AN INTRODUCTION TO MAREX SPECTRON

AN INTRODUCTION TO MAREX SPECTRON

OVERVIEW A GLOBAL LEADING COMMODITY BROKER ENABLES TRADE ON ANY PLATFORM THE CLIENT WANTS: VOICE, SCREEN AND OPEN-OUTCRY 600 EXPERIENCED MARKET PROFESSIONALS OPERATING FROM A GLOBAL OFFICE NETWORK A PORTFOLIO OF CLEARING SERVICES CLEARING C.1.5 MILLION CONTRACTS DAILY CENTRALISED CLEARING HOUSE ACCESS FOR OFF-EXCHANGE ENERGY MARKETS LIVE AND HISTORIC MARKET DATA ACROSS OFF-EXCHANGE COMMODITY MARKETS LEADING TECHNOLOGY SOLUTIONS INCLUDING LOW LATENCY EXECUTION VIA CO-LOCATION DEDICATED RESEARCH AND INTELLIGENCE ON ALL OF OUR COMMODITY MARKETS NAMED COMMODITY RESEARCH HOUSE OF THE YEAR 2014 BY ENERGY RISK MAGAZINE SHAREHOLDERS EQUITY OF $349 MILLION AND TOTAL ASSETS C. $1 BILLION SUBSTANTIAL REGULATORY CAPITAL AND LIQUIDITY BUFFERS REGULATED BY THE FCA IN THE UK, CFTC IN THE USA, SFC IN HONG KONG AND MAS IN SINGAPORE Our strategy is simple: we create deep liquidity pools and build substantial market share so that we can access markets, and operate intelligently within them: more intelligently than less focused rivals. We succeed in that by putting the client first, innovating only where it brings them value, never taking positions unless it helps to create the markets." John Wall, CEO, Marex Spectron Group 2

OUR HISTORY 600+ employees 100 employees Nov 2005 Marex Group Established Dec 2010 Acquired by Current Shareholders Jan 2011 Gains SFC License Became a full US clearer for ICE Futures Inc. and CME Group Inc. Feb 2011 Opened regulated Hong Kong office and data centre May 2011 Acquired Spectron Group Jun 2011 Merged Group re-branded as Marex Spectron Jul 2011 Acquired Global Markets Division, Eden financial May 2012 Acquired Pro- Trader Division of Schneider Trading Associates Mar 2014 Capital Markets Services Licence granted by Monetary Authority of Singapore Opened data centres in NY and Chicago 3

OUR SERVICES PRODUCTS Metals Energy Environmental Soft and Agricultural Products Freight Securities SERVICES Clearing Direct Market Access Market Analytics Independent Research Services Market Data Voice and Electronic Execution CLIENTS Large Industrials Commodity Producers and Consumers Oil Majors Trade Houses Utilities Money Managers Hedge Funds Banks and Brokers Professional Traders 4

GLOBAL OFFICES NORTH AMERICA EUROPE ASIA New York 360 Madison Avenue Third Floor New York NY 10017 Tel: +1 212 584 3860 Washington State 500 Broadway Street Suite 260 Vancouver WA 98660 Tel: +1 360 892 3300 Connecticut 600 Summer Street Stamford CT 06901 Tel: +1 203 327 0009 London - Head Office Level Five 155 Bishopsgate London EC2M 3TQ Tel: +44 (0)207 655 6000 London City 4th Floor 25 Copthall Avenue London EC2R 7BP Te:l +44 (0)20 7664 4200 Frankfurt Romerstrasse 31 63486 Bruchkobel Germany Tel: +49 6181 9399 470 Oslo 3rd Floor Kronprinsesse Marthas Plass 1 0160 Oslo Tel: +47 23 89 42 00 Hong Kong Suite 1107 ICBC Tower 11th Floor 3 Garden Road Central, Hong Kong Tel: +852 3909 8388 Singapore 8 Marina View #33-06 Asia Square Tower 1 Singapore 018960 Tel: +65 6413 0075 5

MARKET ACCESS AND PRODUCTS

ENERGY : OIL & PETROLEUM PRODUCTS Marex Spectron has been brokering crude oil and petroleum products since 1988 and has one of the most experienced teams in the industry Overview Broking crude oil and petroleum products since 1988. Teams in the UK, North America and Asia. Intermediates transactions in a variety of physical and financiallysettled crude oil and petroleum products including outrights, spreads, swaps and inter-grade swaps. Historical market data available for OTC Fuel Oil and Gas Oil Main markets Crude Futures & Options Heating Oil Bio Fuel WTI Brent Fuel Oil & Bunkers Gasoil Gasoline Contracts Physical Futures Swaps Options Capacity Gas-In-Store Index Deals Location Spreads Time Spreads Block Futures (Asia) Clearing ICE CME Nymex 7

