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Financial Technologies Monthly Market Update September 2019

1 Table of Contents

Index Performance 3 Market Valuations 9 M&A Trends 16 Capital Raising Trends 18 US IPO Market Update 22

2 Cap Weighted Price Return Index Performance – Payments (LTM)

45%

35%

25%

15%

8/30/18 10/05/18 11/09/18 12/18/18 1/25/19 3/04/19 4/08/19 5/14/19 6/19/19 7/25/19 8/29/19 -5%

-15%

-25%

-35%

-45%

^SPX Card Networks Payment Infrastructure P2P Transfer / Remittances ^SPX Card Networks Payment Infrastructure P2P Transfer and Remittances % ∆ YoY ↑ 2.2% 24.4% 20.6% 21.9%

% ∆ MoM ↓ 0.7% 0.9% -2.9% -0.6%

Source: Bloomberg, FactSet Updated on 9/01/2019 Note: The index is made up of companies mentioned under each of the above buckets in subsequent slides except, the index does not adjust for any new companies added and excludes old 3 companies delisted in last twelve months Cap Weighted Price Return Index Performance – Capital Markets (LTM)

45%

35%

25%

15%

8/30/18 10/05/18 11/09/18 12/18/18 1/25/19 3/04/19 4/08/19 5/14/19 6/19/19 7/25/19 8/29/19 -5%

-15%

-25%

-35%

-45%

SPX BD / Market Maker Large Exchanges Regional Exchanges Retail / E-Brokers ^SPX Broker Dealers and Market Makers Large Exchanges Regional Exchanges Retail / e - Brokers % ∆ YoY ↑ 2.2% -17.2% 20.4% -0.2% -19.5%

% ∆ MoM ↓ 0.7% -4.1% 1.6% 3.8% -6.9%

Source: Bloomberg, FactSet Updated on 9/01/2019 Note: The index is made up of companies mentioned under each of the above buckets in subsequent slides except, the index does not adjust for any new companies added and excludes old 4 companies delisted in last twelve months Cap Weighted Price Return Index Performance – Software and Technology (LTM)

45%

35%

25%

15%

8/30/18 10/05/18 11/09/18 12/18/18 1/25/19 3/04/19 4/08/19 5/14/19 6/19/19 7/25/19 8/29/19 -5%

-15%

-25%

-35%

-45%

SPX Financial Media Trading Technology Outsourced / Backend Solutions ^SPX Financial Media Trading Technology Outsourced / Backend Solutions % ∆ YoY ↑ 2.2% 22.1% -27.8% -1.9%

% ∆ MoM ↓ 0.7% 0.9% -15.1% -0.7%

Source: Bloomberg, FactSet Updated on 9/01/2019 Note: The index is made up of companies mentioned under each of the above buckets in subsequent slides except, the index does not adjust for any new companies added and excludes old 5 companies delisted in last twelve months Cap Weighted Price Return Index Performance – Banks (LTM)

45%

35%

25%

15%

8/30/18 10/05/18 11/09/18 12/18/18 1/25/19 3/04/19 4/08/19 5/14/19 6/19/19 7/25/19 8/29/19 -5%

-15%

-25%

-35%

-45%

SPX Alternative Lending Global Diversified Banks ^SPX Alternative Lending Global Diversified Banks % ∆ YoY ↑ 2.2% 5.3% -12.0%

% ∆ MoM ↓ 0.7% -9.4% -4.9%

Source: Bloomberg, FactSet Updated on 9/01/2019 Note: The index is made up of companies mentioned under each of the above buckets in subsequent slides except, the index does not adjust for any new companies added and excludes old 6 companies delisted in last twelve months 2019 E Consensus P / E 2020 E

11x P2P TransferP2P Transfer and Remittances and Remittances 10x

22x Card Networks Card Networks 19x

Payments 23x Payment InfrastructurePayment Infrastructure 18x

23x OutsourcedOutsourced / Backend / Backend Solutions Solutions 21x

25x FinancialFinancial Data Data / /Information Information Providers Providers 24x Software

Application Application 34x Trading TechnologyTrading Technology 30x

13x Retail / E- Brokers Retail / E- Brokers 12x

15x BrokerBroker Dealers Dealers and and Market Market Makers Makers 11x

18x Regional ExchangesRegional Exchanges 16x

Capital Markets Capital 22x Global Exchanges Global Exchanges 19x

10x Global DiversifiedGlobal Banks Diversified Banks 9x

16x Alternative LendingAlternative Lending 18x Lenders

Source: Bloomberg, FactSet, Updated on 9/01/2019 7 Revenue Growth vs. Price to Earnings Ratio

TRADING TECHNOLOGY 12%, 34.0x, $7,920

FINANCIAL DATA / INFO PROVIDERS 8%, 25.3, $11,217 OUTSOURCED / BACKEND SOLUTIONS 3%, 23.4, $501 GLOBAL EXCHANGES CARD NETWORKS 0%, 21.6x, $19,166 5%, 22.8x, $3,371 8%, 21.6, $192,974 PAYMENT INFRASTRUCTURE

REGIONAL EXCHANGES -2%, 18.0, $615

BD / MARKET MAKERS 8%, 16.2, $1,142 -4%, 14.9, $2,057 ALTERNATIVE LENDING RETAIL E-BROKERS

Price / Earning Ratio -1%, 12.8, $2,292

GLOBAL DIVERSIFIED BANKS -3%, 10.7, $9,364 -15%, 10.1x, $62,659 P2P TRANSFER / REMITTANCES

-20% -15% -10% -5% 0% 5% 10% 15% 20% 2020 Sales CAGR Note: Every bubble represents (1 Revenue Year Growth %, 2018 E Median P/E ratios of the universe, Median Market Capitalization of the universe). The size of the bubble represents Median Market Capitalization Alternative Lending, & P2P Transfer and Remittances, Trading Technology, Global Diversified Banks excluded because of high / low range Source: FactSet, Bloomberg , Updated on 9/01/2019 8 Market Valuations

