Systematic trading at Mashreq Bank

Investment Services

Category 2005 2006 2007 2008 2009

AED millions

AED millions

AED millions

AED millions

AED millions

Net Advances 19,985 26,735 34,983 54,883 47,730

Customer Deposits

30,005 34,656 48,287 51,477 53,658

Gross income 3106 2828 3851 3983 4962

Net profit 1739 1571 1901 1642 1000

Total Assets 46,542 56,745 87,627 93,243 94,261

Share Holders Fund

7,259 7,378 9,614 10,065 11,273

Review of Key Highlights 2005 - 2009

The system does all the work for you:

Our systems are watching and analyzing the markets 24/24, looking for the best opportunities to make profits.

Reporting is sent monthly but we also sent a weekly automated report.

Clients can also check their balance at any time

When a client has deposited and has been accepted by the due diligence of Mashreq bank (Known as KYC (Know your client) ).

The trading can finally start.

Mashreq Bank not only is your depositary bank, Mashreq also allocates some of its own resources and trades the models.

Mashreq deals on the same prices as its clients, and has the same risks. Unlike other products, we work together for a common goal: Generation of capital.

Mashreq recognizes the risks of counterparties.

Thus we employ multi feed for multiple reasons:

Best PricesReducing the risk on having a single counterparty in major events.Because we deal in Nostro accounts, we can take the best price of any feed and exit on another feed.

Only through the management of risks can a system achieve and keep its performance.

We have strict risk control on every trade:

The model finds an opportunity and sends an order to one of feeds:

The order comes always with a stop limiting losses.

The order is tracked and updated tick by tick as the stops can move to decrease risks (when the trade is positive).

The model has a feature in which in case of unnatural market conditions, all positions will be closed at market (in any of the feeds, that comes with the first price available).

The model does not take more than a few positions till it has locked some of its positions in profits with stops raised to its entry, only then does it add more positions to the existing portfolio positions

Example of a trade:

Symbol: EURUSDOrderType: BUYLots: 1MOpenPrice: 1.2733OpenTime: 2010.09.07 20:19Take Profit: 1.32010000Stop loss: 1.2689

System PairCapital Start: Capital End Gains in % Gain amount

EURO

100,000 421,001

321% 321,001

USDJPY

100,000 496,309

396% 396,309

USDJPY

100,000 524,753

425% 424,753

All Systems

300,000

1,442,063 381%

1,142,063