BOTH CALAMITY AND CATALYST REFLECTIONS ON THIS CENTENNIAL MOMENT IN FINANCIAL SERVICES

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1 BOTH CALAMITY AND CATALYST REFLECTIONS ON THIS CENTENNIAL MOMENT IN FINANCIAL SERVICES CHIP REGISTER Executive Vice President of Sapient Corporation and Managing Director of Sapient Global Markets SAPIENT CORPORATION

2 We have reached a Centennial Moment in the global financial services industry; it has been almost a century since the Stock Market Crash and subsequent Great Depression compelled profound changes to the system that underpins not just investment and commerce, but our very way of life. The Financial Crisis of 2008 has yet again prompted scrutiny of business models, policies and processes. While these two transformational moments certainly share some causality, in many ways we are equally as blind today to the long-term consequences of our efforts to re-order as regulators and industry captains were in the last century. Adding to the confusion, the evolution and intersection of financial and digital technologies will continue to be disruptive. Firms are being forced to simultaneously industrialize their operations and offer clients a new experience, while shedding risk as a driver of revenues and moving toward more fee-based models. By definition, this dilemma will temporarily pressure cost ratios as expenses rise ahead of profits. The winners in next generation financial services will be those whose investments in user connectivity and experience including mobility arm them for the battle to come, not the one just past. Ironically though, while many bemoan these restrictions and requirements as well as the investments needed to comply, they may be focusing on the trees and not the forest. Their agility with concepts like connectivity, big data management, visualization, user experience and a host of other emerging fields in technology will not only be the key to their current restructuring, but also a critical factor of differentiation and competition in tomorrow s financial services industry. TRADING FINANCIAL FUTURES: REFLECTIONS ON THIS CENTENNIAL MOMENT IN FINANCIAL SERVICES 2

3 THIS TIME WAS DIFFERENT In order to understand the issues surrounding the current effort to React and Reorder in a post-crash world, it is useful to compare and contrast the two events. The Crash of 1929 and the Crisis of 2008 share many of the same precursors. In both cases, massive bubbles developed based on a psychology of never-ending returns in select markets. In 1929, it was equities; in 2008, housing prices led the way. Prior to the Crash, economist Irving Fisher famously remarked, Stock prices have reached what looks like a permanently high plateau. 1 Likewise in 2007, all three large credit rating agencies were assigning triple-a ratings to securities composed of pools of mortgages to individuals with, at best, undocumented income or, at worst, flat-out bad credit. The underpinning theory being of course that housing prices only go up and default rates are more or less constant. Both bubbles were also buoyed by easy money and leverage. Estimates peg the amount of stock purchased with borrowed money prior to 1929 at two-thirds, inexorably co-mingling the fates of individual investors and their lending institutions. 2 Eighty years later, the march of financial technology had made the calculation of leverage in the system actually impossible to measure, and even difficult to estimate. By 2008, the Bank of International Settlements released a report announcing that the notional value of all outstanding over-the-counter (OTC), or non-exchange traded, derivatives had crested ten times global GDP, or $592 trillion U.S. dollars. 3 This figure included soon-to-be controversial credit default swaps. In risk terms, what was dog and what was tail in the global financial system was no longer evident. Aside from these, the parallels between the Crash and the Financial Crisis weaken. The Crash was a simple problem caused by the concentration of capital, exuberance, leverage and a quick change in market conditions, which led to panic. Today, our issues range from entangled relationships between commercial banks (and depositor funds), investment banks (the largest manufacturers of leverage), dark pools of capital and the government (representing taxpayer money but also pushing social policy through financial regulation), all the way to our rating agencies, who are notoriously conflicted in their business model and at least an accessory to several smaller calamities over the last few decades. But perhaps the largest and most causal distinction has been the ever-increasing sophistication of financial technology and our demonstrated inability to close the gap between the exponential growth of complexity inside these businesses and markets, and our capacity to value, report and control the risks emerging from them. Financial technology simply outgunned analytic techniques and software for a generation. And if we consider how new regulations are restructuring the markets, much of the latest efforts aim to regain a balance between these competing forces. Many institutions will be allowed to do less in terms of generating complexity, certainly far less with the tacit underpinning of taxpayer and depositor funds. And new reporting requirements around transparency and compliance initiatives are skyrocketing, increasing IT and legal budgets as a result. Estimates show incremental Wall Street investments just in technology aimed at compliance rising to over $6.5 billion in 2014, up from $4 billion a decade ago. 4 SAPIENT CORPORATION

