EXCHANGE_#4

March 2017EXCHANGE ISSUE

In this issue of Apex ExchangeWelcome MessageApex Business PrioritiesClient NewsProduct SpotlightDepartment SpotlightMarketing UpdateApex ValuesThe Art of ApexNew HiresAnniversariesBirthdays

EXCHANGE ISSUE

Welcome to This Month’sApex Exchange.

Here’s your March issue of the Apex Exchange. We’vegot a lot of great momentum in a bunch of areas, sothank you for all of your dedication and hard work.Enjoy! Bill

Apex Business PrioritiesOnce again, we’ve included our firm-wide priorities,as well as the priorities for retail and institutional, as away to continue to keep these top of mind.As always, this information is private and highlyconfidential, so please do not share with anyoneoutside of Apex.

APEX FIRM PRIORITIES1 Capitalize on the digital advice trend shaking the wealth management industry2 Grow our Prime Brokerage business3 Differentiate Apex through customer service4 Actively grow and manage our peopleRETAIL PRIORITIES: Expand rebalancing capabilities via partnership and in-house tech Streamline incoming ACATS to broaden our appeal / grow processing & roll-out ALPS to stickiness in the Wealth more clients to help grow AUM Management industryINSTITUTIONAL PRIORITIES: Build a branded Prime Portal to improve client experience and Expand our distribution channels stickiness by integrating to multiple front-end plat forms and building a modern, e cient trade-posting mechanism

Client NewsHere are the new clients joining Apex. As always,this information is confidential. Please do notshare with anyone outside the firm.

PRIMECRAIG SAMULES RIA

Product SpotlightIn each issue of Exchange, we’ll highlight differentproduct offerings and technology solutions thathelp our clients operate more efficiently andachieve robust growth.This month, we’re excited to share more about ourpartnership with Advizr, a leader in forward-think-ing financial planning software for advisors.As the world of investing goes digital, RegisteredInvestment Advisors (RIAs) are looking for newways to bring more value to their clients, whilealso operating more efficiently to better managefees and costs. On top of that, they want smart,streamlined digital solutions that will help themreach a younger generation of investors.

Through this partnership with Advizr, we’ll be able to offer ourclients a fully-integrated, all-in-one digital advice platform thatdelivers robust portfolio management capabilities that include: + Financial planning  + Account aggregation + Fully electronic account opening & funding + Model portfolio creation and assignment + Rebalancing (including execution and allocation) + Tax minimization support  + Support for ETFS, Mutual funds and Equities + Support for fractional shares + Customizable e-statements, confirms and tax forms  + Performance ReportingThe first iteration of this new platform will be live at the endof March and we’re in the process of onboarding the firstRIA to use this platform, Waldron Private Wealth, LP. Fromthere we’ll be working with new clients prioritize additionalfeatures, eventually developing a fully-customized platformaround the Advizr o ering.

Inside ApexEach month we’ll take you inside a team at Apex tolearn more about who they are, what they do for ourclients, and how they impact our business.In this issue, we’re taking a look at the ApexSecurities Lending team. We asked them to answersome questions to help us get to know them betterand how they help our clients. lSeTencEduAriniMtiges

How does the Securities Lending team fit into the overallpicture of how Apex services our clients?In order for our customers to short sale a security they musthave a locate. We provide locates for the customers to shortsale through a daily Easy to Borrow list or through online Apexfor locates on premium securities. If the customer short sale isheld overnight we will borrow the security to make delivery ofthe trade. We also o er a fully paid for lending program forcustomers. This allows customers who sign up for the pro-gram the ability to earn extra income on their fully paid forpositions when the positions are able to be loaned out a nega-tive interest rate.What are the primary responsibilities of the SecuritiesLending team? • Providing locates to facilitate customer short sales. • Borrowing securities to make deliveryobligations for Apex. • Loaning out premium securities to earn revenue for Apex. • Working with the Treasury team to determine the daily cash needs for the firm. If cash needs to be raised for the firm additional securities may be loaned out.

Inside ApexWhat’s a typical day like for your team?6AM–8:30AMMany of the sta arrives to start lending and borrowing for buyin needs due at market open.8:30AM-10:30AMThe daily borrow list is assembled and sent to multiple brokersto fill Apex borrow needs. We continue to check other broker’sneed lists and send out push lists to try to loan out additionalsecurities at premium rates. Brokers call in stock returns thatthey have borrowed from a prior day that they no longer need.10:30AM-12:30PMBorrowing and lending slows down some around lunchtime.We use this time to compile various reports to send to uppermanagement and resolve any counterparty borrow or loanbreaks. These reports distributed include a daily P&L reportand Credit Line Usage report.12:30PM-2:10PMThe end of the day borrowing and lending activity picks up asbrokers are scrambling to cover their needs before “drops” areup and transactions can no longer be settled through DTC.Apex cash needs are confirmed with the Treasury team andraised appropriately. Any securities that could not be bor-rowed for Continuous Net Settlement(CNS) obligations aresent to Broadridge so they can notify the customer of a poten-tial buy in on their short sale at market open on the followingbusiness day.

