Company Stock Trading SPECIALIZED TRADING | PRODUCT PROFILE A client-focused approach to trading company stock in qualiﬁed retirement plans As a plan sponsor, you know the importance of ensuring best execution State Street Global Markets Offers for all trades within your qualiﬁed retirement plan. However, the • Experience — A global team of highly experienced traders offering risk-controlled trading strategies to achieve benchmarks • Expertise — A specialist in ERISA trading with a true understanding of current regulations and compliance requirements • Size — One of the largest consolidated crossing platforms in the industry • Scale — Unique natural liquidity from our leading custody, asset management and transition management businesses • Conﬁdence — A trusted, unconﬂicted, agency-based partner you can count on challenge can become more complex when the asset involved is a company’s own stock. To help you meet this challenge, State Street Global Markets delivers trading services that provide a seamless extension to your plan’s existing oversight process — and offer the added beneﬁt of a client-focused approach to trading company stock. Not only can you monitor your plan’s company stock trading activity with comprehensive quarterly and annual reports, but you also get to partner with a specialist in ERISA trading with a true understanding of current regulations and compliance requirements. A Market Leader and an Unconﬂicted Partner State Street Global Markets has a long history as an agency-based, unconﬂicted provider. We put our clients’ interests ﬁrst and do not run a proprietary trading book. To minimize the market impact of trade executions, we make it our You Receive • Best execution for company stock trading • Quality, cost-effective trading services • Extension to a qualiﬁed retirement plan’s existing oversight process • Full transparency of execution • Risk-controlled trading with a focus on multiple benchmarks, including VWAP, TWAP, Arrival Price, Market-On-Close and Implementation Shortfall • Quarterly and annual reporting priority to be fully committed to both maintaining your anonymity and protecting the information value of your trades. COMPANY STOCK TRADING A Recognized Leader State Street Global Markets is a recognized leader in exposure solutions and transition management services. Our commitment to innovation helps us meet the constantly changing needs of our clients. We are also a full-service securities trading ﬁrm and market leader in providing company stock trading for many S&P 500 corporations. By understanding the specialized needs of plan sponsors, we can offer: Best Execution • events that can affect stock price. When you partner with State Street Global Markets, you partner with a leader who: • Traded $13 trillion in volume across asset classes in 2009 • Completed more than 1,000 transitions representing $418 billion in value in 2009 • • • • Provided exposure solutions across 163 mandates totaling $16.2 billion in assets in 2009 benchmarked to 65 different indices Has trading relationships with 89 of the top 100 global investment managers* Was named Transition Manager of the Year in 2010 at the Global Pensions Awards Received a No. 1 ranking in the “Overall (Weighted)” category by the Global Investor 2010 Transition Management Survey Our highly experienced traders are aware of market dynamics and corporate • We trade based on market conditions to achieve the best possible price for your company stock trades. Trade Monitoring and Reporting • You can monitor your stock trading activity through comprehensive quarterly and annual reporting, including comparison with multiple benchmarks such as VWAP, TWAP, Arrival Price, Market-On-Close and Implementation Shortfall. Specialization in ERISA Trading • We have the ability to satisfy your unique reporting and compliance needs. • Your trade execution and commissions are fully disclosed. • We strictly adhere to 10b-18 rules and DOL Prohibited Transaction Exemption 86-128. • Trading volume is limited to 25 percent of Average Daily Volume. *Based on P&I/Watson Wyatt World 500 list of the largest global investment managers, as published in Pensions & Investments, December 2009. 2 Our Reporting at a Glance Our comprehensive quarterly and annual reports provide you with the opportunity to monitor trade execution. Quarterly Reports Annual Report XYZ -2009 Year End Summary Report 3 COMPANY STOCK TRADING STATE STREET GLOBAL MARKETS State Street Global Markets provides specialized research, trading, securities lending and innovative portfolio strategies to owners and managers of institutional assets. Our goal is to help enhance and preserve portfolio values for our clients through original ﬂow-based research, proprietary portfolio and risk management technologies, trading optimization and global connectivity. State Street’s unique position at the crossroads of the global markets enables our sales and trading professionals to tap diverse sources of liquidity and provide cost-effective solutions for our clients. THE STATE STREET ADVANTAGE With $19.0 trillion in assets under custody and administration, and $1.8 trillion in assets under management,* State Street is a leading ﬁnancial services provider serving some of the world’s most sophisticated institutions. We offer a ﬂexible suite of services that spans the investment spectrum, including investment management, research and trading, and investment servicing. With operations in 25 countries serving clients in more than 100 markets, our global reach, expertise, and unique combination of consistency and innovation help clients manage uncertainty, act on growth opportunities, optimize cost structures and enhance the value of their services. *As of June 30, 2010 For more information, please contact: Susan Daniels + 617 664 3099 [email protected] State Street Global Markets is the marketing name and a registered trademark of State Street Corporation, used for its ﬁnancial markets business and that of its afﬁliates. This document is a general marketing communication. It is not intended to suggest or recommend any investment or investment strategy and does not constitute investment research. This document is conﬁdential and is intended for distribution to professional investors. This document is not directed at retail clients. Products and services outlined in this document are offered to professional investors through State Street Global Markets LLC, which is a member of FINRA and SIPC, and State Street Bank and Trust Company, State Street Global Markets International Limited and State Street Bank Europe Limited, all of which are authorized and regulated by the Financial Services Authority in the United Kingdom, and their afﬁliates. The products and services may not be available in all jurisdictions. Please contact your sales representative for further information. State Street Global Markets is the investment research and trading arm of State Street Corporation (NYSE: STT), one of the world’s leading providers of ﬁnancial services to institutional investors. ©2010 STATE STREET CORPORATION www.statestreetglobalmarkets.com 09-SGM07431109