4 REACT & REORDER Ironically though, while many bemoan these restrictions and requirements as well as the investments needed to comply, they may be focusing on the trees and not the forest. Their agility with concepts like connectivity, big data management, visualization, user experience and a host of other emerging fields in technology will not only be the key to their current restructuring, but also a critical factor of differentiation and competition in tomorrow s financial services industry. As in the post-1929 era, we have no idea what world awaits us in terms of the mechanics of next-generation financial services, but we do know that tomorrow s investors will be part of a highly informed, always-on, I want what I want when I want it culture. Given this type of consumer mentality, complexity in offerings is not likely to go down and the speed of innovation will again begin to increase; but the type of both will be different and ultimately less caustic. Institutional and retail investors alike will be less impressed with incremental alpha generation through highly exotic and equally non-transparent structures. Instead they will be very excited by slick and highly functional connectivity to their portfolios, as well as large and usable data sets for research and testing, so they can manage more themselves, in their own time and way, at a lower cost. After half a decade of rule writing, 2013 has witnessed the real beginning of the React & Reorder phase of the post-crisis experience. The impacts of Dodd- Frank legislation in the United States has been quickly followed by MiFID II and EMIR in Europe and others in Asia; the Volker rule is separating depositor funds from speculative activity; Basel III has taken aim at risk and capital; and FATCA is checking tax compliance on overseas investments, just to name a few. While some of these rules may be viewed as mere tinkering, others clearly strive to create transparency in the markets. Others still, like Volker or the renewed prohibition of banks owning physical commodity assets, are more structurally profound. The long and short of it is that the financial system had become congenitally conflicted and complex. Small changes and simple reactions were never going to underpin future stability. So what to expect from the React & Reorder phase of this process? Three themes will remain central over the next decade: 1. Transparency This trend seeks to shine a light on all transaction types previously agreed upon in dark corners of the financial marketplace, or otherwise out of sight of regulators, and align capital to risk in more robust ways. OTC derivatives are an obvious target, and we have already seen massive rule-writing designed to push these agreements onto exchanges or through clearing houses, ready or not. Reporting requirements using newly formed Swap Data Repositories (SDRs) have also been initiated, presumably with the intent to somehow analyze the data for indications of market manipulation or systemic risk. But to date, the best that can be said is that a virtual tsunami of trade details is being gathered with predictably little in the way of analytical capability following. TRADING FINANCIAL FUTURES: REFLECTIONS ON THIS CENTENNIAL MOMENT IN FINANCIAL SERVICES 4

5 A more modest though pragmatic and industryowned effort to illuminate the Asset Backed Securities (ABS) market was launched in the EU last year under the moniker European Data Warehouse. 5 In order for ABS products to be accepted as collateral by the ECB, they must now be listed on this portal that allows investors to actually open up the securities and examine their loan-level details, thus weakening the reliance on rating agencies to provide such analysis. This example is interesting because it is not only an industry-led response to a market issue, but the portal itself is actually bank-owned; a remarkable feat of collaboration amongst a group not well known for it (see comments in section below). And finally, operational risks and financial leverage are amongst the targets covered by Basel III. All of these are designed to bring transparency to the types of trades and risks that are developing and begin the process of understanding the capital underpinning of the financial institutions, both individually and in relation to one another. 2. Industrialize Anyone hanging around the financial services sector over the last three decades knows it had a spending problem. Successive gold rushes in the industry led to a lack of strategic and cost discipline. Every idea was a good one. Institutions needed to be regional at least, but preferred to be global. Business lines proliferated, and many institutions were actually afraid not to be in all markets, for brand reasons if nothing else. The number and complexity of the products firms were trading expanded geometrically. And predictably, the result was enormous, expensive and risky operating infrastructures, most easily divided into talent, technology and process with really only the first getting any serious management attention. Ironically, in a highly interconnected industry, there was little cooperation around shared functionality. What could have been an orchestrated series of sectorwide investments in infrastructure designed to drive down costs and risk the sort of shared power lines and railroad tracks you see in other industries was replaced instead by each firm building the capability to do everything themselves and then having to communicate, point-to-point, with every other firm. It was a very expensive exercise. In fact, in the worst cases, people inside different divisions of the same firm couldn t even cooperate and wound up replicating investments at the intra-company level. Those days are clearly over (see David Donovan s The Industrialization of Banks ; August 2013). Since 2009, while bank operating costs have stayed flat or in some cases increased due to rising regulatory response budgets, revenues have fallen by a full third. 6 These institutions are being forced to ration their investments dollars, close business lines, collaborate internally, and look for opportunities to co-invest in industry utilities in ways they never have before. Similar to the European Data Warehouse experience discussed above, functions like collateral management, clearing, trade documentation, counterparty reference data management and many more are being looked at as non-proprietary and industry-wide tasks that could be better serviced through co-owned utilities or other sharing arrangements. 7 SAPIENT CORPORATION

