Diapositiva 1

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Success Story
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Introduction

• What is Rofex?
• Located in the city of Rosario, Rofex is the
  largest futures and options market in Argentina
  today, and is ranked among the world's top 30
  markets, according to the FIA (Futures Industry
  Association).
• Traded Products
• The following futures and options contracts are
  traded
• - Agricultural Commodities (Wheat, Soy, Corn,
  Sunflower)
• - Currency (Dollar, Euro, Real)
• - Interest Rates (short terms and bonds)
• Who is involved?
• The most important financial and
  agricultural-industrial traders participate
  directly.

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Background

• In 1998, Primary and Rofex signed a
  long-term agreement for the joint development of
  electronic trading in that market.
• Primary's role was mainly to provide the
  trading platform based on an ASP/SaaS model.
• For almost 10 years, the development of the
  market has been notorious in all aspects, such
  as
• Growth of Trading Volume
• Incorporation of New Participants
• Product Development
• Revenues and Valuation
• Technology

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Increase of Trading Volume
Primary starts operations with Rofex
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Incorporation of New Players

• Primary's solution enabled the
  incorporation of world-class agents, which
  demanded the highest technological and security
  standards.
• In 1998, Rofex had 39 agents, mainly local
  agricultural brokers, while in 2008 they have 101
  agents, with a high participation from
  international banks. Its members include
• Banco de Galicia y Buenos Aires S.A.
• Banco de la Ciudad de Buenos Aires
• Banco de la Nación Argentina
• Banco Itaú Buen Ayre S.A.
• Banco Santander Rio S.A.
• Banco Supervielle S.A.
• BBVA Banco Frances S.A.
• Central Bank of the Argentine Republic
• Bunge Argentina S.A.
• Cargill S.A.C.I.
• Deutsche Bank S.A.
• HSBC Bank Argentina S.A.
• JPMorgan Chase Bank NA, Buenos Aires Branch
• ICAP Securities
• Merrill Lynch Argentina S.A.
• Molinos Rio de la Plata S.A.
• Standard Bank Argentina S.A.

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New Product Development

• A new technological platform developed by
  Primary allowed for the incorporation of a wide
  range of new products, including complex access,
  validation and matching rules associated with
  each of them.
• This enabled Rofex to successfully diversify
  its business and go from being a purely
  agricultural market to one based mainly on
  financial products.

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Revenue Growth

• In 1998, market revenues were around USD
  300,000, while in 2007 they were over USD
  5,000,000.-
• Market valuation grew from USD 1,500,000 to
  USD 65,000,000 in the same period.

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Primary Technology

• Primary FIX Exchange this new
  platform integrates all the Primary technologies.
  It is revolutionary because it provides
  world-class features and functionalities, and for
  being very modular and scalable up to millions of
  messages per second. In addition, it can also be
  adapted to the wide range of needs and
  possibilities of the regional players, from the
  local mono-product brokers to national
  multi-product exchanges that handle thousands of
  orders per second and require real-time
  interaction with dozens of international markets
  and e-sourcing networks.
• FIX Exchange is a fully integrated platform that
  includes
• Message engine and high availability and
  scalability FIX routers, of up to millions of
  messages per second, supporting all existing
  versions of FIX as well as new versions adapted
  to specific requirements.
• Multi-product Order Books that can be adapted to
  support all kinds of assets and current and
  future order types.
• Distributed matching engines with high
  flexibility algorithms.
• Next generation FIX compliant market data
  factory/data feed platform, compatible with
  global quote vendors requirements, such as
  Bloomberg or Reuters.
• APIs in C, Java and COM that grant almost
  limitless possibilities for the integration of
  add-on applications, such as front ends,
  algorithmic trading systems, risk systems, middle
  and back office, and settlement systems.
• VAR Engine module to control the risk of complex
  portfolios of multiple kinds of assets.
• Modular adaptor system for transaction routing
  and connection with all types of local and
  international markets and sources of liquidity
  and information.
• High capacity, Java-based front end for Order
  Book Management, streaming data feeds, analytics,
  news, real-time position calculation and
  valuation, massive orders, instant messaging,
  streaming charts, bidirectional interaction with
  Excel, etc.
• Front end Excel to automate liquidity
  development and real-time arbitrage calculation
  and trading of arbitrages and complex spreads
  (quantitative trading). This functionality is
  required by the most sophisticated market makers
  and traders.