Price Sales LTM Margins TEV / Sales TEV / EBITDA Price / Earnings

Off 1 YR Company Gross EBITDA LTM 2019 E 2020 E LTM 2019 E 2020 E LTM 2019 E 2020 E 52 Wk High CAGR

Banks -15% -15% n/a n/a n/a n/a n/a n/a n/a n/a 10.9x 10.1x 9.3x CapitalMarkets -19% -2% 1% 47% 6.8 6.4 5.9 15.7 13.4 13.2 25.3 17.9 16.5 ApplicationSoftware -18% 8% 1% 26% 5.9 4.7 4.6 21.6 18.7 16.9 27.8 28.4 24.8 Payments -17% 5% 1% 28% 5.3 5.8 5.0 21.1 18.5 16.2 30.5 21.8 18.2

Banks

Global Diversified Banks -15% -15% n/a n/a n/a n/a n/a n/a n/a n/a 10.9x 10.1x 9.3x

Alternative Lending -38% 8% 1% 27% 2.3 2.0 1.7 3.9 6.3 5.0 12.9 16.2 18.3 Capital Markets Global Exchanges -19% 0% 1% 58% 8.9x 10.2x 9.6x 16.7x 16.8x 16.0x 27.1x 21.6x 19.5x

Regional Exchanges -17% -2% 1% 46% 7.8 6.7 5.9 17.7 15.3 13.7 22.6 18.0 16.5

Broker Dealers and Market Makers -24% -4% 1% 35% 6.6 4.1 3.3 18.0 10.5 8.3 50.5 14.9 11.2

Retail / E- Brokers -20% -1% 1% 34% 2.7 3.2 3.1 7.1 7.0 7.1 25.3 12.8 12.5 Application Software

Trading Technology -18% 12% 1% 15% 6.8x 6.3x 5.8x 17.5x 22.0x 19.8x 21.7x 34.0x 29.7x

Outsourced / Backend Solutions -29% 3% 0% 28% 4.9 2.5 2.2 22.2 12.9 11.6 45.4 23.4 21.3

Financial Data / Information Providers -18% 8% 1% 31% 6.1 6.6 6.8 21.6 20.4 18.8 29.0 25.3 23.7 Payments

Payment Infrastructure -18% 5% 1% 32% 6.2x 5.9x 5.2x 21.2x 18.0x 15.2x 37.5x 22.8x 18.4x

P2P Transfer and Remittances -16% -3% 0% 20% 2.1 2.2 2.2 8.5 8.8 8.5 6.8 10.7 9.6

Card Networks -15% 8% 1% 47% 9.1 9.3 8.4 21.1 24.2 21.1 22.6 21.6 18.8

Source: FactSet, Bloomberg , Updated on 9/01/2019 Note: N/A denotes negative multiple or oddly high multiple or the multiple is not available 9 Market Valuations – Software & Technology

Market Data LTM Margins TEV / Sales TEV / EBITDA Price / Earnings Sales P/B D/E Off Enterprise 1 YR Company Market Cap Gross EBITDA LTM 2019 E 2020 E LTM 2019 E 2020 E LTM 2019 E 2020 E 52 Wk High Value CAGR TRADING TECHNOLOGY IRESS Market Technolgy -10% $ 1,434 $ 1,612 31% 27% 9.4x 4.7x 4.3x 34.7x 18.1x 16.4x 74.9x 32.4x 30.0x 5.2x 14% 5% First Derviatives -33% $ 764 $ 782 42% 18% 5.4 2.6 2.3 30.3 14.7 12.9 104.3 35.5 31.4 4.2 6% 8%

Linedata Services -32% $ 238 $ 334 43% 29% 3.2 1.8 1.7 11.3 7.1 6.9 16.0 10.0 9.6 1.8 48% -3%

StatPro -25% $ 120 $ 161 34% 31% 4.4 2.3 2.1 14.0 11.1 10.2 -364.8 14.5 12.5 3.8 38% 1% Median -29% $ 501 38% 28% 4.9x 2.5x 2.2x 22.2x 12.9x 11.6x 45.4x 23.4x 21.3x 4.0x 26% 3% OUTSOURCED / BACKEND SOLUTIONS Broadridge -24% $ 14,749 $ 15,999 33% 19% 3.8x 3.7x 3.5x 19.7x 16.7x 16.2x 25.9x 22.5x 20.4x 13.0x 10% 3%

SEI Investments -16% $ 8,657 $ 7,936 87% 32% 4.9 4.8 4.6 15.2 12.1 11.3 17.6 16.7 14.9 5.2 1% 3%

SS&C -5% $ 11,977 $ 19,809 59% 35% 4.5 4.3 4.2 12.8 11.0 10.3 51.7 17.6 16.2 2.5 69% 18%

Computershare -19% $ 5,535 $ 6,970 26% 25% 5.7 3.0 3.0 22.9 10.3 10.6 42.0 17.2 18.1 3.7 37% 0%

Docusign -21% $ 8,151 $ 8,016 82% -19% 10.6 8.7 7.0 -57.0 110.6 68.6 -30.8 257.9 136.5 13.5 8% 28%

SimCorp -7% $ 3,791 $ 3,794 65% 32% 7.9 7.7 7.1 24.7 25.3 23.3 35.3 36.5 33.5 19.0 1% 9%

Guidewire -9% $ 7,689 $ 6,998 62% 11% 9.3 9.8 8.7 87.1 54.0 53.9 137.0 70.9 77.0 5.0 4% 11%

