A BROAD RANGE OF SERVICES AND UNRIVALED EXECUTION

To achieve best execution, factors such as price, speed, certainty, the client’s individual benchmark and the size and nature of the trade must all be balanced effectively based on changing markets and according to each client’s specific objectives. At Cuttone & Company, we utilize our vast trading experience, in-depth understanding of our clients’ needs and state-of-the-art technology to deliver a complete suite of services and prime brokerage solutions.

Traditional Trading Desk for U.S. Equities and Listed Options

At Cuttone & Company, our clients are covered by our upstairs trading desk or have direct access to the New York Stock Exchange trading floor. We trade all U.S. equity classes and listed options. NYSE trades are managed by a team of highly experienced brokers located strategically throughout the trading floor. This combination of experience and depth of coverage provides our clients with rapid, accurate information, giving them a critical edge.

Electronic Direct Market Access for U.S. Equities and Options

Cuttone & Company’s DMA platforms utilize the latest in smart order routing, algorithmic trading and order management technology to trade all available U.S. equities and listed options. We constantly seek ways to enhance our technology and regularly expand the network’s access to significant sources of liquidity.

Multi-Strategy Arbitrage

Our founder, Donato A. Cuttone, built his career and our firm executing arbitrage strategies. Thanks to his wisdom and guidance over the years, we believe our experience and skill in executing merger arbitrage, convertible arbitrage, pairs, stubs, and other non-traditional long/short trading strategies are unmatched.

Our extensive relationships with the trading community allow us to quote spreads on a two-way basis, providing clients with valuable market information and improved access to liquidity. Cuttone & Company’s traders and brokers relentlessly track the markets, and keep clients abreast of current swap levels and spreads based on intra-day moves.

International Equities Direct Market Access

Cuttone & Company has extended its platform to include an electronic global network of international securities execution and processing. Our international platform provides access to 58 markets in 40 countries. Clients have direct and immediate access to each local market’s limit order book from their desktop. This approach facilitates full control of the execution process, improves pricing power and eliminates proprietary trading conflicts while ensuring complete anonymity.

Foreign Countries where Cuttone & Company has Trading Access

Cuttone Automated Trading Solutions (CATS)

Working in tandem with one of our strategic partners, Cuttone & Company provides a library of analytic trading functions that is fully integrated with our DMA platform. Our sophisticated approach to systemized trading provides straight through processing, allows for improved trading efficiencies, and can reduce errors. As a result, CATS has the potential to reduce costs by improving the speed and accuracy of trades.

The true power of CATS lies in its ability to automate custom trading strategies – from simple VWAP and percentage of volume models to complex long/short, hedging, basket trading and multi-resolution analysis. We fully understand the value of proprietary trading ideas and guarantee that all custom solutions developed remain the sole property of the client.

Algorithmic Execution

Algorithmic trading can play an important part in achieving best execution. Our independent, best-of-breed approach to technology assures that our traders and clients have access to the most advanced trading algorithms available via our DMA platform. We also believe that the efficiency of automated trades often can be enhanced with human intervention to create a more efficient trading model.

It is a widely held belief on Wall Street that 80% of the total trading costs of a portfolio are caused by just 20% of the trades. The key to managing these costs while still trading efficiently is having the experience to identify which 20%. Our sales traders, at the direction of our clients, and NYSE floor brokers constantly monitor markets anonymously on a two-way basis. By being in constant communication with our clients and having a thorough understanding of their objectives, our trading team is able to respond quickly should additional sources of liquidity come to market. When these opportunities occur, the algorithm is paused, part of the trade is executed manually and the algorithm is then restarted.

Execution Consulting Services

Selecting the right providers for complex trading and execution needs can be both challenging and time consuming. Cuttone & Company has amassed more than 20 years of experience analyzing and evaluating trading systems, market access tools, and communication solutions. We constantly monitor the marketplace for new and improved technology. Our execution consulting services save our clients’ time and money by recommending the right solutions for their unique requirements, which allows them to concentrate on the management of their businesses. We provide consulting services in the following areas:

• Order Management Systems (OMS)
• Executions Management Systems (EMS)
• Direct Market Access (DMA)
• Domestic and International Order Routing
• Information and Communication Systems
• Trading Workflow

Independent Research and Analysis

Because accurate information is the cornerstone of successful trading, Cuttone & Company partners with well-respected independent research firms to provide high quality, objective research and real-time information. Our daily research report delivers a detailed technical analysis of market conditions, an in-depth review of specific sector attributes and proprietary market insights. We provide sector level research, trend analysis, exclusive technical data and indicators based on proprietary information.

Bullish/bearish technical configurations on a broad range of equities, including IBD 100 stocks and S&P 4- and 5-rated stocks, are monitored. In addition, we provide customized stock screens, research on all securities in specific portfolios, and reports on other markets including commodities and ETFs.

Epiphany Equity Research

April 9, 2008 ● Equity Screening: S&P 4 & 5 Star Stocks (pdf)

April 2, 2008 ● Sector Analysis: Transportation (pdf)

March 27, 2008 ● Market Overview: Bear Market Lows? (pdf)

Prime Brokerage Services

It is our main objective to provide clients with all the tools and services they need to reduce the administrative burdens of managing money. We help them build an efficient and scaleable business so that they are free to focus on what they do best.
As an introducing broker to Goldman Sachs Execution and Clearing, L.P., Cuttone &
Company offers a full service prime brokerage and securities lending platform that combines our high-touch service level with best-of-breed technology.

Portfolio Reporting

Cuttone & Company’s portfolio reporting tool provides our prime brokerage clients with a flexible, multi-asset class, multi-currency, web-based reporting solution. Comprehensive, well-designed and timely statements have become an important part of the asset management business. Our reports can be generated and disseminated daily. They effectively organize large amounts of data to display a range of portfolio, performance, transaction, profit/loss, and income/expense information. Reports can be fully customized to the requirements of individual institutional traders and asset managers, and further tailored for their clients’ statements.

Outsourced Trading Desk

Portfolio managers who utilize Cuttone & Company’s outsourced trading desk allow us to do what we do best so they can focus on what they do best—manage money. Our service provides a complete agency trading solution without the ongoing staffing and infrastructure costs of an internal desk. Clients are assigned a dedicated personal sales trader to deliver best execution and provide aggregated and timely market information. Orders can be directed in complete anonymity anywhere on the street with one call.

Capital Introduction Consulting

Cuttone & Company acts as a consultant to clients seeking to raise capital by providing independent advice and guidance throughout the business development process. We assist new companies looking to build their infrastructure and launch their first fund. We also work closely with established firms looking to raise capital for new initiatives.

We begin by assisting in the development and production of sales materials that effectively communicate each fund’s objective, structure and investment strategy. We often produce materials tailored to each distinct stage of the selling cycle because key selling points change as capital is raised and products are refined. Working with a network of third-party marketers, we then help identify appropriate investors, deliver materials, and continue to provide assistance and information as needed.

Soft Dollars & Client Commission Agreements

Our clients’ soft dollar programs are managed efficiently and effectively. We use a commission add-on model for simplicity and transparency. Soft dollar arrangements allow our clients to trade with us and use accrued commissions to purchase a range of services from other providers.

Client Commission Agreements (CCAs) allow companies to decouple trading decisions from research purchases. This flexibility lets firms reduce their number of trading relationships and establish closer relationships with those who best meet their trading needs. A CCA with Cuttone & Company enables our clients to benefit from our trading expertise, service and commitment to anonymity while using pooled commissions to compensate their third-party research providers.