6 3. Risk to Fees Clearly, the spirit underpinning much of the financial regulation of the last few years is to push systemically important financial institutions, or SIFIs, away from risk and toward fee generation as a means of deriving revenues. And how it has worked. Over the last few years, bank after bank has publically announced their strategic de-emphasis on trading businesses in lieu of the pursuit of institutional investors and the growing number of high net-worth individuals. The good news for them is that there is a lot more wealth to manage. Between 2008 and 2012, the wealth of high net-worth individuals globally ballooned from the low 30s to the mid 40s in trillions of U.S. dollars with Asia leading the expansion, followed closely by North America, and Europe coming in a distant third. 8 Growth on the institutional side was also robust and followed similar geographic patterns. The competitive landscape is shifting as we are beginning to see which firms are open to new ideas about what constitutes a fee-worthy service and which are struggling to break free from old ways of thinking about their business and clients. The problem is the fight to manage all this money is taking place on an increasingly crowded battlefield. Banks are gearing up to take a big swing into wealth management, alternative investment funds are pushing ever-farther downstream, and some large capital pools (i.e., pensions and insurance) are moving to selfmanagement and away from traditional institutional asset managers. The result of this increased competition to manage money is obviously pressures on fees. Mutual fund expense ratios have dropped between 5% and 10% over the last few years, as have hedge fund fees, and money market funds have faired even worse, falling by more than half since Yet, there is more to this story than increased competition. With the generation to come, winning will require a new understanding of how technology has redefined demand as well as notions of what is value for money. The competitive landscape is shifting as we are beginning to see which firms are open to new ideas about what constitutes a fee-worthy service and which are struggling to break free from old ways of thinking about their business and clients. TRADING FINANCIAL FUTURES: REFLECTIONS ON THIS CENTENNIAL MOMENT IN FINANCIAL SERVICES 6

7 DEMOCRATIZATION OF ACCESS AND INFORMATION To understand the future of financial services, and fee structures specifically, it is useful to explore where disruption is already occurring as well as to compare this experience to what we have already seen in other markets. In retail, for instance, just a decade or so after hardware (including smart phones), software, consumer demand, social media and brand management all matured to a point where they could coalesce into a single force pushing forward everything from commerce to online dating it is hard to remember how the world even worked before. We buy. We sell. We chat. We share. We now even study our ancestry and analyze our own DNA online. And why is this? Clearly the supply of highly-integrated and mature technologies has surged forward to meet consumer demand. In fact, many view the Bubble Burst of the late 1990s not from the perspective that dot-com firms lacked a large addressable market, but rather that the technology needed to satisfy demand had just not progressed far enough to realize the vision. It was a matter of bad timing, not bad ideas. Companies failed because the underpinnings of today s connectivity had not arrived. Hardware, like the smartphone and the ipad, software, like what is now found in the new markets for micro-applications in various app stores, e-commerce solutions ranging from itunes to your local grocery store, and social media platforms, like Facebook, Twitter and LinkedIn, did not yet exist individually and thus could not aggregate into a single disruptive force. It took another decade to bake all these things together into what we now know as the modern online experience. If one accepts the premise that the battle lines of competitiveness in tomorrow s financial services will slant farther toward generating fees than profiting from risk (as regulatory mandates imply), there are lessons about the development of technology and society from the last few decades that speak volumes about how the market for these services will evolve. The most important is that the three big foundational pillars that have justified fees in the past are all crumbling. Said another way, advances in technology are democratizing what was once proprietary to the industry and eroding critical demand centers for financial institutions of all types. These pillars are: access to market, portfolio construction and research. 1. Access to Market Remember a day when buying a share of stock involved a stock broker and paying large commissions for the privilege? No more. Now we can log on to any of a number of online and discount brokerages and trade a seemingly limitless variety of securities for a few dollars. This process, which once was a main driver of fees for institutions as well as the linchpin for cross-selling other services like portfolio construction and research, has been knee-capped by the discount brokerage. This trend also marries with the social trends of the digitally-empowered consumer, educated and ready to act online without support. This phenomenon is not limited to the retail consumer. More and more managers of large capital pools are also looking to reclaim direct access to the market and forego the fees associated with institutional investment managers. A 2010 study of firms that were insourcing their investment management process showed, in the case of equity strategies, a 30 basis point improvement in costs; and for private equity strategies, the benefits were as high as 244 basis points. 10 And these efficiencies came with the addition of 3.6 basis points of additional total return for each 10 percent of the investment management process being insourced. SAPIENT CORPORATION

