INTRODUCTION TO CHI-X ASIA PACIFIC OCTOBER 2018

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1 INTRODUCTION TO CHI-X ASIA PACIFIC OCTOBER 2018

2 2 Chi-X Asia Pacific Overview An Alternative Market Operator, Provider of Innovative Market Solutions Chi-X Australia The securities and derivatives exchange transforming the Australian investment market through a focus on customers and innovation. Delivers easy, costeffective access to local and global investments opportunities. Chi-X Australia Chi-X Japan Chi-X Asia Pacific Chi-Tech Chi-X Japan A leading PTS in Japan, providing members and investors with better trading opportunities at lower cost under highly transparent rules. It runs 4 Japan equity trading venues to provide solutions to evolving needs of market participants. Chi-Tech (HK & Manila) Provides the trading technology platform and support services that keep the Chi-X market centers at the forefront of the industry in performance and reliability.

3 3 Chi-X Brand and History Chi-X Europe In anticipation of the enforcement of MiFID in Europe, Chi-X Europe was established in 2007 by Instinet (a brokerdealer in the US; a pioneer of Electronic Trading) as the first MTF (Multilateral Trading Facility). Its rapid expansion of market share made Chi-X a premier brand name among traders globally After being managed by a consortium of major global financial institutions, Chi-X Europe was acquired by Bats Global Markets in Bats Chi-X Europe kept its presence as the second largest equities market operator and was acquired by CBOE Holdings in Chi-X Global Chi-X Global was founded as a 100% subsidiary of Instinet as an alternative market operator outside Europe and the US Chi-X Canada, Chi-X Japan, and Chi-X Australia started operations in 2008, 2010, and 2011 respectively Several financial institutions joined with minority stakes and Chi-X Global became a consortium backed operator Chi-X Canada was acquired by NASDAQ In 2016 Chi-X Asia Pacific Holdings In February 2016, Chi-X Asia Pacific started its operation following the 100% acquisition of Chi-X Global (excluding Canada operation) by J.C. Flowers & Co., a private equity firm. There are 3 business operations under the holding company: Chi-Japan, Chi-Australia, and Chi-Tech Global Technology (Hong Kong and Manila)

4 Chi-X Japan

5 5 Chi-X Japan Company Overview The 1st and the only independently operated PTS in Japan Name:Chi-X Japan Limited Address:Shin-Toyo Akasaka Building 7F Akasaka Minato-ku Tokyo Japan Ownership:Chi-X Asia Pacific Holdings Limited, 100% Board of Directors Chairman Thierry Porte (Managing Director, J.C. Flowers & Co.) Representative Director Toru Irokawa Director Joseph Meyer (Chi-X Asia Pacific Holdings COO & CFO) Director David Morgan (Executive Chairman, J.C. Flowers & Co.) Director (external) Takatoshi Ito (Professor, Columbia University; Senior Professor, National Graduate Institute for Policy Studies) Director (external) Amy Nishida (Former Citigroup Global Markets Japan IB, COO) Auditor (external) Thomas Whitson (Former KPMG Partner, Former President of ACCJ)

6 6 Chi-X Japan operates 4 markets Continuous Matching PTS Trading Periodic Matching ToSTNeT Reporting Chi-Alpha Chi-Select Chi-Match Kai-X Main PTS 8:00-16:00 Retail & DMM 8:00-16:00 TSE VWAP Crossing Pre-Market Open Broker Neutral Darkpool 9:00-15:00

7 JPY billion 7 Market Liquidity Trend (September 2018) 70 Average Daily Execution (left)* Market Share - M400 (right)** Market Share - All (right)** 3.5% Execution Value Breakdown by Market Cap % 2.5% Small 21% Others 8% Topix % % 1.5% Mid % Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 * Chi-Alpha & Chi-Select combined ** Market share of Chi-X s 2 markets among lit markets (TSE, Chi-Alpha, Chi-Select, JNX-J and JNX-X) *** PI compares the trade price vs. TSE's best bid for sell or best offer for buy at each point of trade and is calculated from the perspective of the Taker of the trade 1.0% 0.5% 0.0% Average Price Improvement (PI) (bps) *** Market Share** TOPIX % Mid % Small % Others % Overall %

8 Chi-X Australia

9 9 Chi-X Australia Company Overview Chi-X Australia is a fully licensed securities and derivatives exchange with a reputation for focus on customers and innovation. Name: Chi-X Australia Pty Limited Address: Level 23, One Farrer Place, Sydney, NSW 2000, Australia Ownership:Chi-X Asia Pacific Holdings Limited, 100% Board of Directors Chairman David Morgan (Executive Chairman, J.C. Flowers & Co.) Director Thierry Porte (Managing Director, J.C. Flowers & Co.) Director Vic Jokovic (Managing Director and CEO Chi-X Australia Pty Limited) Non-Executive Director Peter Fowler (Independent) Non-Executive Director David Trude (Independent) Company Secretary Michael Somes (Chi-X Australia Pty Limited)

10 Chi-X Australia Market Share 10

11 11 Broker Cost Savings ASX execution fee savings $93.3m + + = Chi-X execution fee savings $32.5m Trade reporting fee savings $31.5m Total savings = $157.1m Key Savings Lit Continuous Trading (Cash & ETFs): 60% cheaper on passive orders 20% cheaper on aggressive orders MidPoint Trading: 88% cheaper on passive 76% cheaper on aggressive Warrants: 61% cheaper on all orders Market on Close (MOC) 43% cheaper than auctions

12 12 Chi-X Australia Investment Products Warrants TraCRs* Indices Funds*

13 Chi-Tech

14 14 Chi-X Global Technology (HK) Name: Chi-X Global Technology (Hong Kong) Limited Address: Unit 02, 27 th Floor, One Pacific Centre, 414 Kwun Tong Road, Kwun Tong, Hong Kong Ownership:Chi-X Asia Pacific Holdings Limited, 100% Board of Directors Director Thierry Porte (Managing Director, J.C. Flowers & Co.) Director Peter Yordan (Vice President, J.C. Flowers & Co.) Director Joseph Meyer (CFO & COO, Chi-X Asia Pacific Holdings Limited) Director Man-Chun Tse (CTO, Chi-X Global Technology (Hong Kong) Limited)

15 15 Chi-X Global Technology (PH) Name: Chi-X Global Technology (Philippines) Inc. Address: 10 th Floor, Unit AB, North Tower, Rockwell Business Center Sheridan, Sheridan Street Corner United Street, Highway Hills, Mandaluyong City 1550, Philippines Ownership:Chi-X Asia Pacific Holdings Limited, 100% Board of Directors Chairman Joseph Meyer (CFO & COO, Chi-X Asia Pacific Holdings Limited) President Mario Domingo (CTO, Chi-X Global Technology (Philippines) Limited) Director Gregory Smith (Director, Chi-X Asia Pacific Holdings Limited) Director Edwin Valencia (Independent) Director Marita Aldeguer (Independent)

16 16 Chi-Tech Global Technologies ( Chi-Tech ) Chi-Tech operates the trading technology platform and support services that support both the Japan and Australia markets on a continuous reliable basis Chi-Tech also leverages it s experience in market place technology and support for Chi-X Asia Pacific to grow into other markets and partnerships

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