Envestnet -10% $ 2,964 $ 3,590 27% 11% 4.3 4.0 3.5 39.8 18.7 15.3 -239.6 31.5 26.0 3.4 24% 13%

Blackline -21% $ 2,866 $ 2,742 89% -2% 10.8 9.7 8.0 -515.3 115.9 80.0 -96.7 194.8 139.7 8.6 1% 23%

Coupa Software -42% $ 9,482 $ 9,112 72% -13% 31.9 24.5 19.0 -237.7 337.4 178.0 -88.3 557.5 221.6 26.0 2% 36% Median -18% $ 7,920 63% 15% 6.8x 6.3x 5.8x 17.5x 22.0x 19.8x 21.7x 34.0x 29.7x 6.9x 6% 12% FINANCIAL DATA / INFORMATION PROVIDERS Thomson Reuters -17% $ 34,622 $ 34,632 26% 26% 6.1x 5.9x 5.6x 23.6x 23.5x 17.9x 74.5x 49.0x 30.8x 3.9x 10% 6%

S&P Global -20% $ 63,723 $ 68,234 73% 50% 10.7 10.4 9.7 21.6 20.3 18.8 27.1 23.1 21.0 124.4 7% 6%

Moody's -16% $ 40,612 $ 45,543 72% 47% 10.1 9.7 9.2 21.6 20.4 18.9 28.6 22.9 20.8 114.3 15% 5%

MSCI -18% $ 19,377 $ 21,370 81% 54% 14.5 13.9 12.7 27.0 25.5 22.9 30.1 32.2 28.3 n/a 14% 8%

Gartner -10% $ 12,031 $ 14,859 65% 16% 3.7 3.5 3.2 23.0 21.9 19.6 64.5 43.8 38.4 12.4 25% 9%

FactSet -18% $ 10,404 $ 10,628 73% 35% 7.5 7.4 7.1 21.6 21.2 19.9 29.3 25.3 23.7 15.8 6% 6%

TransUnion -20% $ 15,694 $ 19,422 66% 36% 7.8 7.4 6.8 21.8 18.6 16.9 40.6 25.2 22.1 7.8 25% 11%

Morning Star -21% $ 6,855 $ 6,534 60% 30% 6.2 n/a n/a 20.8 n/a n/a 31.8 n/a n/a 6.9 2% n/a

Ebix -38% $ 1,073 $ 1,791 68% 33% 3.2 3.0 2.5 9.9 8.7 7.8 16.9 12.3 10.2 2.0 75% 20% Forrester -4% $ 631 $ 783 59% 10% 1.9 1.7 1.5 18.4 17.3 11.6 -373.6 31.5 24.8 4.2 35% 19%

The Value Line -17% $ 253 $ 168 38% 16% 4.6 n/a n/a 29.1 n/a n/a 22.1 n/a n/a 5.3 0% n/a

The Street -6% $ - $ (22) 57% 3% -0.4 -0.7 n/a -12.3 n/a n/a -2.9 -20.1 n/a 0.3 n/a n/a Median -18% ######### 65% 31% 6.1x 6.6x 6.8x 21.6x 20.4x 18.8x 29.0x 25.3x 23.7x 6.9x 14% 8%

Source: FactSet, Bloomberg , Updated on 9/01/2019 Note: N/A denotes negative multiple or oddly high multiple or the multiple is not available 10 Market Valuations – Payments

CARD NETWORKS

Visa -15% $ 320,775 $ 323,294 82% 69% 14.5x 14.1x 12.7x 21.1x 20.2x 17.7x 31.3x 29.1x 25.1x 13.2x 5% 11% MasterCard -16% $ 288,013 $ 288,337 103% 60% 18.4 17.1 15.1 30.6 28.2 24.4 36.8 31.4 26.5 56.8 3% 13%

American Express -14% $ 97,935 $ 133,791 70% 34% 3.0 3.1 2.8 8.7 n/a n/a 13.8 14.0 12.4 4.2 62% 4%

Discover Financial -21% $ 25,135 $ 50,656 101% 0% 3.7 4.4 4.2 n/a n/a n/a 8.6 8.2 7.7 2.3 100% -3% Median -15% ######### 91% 47% 9.1x 9.3x 8.4x 21.1x 24.2x 21.1x 22.6x 21.6x 18.8x 8.7x 34% 8%

P2P TRANSFERS AND REMITTANCES

PayPal -13% $ 127,410 $ 121,494 56% 20% 7.4x 6.8x 5.8x 36.6x 26.8x 22.5x 50.3x 33.5x 29.8x 7.8x 2% 16% Western Union -16% $ 9,364 $ 11,502 41% 25% 2.1 2.2 2.2 8.5 8.8 8.5 6.8 10.7 9.6 309.4 36% -3% Moneygram International Inc. -70% $ 309 $ 1,143 49% 12% 0.9 0.9 0.8 7.1 5.3 5.0 -1.8 10.1 7.3 n/a 289% -3% Median -16% 936375% 49% 20% 2.1x 2.2x 2.2x 8.5x 8.8x 8.5x 6.8x 10.7x 9.6x 158.6x 36% -3%

PAYMENT INFRASTRUCTURE

Fidelity National Information -19% $ 83,655 $ 92,628 52% 38% 11.0x 8.2x 6.8x 29.0x 20.2x 15.2x 49.7x 20.7x 17.9x 4.4x 22% 27%

Fiserv -18% $ 72,025 $ 77,741 56% 36% 13.0 6.6 4.8 36.2 17.1 12.3 37.5 23.2 18.4 16.3 20% 67%

WorldPay -17% $ - $ 6,515 128% 42% 1.6 1.5 1.4 3.7 3.0 2.7 117.4 24.4 20.7 n/a n/a 9%

Square, Inc -25% $ 26,466 $ 26,063 41% 4% 6.6 11.5 8.6 154.8 63.1 41.4 -602.8 98.9 68.8 22.0 4% -4%

