDs) l Open to euro and non-euro zone currencies l Implementation around 2013/2014 20

TARGET 2 - Securities What is it? External Use l “ A technical platform to support CSDs in providing core, borderless and central settlement services” l “ The objective is to achieve harmonised and commoditised DVP settlement in central bank money in euros (and possibly other currencies) in substantially all securities in Europe” l “Users need only open a single account with a single CSD to settle any transactions in securities in T 2 S with any participant” l “ T 2 S … will be operated on the Target 2’s cash platform to exploit synergies with T 2 to the fullest extent possible” 21 ECB, December 2007

TARGET 2 - Securities Changes implied External Use T 2 S addresses settlement of Euro-zone securities bringing the benefits of: l Harmonisation of settlement l Further interoperability between markets l Pooling of liquidity via T 2 But will require appropriate asset servicing solutions, coping with: l split between asset servicing and settlement, l lack of harmonisation of CA and tax which require market proximity, links with local intermediaries l remaining market specifics settlement features, l credit and liquidity needs driven by an RTGS system CSDs can offer a single access to T 2 S for settlement but lack appropriate and cost/risk effective asset servicing capacity foreign securities 22

TARGET 2 - Securities Clients’ requirements External Use l Clients will reassess the way to access European markets l Choices will vary across client profiles, markets and product segments and will be driven by: – – – Settlement efficiency Liquidity Cost Deadlines Required service level Asset optimisation (credit, collateral and liquidity) 23

TARGET 2 - Securities Euroclear to address different clients’ needs … External Use CCI 24

TARGET 2 - Securities. . . supported by Single Platform developments External Use 25

Agenda l Presentation of Euroclear Group l Focus on Euroclear Bank l To deliver a Domestic Market for Europe l Target 2 - Securities l Link Up Markets l External Use Connecting the CSD to Euroclear Bank 26

Link Up Markets External Use 27

Link Up Markets Example External Use 28

Agenda l Presentation of Euroclear Group l Focus on Euroclear Bank l To deliver a Domestic Market for Europe l Target 2 - Securities l Link Up Markets l External Use Connecting the CSD to Euroclear Bank 29

Connecting the CSD to Euroclear Bank Access to local markets Clients / Investors Clients Global Custodians custodians Local agent Partial or Full support Local agent CSD External Use CSD Flexibility per market CSD 30

Connecting the CSD to Euroclear Bank Access to local markets Clients / investors Clients CSD Issuing CSD External Use CSD Euroclear Bank (single account) CSD 40 markets Flexibility per market 31

Connecting the CSD to Euroclear Bank What can Euroclear Bank offer you ? l External Use Full services – Settlement (Dv. P or Fo. P), asset servicing, tax, collateral management, Lending & Borrowing, Forex) l Link to 40 markets – Direct to CSD or via local agents l Proven track records – 19 CSD connected to us Midclear, Takasbank, MCDR, Nasdaq Dubai, SD Indeval, Caja de Valores, Monte Titoli, KPDW, Austraclear, NDC, LCSD, KSD, TDCC, Euroclear Belgium, Euroclear France, Euroclear UK&Ireland, Euroclear Sweden, Euroclear Finland, Euroclear Nederlands, – More to join from Latin America, Middle East/Africa, CIS, South Europe and Asia 32

Connecting the CSD to Euroclear Bank What can Euroclear Bank offer you ? l External Use Example of full in-sourcing – Euroclear Bank acts as the Irish CSD for bonds l Attractive Pricing for a full services – Strong in Eurobonds, D. R. , European Equities and all Fixed-income markets, Mutual Funds – Recognises the economy of scale l Partners of Euroclear Bank – Smaller/some local clients are rerouted to their CSD which offer a domestic & international services – Training/education, advisory on how to best operate outside of your home market – Servicing the multi-listed purposes 33

Connecting the CSD to Euroclear Bank Why you should connect to Euroclear Bank ? External Use l Expand your area of expertise by offering, both Domestic and International l Diversify your source of revenues, maximise your existing infrastructure l Take advantage of the Euroclear Bank’s 40 years of experience l Times are changing, you need to act now to seize the opportunities Thank you 34

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