Fidelity^® Provides Active Traders Online Access to Institutional-Grade Trading Algorithms

BOSTON – Fidelity Investments^®, a leader in helping individuals research and invest in the financial markets, today announced that eligible retail investors can take advantage of two trading algorithms originally designed for Fidelity’s institutional clients. Fidelity added the Volume Weighted Average Price (VWAP) and Target Volume (TVOL) algorithms to Active Trader Pro to help investors navigate today’s volatile market.

“These algorithms are the latest examples of Fidelity’s long-standing commitment to delivering innovative trading solutions that can help our clients achieve best execution,” said Derrick Chan, vice president of financial engineering and electronic trading at Fidelity. “Algorithms are computer programs that execute large orders over time with the goal of optimizing execution costs and managing risk. These trading strategies, coupled with Fidelity’s expansive liquidity network, can be useful for larger orders which might otherwise experience significant market impact if they were submitted to the market all at once.”

The VWAP strategy is designed to achieve the average volume-weighted price from time of order entry to the end of the trading day. The benefits of the VWAP strategy are similar to the dollar cost averaging strategies¹investors may use when investing longer-term in mutual funds or in their workplace retirement savings plans.

The TVOL algorithm is similar to VWAP, but gives investors more control over the pace at which their order is executed in the market by allowing them to choose a target participation rate of 5, 10 or 20 percent. As trades occur in the marketplace, Fidelity uses sophisticated quantitative and trading techniques to ensure that the trader’s executions represent the specified percentage of the overall market volume.

“Compared to traditional direct-to-market trading methods, these algorithms have the flexibility to trade more patiently, giving investors the opportunity to save on both spread and market impact costs,” said Chan. “For large orders in particular, these costs can represent a significant proportion of the overall cost of a trade, often outweighing commissions.”

Though VWAP and TVOL execute trades in multiple steps, investors pay only Fidelity’s single $7.95 online domestic equity commission.

Fidelity’s Expansive and Natural Liquidity Network
Investors using the algorithms in Active Trader Pro will be able to take advantage of one of the largest liquidity networks in the industry. Fidelity built this network to connect to as much market liquidity as possible on behalf of a diverse client base. The liquidity network includes²:

• Access to more than 45 domestic market venues that Fidelity evaluates for best price and execution speed
• 20 million Fidelity brokerage accounts
• $2 trillion in Fidelity brokerage assets under administration

Additional Directed Trading Resources
The VWAP and TVOL algorithms are part of Fidelity’s broader directed trading offering, which includes the Fidelity Dynamic Liquidity Management^SM (FDLM) and RapidRouter^®. FDLM is Fidelity’s institutional proprietary intelligent order router which seamlessly accesses displayed liquidity at Electronic Communication Networks (ECNs) and Exchanges as well as non-displayed liquidity to seek both the best price and liquidity enhancement. RapidRouter is an Intelligent Order Router that scans the market in real-time, and determines where to direct orders based on current prices and sizes, and based on the response times of the market centers.

About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.4 trillion, including managed assets of $1.5 trillion, as of October 31, 2011. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.

1To qualify, investors must be using Active Trader Pro, and have an annual household trading activity of 120 or more trades.

2Fidelity business data as of September 30, 2011.

iDollar cost averaging does not assure a profit or protect against a loss in declining markets. For the strategy to be effective, you must continue to purchase shares both in market ups and downs.

$7.95 commission applies to online U.S. equity trades for Fidelity Brokerage Services LLC retail clients; other conditions may apply. See Fidelity.com/commissions for details.

Fidelity Active Trader Pro® is available to customers based on household trading activity in a rolling twelve-month period: Households trading 36 times or more are eligible for Active Trader Pro; 72 times or more receive streaming watch lists and static Level II quotes; 120 times or more receive streaming news, streaming Level II quotes, streaming interactive charting, time and sales data and directed trading.

National Financial Services is the executing broker dealer for directed trading orders.

Fidelity Investments, Fidelity, the Fidelity Pyramid design logo, Active Trader Pro, Fidelity Dynamic Liquidity Market and RapidRouter are registered service marks of FMR LLC.

Fidelity Capital Markets is a division of National Financial Services LLC, Member NYSE, SIPC, 200
Seaport Boulevard, Boston, MA 02110.

Fidelity Brokerage Services LLC, Member NYSE, SIPC. 900 Salem Street, Smithfield, RI 02917

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