8 2. Portfolio Construction Continuing with the analogy of yesterday s stock broker, there used to be no easy way to create an indexed exposure for oneself. And back then, the easiest way to take risk in more esoteric markets, ranging from volatility plays to emerging markets, was to sign up with professional money managers and pay a percentage of assets under management every year in fees, as well as potentially a portion of the upside. The rise of the exchange-traded fund (ETF) has solved that problem for institutional and individual investors alike. For a few dollars over online platforms, almost any exposure can be created thanks to the proliferation of ETFs. There are now over 1,300 in the U.S. alone after only a decade of existence, and that number is growing exponentially. 11 The top gainers this year ranged from Japanese hedged equity, to short-term corporate bonds, to S&P low volatility stocks, to a select healthcare equity basket. All of these exposures, heretofore only created by highly paid portfolio managers or the structured products desks of investment banks, can now be accessed with the click of a button by anyone for a fraction of the cost (and with near-perfect liquidity in and out). And the movement has certainly caught on. Assets directed toward the ETF market have skyrocketed from almost zero in 2000 to around U.S. $2.5 trillion this year, and they are expected to crest at U.S. $3.5 trillion in another five years. 12 And if the trend of insourcing the investment management process by many large asset holders increases speed between now and then, as many expect, that slope will become even steeper. 3. Research Finally, the last pillar justifying the fees of investment managers and advisors to date has been the quality or even existence of their research. The term existence may be more appropriate because were it not for these research departments cranking out analysis of individual companies, sectors and macro-trends, institutional and individual investors would have needed to make massive and duplicative investments in the capability to understand markets and opportunities themselves. These research departments were an important choke point in the investment process and their value was clear. Today, though, the value of this research is less obvious as democratization of information and opinion arrives. Simple Google searches for Reasons to Buy Apple Stock or Reasons to Sell Apple Stock generate three and seven million hits, respectively. While many of the results are chaff, a fair amount of wheat in the form of analysis, opinion and market data is also freely available to anyone searching the broader internet, and high-quality paid analytical services and tools are also prevalent. In short, regardless of whether you are a day trader in your home office or a pension fund manager, the reliance on a handful of institutions to tell everyone else what to think about a single equity or the markets in general has waned dramatically and that trend will continue. TRADING FINANCIAL FUTURES: REFLECTIONS ON THIS CENTENNIAL MOMENT IN FINANCIAL SERVICES 8