Global Payments -19% $ 26,333 $ 31,617 83% 41% 8.9 7.1 6.5 21.9 19.4 17.5 45.2 22.8 19.5 6.6 23% 20%

First Data -16% $ - $ 18,391 60% 32% 1.9 2.1 1.9 5.9 5.3 4.9 25.5 16.8 14.8 6.4 n/a 0%

Total System -31% $ 24,058 $ 27,682 44% 32% 6.7 6.9 6.4 21.2 19.0 17.4 28.3 19.7 17.4 9.6 18% 3% Jack Henry -14% $ 11,129 $ 11,035 58% 40% 7.1 7.1 6.7 17.8 21.7 20.9 39.9 39.9 38.9 7.8 0% 3%

Euronet -15% $ 8,356 $ 8,218 28% 19% 3.1 2.9 2.6 16.1 13.3 11.5 29.8 20.8 17.8 5.9 18% 11%

ACI Worldwide -7% $ 3,371 $ 4,717 57% 23% 4.4 3.6 3.1 19.5 13.0 11.0 47.0 20.9 17.2 3.2 44% 22%

Bottomline Technologies -32% $ 1,777 $ 1,807 62% 13% 4.3 4.3 4.0 33.6 18.0 17.3 223.3 37.4 36.4 4.4 6% 3%

Evo Payments -8% $ 2,351 $ 3,382 73% 22% 6.4 5.6 5.2 28.8 21.3 19.0 -16.0 49.7 41.1 n/a 30% 8%

Evertec -23% $ 2,453 $ 2,938 57% 43% 6.2 6.1 5.8 14.6 13.3 12.5 21.9 14.6 13.4 10.9 23% 5%

Cardtronics 0% $ 1,289 $ 2,040 33% 20% 1.5 1.5 1.5 7.6 6.7 6.2 99.7 16.1 14.7 3.6 68% 2% I3 Verticals -28% $ 600 $ 798 23% 7% 2.3 5.9 5.2 31.7 20.8 17.9 -168.1 27.4 24.3 4.0 23% -31% Median -18% 337070% 57% 32% 6.2x 5.9x 5.2x 21.2x 18.0x 15.2x 37.5x 22.8x 18.4x 6.4x 22% 5%

Source: FactSet, Bloomberg , Updated on 9/01/2019 Note: N/A denotes negative multiple or oddly high multiple or the multiple is not available 11 Market Valuations – Capital Markets

LARGE EXCHANGES

CME -25% $ 78,616 $ 82,207 90% 63% 17.5x 16.9x 15.9x 27.9x 25.9x 23.5x 32.6x 25.0x 22.8x 2.9x 6% 8%

ICE -18% $ 52,673 $ 59,246 80% 53% 9.3 11.2 10.6 17.6 18.0 16.9 21.8 20.4 18.5 3.1 15% -6%

Hong Kong Exch. & Clearing Ltd. -3% $ 39,801 $ 13,451 n/a 74% 6.4 6.4 5.9 8.7 8.6 7.8 36.5 35.9 32.4 6.7 1% 6%

Deutsche Boerse -16% $ 28,802 $ 29,864 82% 49% 7.6 9.1 8.6 15.5 15.2 14.0 22.8 19.7 18.0 5.2 92% -7%

London Stock Exchange -29% $ 30,113 $ 31,567 90% 55% 21.4 11.9 11.2 39.2 20.9 16.9 68.3 27.4 23.0 7.1 10% 0%

Nasdaq -16% $ 16,339 $ 19,742 61% 32% 4.6 7.8 7.5 14.4 15.0 14.1 27.4 17.9 16.6 3.0 24% -22%

BM&F Bovespa SA -28% $ 21,994 $ 21,014 119% 69% 15.4 14.8 12.9 22.5 20.6 17.6 28.9 21.9 19.0 3.5 7% 11%

CBOE -21% $ 13,375 $ 14,100 46% 31% 5.5 12.4 11.5 17.6 18.6 16.7 26.8 21.4 19.1 4.0 7% -34%

Japan Exchange Group -7% $ 8,797 $ 8,816 89% 65% 8.1 7.8 7.4 12.4 12.7 11.6 21.9 22.4 21.1 3.4 6% 4% Australian Stock Exchange -20% $ 11,235 $ 10,167 100% 80% 26.1 17.4 16.4 32.8 23.1 21.8 55.1 28.7 28.2 4.2 67% -11%

Singapore Exchange -10% $ 6,457 $ 5,887 95% 58% 8.8 8.9 8.7 15.3 15.7 15.3 20.2 20.3 19.8 8.1 0% 1%

Euronext -21% $ 5,512 $ 6,398 105% 57% 9.1 8.5 7.7 15.8 14.7 13.2 18.6 15.2 13.6 6.2 24% 7% Median -19% ######### 90% 58% 8.9x 10.2x 9.6x 16.7x 16.8x 16.0x 27.1x 21.6x 19.5x 4.1x 9% 0%

REGIONAL EXCHANGES

Dubai Financial Market -22% $ 1,962 $ 1,117 99% 58% 13.0x n/a n/a 22.5x n/a n/a 54.8x n/a n/a 0.9x 1% n/a

Bolsa Y Mercados Espanoles -17% $ 2,193 $ 5,028 98% 59% 14.8 16.0 15.8 25.2 26.6 26.1 15.9 16.7 16.2 4.8 402% -7%

TMX -27% $ 4,886 $ 5,486 69% 42% 6.7 8.8 8.3 15.9 15.0 13.9 18.0 15.3 14.0 1.9 18% -8%

Bursa Malaysia -11% $ 1,193 $ 1,107 104% 57% 9.0 9.0 8.5 15.9 15.5 14.6 28.9 28.4 26.5 5.7 0% -2%

