Harmony CFD/Equity Swaps Providing CFD/equity swap participants with automated post-trade processing for give-ups, allocations and clearing with increased visibility and control of the workflow

Traiana Harmony CFD/Equity Swaps www.traiana.com

Traiana’s Harmony CFD/Equity Swaps is the market standard post-trade processing solution currently employed by all major swap counterparties and more than 85 executing brokers.

The solution reduces the cost and complexity of post-trade processing for the CFD/equity swaps market by providing a central, automated and secure electronic messaging service to buy and sell side firms, outsourcers, trade repositories and CCPs.

Harmony minimizes trade breaks by reducing a firms’ reliance on high-risk and error-prone manual processing. Enabling STP for allocations, confirmations, netting, reporting and analytics, the solution increases visibility into firms’ post-trade workflow, providing a clearer picture into their exposure on T+0. Give-ups are locked in sooner, freeing up valuable resources and reducing commercial uncertainty. Harmony’s T+0 affirmation enables the market to meet the regulatory demands of T+2 settlement.

Complimenting Traiana’s established presence across North America and EMEA, the firm’s expansion into APAC ensures that Harmony is able to provide global coverage that follows the sun. Available via the web, the solution is fast and simple to deploy, so new users can quickly realize immediate and tangible business benefits.

Buy-Side Firms

A majority of buy-side firms have diversified their business across several swap providers, significantly complicating workflow by increasing the number of counterparties involved in the post-trade process. Regulators and counterparties alike are calling for more transparency, while at the same time shareholders want cost and process efficiencies to ensure maximum profit.

Harmony CFD/Equity Swaps can help the buy-side:

• Enhance Management Control: End-to-endvisibility into each trade across all swapcounterparties ensures that firms no longerhave to work blind and can control overall riskexposure on trade-date

• Swap Reconciliation: Swap Center enablesbuy-side firms to have daily reconciliation oftheir portfolio and Total Return Swaps acrossall of their Swap Providers

• Comply with Regulatory Requirements: Keepsfirms compliant and future-proofed againstEMIR, Dodd-Frank, ASIC, CSRC, SFC, SEBI andMAS requirements for trade reporting, centralclearing and T+2 settlement

• Lower Risk and Cost: Real-time, trade-by-tradereconciliation delivered via a single, automatedsystem ensures better use of resources. Afirm’s trading position is visible, increasingthe window to trade more with the financialresources available

• Improve Operational Efficiency and ReduceOperational Risk: Streamlined STP of thegive-up counterparty allocation eliminates therisk of trade offers being directed to theincorrect swap counterparty

• MIS: real-time visibility into counterpartyefficiency

• Ability to focus on exceptions on trade-date

Working in Harmony

www.traiana.com Traiana Harmony CFD/Equity Swaps

Swap Counterparties

Clients are demanding more from their trading partners. An effective post-trade STP service that increases operational efficiency while reducing risk is essential for providing top-quality customer service. However, rolling out a comprehensive post-trade process can be vexing for firms with a large and diverse client base. Different clients with a myriad of systems create a complex web of system dependencies that can cause operational challenges and be expensive to manage.

Harmony CFD/Equity Swaps can help swap counterparties:

• Improve Client Servicing: Automatic detectionof errors and breaks by centrally matchingclient allocations with alleged swaps so anyissues can be fixed immediately

• Real-time trade status and reconciliation,including financing and confirmationdata

• Enables positive legal confirmations rather then negative affirmation

• Consolidation of Give-ups: Provides swap counterparties with direct access to the executing brokers community, normalizing give-up data and providing a real-time feed of give-up activity on T+0

• Meet Regulatory Requirements: Keepscounterparties compliant and future-proofedagainst EMIR, Dodd-Frank, ASIC, CSRC,SFC, SEBI and MAS requirements for tradereporting, central clearing and T+2 settlement

Executing Brokers

Varied and inconsistent communication between the buy side, swap counterparties and executing brokers presents a challenge for all parties. Executing brokers can use Harmony CFD/Equity Swaps to input messages from their order management system (OMS), or other internal system, directly into the Harmony environment, improving efficiency and their ability to service clients.

Harmony CFD/Equity Swaps can help executing brokers:

• Improve Efficiency: A consistent methodof communication means that traders arefreed-up from manually re-entering trades,significantly reducing the risk and cost oferrors in data entry. This eliminates thecomplexity of handling a wide variety ofinformation sources, such as faxes, emailsand spreadsheets

• Fidessa users can benefit from a directlink into Harmony, reducing any ITinfrastructure costs

• Improve Client Servicing: Automating thegive up process increases visibility and controlfor clients and enables firms to benefit fromfinality of trade capture on trade-date

• CCP Netting: Enables hedged equitytransactions, from executing broker to swapprovider, to be matched in Harmony anddirected to a CCP of choice. It is estimatedthat netting will reduce the number of equitytrades needing bilateral settlement by30-50%, delivering significant cost savings

Harmony CFD/Equity Swaps

Traiana Harmony CFD/Equity Swaps www.traiana.com

Traiana Harmony CFD/Equity Swaps

Quick to Deploy

Traiana’s unrivaled expertise comes through years providing hosted software solutions to buy and sell- side firms, managing the day-to-day operations of the financial markets. Leveraging this knowledge, we help our customers address their post-execution challenges in practical and effective ways, ensuring high speed-to-value and high speed-to-market.

