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2013 SURVEY RESULTS WEBINAR

Start Time: June 27th, 2013 11:00 A.M. EST

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Presenter: Matthew Streeter, CFAProduct Marketing Manager at FINCAD

->10+ years of finance industry experience

-> Work experience at buy-side & sell-side institutions.

-> Structuring & quantitative product development, Trade execution, Risk measurement, P&L attribution.

 m.streeter@fincad.com

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Agenda

FINCAD’s Survey Methodology

Derivatives Market Trends

Pricing & Risk Business Requirements

Technology Initiatives & Spending

Q & A

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FINCAD’S SURVEY METHODOLOGY

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404 buy-side firms represented

Asset Managers (47%) Other responded firms:

Hedge funds Fund administrators Pensions Insurance

Respondents were from a global pool

FINCAD’s Buy-Side Analysis

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667 sell-side firms were represented in survey

Two largest segments: Commercial banks Investment banks

Other responders: Broker-dealers Private banks Regional banks

FINCAD’s Sell-Side Analysis

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SELL-SIDE & BUY-SIDE OTC DERIVATIVES TRENDS

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Sell-Side Buy-Side

Sell-Side & Buy-Side OTC Derivatives Trends

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Detail into OTC Derivatives Reduced Usage

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Biggest Sell-Side Challenge: Regulatory Compliance & Independent Valuation

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Biggest Sell-Side Challenge: Regulatory Requirements

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A Look at Evolving Buy-Side Risk Requirements

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Global Framework of Regulatory Compliance

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A Look at EvolvingSell-Side Risk Requirements

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A Look at Evolving Sell-Side Risk Requirements

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A Look at Evolving Buy-Side Risk Requirements

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A Look at Evolving Buy-Side Risk Requirements

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A Look at Evolving Buy-Side Risk Requirements

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TOP 6 SYSTEM RISK SYSTEM IMPLEMENTATION REQUIREMENTS

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Technology Spending Trends

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Technology Spending Trends

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Today’s takeaways

Projected Derivatives usage: Projected increase in derivatives strategies for return generation & risk management.

Potential volume increase in centrally cleared instruments as trading alternatives.

Pricing & risk related trends: focus on regulatory compliance, more effective risk management, and improved independent valuation capabilities.

Technology spending: Projected to increase since last year. The majority of these projects are related to risk & pricing systems.

Pricing & Risk Solution capabilities: Required to be a fully transparent & documented tool that is easy to implement.