JSE -24% $ 751 n/a 108% -82% n/a n/a n/a n/a n/a n/a 29.6 16.0 13.2 3.1 3% -3%

Bolsa Mexicana -6% $ 1,082 $ 974 104% 55% 5.3 5.3 4.9 9.7 9.4 8.6 17.8 18.0 16.5 3.4 1% 4%

Multi Commodity Exchange of India -15% $ 615 n/a 101% 46% n/a n/a n/a n/a n/a n/a 22.6 26.2 21.8 3.7 n/a 1%

Bombay Stock Exchange -18% $ 377 n/a 108% 36% n/a n/a n/a n/a n/a n/a 17.6 16.9 14.7 0.9 n/a -7%

Philippine Stock Exchange -2% $ 303 $ 224 87% 63% 7.9 n/a n/a 12.5 n/a n/a 20.3 n/a n/a 3.1 0% n/a

Hellenic Exchange -14% $ 308 $ 226 89% 26% 7.8 6.9 5.9 29.5 19.6 13.5 110.3 54.7 34.3 2.7 0% 11%

Warsaw Stock Exchange -10% $ 427 $ 258 109% 60% 2.4 3.0 3.1 4.1 5.7 5.9 12.2 14.6 14.8 2.0 17% -13%

OTC Markets Group -19% $ 389 $ 383 46% 34% 6.6 6.4 6.0 19.4 18.3 16.1 24.7 25.5 22.2 19.9 5% 7%

New Zealand Exchange -17% $ 222 $ 230 113% 40% 10.4 5.4 5.1 26.3 12.1 11.4 43.2 20.6 19.1 5.6 15% -2% Median -17% 61473% 101% 46% 7.8x 6.7x 5.9x 17.7x 15.3x 13.7x 22.6x 18.0x 16.5x 3.1x 3% -2%

Source: FactSet, Bloomberg , Updated on 9/01/2019 Note: N/A denotes negative multiple or oddly high multiple or the multiple is not available 12 Market Valuations – Capital Markets

R E T A I L / e - BROKERS Charles Schwab -16% $ 50,477 $ 31,404 86% 47% 2.7x 2.9x 2.9x 5.7x 5.9x 6.0x 16.6x 16.5x 16.4x 2.7x 16% -1%

TD Ameritrade -13% $ 24,656 $ 42,741 96% 47% 7.3 7.2 7.3 15.6 13.4 13.7 13.7 12.8 13.0 2.9 114% 4%

Interactive Brokers -15% $ 23,475 $ (2,689) 90% 72% -1.1 -1.4 -1.3 -1.5 -1.4 -1.4 25.1 24.1 21.9 2.6 1% -6%

E*Trade -20% $ 10,012 $ 10,394 91% 51% 3.3 3.6 3.6 6.5 6.6 7.0 11.8 11.6 10.9 1.6 17% -2% MarketAxess -40% $ 15,212 $ 15,014 93% 54% 32.5 30.3 27.0 60.4 55.4 47.6 50.5 47.9 41.4 22.9 1% 13%

IG Group -42% $ 2,453 $ 2,063 97% 38% 6.8 3.4 3.2 17.9 8.7 7.8 29.2 14.2 12.5 2.4 5% 0%

LPL Financial -20% $ 6,172 $ 7,622 39% 18% 1.4 1.4 1.3 7.7 7.4 7.2 11.8 10.0 9.5 6.0 42% 8%

Matsui Securities -20% $ 2,131 $ 2,595 95% 51% 11.4 n/a n/a 22.1 n/a n/a 33.2 n/a n/a 2.7 37% n/a Comdirect Bank -16% $ 1,435 $ 1,498 104% 0% 3.3 3.5 3.7 n/a n/a n/a 30.4 9.7 24.6 2.0 4% -6%

Monex -30% $ 757 $ (4,149) 100% 31% -9.0 n/a n/a -29.1 n/a n/a 122.0 n/a n/a 1.0 240% n/a

Swissquote Group -50% $ 623 $ (3,586) 85% 29% -27.0 -15.2 -13.7 -93.9 n/a n/a 25.4 13.1 10.4 1.7 31% -1%

Gain -19% $ 168 $ (751) 82% 11% -2.6 -2.8 -2.3 -22.6 -62.9 -10.8 -12.8 -10.9 11.0 0.6 87% -5% Viel & Cie -11% $ 390 $ 347 102% 7% 0.8 n/a n/a 11.4 n/a n/a 16.1 11.9 11.5 0.9 119% n/a

Bourse Direct -29% $ 66 n/a 100% 0% n/a n/a n/a n/a n/a n/a 184.9 n/a n/a 1.0 n/a n/a

CMC Markets -52% $ 341 $ 266 74% 5% 2.5 1.4 1.3 55.5 6.5 5.4 -127.0 12.4 9.8 1.3 1% -5%

Plus500 -54% $ 958 $ 636 97% 44% 4.3 1.8 1.6 9.7 3.5 2.9 21.9 8.1 6.6 3.9 1% -25% Median -20% 229176% 94% 34% 2.7x 3.2x 3.1x 7.1x 7.0x 7.1x 25.3x 12.8x 12.5x 2.2x 31% -1% BROKER DEALERS & MARKET MAKERS

MarketAxess -40% $ 15,212 $ 15,014 93% 54% 32.5x 30.3x 27.0x 60.4x 55.4x 47.6x 50.5x 47.9x 41.4x 22.9x 1% 13%

Virtu Financial -15% $ 3,526 $ 4,918 46% 29% 3.7 4.9 4.2 13.0 12.0 8.8 58.5 20.7 13.8 2.2 79% -21%

BGC Partners -30% $ 1,753 $ 2,484 96% 13% 1.2 1.2 1.1 9.7 4.7 4.2 n/a 8.7 7.9 2.3 73% 8%

