July 17, 2006



Instinet
Michael Bundy
Chief Technology Officer

Instinet
3 Times Square
New York, NY 10036

SIZE OF FIRM:

Average daily share volume of 200 million U.S. shares. (Privately owned by Silver Lake Partners.)

PREVIOUS POSITIONS:

E*Trade, senior manager of technology, overseeing order management systems and market data for both U.S. and international trading (2001-2005). Also held senior technology positions at Tradescape (purchased by E*Trade in 2001) and Momentum Securities (acquired by Tradescape in 1999) since 1995.

EDUCATION:

One year at University of Houston, followed by research support positions at AT&T/Bell Laboratories and Baylor College of Medicine.

Top 3 Current Projects

Algorithmic Trading

Objective:

We have made a lot of progress and continue to roll out more algorithms. We don't have a start or end date, rather this is an ongoing project since algorithms evolve and change daily. For example, we rolled out a "dark liquidity" aggregation algorithm called Nighthawk in June. We're in the process of rolling out an arrival price algorithm that minimizes risk for portfolio traders. For that product we're partnering with Northfield Information Services, who are leaders in quantitative market analysis.

Reengineering of CBX Matching System

Objective:

This is a global project to reengineer the matching system that will carry us forward. We've reengineered it to use more open source products, doing it on Java, running it on Linux and using more commodity hardware. This is now a a next generation matching and crossing system that provides unparalleled performance.

Derivatives/Futures Platform

Objective:

Begin with CME Globex-traded futures, but we are not limiting it only to e-minis. We are running a little behind because we decided to first offer international trading in our single-stock trading front end, called Instinet Trading Portal.

Comprehensive Options

Objective:

To offer options trading to our customers and include complex options from Day 1 of launch. We could have started "small" with options functionality and then grown it, but customers want to trade complex options from the start.

2007 Initiatives

Continue to Reengineer IT Organization

Small teams of incredibly talented people can accomplish amazing things. We've set that up at Instinet, through targeted recruiting and reworking some of the existing teams that were here at Instinet. Smaller teams of three to five people can do a tremendous amount of work because there is very little overhead and they know what they have to do, and they go ahead and do it. Hire good people and get out of the way -- let them do what they are great at doing.

Cost Savings

We are always looking for cost savings. We are big believers of doing as much in-house as possible. Whether it is trading, clearing or something else, it all depends on the data you get and it depends on the core architecture you have in place. We are creating core technologies to maintain that level of quality and we are building out all of our existing core architecture. Instinet is a technology organization first and foremost.

Global Derivatives

Once we complete the rollout of the derivatives trading capabilities in the U.S. later this year, we plan to tackle derivatives on a global scale.

TCA

Our Newport front end offers real-time analytics and some limited pre- and post-trade analysis as well. We plan to enhance the pre- and post-trade components in 2007.

Vitals

IT Budget:

N/A

Size of Technology Team:

200 globally, including technology support/development.

Percent of IT Projects Outsourced:

None, and no plans to do any.

Key Technology Partners:

Northfield Information Services, for quantitative market analysis.

Success Metrics:

It's pretty simple: Did we get it done on time, did we get it done on budget and does it work? I don't believe in technology for technology's sake. This sounds simple, but there are a large number of technology initiatives at many companies that run their full cycle (on time and on budget) but never actually work.

Vision: The Next Big Thing

There is a different way of building technology. You can gain nimbleness and reduce costs at the same time. Reinvent the IT organization by having smaller groups of people working on projects. IT should provide the best tool for the best price.