ENERGY : NATURAL GAS Marex Spectron operates one of Europe's largest marketplaces for natural gas and has a significant presence in the US Overview Hugely experienced team with major market shares in core products Integrated OTC system allows clients to trade a variety of natural gas products at all major hubs in Europe and the US Exchange brokering team offers clients first class execution and clearing for ICE Futures Europe gas products Extensive market data on major European products and a range of leading indices OTC clearing available Main markets NBP (UK) NCG (DE) Zeebrugge (BE) Gaspool (DE) TTF (NL) Baumgarten (AU) PEG (FR) PSV (IT) Contracts Physical Swaps Options Futures (EU) Capacity (EU) Gas-In-Store (EU) Index Deals (EU) Location Spreads (EU) Time Spreads (EU) Look-alikes (US) Clearing CME (EU) BlueNext (EU) Apx-endex (EU) ICE (EU & US) CME Nymex (EU & US) 8

ENERGY : ELECTRICITY Marex Spectron operates one of Europe s biggest and most established marketplaces for electricity Overview Involved in the power markets since before they were deregulated The first broker to set up a successful electronic trading platform for electricity Billions of euros worth of power now trade through this platform and our voice brokers every month, across all of Europe s main markets Main markets Germany Belgium UK Czech France Swiss Holland Contracts Physical Options Spark Spreads Dark Spreads Clearing EEX CME Apx-endex ICE 9

ENERGY : FINANCIAL & PHYSICAL COAL Financial Coal Marex Spectron launched the first online marketplace for coal in 1999 Overview Main markets Contracts A hybrid electronic and phone brokering service for global coal swaps with teams in London, Singapore and Washington State The first broker to offer Chinese swaps coverage and was also a pioneer in developing the Australian and Indonesian coal swaps API#2 API#4 CFR China FOB Indonesia APINewc Swaps Options Dark Spreads Implied Freight Clearing EEX Physical Coal Marex Spectron offers access to a vast network of spec and off-spec thermal and coking coal market participants Overview Main markets Liquidity & source pricing on physical and off-spec markets Hybrid voice & screen broking Unbiased forward and spot rates API2 API4 NEWC API5 API8 FOB Indonesia Daily market data reports 10

ENERGY : IRON ORE Marex Spectron offers access to deep liquidity across a comprehensive range of Iron Ore markets is able to provide clients all over the world with access to both the cleared and non-cleared, physical and financial, OTC Iron Ore markets. We provide access to Iron Ore markets through dedicated desks in Europe and Asia. Overview Access to both the cleared and non-cleared, physical and financial, OTC Iron Ore markets Hugely experienced teams based in Europe and Asia Voice broking service Billions of euros now trade through this platform and our voice brokers every month, across all of Europe s main markets Main markets FOB Tubarao FOB W. Australia CFR China Contracts Swaps Futures Clearing SGX 11

ENERGY : OPTIONS Marex Spectron has more than a decade s experience of broking energy options established a dedicated energy options desk in Europe over 10 years ago, and continues to have the focus and expertise in this area. Covering all major European gas, power, emissions and coal options markets, trading is conducted exclusively via the telephone. The team also produces a market leading price/volatility report for options traders and analysts. Overview Dedicated energy options desk in Europe Covering all major European gas, power, emissions and coal options markets Voice broking service Market leading price/volatility report for options traders and analysts Main markets Gas: NBP & TTF Electricity: UK & Germany Oil: Crude Oil & Oil Products Coal EUA emissions Contracts Options - CSOs Options - APOs Swaptions Clearing CME EEX 12

ENERGY : US & EU EMISSIONS Marex Spectron has been actively involved in environmental markets since 2002 Overview Broker of choice for emissions market participants across Europe and the US All key voluntary and mandatory emissions markets are covered Voice broking service, exchange execution in Europe Main US markets RGGI California Reclaim ERCs Houston NOx/SO2 NOx allowances New York NOx/SO2 SO2 allowances CSAPR Main EU markets EUAs Contracts Allowances Certificates Options Clearing ICE CCFE (US) GreenX (US) ICE-ECX (EU) LCH.Clearnet (EU) NordPool (EU) BlueNext (EU) 13