9 RENEWAL ADVISING IN THE DIGITAL AGE With the pillars of the old value equation under assault, the question naturally turns to the future factors of competition. Clearly, nothing sells like success and firms that can continually produce high yields, year after year, will in some sense be immunized from these changes. Aside from extraordinary results, however, it is likely that the symbiotic changes in technology and society will make connectivity and experience the hallmarks of success in the fight for investor wallet. Because they will no longer consider it a valuable service, investors will become less and less willing to pay for access to market or portfolio construction, and to some extent, market opinions by advisors. Rather, fees will be generated based more on how managers connect with their clients and the analytical tools and information they make available to increasingly self-directing investors, regardless of whether they are proprietary to the seller s firm or not. We live in an empowered age of self-service. Investors will want to have a much greater say in exactly how their assets are deployed in the market and much greater transparency into how they are being charged for the service. What your platform offers in this regard will be decisive. As one observer of the digital age commented, in the future, clients won t want greater choice. 13 They will want exactly what they want. A firm s ability to provide tools for self-direction will be something investors of all stripes will pay for. Another trend is connectivity, especially in the realm of wealth management and high net-worth investors. How you reach clients will be as important as what you say to them. Advisors need to understand who and where these people are, how to connect with them and how to adapt their brands to corral them into self-identified communities. It is said that early and mid-stage adopters of the iphone were never really that in love with the technology, but rather with what they perceived owning one said about them as individuals. And the combination of itunes, the iphone and the AppStore created a powerful way for these individuals to engage with what they judged to be others like them both personally and commercially. There is a lesson here for the financial services industry. In the digital age, investors will switch managers merely because they want to belong to a trending community. Firms that enable the process and find a way to charge for it will go far. Those that resist, either because they don t have the insight or the culture to adapt to this new demand, will suffer. Lastly, user experience, including mobility, will also be pivotal for firms to differentiate from one another and connect to a new type of client. This game is already afoot in the retail banking space, and it will quickly spread throughout the entire financial services industry. Major investments are underway across the spectrum in the areas of user experience (how one interacts with technology) and visualization (converting large data sets into usable information). These initiatives, as mentioned earlier, have to some extent been prompted by regulatory mandate; much of what is required from an enterprise reporting standpoint relies on the ability of institutions to master big data and conduct risk and capital analysis using visualization strategies to enable enhanced decision making tools. But these techniques will persist assuming the right culture is in play and quickly move from cost center to profit center. Taking the act on the road through mobility is also a requirement of next generation financial services. Not only will clients want to perform near-real-time net asset value (NAV) calculations and analyze a time series of pricing history on their favorite equity (or ETF), they are going to want to do it from a jetway on their tablet. And, they will want to be able to dig more deeply into the details as they move faster and faster. Static reports will not suffice as a solution for the mobile user. There will be an expectation that the user experience doesn t become impaired by mobility. Apple has raised this generation to believe this is a non-issue. SAPIENT CORPORATION

10 REFLECTIONS In summary, there is little future for the grey-suited, red-tied, black-shoed advisor. As in the travel industry in the 1990s, many such jobs will be replaced. And the way individual and institutional clients buy products will change. We have reached that place where all facets of the necessary technology are available and coalescing into an integrated capability can no longer be ignored. The profits just aren t there to subsidize the level of inefficiency the sector witnessed for the last few decades, especially in the banking sector. And investors will be looking not only for different products, but also for a unique experience; they will likely pay more for the latter. What an investment bank does in the next decade is likely to be very different as a result of both regulation and opportunity. Investment managers will be confronting a sea change as well, not only in what their customers assign value to as a service but also who their customers are and aren t. As with many such transformations, technology will be at the heart of the solution. But at a more profound level, real competitive advantage will be driven by culture. Organizations that have both the foresight and willingness to change will separate themselves from the pack as the industry and society at large moves through this process. Who in financial services will be the next Apple, Google or Facebook, innovating experiences clients don t even know they want yet? And who will be the next Kodak, Sports Illustrated or Blackberry clinging to an outdated understanding of consumer demand? The technology is not that difficult, or even that expensive, especially as compared to the bloated cost structures so many institutions have today (See Julie Rodriguez and Martin Hull, Can UX Delivery 1000% ROI? ; November, 2013). 14 More rare is having the vision, the risk appetite and the ability to realign to a changing reality or taken collectively, the culture required to seize the opportunity offered by this Centennial Moment and win. AUTHOR S PROFILE Voted one of the top 25 consultants in the world, Chip Register is the managing director of Sapient Global Markets and an executive vice president of Sapient Corporation. Prior to joining Sapient, Register built and managed trading groups around the world for large merchants traders including Louis Dreyfus in Connecticut, Essent Energy in the Netherlands, and Weyerhaeuser in Toronto. He also spent ten years developing trading capabilities for investment banks including UBS in New York and CIBC in Toronto. Register is a frequent contributor to Forbes.com and other top tier media outlets. TRADING FINANCIAL FUTURES: REFLECTIONS ON THIS CENTENNIAL MOMENT IN FINANCIAL SERVICES 10

