Lightsecond LIGHTSECOND EXCHANGE BUSINESS SUMMARY OUR VISION To build and operate the world's fastest, most efficient and transparent electronic exchange for liquid interest rate and credit default swaps. OUR SOLUTION A proprietary platform that merges intellectual property from cloud computing, parallel supercomputing, and real-time controls to achieve: • Consistent sub-millisecond latency in matching buys and sells; • Flexibility to allow changes to the Exchange (and its tradable contracts) in seconds without disruption to operations; • Innovations in low latency, large scale data management and visualization to solve very specific problems in the swap markets (to include credit limit monitoring, multi-modal margin calculations, near real-time account allocation); and • Real time trading tools and analytics. WHY Now New regulations impose conditions that will encourage swaps to be traded electronically. We believe electronic trades will represent a steadily increasing share of transactions for the following reasons: Disruptive Market Change. Dodd-Frank, the Volcker Rule, and new Basel III capital requirements will drive most of the $500 trillion in "over the counter interest rate and credit default swaps to electronic trading venues and central clearinghouses. "Voice trading" will become obsolete, with the notable exception of large "block" trades and specially tailored "bespoke" swaps. New regulations around capital and trading will materially raise transaction costs, making exchange traded products economically attractive. Open Access. As liquid swap benchmarks and indices move to electronic venues, proprietary trading groups (PTG) will enter the derivative markets with the same technical capabilities, innovative trading strategies, and volumes that PTGs have brought to the equity, exchange traded option, energy and FX markets. Primary dealers will see their dominant market position challenged, forcing the banks to develop new busi