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Services provided to Rofex

• Primary provides Rofex with an electronic market
  system that includes
•  
• Order Distribution and Matching System.
• Market Data Production distributed over the
  Internet.
• System Management and Monitoring.
• Block Trade and Give Up Tools.
• Technical Support for Users.
• Vendor Contribution Systems (Bloomberg, Reuters,
  CMA, Nosis)
• Integration with Bank back-office systems.

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Technological Evolution

• In 1999, the company broadened its
  scope to act as an information and electronic
  trading solutions provider and operator for
  exchanges, companies and professionals that trade
  in local and international financial and
  commodities markets, and ROFEX acquired a minor
  stake in the company.
• In 2000, Primary deployed the first
  web-based DMA (Direct Market Access) system at
  Rofex, turning it into the first futures exchange
  in the world to use this access system.
• In 2003, Primary expanded its presence to
  the local wholesale exchange market, signing a
  10-year contract to provide a trading platform
  for the Electronic Exchange Market, and obtained
  its first international certification for
  transaction connectivity from Refco (known today
  as MF Global)
• In 2005, the company introduced FIX
  Exchange, its new fully FIX compliant electronic
  market platform, had it certified by NYSE Arca
  and was accepted as a member of The FIX Protocol
  Organization. A daily trading volume record of
  1.83 billion pesos was set.
• In 2005, Primary signed an agreement with
  Rofex to develop an interconnection and cross
  listing solution with BMF, the first of its kind
  in Latin America.
• In 2006, the company begins offering
  secure transaction connectivity solutions,
  designed for banks and other trader with high
  operational standards. The WebStream distribution
  platform was introduced, in its web and mobile
  versions, designed to make access to the markets
  as democratic as possible.

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Achievements in 2007

• In July 2007, Primary and Rofex introduced
  the first open electronic trading platform in
  Argentina. The first Primary Fix platform became
  operational, enabling brokers, traders and other
  market clients to trade via mobile phones, web
  pages, Excel spreadsheets, or to develop their
  own applications. It also enables connection to
  other markets and international trading and
  distribution platforms. For this purpose, the
  WebStream distribution platform was introduced,
  in its web and mobile versions, designed to make
  access to the markets as democratic as possible.
• In October 2007, Primary introduced the
  first Fix 5.0 deployment in the world.
  Additionally, its FIX Exchange platform
  incorporated AutoFIX, an innovative system that
  automatically updates the platform when new
  versions and "service packs" are released by The
  FIX Protocol Organization. This feature is unique
  in the market and essential for stock exchanges
  and financial entities that use this type of
  technology.

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( ! ) About PRIMARY
Primary Trading Solutions is the leading
transaction capturing service and software
provider for the banking and capital market
industries. Founded in 1998, Primary initiated
its activities as a partner for the development
of the ROFEX electronic market, the main futures
market in Argentina. In the last year, ROFEX
traded US 24 billion, while the Electronic
Exchange Market (MEC), another important client,
traded US 36 billion. Our electronic market,
information, analysis, access and distribution
platforms cover spot products and derivatives and
currently serve over 1,000 professional users who
mainly trade in the most important trading desks
and bank treasuries, wholesale brokers, future
and options operators, exchange trader, market
makers, stock brokers and agricultural and
industrial exporters. ROFEX, MEC, Deutsche
Bank, JPMorgan, BBVA, Standard Bank, BNP Paribas,
HSBC, Citibank, Banco Galicia and Merrill Lynch
are some of our most important clients. By
offering a mix of the best technology available
with added value global connectivity solutions,
electronic operations systems, real-time data
management and risk management, Primary has
become a leader in the regional market.