How to enter the Fishpool Market?
CACEIS Solution
Q2 2015
Focus on Clearing of the
Fishpool contracts
CACEIS, a Solid Partner 1
3
CACEIS Key Figures
CACEIS, a leader in the Asset Servicing World
CACEIS is a banking group which serves a diverse client base:
Asset Managers, Hedge Funds, Investment Banks, Corporates…
Shareholders: 85% + 15%
Staff: 3,300 employees
Located in 12 countries, 85 markets covered
A Leading Player
N° 1 Fund Administrator in Europe €1.4tr
N° 2 Depositary Bank in Europe €823bn
N° 7 Custodian worldwide €2.4tr
An Extensive Product Offer
Custody
Clearing & Execution
Hedge Funds services
Fund distribution
Depositary
Fund Administration
Capital markets
Collateral Management
A / A-1
A2 / P-1
A / F1
CACEIS
Crédit Agricole S.A.
Quality Management System
ISO 9001 Certified
Industry Recognition – Securities Lending
Awarded
Procedure and Control Optimisation
Type II Audited
Execution and Clearing Services 2
5
CACEIS Execution & Clearing Service
One Stop Shop for your Business
Execution • Cash Equity Markets: Equities and ETFs (regulated exchanges, MTFs, Darkpools, ...etc)
• Derivatives Markets:
- Futures and Options on financial instruments (Index, Equity, Fixed Income, FX, ... etc)
- Futures and Options on commodities instruments (Grains, Softs, Milk & Meat, ...etc)
Clearing • Clearing of all listed derivatives markets instruments (financial and commodities instruments)
• Direct Access to the major Clearing Houses (Eurex, LCH, NASDAQ OMX...)
• Intraday Risk Monitoring
• Back Office and Client Support Team in house (Paris based)
• Collateral Management Solutions
Global & Multi Asset Class Coverage 60 Cash and Derivatives Markets Connection
Large Client Base Institutionnal Clients (asset management firms, banks, insurance companies)
Corporate Clients (manufacturers, farmers, cooperatives, trade houses...etc)
Commodities Offering 3
7
CACEIS Commodities Offering
A Complete Offering
• As subsidiary of the Credit Agricole Group, CACEIS has a natural client
base to serve (farmers, cooperatives, manufacturers,...)
• With over 10 years of experience in commodities trading, the CACEIS
execution team has a strong expertise in advising clients with strategies
for hedging and speculative purposes.
• CACEIS is NOT an investment bank and has a very limited risk profile.
• CACEIS represents an alternative solution to commodities clients who
are very attentive to have their accounts in a safe place.
• CACEIS has the ambition to become a leader in commodities trading
and clearing
• France is the second largest market for salmon in the world
• The use of derivatives instruments is becoming essential in order to
protect against market fluctuations
• In order to complete our offering, CACEIS has become member of the
Clearing House NASDAQ OMX, the CCP of the Fishpool market
Clearing of Fishpool Contracts 3
9
Clearing of Fishpool contracts
The Operationnal Set up
Client
Clearer
Exchange
Clearing House
TRADING
CLEARING
The Client sends an order via telephone to
Fishpool
Fishpool confirms the execution to the Client
Fishpool enters the transaction into the
NASDAQ system
The Client (and the Counterparty) must confirm
the transaction via email to the Clearer
Fishpool sends the transaction details to the
Clients and its Clearer
The Clearer checks the transaction details and
confirms the transaction into the NASDAQ
system
NASDAQ checks there is sufficient cash
(collateral) on clearer accounts to cover the
client exposure.