Flow Traders -24% $ 1,237 $ 1,246 106% 41% 9.4 4.1 3.3 23.1 10.5 8.3 33.7 14.9 11.2 3.4 2% -21%

TP ICAP -10% $ 2,057 $ 2,805 n/a n/a n/a 1.3 1.3 n/a 8.0 6.9 n/a 10.7 9.3 0.9 40% -4% Median -24% 205730% 95% 35% 6.6x 4.1x 3.3x 18.0x 10.5x 8.3x 50.5x 14.9x 11.2x 2.3x 40% -4%

Source: FactSet, Bloomberg , Updated on 9/01/2019 Note: N/A denotes negative multiple or oddly high multiple or the multiple is not available 13 Market Valuations – Banks

GLOBAL DIVERSIFIED BANKS

JP Morgan Chase -12% $ 350,604 n/a n/a n/a n/a n/a n/a n/a n/a n/a 10.7x 10.3x 10.0x 1.5x 167% -5% Wells Fargo -18% $ 204,928 n/a n/a n/a n/a n/a n/a n/a n/a n/a 10.1 10.2 10.5 1.2 177% -10% Bank of America -9% $ 254,442 n/a n/a n/a n/a n/a n/a n/a n/a n/a 10.2 10.1 9.4 1.0 185% -9% Citigroup -14% $ 145,031 n/a n/a n/a n/a n/a n/a n/a n/a n/a 9.0 8.5 7.6 0.8 330% -12% Goldman Sachs -18% $ 72,387 n/a n/a n/a n/a n/a n/a n/a n/a n/a 8.2 8.6 7.9 0.9 519% -14% U.S. Bancorp -15% $ 82,707 n/a n/a n/a n/a n/a n/a n/a n/a n/a 11.5 11.4 11.0 1.8 69% -3% Morgan Stanley -14% $ 68,433 n/a n/a n/a n/a n/a n/a n/a n/a n/a 9.5 8.9 8.2 0.9 419% -10% Capital One -16% $ 40,416 n/a n/a n/a n/a n/a n/a n/a n/a n/a 7.3 7.4 7.1 0.7 126% -4% Median -15% ######### 9.8x 9.5x 8.8x 1.0x 181% -9%

HSBC -7% $ 148,474 n/a n/a n/a n/a n/a n/a n/a n/a n/a 12.2x 11.6x 11.6x 0.9x 297% -18%

Commonwealth Bank of Australia -14% $ 94,536 n/a n/a n/a n/a n/a n/a n/a n/a n/a 32.0 16.4 15.3 2.0 170% -25%

Royal Bank of Canada -6% $ 107,441 n/a n/a n/a n/a n/a n/a n/a n/a n/a 11.6 11.4 10.9 1.9 184% -12%

Lloyds -6% $ 42,492 n/a n/a n/a n/a n/a n/a n/a n/a n/a 23.4 9.2 9.2 0.8 470% -21%

BNP Paribas -25% $ 56,885 n/a n/a n/a n/a n/a n/a n/a n/a n/a 12.9 7.4 7.1 0.5 1459% -31%

Royal Bank of Scotland -25% $ 56,885 n/a n/a n/a n/a n/a n/a n/a n/a n/a 12.9 7.4 7.1 0.5 1459% -31%

UBS -23% $ 40,477 n/a n/a n/a n/a n/a n/a n/a n/a n/a 11.1 10.3 9.4 0.7 521% -16%

Barclays -18% $ 28,796 n/a n/a n/a n/a n/a n/a n/a n/a n/a 8.8 8.1 7.4 0.4 694% -16%

Deutsche Bank -32% $ 15,402 n/a n/a n/a n/a n/a n/a n/a n/a n/a -4.8 77.1 16.1 0.2 1320% -24% Bank of Montreal -10% $ 43,322 n/a n/a n/a n/a n/a n/a n/a n/a n/a 10.6 10.7 10.3 1.3 222% -14%

Credit Suisse -26% $ 30,235 n/a n/a n/a n/a n/a n/a n/a n/a n/a 12.9 9.5 7.8 0.7 908% -19%

Standard Chartered -15% $ 25,253 n/a n/a n/a n/a n/a n/a n/a n/a n/a 21.2 10.8 9.3 0.6 441% -18% Median -16% ######### 12.5x 10.5x 9.3x 0.7x 495% -19%

Source: FactSet, Bloomberg , Updated on 9/01/2019 Note: N/A denotes negative multiple or oddly high multiple or the multiple is not available 14 Market Valuations – Alternative Lending

Greensky, Inc -39% $ 1,204 $ 1,087 85% 61% 2.3x 2.0x 1.7x 3.9x 5.9x 5.0x 24.1x 21.8x 18.3x 35.1x 33% 25%

Lending Tree -17% $ 3,950 $ 3,992 94% 13% 4.2 3.6 3.1 33.2 20.0 15.3 142.2 106.0 53.8 10.5 10% 31%

Lending Club -23% $ 1,142 $ 839 91% 27% 0.7 1.1 1.0 2.6 6.3 4.7 -20.2 -124.3 55.2 1.3 21% -15%

On Deck -38% $ 247 $ 1,042 62% 22% 2.4 2.3 2.2 10.8 31.4 32.6 12.9 16.2 12.8 0.8 355% 8%

Elevate Credit -54% $ 184 $ 661 89% 67% 0.8 0.9 0.8 1.3 5.0 4.9 10.3 7.2 5.5 1.3 296% 2% Median -38% 114191% 1052 89% 27% 2.3x 2.0x 1.7x 3.9x 6.3x 5.0x 12.9x 16.2x 18.3x 1.3x 33% 8%