11 NOTES 1. Wikipedia, Irving Fisher, (December 2013) 2. Richard Lambert, Crashes, Bangs & Wallops, Financial Times, July 19, 2008 (http://www.ft.com/cms/s/0/7173bb6a-552a-11dd-ae9c b07658.html) 3. Bank for International Settlements, Statistical release: OTC derivatives statistics at end-december 2012, https://www.bis.org/publ/otc_hy1305.pdf (May 2013) 4. TBD 5. European Data Warehouse, European DataWarehouse to Provide a Free Software Application for Preparing and Submitting ABS Loan-Level Performance Data, (October 3, 2012) 6. William Wright, A crisis in European investment banking, William-wright.com (September 28, 2012) 7. Daniel Schafer, Credit Suisse to fund software marketplace, Financial Times, December 15, 2013 (http://www.ft.com/cms/s/0/f61f30dc e3-98e feabdc0.html) 8. Capgemini, World Wealth Report 2013 from Capgemini and RBC Wealth Management, (December 2013) 9. Investment Company Institute, 2013 Investment Company Fact Book, (December 2013) 10. Christine Williamson, Insourcing trend growing among big institutional investors, Pensions & Investments, May 13, About.com, The History of ETF s, (Date) 12. Yahoo Finance, ishares: US ETF Assets At $3.5T in 5 Years, (December 2013) and Alpha Now, Global ETF and ETP Assets Reached US$2.5 Trillion in 2013: new Record High, (December 2013) 13. Imagine a world without shops or factories, BBC News, October 10, 2013, (http://www.bbc.co.uk/news/magazine ). 14. Julie Rodriguez and Matt Hull, Can UX Deliver 1000% ROI, Wall Street & Technology, November 21, 2013, (http://www.wallstreetandtech.com/wealth-management/can-ux-deliver-1000-roi/ ). ABOUT SAPIENT GLOBAL MARKETS Sapient Global Markets, a division of Sapient (NASDAQ: SAPE), is a leading provider of services to today s evolving financial and commodity markets. We provide a full range of capabilities to help our clients grow and enhance their businesses, create robust and transparent infrastructure, manage operating costs, and foster innovation throughout their organizations. We offer services across Advisory, Analytics, Technology, and Process, as well as unique methodologies in program management, technology development, and process outsourcing. Sapient Global Markets operates in key financial and commodity centers worldwide, including Boston, Chicago, Houston, New York, Washington, D.C., Calgary, Toronto, London, Düsseldorf, Frankfurt, Geneva, Munich, Milan, Zurich, and Singapore, as well as in large technology development and operations outsourcing centers in Bangalore, Delhi, and Noida, India. SAPIENT CORPORATION

12 GLOBAL OFFICES Bangalore Salarpuria GR Tech Park 6th Floor, VAYU Block #137, Bengaluru Karnataka India Tel: +91 (080) Boston 131 Dartmouth Street 3rd Floor Boston, MA Tel: +1 (617) Calgary 888 3rd Street SW Suite 1000 Calgary, Alberta T2P 5C5 Canada Tel: +1 (403) Chicago 30 West Monroe, 12th Floor Chicago, IL Tel: +1 (312) Delhi Unitech Infospace Ground Floor, Tower A Building 2, Sector 21 Old Delhi - Gurgaon Road Dundahera, Gurgaon Haryana India Tel: +91 (124) Düsseldorf Speditionstraße Düsseldorf Germany Tel: +49 (0) Frankfurt Skyper Villa Taunusanlage Frankfurt Germany +49 (0) Geneva Succursale Genève c/o Florence Thiébaud, avocate rue du Cendrier Geneva Switzerland Tel: +41 (0) Houston Heritage Plaza 1111 Bagby Street Suite 1950 Houston, TX Tel: +1 (713) London Eden House 8 Spital Square London, E1 6DU United Kingdom Tel: + 44 (0) Los Angeles 1601 Cloverfield Blvd. Suite 400 South Santa Monica, CA Tel: +1 (310) Milan Sapient Italy S.r.l Viale Bianca Maria Milan Italy Tel: Munich Arnulfstraße München Germany Tel: +49 (0) New York 40 Fulton Street 22nd Floor New York, NY Tel: +1 (212) Noida (NCR of Delhi) Oxygen, Tower C, Ground - 3rd floor Plot No. 7, Sector 144 Expressway Noida Uttar Pradesh India Tel: +91 (120) Singapore 158 Cecil Street, #03-01 Singapore Tel: Toronto 129 Spadina Avenue Suite 500 Toronto, Ontario M5V 2L3 Canada Tel: +1 (416) Washington DC 1515 North Courthouse Rd. 4th Floor Arlington, VA Tel: +1 (703) Zürich Sapient Switzerland GmbH Seefeldstrasse Zurich Switzerland Tel: +41 (58) TRADING FINANCIAL FUTURES: REFLECTIONS ON THIS CENTENNIAL MOMENT IN FINANCIAL SERVICES 12

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