This document discusses how technology has improved the share trading process for employee share plan participants. It provides timelines showing how trading timescales have decreased from over two weeks historically to same day transactions now. Key benefits of online trading include increased control, certainty and transparency for participants. Challenges for administrators include technology investments and meeting global regulatory requirements. The future may see further dematerialization of shares, shorter settlement periods, more regulation and potentially trading via an app.

1. Share Trading – How Technology Provides
Certainty to Share Plan Participants
Anna Macfarlane, Head of Dealing at Computershare
Dominic Newby, Client Relationship Director at Computershare
ifs ProShare Employee Share Plans Conference 2012
10th October 2012

2. Agenda
› The old world of employee plan trading
› What’s causing the change?
› Benefits of technology
› The challenges
› To summarise
› What the future may hold?
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3. Once upon a time...
3

4. I wonder if my trade was placed?
4

5. Old Trading Timescales
› -2 days Sale / exercise form put in post
› Trade Date Shares sold
›T+2 Contract note / confirmation letter sent by post
›T+3 Employee received confirmation of trade
›T+5 Administrator receives sale proceeds
›T+5 Sale proceeds released to employee by cheque
›T+7 Employee receives cheque
› T + 10 Employee manages to get to bank
› T + 13 Proceeds clear into employees personal account

6. Current Trading Timescales
› Trade Date Employee initiates sale instruction online
› Trade Date Shares sold
› Trade Date Employee e-mailed confirmation of trade going to market
› Trade Date Employee e-mailed confirmation of trade fill
› T+1 Contract note available online
› T+1 BACS / International payment initiated
› T+3 Administrator receives sale proceeds
› T+3 Sale proceeds received by employee (UK and most
international jurisdictions)

7. Vote Now
How regularly do you undertake transactions online
(banking, shopping etc)?
1. Daily
25%
2. Weekly
25%
3. Monthly
25%
4. Never
25%

8. Vote Now
When did you start to regularly use the internet to
bank, shop etc?
1. In the last two years
20%
2. In the last two to five years
20%
3. In the last five to ten years
20%
4. More than ten years
20%
5. Never
20%

9. Changing Attitudes to the Internet
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10. Benefits to Share Plan Participants
› Control
› Certainty
› Flexibility
› Transparency

11. Vote Now
What % of trades received in real time are limit
orders?
1. Up to 10%
25%
2. 10% to 25%
25%
3. 25% to 50%
25%
4. 50%+
25%

12. Vote Now
Speed of trade fulfilment - How long typically
between trade receipt and fill?
1. Under five seconds
25%
2. Five to ten seconds
25%
3. Ten to twenty seconds
25%
4. Over twenty seconds
25%

13. Benefits to Employers and Administrators
› Reduced Processing Risk
› Reduced HR/Co Sec Resource Requirement
› Certainty
› Transparency
› Efficient and Accurate Tax Calculations

14. Challenges for Administrators
› Technology Investment
› Global Payments
› Resources/Timezones
› Regulation

15. Regulatory Environment

16. To Summarise
› Choice of when to trade
› Choice to choose their acceptable price
› Comfort that price is checked vs. market
› Confirmation of trade placed into market and when filled
› Quick access to proceeds to their personal account either in
UK or internationally
› Access to required contract notes from trades for past 10
years
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17. What the future may hold
› Dematerialisation
› Shorter settlement
› More regulation
› An App
› Tax withholding accuracy
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