Source: FactSet, Bloomberg , Updated on 9/01/2019 Note: N/A denotes negative multiple or oddly high multiple or the multiple is not available 15 M&A Trends

16 Select Last 6 Months - M&A Transactions Trend

COUNT OF M&A TRANSACTIONS BY CATEGORY

18 10 4 6 17 9 7

4 4

3 3 3 3 3 3 3 3 3

2 2 2 2

1 1 1 1 1 1 1 1 1

Capital Markets Institutional Software Insurance Tech Lending & Credit Payments Personal Finance and Solutions for Corporates Investment Management

March / 2019 April / 2019 May / 2019 June / 2019 July / 2019 August / 2019

Source: Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research, FinSME, Pitchbook All M&A transactions in this report are U.S. target companies and any foreign target companies with U.S. buyer(s) 17 Capital Raising Trends

18 Select Last 6 Months Capital Raise Trends

COUNT OF COMPANIES RAISING FUNDING BY CATEGORY

33 38 45 52 56 49 16

12 12 12

10 10 10 10 10

9 9

7 7 7 7 7

6 6 6 6

5 5 5 5 5

4 4 4 4

2 2

Capital Markets Institutional Software Insurance Tech Lending & Credit Payments Personal Finance and Solutions for Corporates Investment Management

March / 2019 April / 2019 May / 2019 June / 2019 July / 2019 August / 2019

Source: Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research, FinSMEs, Pitchbook All capital raises in this report are U.S. companies and any foreign companies with U.S. investor(s) 19 Select Last 6 Months Capital Raise Trends

FUNDING INVESTMENTS IN FINTECH COMPANIES BY CATEGORY $488 M $2,240 M $1,618 M $3,473 M $2,182 M $1,678 M 1,490

897 826 743 667

550 562 499 488503 408 354 333 345331 323 286 234 247 204 147 164 168 109 113 82 104104 69 62 78 60 56 19 22 29

Capital Markets Institutional Software Insurance Tech Lending & Credit Payments Personal Finance and Solutions for Corporates Investment Management

March / 2019 April / 2019 May / 2019 June / 2019 July / 2019 August / 2019

FUNDING ROUND TYPE BY CATEGORY

33 38 45 52 56 49

3 1 11 1 14 3 11

1 10

3 17 29 21 22 20 20

16 15 12 13 10 8

Capital Markets Institutional Software Insurance Tech Lending & Credit Payments Personal Finance and Solutions for Corporates Investment Management

Angel | Seed Early Stage Late Stage PE Growth

22 State of Capital Markets – US IPO Market Update

$30B US IPO's # IPO's 70

70 62 60 $25B 54 52 52

50 44 $20B 34 34 34 32 33 30 29 25 30 $15B 18 $25B 8 10 $10B

$16B $13B $13B $11B $11B -10 $5B $10B $11B $7B $7B $7B $5B $6B $6B $4B $5B

$0B $1B -30 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Proceeds ($M) CY2015 CY2016 CY2017 CY2018 1H’2019 US IPO’s $ 30,200 $ 18,800 $ 35,600 $ 46,800 $29,700

Source: PWC, EY, Renaissance Capital 23 Select FinTech US Public Offerings – 2017 - 2018

Amount Raised* Offering Price Offering Price Offering Date Company Sector Ticker Name 1 Week Return ($ millions) Range ($) ($)

3/3/2019 Tradeweb Capital Markets NASDAQ:TW $ 1,240 24.0 - 26.0 $ 27.00 17.0%

3/19/2019 Tiger Brokers Capital Markets NASDAQ:TIGR $ 104 5.0 - 7.0 $ 8.00 18.0%

3/8/2019 FUTU Capital Markets NASDAQ:FHL $ 90 12.0 - 12.0 $ 12.00 17.5%

12/13/2018 360 Finance, Inc Lending & Credit NASDAQ: QFIN $ 51 16.50 - 18.50 $ 16.50 0.0%

10/25/2018 StoneCo Ltd Payments NASDAQ: STNE $ 1,400 21.00 - 23.00 $ 24.00 -4.1%

6/15/2018 Avalara Institutional Software & Solutions NYSE: AVLR $ 180 21.00 – 23.00 $ 35.00 10.4%

10/25/2018 Pintec Technology Lending & Credit NASDAQ: PT $ 44 10.00 - 12.00 $ 11.88 -6.7%

10/12/2018 Anaplan, Inc Institutional Software & Solutions NYSE: PLAN $ 264 15.00 - 17.00 $ 17.00 0.0%

6/24/2018 I3 Vertical. Payments NASDAQ: IIIV $ 87 11.00 - 13.00 $ 18.00 -17.8%

5/24/2018 Greensky, Inc Lending & Credit NASDAQ: GSKY $ 874 22.00 - 23.00 $ 23.00 14.7%

5/23/2018 EVO Payments Payments NASDAQ: EVOP $ 224 16.00 - 19.00 $ 16.00 11.2%

3/26/2018 Ceridian HCM Institutional Software & Solutions NYSE: CDAY $ 462 19.00 - 21.00 $ 22.00 8.9%

4/27/2018 Docusign Inc Institutional Software & Solutions NYSE: DOCU $ 629 26.00 - 28.00 $ 29.00 3.4%

3/16/2018 Zuora, Inc Institutional Software & Solutions NYSE: ZUO $ 154 9.00 - 11.00 $ 14.00 -5.0%

2/9/2018 Cardlytics Payments NASDAQ: CDLX $ 70 13.00 - 15.00 $ 13.00 37.0%

11/10/2017 PPDAI Group Inc. Alternative lending NYSE: PPDF $ 221 16.00 - 19.00 $ 13.00 0.0%

12/26/2017 PagSeguro Digital Ltd Payments NYSE: PAGS $ 2,300 17.50 - 20.50 $ 21.50 -4.3%

