ICE Risk: Know Now. ICE Risk offers valuable risk management tools to the futures and OTC energy markets:

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1 ICE RISK TM

2 ICE Risk: Know Now. IntercontinentalExchange (ICE) is pleased to present ICE Risk, a division of ICE Data. As a leading operator of global exchanges and over-the-counter (OTC) markets, ICE is expanding its services to meet the growing demand for real-time risk management in the energy markets. Leveraging our propriety risk management software and combining it with ICE s state-of-the-art electronic trading platform, market participants have a seamless means of accessing real-time markets and trade execution, trade processing and risk management in one integrated application. From the trader or portfolio-level, on ICE and other venues, we re bringing it all together so you can have more information at your fingertips, fast. ICE Risk offers valuable risk management tools to the futures and OTC energy markets: > Real-time deal updates from the ICE trading platform and other venues: Continuous price updates Dynamic portfolio valuation > Ability to segregate portfolios into sub accounts to track risk Segregate deals by trader, and/or combine all deals across your entire trading organization > Cross-asset portfolio valuation > Reports allow managers to view risk from multiple perspectives Real-time pivot grid enables users to view deals, underlying risk, real time prices, mark to market and other data points from multiple perspectives > Ability to import internal and external marks for valuation Benefit from both internal, company-driven curves and external prices derived from ICE prices > Link to Excel On demand deals, deal details and risk records can be exported to Excel > Single login to WebICE and ICE Risk ICE Risk shares user identification, passwords and user permissions with WebICE > ASP solution Clients do not need any servers at their site, as ICE Risk manages the servers and maintains all reference data, deals and backup systems To log into ICE Risk, users simply download a light front-end application State of the art and fully audited system security and data protection supported by ICE s 24-hour help desk > Value-priced packages starting with 4 licenses Highly scalable solution to add new users

3 From WebICE to ICE Risk: Deals executed or blocked through ICE immediately appear in ICE Risk s line by line workbook style trade blotter and real time risk pivot grid. The Trade Blotter displays exactly how deals are executed on the exchange either in an aggregated trade format or at the fill level detail. The Risk Grid offers the flexibility to view deals either as executed at the highest risk level or broken out at the lowest risk level into the underlying products, periods, locations or indexes. Use the Trades tab to monitor trade execution in real time and then switch over to the Risk Grid to view live prices and both daily and life to date P&L. Filter by product, location, trader, counterparty, broker or any of the 30 other field attributes captured for each deal by ICE Risk to monitor your price and volume exposure in real time. From ICE Risk to Excel: For additional analysis, export aggregate deals, deal details or risk records to Excel based on your custom views. 50 MWh Bal Week PJM Peak Power on Trades Tab displays as 800 MWh daily in the Risk Grid.

4 Position Management ICE Risk Grid Features: > Positions, prices and MTM P&L across multiple price chains and value types in both real time and historical views > Decomposition of complex deals into underlying components for a quick look at exposure across similar products by trader or company > Breakdown of deals by over 30 trade attributes > Option inventory and real time delta equivalent updated based on underlying price movements Portfolio Hierarchy Traders may create a hierarchy of strategies to track their profitability while Risk Managers maintain permission over the data viewed by each user. Select a single strategy or Trader from the hierarchy to isolate positions in the Risk Grid or highlight the top of the hierarchy to view positions across your entire company. ICE Risk Grid View real-time positions, prices and MTM by Trader or consolidated across your entire company. Filter on any of the over 30 deal attributes and then drill down to the lowest risk level and consolidate positions to quickly identify your company s exposure to each underlying product. Create and save custom views by adding field attributes, colors, filters and other deal characteristics to the layout. > Single click isolation of the current day s trades and MTM > Display of your forward hedge schedule and expiration dates > Convert price & quantity unit of measure across products > Manual trade entry

5 Trade View The Trades view is a real time feature rich electronic position blotter that automatically aggregates trades by key characteristics to minimize the amount of data displayed. Recall fill level details to view deal prices, times, order and deal ID s or to edit or cancel deals not executed on ICE. Add and remove columns from the display and then filter, sort or group by deal attributes before exporting to Excel. Trade Detail Risk Level Management Risk levels provide Traders and Risk Managers with a quick and easy way to break down complex deals into their component parts to view underlying market exposure. Risk Level 2 NG Fin BS LD1 for IF Summer NWP-Rockies At the highest risk level, deals are displayed as executed on the exchange (Spreads, Strips, Swaps and Options) and then broken into their components as you drill down through the risk levels to ultimately display the underlying exposure to a base product, Period, Index or Location at Risk Level 0. Risk Level 1 NG Fin BS LD1 for NWP-Rockies Apr Oct 08 Risk Level 0 Natural Gas NWP- Rockies Inside Ferc & Natural Gas Henry Hub Apr-Oct 08

6 As of Feature Shifting Time Adding As Of fields to the Risk Grid provides a quick way to look forward or back in time so you can view your Positions, P&L and Market Prices on any given date in the past or view how decaying deals and expirations will affect your position in the future. Risk over Time Generate a forward hedge schedule based on the deals displayed in the Risk Grid to quickly isolate your exposure over any time horizon.

7 Options Configure a Risk tab to display your option inventory and watch as both prices and Greeks update in real-time based on actual deals or movements in the underlying contract. Choose the lowest risk level to display the delta equivalent futures and incorporated outright futures deals for a complete view of your position. Option Inventory As Of Greeks will retain historical values back in time and model price and delta change based on the current price and volatility out into the future. At expiration, switch to the Trades Tab and use ICE Risks single-step process to quickly exercise options contracts into futures. Option Delta Equivalent expressed as futures contracts for easy aggregation with your outright deals.

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