This document discusses declining trading volumes and revenues in the equities markets and the challenges facing sell-side firms. It describes Nomura's response of unbundling its global equities franchise into various services like agency execution, equity research, investor solutions, and others. It also outlines a new execution model from Instinet to help clients navigate the asynchronous environment.

1. Responding to an Evolving Equities Landscape
Jonathan Kellner, Regional Head – Americas November 13, 2012

2. Declining Volumes, Commissions, Banking Revenues
Nomura Group Global Equities
Millions of Shares
USD Millions
Commission Data Source: Tabb Group
Volume Data Source: Tabb Group
Banking Data (IPOs, Follow-Ons and Converts)
Source: Dealogic

3. Asynchronous Environment
Nomura Group Global Equities
Sell Side’s Challenges
- Increasing cost of technology
- Higher regulatory compliance costs
- Research expense burden

4. Asynchronous Environment
Nomura Group Global Equities
Sell Side’s Challenges
- Increasing cost of technology
- Higher regulatory compliance costs
- Research expense burden
Buy Side’s Demands
- Same value-added services
- Expertise
- Transparency

5. Nomura Group’s Response
Unbundled Global Equities Franchise
Agency
Equity Research Investor Solutions
Execution
Cash Research Sales Derivatives
Electronic Corporate Access Delta One
Programs Equity Strategy Convertibles
Prime Services

6. Nomura Group’s Response
Unbundled Global Equities Franchise
Agency
Equity Research Investor Solutions
Execution
Cash Research Sales Derivatives
Electronic Corporate Access Delta One
Programs Equity Strategy Convertibles
Prime Services

7. Nomura Group’s Response
Unbundled Global Equities Franchise
Agency
Equity Research Investor Solutions
Execution
Cash Research Sales Derivatives
Electronic Corporate Access Delta One
Programs Equity Strategy Convertibles
Prime Services

8. Nomura Group’s Response
Unbundled Global Equities Franchise
Agency
Equity Research Investor Solutions
Execution
Cash Research Sales Derivatives
Electronic Corporate Access Delta One
Programs Equity Strategy Convertibles
Prime Services

9. New Instinet Execution Model

10. New Instinet Execution Model

11. New Instinet Execution Model

12. Disclaimer
©2012, Instinet Incorporated and its subsidiaries. All rights reserved. INSTINET is a registered trademark in the United States and other countries throughout the world. This material is
provided for informational purposes only and does not constitute an offer, solicitation, or recommendation with respect to the purchase or sale of any security. It does not take into
account the particular investment objectives, financial situation or needs of individual clients. Approved for distribution: in Australia by Instinet Australia Pty Limited (ACN: 131 253 686
AFSL No: 327834), which is regulated by the Australian Securities & Investments Commission; in Canada by Instinet Canada Limited and Instinet Canada Cross Limited, members
IIROC/CIPF; in Europe by Instinet Europe Limited, which is authorized and regulated by the Financial Services Authority; in Hong Kong by Instinet Pacific Limited, which is authorized
and regulated by the Securities and Futures Commission of Hong Kong; in Singapore by Instinet Singapore Services Private Limited, which is regulated by the Monetary Authority of
Singapore, a trading member of The Singapore Exchange Securities Trading Private Limited and a clearing member of The Central Depository (Pte) Limited; and in the US by Instinet,
LLC, member SIPC.