NASDAQ proceeds to the novation fo the
transaction
1
2
3
5
6
4
7
8
10
Clearing of Fishpool contracts
Risk Management
Clearer
CCP
NASDAQ CCP* calculates the Initial
Margin Requirement (amount needed to
cover the Client exposure) and sends
the amount to be paid to the Clearer
CACEIS proceeds to the payment of the
Initial Margin Requirement to NASDAQ
CCP
CACEIS debits the amount on the Client
account
CACEIS sends reports to enable the
client to reconcile its cash and positions
accounts
The Client will be debited/ credited next
day of the Variation Margin (Markt to
Market procedure: a daily offsetting of
profits and losses resulting from the
price changes in open positions)
4
5
1
2
3
Client
Cash account (minimum amount to be
defined)
Securities
Account Booking of Client positions
Client Service • Hotline available from
08am until 8pm
• 10y experience team
• Team located in France
REPORTING
available to Client (daily distribution via email or FTP conection)
• Global Statement Report (pdf)
• Transactions Report (xls)
• Open Positions Report (xls)
• Cash Balance Report (xls)
UBIX CACEIS Back Office Tool
Booking of Positions
Calculation of Client Margin Requirement
Instant Control CACEIS Risk Management Tool
Monitoring of open Client Positions
Monitoring of financial impact
Please note that NASDAQ requires prefunding, i.e sufficient cash on Client account
The Legal Set Up 4
12
Clearing of Fishpool contracts
The Legal Set up
Client
Clearer
Exchange
Clearing House
Fishpool Trading
Membership Agrement
CACEIS
Clearing Agreement
NASDAQ
Global Clearing
Membership Agrement
Fishpool tripartite
agreement with the
Client
13
Clearing of Fishpool contracts
The Legal Set up
Documents to be provided (non-exhaustive list):
- Audited financial statements
- ID cards copies of the managing directors
- Commercial register extract
- Company’s articles of association/ incorporation
- List of authorised signatures (incl. specimens)
- Company org chart
- List of beneficial owners
- FATCA Status
- LEI (EMIR reporting)
- Anti-Money Laundering Questionnaire
- CACEIS Clearing Agreement
Please note that all documents should be translated in English/ French (certified translation needed)
CACEIS Value Proposition 5
15
CACEIS Value Proposition
1. Historical and Strong presence in Commodities
2. Financial Strength
3. Non risk taker, No proprietary trading
4. Financing solutions with the Credit Agricole Group
5. Front to Back-Office teams experience
6. Back Office Teams inhouse (no outsourcing), located in France
7. A reactive Client Service team dedicated to you
8. Competitive commission fees
9. Flexible Collateral Management
10. Diversified client panel
10 reasons to clear Fishpool contracts with CACEIS
Contacts 6
CONTACTS
Florence Besnier
Business Development Manager
Prime Fund Solutions
Execution and Clearing Services
Tel: +33 (0)1 57 78 03 24
Agnès Dambreville
Head of Onboarding
Prime Fund Solutions
Execution and Clearing Services
Tel: +33 (0)1 57 78 12 32
Appendix 7
19
Appendix
Fishpool Order Confirmation
20
Appendix
Fishpool Pending Clearing
Confirmation
Please note that the Clearer can accept a transaction for clearing until T+1 (7pm)
21
Example of Initial Margin Requirement (IMR) Calculation
NASDAQ OMX IMR indicative rates
If a client holds a position of 200 tonnes of FPSA_AUG14
-> The IMR is NOK 700 212 (200 contracts x 1000 kg x NOK 35,4 x 9,89%),
-> The VM (daily Markt to Market settlement) from 06.06.2014 to 10.06.2014 is NOK -60 000 (200
x 1000 x NOK -0,3).
1 contract/ lot= 1000 kg
Appendix
Please note that the above calculation is for information purpose only
Market Series Margin %
Seafood FPSA_AUG14 9,89
Seafood FPSA_DEC14 9,01
Seafood FPSA_JUL14 11,04
Seafood FPSA_JUN14 11,51
Seafood FPSA_NOV14 9,01
Seafood FPSA_OCT14 9,01
Seafood FPSA_SEP14 9,36
Seafood FPSA15_APR15 9,02
Seafood FPSA15_AUG15 7,94
Seafood FPSA15_DEC15 7,93
Seafood FPSA15_FEB15 9,01
Seafood FPSA15_JAN15 9,01
Seafood FPSA15_JUL15 8,02
Seafood FPSA15_JUN15 8,34
Seafood FPSA15_MAR15 9,01
Seafood FPSA15_MAY15 8,49
Seafood FPSA15_NOV15 7,94
Seafood FPSA15_OCT15 7,94
Seafood FPSA15_SEP15 7,93
22
Appendix
Example of Daily Statement Report sent to the Client
CACEIS reports are available in English or French
Disclaimer
This non-contractual document has been sent by CACEIS Bank France (« the company »), authorized and
regulated as investment service provider by French Autorité des Marchés Financiers and Autorité de
Contrôle Prudentiel.
It is a promotional document that has not been elaborated accruing to the regulation on independent
research; hence this document does not constitute any investment recommendation or any financial advice
and must not be considered as an offer to buy or sell any financial instrument or product.
This document has been produced for the exclusive use of its addressees and to be circulated in France.
Any communication of this document to a third party must be first approved by the company. The
information and the views presented in this document are those of the authors cited.
They try to use as much as possible sources, assumptions and the most reliable valuation methods, which
are, however, no warranty, express or implied, as to accuracy, completeness and perfection. Also the views
were developed based on market conditions and levels which may vary at any time significantly. Investors
are therefore asked to self-evaluate risks that may be important in certain financial products and the
opportunity to invest. More generally, all the opinions and estimates contained in this document are from
judgments made at the time of publication and may be changed or discontinued without prior notice.
The Company assumes no liability whatsoever for any direct or indirect losses resulting from any use of
this document or its contents.