European Equity Market Structure Survey May 2014

O u r S t r e n g t h s E n h a n ce Y o u r s

Letter from Joseph Cangemi

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European Equity Market Structure is a hot topic at the moment with the conversation being fueled by best-selling books and the European Parliament’s recent approval of MiFID II. As a London-based broker serving institutional investors and financial intermediaries throughout Europe, we believe we are in a unique position to capture the sentiment of the industry on some of the key issues in the debate which include high frequency trading (HFT), regulatory oversight and market stability. At this time we are pleased to share the results of our recent European Equity Market Structure Survey. The results of which show concerns over HFT and market fairness but a reluctance by the buy-side and sell-side to make any changes to how they interact with the markets. With only about one-third of respondents believing that current regulation is appropriate for today’s market structure, we speculate that many market participants may be taking a “wait and see” approach to how MiFID II will play out. At ConvergEx we have always taken a proactive approach to providing our clients with the knowledge and tools they need to successfully navigate the evolving markets and achieve their trading objectives. In your offices and on your trading floors you will undoubtedly spend considerable time over the next several weeks and months contemplating what all these issues mean for your business and your clients. We hope that the results of this survey help move that conversation forward and together we can find the right solutions for you. Joseph Cangemi Chief Executive Officer, ConvergEx Limited

O u r S t r e n g t h s E n h a n ce Y o u r s 2

European Equity Market Structure Survey

O u r S t r e n g t h s E n h a n ce Y o u r s 3

European Equity Market Structure Survey

O u r S t r e n g t h s E n h a n ce Y o u r s 4

39%

European Equity Market Structure Survey

O u r S t r e n g t h s E n h a n ce Y o u r s 5

European Equity Market Structure Survey

O u r S t r e n g t h s E n h a n ce Y o u r s 6

32%

34%

European Equity Market Structure Survey

O u r S t r e n g t h s E n h a n ce Y o u r s 7

31%

European Equity Market Structure Survey

ConvergEx Group is a provider of global brokerage and trading-related services. Its companies provide services in the following areas: global execution, commission management, independent research, commission recapture, options technologies and prime services. These businesses do not engage in market making, investment banking or “at risk” proprietary trading. When executing trades, one or more ConvergEx Group companies may operate in an agency, riskless principal and/or net trading capacity in search of liquidity for customers. ConvergEx Group in the United States comprises ConvergEx Execution Solutions LLC (member NYSE/FINRA/SIPC); LiquidPoint, LLC (member CBOE/SIPC); G-Trade Services LLC (member FINRA/SIPC); Westminster Research Associates LLC (member FINRA/SIPC); ConvergEx Prime Services LLC (member FINRA/SIPC); and ConvergEx Solutions LLC, of which ConnEx, Jaywalk and LDB are divisions. ConvergEx Group, LLC is a subsidiary of ConvergEx Holdings, LLC. In London, ConvergEx Group operates through its subsidiary ConvergEx Limited, which is incorporated in England and Wales (registered with company number 06262150). ConvergEx Limited is authorised and regulated by the Financial Conduct Authority of the United Kingdom and its firm registration number is 472780. Any trademarks or service marks used by a ConvergEx Group, LLC company are owned by the company using the mark unless indicated otherwise. The material, data and information (collectively “ConvergEx Information”) that is available from ConvergEx Group businesses is intended for institutional investor use only; is for informational purposes only; is subject to change at any time; is not intended to provide tax, legal or investment advice; and does not constitute a solicitation or offer to purchase or sell securities. The ConvergEx Information is believed to be reliable, but none of the ConvergEx Group businesses warrant its completeness or accuracy. Please read your agreement with us carefully, as it contains important information and disclosures about the product or service covered by it. (Rev. 2/3/14) © 2014 ConvergEx Group, LLC. All rights reserved. 4/21/14

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Survey Methodology ConvergEx conducted the European Equity Market Structure Survey by email to financial industry market participants between May 6, 2014 and May 9, 2014. The total number of respondents to the survey was 131 and the margin of error on the results in ±10%.