ENERGY : US RENEWABLE ENERGY Marex Spectron is one of the oldest and largest brokers of Renewable Energy Certificates (RECs) in the US for both the voluntary and compliance markets It has the experience and contacts to help generators maximize their renewable assets and help buyers efficiently procure the supply they need. Marex Spectron has been involved in numerous pioneering trades on the REC markets over the years, and continues to contribute strongly to the development of these markets. As part of its service, it offers a range of pricing summaries, which are viewed by hundreds of renewable energy professionals. Overview Experienced team excels at maximising renewable assets and ensuring generators can procure the supply they need A market pioneer in the trading of REC market Market leading price summaries: daily, weekly, monthly, trade datasets and historical pricing Voice broking service Main markets Compliance NEPOOL PJM Texas Voluntary National Green-e WECC Green-e Contracts RECs Options 14

ENERGY : US BIOFUELS Marex Spectron has one of the most active and established biofuels brokering teams in the US. Overview Covering ethanol and biodiesel, at all of the major trading hubs across the US Can facilitate the trading of crush spreads (the difference between the price of corn and ethanol) Voice broking service Main markets East Coast West Coast New York Harbour Chicago (Argo) Gulf Coast Midwest Contracts Swaps Crush spreads 15

FREIGHT Marex Spectron's Freight desk is a key operator in the marketplace for tanker freight derivatives and options, with broker offices in London, Oslo and Singapore. We offer voice and screen trading and provide spreads and options on all routes Overview Brokers in London, Oslo and Singapore facilitating voice and screen trading including spreads and options on all tanker routes An integrated screen allows clients to commingle clearers from NOS, CME, ICE and LCH with contracts on Months, Quarters and Calendar years. Time and Quality spreads are also offered on all the major routes Large databases of historical information on tanker routes, providing data and analytical services Routes Dirty VLCC: TD3 Suezmax: TD5 Aframax: TD7 Clean West MR: TC2, TC6, TC14 East MR: TC12 East LR1: TC5 Contracts Swaps Options Clearing NOS LCH.ClearNet ICE CME - Clearport 16

METALS Marex Spectron is one of the world s leading metals brokers, responsible for more transactions on the London Metals Exchange than any other member and with significant market shares in North America and Asia Overview Hugely experienced teams in London, New York and Hong Kong A Category 1 LME member Responsible for 25% of LME Ring transactions and 35% of LME Select electronic transactions 24-hour metals market coverage Leading electronic trading solutions for the LME Direct market access via E-trader, PAT Systems, TT as well as Marex Spectron s own systems Voice broking service Daily market comment and insight on base and precious metals markets Main Markets Copper Tin Aluminium Steel Zinc Cobalt Lead Molybdenum Nickel Platinum Gold Silver Palladium Aluminium Alloy Contracts Spot Futures Forward Options OTC - Warrants OTC Averaging Clearing CME Comex, Nymex, CBOT TOCOM 17

AGRICULTURAL PRODUCTS Marex Spectron s highly experienced specialist team has major market shares in Cocoa, Coffee and Sugar markets and a significant presence in many other global markets Overview Hugely experienced team based in London and New York Hybrid voice, exchange floor and electronic broking service Direct market access via E-trader and TT Product and market analysis Main Markets Coffee Cocoa Sugar Cotton Soybeans Rapeseed Corn Milling Wheat Contracts Futures - on and off exchange Options - on and off exchange Clearing CME CBOT NYSE Euronext ICE Nybot ICE Europe MGEX 18

SECURITIES Marex Spectron is a premier specialist broker of cash equities, fixed income and equity derivatives Equities Cash Equities - leading intermediary for both sellside and buy-side Broad-touch execution with high-touch care orders combined with access to smart order routing/algorithmic tools, light and dark liquidity pools Equity Finance - agency intermediation in cash and single stock futures Access to competitive pricing, order flows and trading ideas Fixed Income Access to competitive pricing, order flows and trading ideas across a broad spectrum of Fixed Income securities Government bonds, Sovereign debt, Supranational, Covered bonds Financials, Corporate bonds, ABS, Structured products, Distressed Debt Coverage of an extensive Pan European End Customer Client base and Investment Banks Matching client orders in illiquid, corporate and government bonds 19