Harmony

Buy-side Firms

Swaps Counterparty

Trade Rep

ositories

Executing Brokers UTI/USI management

and connectivity to TRs across jurisdictions

STP of allocations from buyside systems directly

to swap providers

Real-time matching of trades

Traiana’s cloud-based, Software-as-a-Service model ensures flexible product roll out with minimal IT cost. The Harmony network eliminates the need for bespoke IT projects when adding/changing counterparties or clearing relationships by providing one pipe to the entire street, with a single dashboard.

New users can quickly connect to a network of over 500 major prime brokers, executing banks, clearing brokers, retail platforms, buy-side firms and execution venues. The solution is inherently scalable, supporting a wide range of messaging formats including FIX, FpML, CSV and Bloomberg messages.

Real-time visibility into give-up activity

www.traiana.com Traiana Harmony CFD/Equity Swaps

Traiana Harmony CFD/Equity Swaps

Transformation & Mapping

ExecutionAllocation & Clearing

ConfirmationsCredit/Risk Monitoring

Regulation

File Formats & Messaging

MatchingExecuted Price

AllocationMatching

Pre-Trade Credit

Central Clearing

Account, Broker Mapping

STP FeedsAverage Price

AllocationsSTP Feeds

Post-Trade Credit

Trade Reporting

SymbologyException

ManagementBest Fit

AllocationException

ManagementTrade Flow

MonitorTrade

Certainty

CROSS ASSET FX, ETDs, Synthetic and Cash Equity, Fixed Income, CDS, IRS

EB Allocations/Block Give Up

Client Allocations

Allocations Confirmation

Reporting/Clearing

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PRIME BROKERS, TRADE REPOSITORY, CCP

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Traiana Harmony CFD/Equity Swaps www.traiana.com

EMIR

The European Market Infrastructure Regulation (EMIR) has updated trade reporting requirements across asset classes, obliging participants to a trade to submit common and counterparty data, Unique Trade Identifiers (UTIs), Legal Entity Identifiers (LEIs) and Unique Product Identifiers (UPIs) to one or several trade repositories. This sits within a context of regulators across jurisdictions issuing new requirements including FinfraG, Dodd-Frank, ASIC, CSRC, SFC, SEBI and MAS.

As the regulatory landscape continues to challenge participants, adopting solutions which will not only help them to comply, but to thrive, must be a priority for firms and institutions.

TR Connect

Harmony CFD/Equity Swaps fully integrates with Traiana TR Connect, the industry’s leading trade reporting solution. TR Connect automates UTI sharing, generation and management across all trading paradigms, enriching reports with static LEI/UPI/trade detail data for single-sided, UTI publishing and delegated reporting models.

Pre-reporting Matching

Matching timeframes have been compressed as regulators push for greater standardization in post-trade processing. Harmony CFD/Equity Swaps’ STP matching workflow enables firms to settle and report in a timely fashion by driving trade-date matching.

Swap Clearing

Central clearing for derivatives is a cornerstone of many recently introduced/upcoming global regulations. Harmony CFD/Equity Swaps enables hedged equity transactions from executing broker to swap provider to be matched in Harmony and directed to the CCP of choice.

T+2

As the Eurozone moves closer to adopting CSD-R’s recommended T+2 settlement cycles across asset classes, Harmony CFD/Equity Swaps’ STP workflows will enable firms to meet this tightened deadline and avoid costly buy-in penalties.

www.traiana.com Traiana Harmony CFD/Equity Swaps

The Market Leader in Client Service and Post-Execution Processing

Founded in 2000, Traiana is the market leader for electronically processing over-the-counter foreign exchange, exchange traded derivatives, cash equities and CFD equity swap trades.

The firm’s flagship offering, Harmony, connects over 500 major prime brokers, executing banks, clearing brokers, retail platforms, buy-side firms and execution venues. With a single point of connection, firms are connected to all trading relationships significantly reducing the complexity of these relationships, increasing operational efficiency, and reducing the risk and cost associated with maintaining multiple connections.

Professional ServicesTraiana’s professional services team, consisting of project management, integration and customer support, has helped many of the world’s leading financial institutions realize their post-execution goals. The team leverages years of collective experience to maximize the value of the customers’ investment in their automated post-execution solutions.

Traiana’s project management and integration teams are responsible for the delivery of complex projects to clients, and have a proven track record of successfully on-boarding and training customers, on time and within budget. The team’s streamlined approach employs standards-based and proprietary protocols to connect to major front- and back-office systems. This ensures high-touch, low-cost and efficient service delivery, using preferred technical standards and integration tools.

The Traiana customer support team consists of experienced application experts who are available 24/6 to support the technical, transactional and functional needs of customers. The team is proven at diagnosing and resolving issues quickly, as well as helping clients make fully informed, proactive and timely decisions in managing their post-execution operations.

For more information visit: www.traiana.com or email: info@traiana.com

Americas

Traiana 11 West 42nd Street, 8th Floor New York, 10036

Tel: +1 646 536 4999

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Traiana

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Hong Kong

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Traiana

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Tokyo 100-0006

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www.traiana.com

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