Debt Exchange Technology Overview

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Debt Exchange Technology Overview
MBA National Secondary Market Conference
Expo April 20, 2004
Kevin J. JarnotManaging Director of Technology
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Debt Exchange Overview

• Founded in 1999 by senior commercial bankers
• Offices in Boston, Chicago, New Jersey, Oklahoma
  City San Francisco
• DebtX is the largest national loan sale advisor
  with a marketplace of over 2500 accredited buyers
  and sellers
• Key Services
• Valuation/Analytics
• Third-Party Loan Sale Advisory Service
• The Debt Exchange Marketplace (DebtX.com)

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DebtX Marketplace - Overview

• Platform protocol for banks and institutional
  investors to trade loans
• Meeting point for over 2,500 institutional buyers
  and sellers of loans
• Membership available to competing Advisors on a
  case-by-case basis
• Sealed Bid and English Forward Auctions via
  proprietary auction engine
• Largest DebtX English auction to date is 197MM
  for FDIC

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DebtX Marketplace - Technology

• Built primarily with Microsoft technologies
• Active Server Pages (ASP)
• SQL Server
• MSXML Parser
• MS SOAP library
• Page templates via XML and XSLT
• Internal data interchange via XML
• External data interchange via XML (SOAP)

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DXMark Overview

• First commercial real estate loan valuation model
  based on competitively executed trade data used
  for secondary commercial loans.
• Offers relative liquidity (i.e. where your loan
  would trade in today's market).
• Used by institutions for risk management
  evaluation methods.

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DXMark Overview (cont.)

• Regressed Database of close to 2 billion
  competitively executed transactions
• Identified 50 data points relevant in each
  transaction
• Developed correlation for these data points
• Recalibrated on a timely manner to incorporate
  new data and market changes

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DXMark - Technology

• Core pricing engine implemented in VBScript (as
  script component) and XSLT
• API is 100 XML-based
• Directly callable via COM or remotely via SOAP
• Data validation via XSLT

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DXOpen - Overview

• Creating a true exchange for buying and selling
  secondary commercial debt
• Sellers can post their own loans to DebtX.com
  without DebtX acting as intermediary
• Create custom portals for sellers
• Sellers look and feel
• Customized views of seller data

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DXOpen - Technology

• Use open standards for data interchange
• XML
• MISMO/cMISMO
• SOAP for remote API invocation
• Load loan data
• Place bids
• Integrate DebtX platform into 3rd-party
  sites/platforms
• Skinning site to create custom portals
• Skins/templates defined in XML
• Use XSLT to perform data transformation

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The Future of Commercial Mortgage Technology

• Paperless!

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www.DebtX.com