Larry Tabb

1. High Frequency Trading Tools and Technologies Presented by Larry Tabb (Founder & CEO)

4. Dark pools are steadily gaining market share in both the US and Europe No. of Dark Venues Source: TABB Group Estimate 18 27 32 45 52 53 3 4 9 21 29 36 1.5% 4% 7% 7.5% 12.5% 1% 2% 2% 3% 5% 10% 11.5% 2005 2006 2007 2008 2009 2010 US Europe % Traded Volume (dark)

5. When trading at the exchange, you are competing against the marketplace Buy-side/ Investors/ Liquidity takers Brokers, Buy-side, Prop, and Other Bidders for Liquidity Source: TABB Group 1 of 9 National Exchange Broker

6. In a dark pool, you get first look, and generally better than market pricing Broker Brokers, Buy-side, Prop, and Other Bidders for Liquidity Broker Dark Pool Buy-side/ Investors/ Liquidity takers Source: TABB Group National Exchange Broker 1 of 9 1 of 1

10. While all orders need to be represented by a broker they don’t need to go through brokers pipes Investor Broker Matching Venue Order Order Execution Execution Traditional Access Market Maker Liquidity Provider Broker Matching Venue Order Execution Execution Sponsored Access

11. Sponsored access benefit is exchange execution speed which does not necessarily mean access to best orders Investor Broker Exchange Orders Traditional Access Benefit Unique Liquidity from Other Customers Investor Investor Investor ECNs Dark Pool First Second Market Maker Liquidity Provider Broker Matching Venue Order Execution Execution Sponsored Access Benefit Speed to External Matching Venues

12. Dark pools generally get access to best order flow – which is hard for sponsored access firms to get access to Sponsored Access Challenges Broker Market Maker Liquidity Provider Matching Venue Co-lo Facility Investor Dark Pool Broker Data Center Matching Venue Fast Not as fast Sponsored Access Challenge While access to co-loed matching engine is quick, significant volume (and better liquidity) comes through brokers (institutional and retail orders). Traditional Access Benefit Unique Liquidity Comes from Customers Order Flow Investor Exchange Orders Investor Investor Investor ECNs Broker Dark Pool Second First Traditional (Better) Liquidity hits Brokers First The majority of orders come through brokers first. As such they first match in broker crossing networks & dealers’ dark pools – unless prop shops also co-lo or have high speed access to dealer dark pools

13. The amount of data that needs to be processed is astronomical PITCH, ITC 2.1, DirectEdgeX, TotalView-ITCH 4.0,UQDF, UTDF, ArcaBook for Equities, CQS, CTS, OPRA, Canadian Venture Exchange Level 1, Toronto Level 1, NASDAQ Index Dissemination Service, NASDAQ Trade Data Dissemination Service, NYSE OpenBook --- Source: Exegy – marketdatapeaks.com August 13, 2009

14. High Frequency Trading The Tools and Technologies Presented by Larry Tabb (Founder & CEO)