What’s an interesting fun fact about your team?We like to take shots at each other’s favorite football team.BEN LINDSEYGRIGUS WETZIGJEREMY CHRISCORDERO BACZESKILOGANSATTERWHITEIs there an inside joke within the team?Yes, but in it slightly inappropriate so you will have tocome by in person to be filled in.If the Securities Lending team formed abowling team, what would the name be?The Pin Heads

Apex Marketing UpdateAfter successful showings at the Context Summitand BattleFin Discovery Day, the Prime team had amajor presence at the Operations for Alternativesconference held in early March in Miami Beach. TheOFA conference brings together operationsmembers from the hedge fund, private equity andother related industries to share best practices,proven strategies, and practical solutions to deliversmarter operational solutions.In addition to a prominent booth and a calendar fullof meetings, our very own Bill Capuzzi participated ina panel discussion on how the Prime Brokeragelandscape is changing and what it means foralternative investment firms. Operations for Alternatives 2017



Act Boldly & With CourageApex ValuesAs a way to bring the Apex values to life, we’vecommissioned an artist to create custom piecesof art for each of the six values. The work will beunveiled in April. Be Collaborative & Be Diligent & Financally Responsible

Put the Client First & Do Amazing Work Innovate & Be Impactful Operate Ethically & With Integrity& Responsible

The Art of ApexOver the past few months, we’ve added a number ofdifferent pieces of art throughout our offices. Inaddition to all of the new art around the Dallas office,the New York office recently saw the addition of twonew pieces, and we’re in the process of selectingpieces for the Portland office.Now that this incredible art is on display, we thoughtit would be interesting to highlight different pieces tolearn more about the piece, the artist, and their inspi-ration behind their work.This month we’re taking a look at a piece in theDallas office called “The Grand Showman Reborn” byMichael Velliquette.

Michael Velliquette is an NY-based artist who works with paper to create stunningly vibrant and complex paper sculptures. Color, playing a very powerful role in Velliquette’s work, acts to convey an aesthetic of plentitude. His vocabulary is bright, dense, ornamental, and is punctuated with recurring motifs such as eyes, flowers, feathers, and mandalas. The Grand Showman (Reborn) 2008 Paper & GlueThe Grand Showman (Reborn) is three-dimensional paper col-lage that is part of a collection devoted to objects and beingsthat possess devotional characteristics and reference totems,stupas and altars, by mythological creatures and represent hisown state of mind.

Welcome to our newest members of the team! Kacey Arnold Role at Apex: Quality Automation Engineer Past experience: Accela, Inc Roots for: Sonoma State University Seawolves Fun fact: Adventurous spirit to try flavorful new spirits, published an article on LinkedIn in January “It’s amazing how much you can achieve when you don’t care who gets the credit.\" ~ Theodore Roosevelt Crystal Jackson Role at Apex: Senior Talent Acquisition Specialist Past Experience: Talent acquisition at ARGO, EMSI, MedAssets Roots for: Southwestern University Pirates Fun fact: Was on Shaquille O'Neal's PR team “All our dreams can come true, if we have the courage to pursue them.” ~ Walt Disney

Marc PerroneRole at Apex: Principal Software EngineerPast experience: New RelicRoots for: University of Illinois Fighting IlliniFun fact: IPA connoisseur and avid Cubs fan“Don’t ever permit the pressure to exceedthe pleasure.”~ Joe Maddon Michelle Tran Role at Apex: Director of Sales Past experience: BlackRock Roots for: UC Santa Cruz Slugs Fun fact: Her family was featured in an episode of House Hunters International when they moved from San Francisco to Hong Kong “If life dropped you a lemon, look for salt and tequila.”

March BirthdaysMake sure you stop by and wish them a Happy Birthday! Huck Dooley Sasha Ermakov Scott Lewis Aggie Kanska Erin Jones Karolina Kalita Tracy Paduch Jeff LoganTanya SrivastavaJeremy Cordero Betty Foo Bria Robb

Happy Anniversary to these Apex employees Qiufang Shen 4 YEARS Jud Pyle 2 YEARS Tanya Srivastava 1 YEAR Joseph Hahm 1 YEARanbins

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March 2017Past Issues of the ExchangeRead all of the past issues of the Exchange athttp://pubhtml5.com/bookcase/rwdnShare Ideas for the ExchangeIf you have ideas for Apex news you’d like to include inthe Exchange, send it to [email protected] ISSUE