GLOBAL FINANCIAL FUTURES AND OPTIONS Marex Spectron provides 24-hour, independent futures and options coverage on all major global exchanges Our specialist voice broking team analyses market themes in both fixed income and equity index products as they develop and generate intelligent trade ideas for individual and institutional clients. The financials team also sources new pools of liquidity and provides expert execution of complex options strategies. Overview Specialist voice broking team Sourcing new pools of liquidity on a daily basis Intelligence-driven approach delivers differentiated options for clients Major market shares on several exchanges Intelligence Market themes analysis delivered in real time Trade ideas generated for institutional and individual clients Analysis of macro-economic environment delivered weekly Access to competitive pricing, order flows and trading ideas 20

INTELLIGENCE

MARKET DATA LIVE PRICES Real-time screens and apps for energy, freight and emissions prices. REFERENCE PRICES Index and closing prices across gas, power, coal, oil products, emissions, freight and options. HISTORICAL PRICES Comprehensive historical datasets of closing prices and actual trades energy, freight and emissions market data going back as far as 2000. PUBLICATIONS A range of extremely popular publications and reports providing insight, commentary and news on different markets. Metals, Softs and Ags, FX and Energy. 22

MARKET ANALYTICS The Market Analytics team have developed an interactive tool used to analyse liquidity flows across multiple commodity exchanges. This is called NANOLYTICS. Awarded Commodities Research House of the Year by Energy Risk in recognition of this innovative approach to analysis. Market Analytics look to develop tools for market participants to manage risk around their fundamental views. The team produces regular reports with market comments and trade ideas based on the Nanolytics. Market Analytics also run a proprietary model for estimating speculative positioning across a vast number of tradable commodities and includes the widely-followed weekly LME Speculative Positioning Report. 23

GLOBAL COMMODITY RESEARCH FUNDAMENTAL RESEARCH & ANALYSIS Expert fundamental analysis on the energy, ferrous metals, agriculture and industrial transportation markets. THE RIGHT MIX OF KNOWLEDGE & SKILLS A unique combination of real / physical market knowledge, advanced modeling techniques and strong links with the academic world has put the team at the forefront of market analysis in these sectors. PRICE DISCOVERY & FUNDAMENTALS Fundamentals ultimately drive price discovery for commodity markets. Frequently fundamentals are incorrectly priced by market forces or their impact is mistimed. UNIQUE RESEARCH PLATFORM Ability to identify such dislocation in fundamentals in the most appropriate time frames, in turn revealing potential cross-market / crosscommodity arbitrage opportunities. 24

INDEPENDENT RESEARCH SERVICES A unique, consultancy-based intermediary dedicated to providing a holistic and fully flexible service reflecting cost-effective and best-of breed impartial independent research Access to conflict-free, outside-the-box thinking and analysis as well as to cutting-edge experts, products and services Integrity and reliability in terms of own services as well as those of IRPs Open-ended internal resources, notably including, negotiating skills and experience, administration structure support and risk-management input and solutions 25

EXECUTION AND TECHNOLOGY

CROSS-ASSET SALES A CENTRALISED SALES AND EXECUTION HUB FOR MAREX SPECTRON Liquidity Technology Analytics Cross-Asset Sales Off-Exchange Liquidity ACCESSING ALL LIQUIDITY POOLS, INTERNAL AND EXTERNAL, THROUGH A SINGLE POINT OF CONTACT Listed Execution Market Analytics 27

EXCHANGE CONNECTIVITY NORTH AMERICA EMEA ASIA American Stock Exchange CME US ICE Canada ICE US Kansas City Board of Trade Minneapolis Grain Exchange Montreal TMX NASDAQ NYSE NYSE ARCA NYSE LIFFE US NYPC ONE Chicago DME DGCX Eurex Euronext Amsterdam Euronext Brussels Euronext Paris Euronext Lisbon ICE Europe IDEM LIFFE London Metals Exchange London Stock Exchange MEFF OBX OMX Copenhagen OMX Finland OMX Sweden Swiss SWX Europe Swiss Virtx TURKDEX Wiener borse Xetra Ireland Xetra Germany Australian Stock Exchange (ASX) Bursa Malaysia Exchange Hong Kong Exchange NZFOE Osaka Stock Exchange Singapore Exchange Tokyo Commodity Exchange Tokyo Financial Exchange Tokyo Stock Exchange 28