10/28/2016 Blackline, Inc. Institutional Software & Solutions NASDAQ: BL $ 14 16.00 - 17.00 $ 17.00 41.0%

10/6/2016 Coupa Software Institutional Software & Solutions NASDAQ: COUP $ 133 16.00 - 18.00 $ 18.00 70.0%

4/15/2016 Bats Global Markets Global Exchanges BZX: BATS $ 291 17.00 - 19.00 $ 19.00 20.3%

Source: Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research

*Amount raised excludes greenshoe option 24 The Rosenblatt Difference

25 Vikas Shah – Institutional Investor’s Fintech Finance 40 (2018 & 2019)

Click here to read the full coverage

26 Our services

Market Investment Fundamental Technology Trading Structure Banking Research Solutions

We provide conflict-free, Rosenblatt Securities Rosenblatt launched FinTech- Our team of veteran Our analytics team, led by agency-only equity helped pioneer the field focused investment banking more equity research analysts a veteran former buy-side execution service to many of market-structure than 10 years ago. Since then, we provide expert insights quant, approaches of the leading analysis more than 15 have come to be known as FinTech and corporate-access execution with a institutional investors years ago sector specialists opportunities for practitioner’s perspective across US and investors in the TMT and and applies world-class international markets We give clients the Featured in Institutional Investor's FinTech sectors data science. Our conflict free intelligence FinTech Finance 40 rankings, our visualization expert has As the biggest broker on they need to navigate and team brings unequaled domain In addition to our inhouse earned the designation of the NYSE floor, we thrive in complex and expertise and a laser focus on research capabilities, we Alteryx ACE and was the provide clients access to fragmented capital financial technology also have exclusive first-ever Tableau Zen unique advantages markets relationships with brokers Master available to floor broker As trusted advisers, we help private from over a dozen community and public companies with capital emerging- and frontier- Our team has developed raising, M&A and business markets tools that are used for With one of the most development. We get past the pre-trade, trade and post- experienced team of high- industry hype by fostering trade analysis by our touch traders, we deliver education and networking within internal trading team as best quality execution in the FinTech community well as by the largest any market conditions investment banks and As part of our practice, every year, asset managers we host annual FinTech Summit showcasing some of the most exciting FinTech companies

We started as an independent NYSE floor broker in 1979 with a simple goal: deliver conflict-free advice and execution. Since then, we have adapted, expanded and diversified to become a leading agency brokerage, investment-banking and research boutique. But we remain committed to our founding principles in everything we do

27 Our services

M&A Due Diligence Investment Advisory Divestitures Valuations Banking Services Restructuring Transaction Structuring Fairness Opinions Negotiations Rosenblatt launched FinTech- focused investment banking more than 10 years ago. Since then, we Equity Capital have come to be known as FinTech Buybacks Markets sector specialists Capital Raising Private Equity Private Debt Featured in Institutional Investor's FinTech Finance 40 rankings, our team brings unequaled domain Full Service Follow-On Offerings expertise and a laser focus on financial technology Advisory

As trusted advisers, we help private Offering Market Entry Exit Strategies and public companies with capital Strategic raising, M&A and business Management development. We get past the Consulting Peer Group Industry / Competitive industry hype by fostering Benchmarking Analysis education and networking within the FinTech community

As part of our practice, every year, we host annual FinTech Summit Channel Business Product Customer showcasing some of the most Partner Development Validation Introduction exciting FinTech companies Development

28 Strong value proposition

Unparalleled Domain Expertise Rosenblatt’s, Vikas Shah • Focused coverage of capital markets and financial technology firms across named to FinTech Finance 40 asset classes to address their corporate finance needs list • Trusted advisers on dozens of deals and we go beyond just executing – with our annual Financial Technologies Summit (FTS) and Global Exchange Leader Conference /(GELC) we’re committed to advising and educating our clients • Our deep domain expertise and attention to details uncovers often overlooked complexities and nuances Our FinTech Summit on panel with R3, Ripple, Noble, Symbiont, and Deep Strategic & Financial Relationships PeerNova

• Our investment banking, research, and consulting efforts have fostered deep ties with many of the largest financial services and private equity Our Market Structure Summit firms across North America, EMEA, and Asia-Pacific in conversation with SEC Chairman Jay Clayton • Our brokerage operations have allowed us to develop extensive relationships with leading institutional investors and portfolio managers • Strong relationships with a roster of global bank partners for offerings that require balance sheet commitment and institutional underwriting

Tailored Execution Experience

• We pride ourselves in creating solutions that address individual client's needs; always shying away from cookie-cutter solutions Our Market Structure Summit on panel with Virtu Financial, XTX Markets, Jane Street, and DRW Holdings

Clients call on us for deep-domain expertise in FinTech, close dialogues with an extensive roster of institutional investors and proven execution experience. We have the track record of working Ouron FinTechexclusive Summit engagements on panel with Virtu as Financial,well co XTX-managers Markets, Jane with Street, and DRW Holdings other well-respected industry underwriters 29 Contact:

Vikas Shah Investment Banking 212- 607- 3100 [email protected]

Rosenblatt Securities Inc. seeks to provide and receive remuneration for Agency Brokerage, Market Structure Analysis, Macro and other Sector Analysis and Investment Banking Advisory Services. Rosenblatt Securities Inc. may, from time to time, provide these services to companies mentioned in this analysis. This material is not a research report and should not be construed as such, and does not contain enough information to support an investment decision. Neither the information contained herein, nor any opinion expressed herein, constitutes the recommendation or solicitation of the purchase or sale of any securities or commodities. The information herein was obtained from sources which Rosenblatt Securities Inc. believes reliable, but we do not guarantee its accuracy. No part of this material may be duplicated in any form by any means. Member NYSE, FINRA, SIPC.