VANTAGE VIEW SCREEN MAREX SPECTRON HAS UNRIVALLED ACCESS TO PROPRIETARY DATA FROM THE WORLD S LIQUID OTC MARKETS, OFFERING VIEW SCREEN ACCESS AND TRADING SCREENS TO INTERACT WITH THE FULL SPECTRUM OF OTC PRODUCTS 29

VIEW OF THE EASYSCREEN TRADING PLATFORM FUNCTIONALLY RICH AND EASY TO USE, THIS PLATFORM CAN BE CUSTOMISED, WHITE LABELED OR CONNECTED VIA FIX TO CUSTOMERS PROPRIETARY FRONT END 30

CLEARING

CLEARING SERVICES OUR PORTFOLIO OF CLEARING SERVICES ACROSS GLOBAL FUTURES & OPTIONS MARKETS CLEAR C1.5 MILLION CONTRACTS DAILY Dedicated client service Extensive global coverage from our trade operation executives A suite of algorithmic products for trade give-up allocation and clearing Multi-product cross-margining and single consolidated reporting 32

CORPORATE GOVERNANCE

ROBUST CORPORATE GOVERNANCE BOARD OF DIRECTORS EXECUTIVE COMMITTEE Non-Executive Chairman Jeremy Isaacs Co-Founding Partner of JRJ Group Executive Directors Steve Sparke Chief Operating Officer, Marex Spectron Chief Executive Officer John Wall Ian Lowitt Chief Financial Officer, Marex Spectron John Wall (CEO) Steve Sparke (COO) Ian Lowitt (CFO) Hunter Baldwin (Head of US & Co-Head Energy) Jeremy Elliot (Co-Head of Energy) Simon van den Born (Head of Metals) Jonathan Parkman (Head pf Agriculturals) Yvonne Poole (Head of Human Resources) Ed Paget-Brown (Head of Legal & Compliance) Non-Executive Directors Lord Stanley Fink (Independent) CEO of International Standard Asset Management, ex-ceo of Man Group Simon Heale (Independent) Non-Exec. Independent Chairman of the Board of Kazakhmys, ex-ceo LME, ex- Non-executive director and Chairman of Panmure Gordon Roger Nagioff Co-Founding Partner, JRJ Group Vittorio Pignatti-Morano Principal, Trilantic Capital Partners Joe Cohen Principal, Trilantic Capital Partners Peter Kadas Principal, BXR Partners Daniel Hallgarten Principal, BXR Partners Peter Sugarman Partner, JRJ Group Carla Stent Director, MSC Consulting BOARD SUB COMMITTEES Audit & Compliance Committee Simon Heale Joe Cohen Peter Sugarman Daniel Hallgarten Risk Committee Stanley Fink Roger Nagioff Daniel Hallgarten Vittorio Pignatti Nomination & Remuneration Committee Jeremy Isaacs Peter Kadas Vittorio Pignatti Carla Stent 34

DISCLAIMER THIS PRESENTATION HAS BEEN PREPARED BY MAREX SPECTRON FOR INFORMATION PURPOSES ONLY. THIS PRESENTATION CONTAINS GENERAL BACKGROUND INFORMATION ABOUT MAREX SPECTRON S ACTIVITIES CURRENT AS AT THE DATE OF THIS PRESENTATION. IT MAY NOT BE COPIED, DISTRIBUTED, PUBLISHED OR REPRODUCED IN WHOLE OR IN PART WITHOUT THE PRIOR WRITTEN CONSENT OF MAREX SPECTRON. THE MAREX SPECTRON GROUP OF COMPANIES INCLUDES MAREX FINANCIAL LIMITED, MAREX SPECTRON INTERNATIONAL LIMITED, MAREX NORTH AMERICA LLC, MAREX HONG KONG LIMITED, MAREX SPECTRON ASIA PTE LIMITED AND SPECTRON ENERGY (ASIA) PTE LTD (INDIVIDUALLY AND COLLECTIVELY MAREX SPECTRON ). THIS PRESENTATION WAS APPROVED BY MAREX FINANCIAL LIMITED ( MFL ). MFL IS INCORPORATED UNDER THE LAWS OF ENGLAND AND WALES (COMPANY NO. 5613061 AND VAT REGISTRATION NO. GB 872 8106 13), IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY (FCA REGISTRATION NUMBER 442767) AND IS A MEMBER OF THE LONDON STOCK EXCHANGE. MFL S REGISTERED ADDRESS IS AT 155 BISHOPSGATE, LONDON, EC2M 3TQ.