traiana: business & product overview/media/files/n/nex/reports-and-presentations/... ·...
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Traiana Background
• Market leader in post trade, pre-settlement
• FX, Exchange Traded Derivatives (ETDs), CFDs/Equity Swaps, and Cash Equities
• Averaging $1T processed daily, more than 2M messages per day
• Open to and partner with every market participant
– ECN platforms
– Prime Brokers
– Executing Banks
– Buy-side firms
• Low-cost, scalable, robust infrastructure
• 230 employees
– New York, Chicago, London, Tokyo, Hong Kong and Tel Aviv
• An independently operated ICAP Company
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Cost Reduction Drives Additional Growth in Tickets
3
Cash equities
Listed Derivatives
FX
Rates
FX Derivatives
Rates Derivatives
Credit Derivatives
Commodity Derivatives OTC Equity
Derivatives
R2 = 0.92
Post-trade enables
market growth
Lower cost drives
more volume
• 50% decrease in
average costs in
line with a 175%
increase in
volume
‘10 FXPB Market Larger Than Entire FX Market from ‘04
1.9
3.2
3.9
0.1
0.9
2.0
2004 2007 2010
FX Market
FXPB
Source: BIS, BCG
CAGR ‘07-’10
FX market 7%
FXPB 30%
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($T per Day)
End-to-End Post Trade Solutions
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• From manual to electronic
• From T+1 to real-time
• Over 900 Firms, 15,000 Connections
• 75+ banks, primes
• 10 banks on CLS Aggregation
• 18 liquidity providers/banks
• 25 retail brokers
• 8 prime brokers
• Real-time, Intraday Risk monitoring
• 27 Banks and PBs on CreditLink for Tri-party Limits, ECN limits
Exchanges/ECNs
Dealer-Dealer/Prime
Client-Dealer/Prime
Messaging, Matching
(Message Center)
Aggregation/ Netting
(NetLink, CLS JV)
Retail
Client
Interbank
Real-time Risk (CreditLink)
Designation Notices
ECN Limits/Killswitch
Tri-party limits
Clearing & Regulation
(CCP Connect)
SEF/MTF Limits
SDR
CCP Connectivity
• Delivering OTC trades to top clearing houses - LCH, CME, ICE, SGX, others
• Reporting to SDRs
Leading Banks and Brokers
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Diverse, Growing Network of Customers
• 60+ Top Banks, Prime Brokers, Clearers
• Over 900 Connected Firms/Funds across:
– FX
– Equities
– CFDs
– ETDs
• 15,000+ Trading Relationships (Connections)
– Banks serving clients, connecting to counterparties
– Hedge Funds, Asset managers, CTAs
Corporates, Tier 2 banks, etc.
• Partner to top HFT firms
• Connected to top fund administrators and ISVs
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AVERAGE DAILY VOLUMES: DEC 2008 – SEPT 2011
Traiana Harmony Growth
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7X volume growth in 3 years
1.5 to 2 million daily messages
Over 1 million daily trades ($700 billion to $1.6T each day)
CLS Aggregation: CLS/Traiana Joint Venture
• April 2009: JV with CLS formed
• Jan 2010: Service goes Live in 9
months
• Dec 2010: All 8 Founder Banks live
in less than 1 year
• 2 Additional banks join – Barclays,
Rabobank
• Processing 250,000+ trades per
day, with compression of 95%+
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Harmony NetLink
• Industry leading solution for client-side netting, used by 18 Banks and
Liquidity Providers
• Most major retail forex brokers (25 Retail Brokers)
• 30+ HFT clients, Top ECNs and Single Bank Platforms
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CreditLink ECN/Exchange KillSwitch Initiative
• Launched June 2010
• Supported by leading Prime
Brokers/Clearers
• Partnership with top ECNs
• Live with EBS, HotSpot, Bloomberg,
Currenex
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Impact of New Regulations in OTC
• US and European regulators mandating clearing and public reporting
for FX derivatives
• Traiana providing connectivity and automation to ease compliance
with these regulations
– Existing connectivity to FX market participants and trading venues
• Complexity of clearing processes and multiple clearing houses favors
a central connectivity service: Harmony CCP Connect
• Working with leading clearers and CCPs
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Growth in Additional Asset Classes
• Equities and Equity Derivatives
– Largest provider in Equity Swap/CFD market
– Over 60 equity Brokers, 11 swap counterparties
– Expanded to Buy-side, fueling additional growth
• Exchange Traded Derivatives (Listed Futures/Options)
– Signed 3 large Clearing Brokers in 2010/2011
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Scalable Business Model
• Focus on ‘Flow’ business which provides large market opportunity, high
transaction volume
• Drives costs lower through automation, enable growth by adding capacity and
reducing risk
• Participate in savings and growth with per-message and subscription revenue
models
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Connect Market
Participants Automate the Flow
Value-added
Services
• Automate internal operations and client servicing
• Trade processing, matching, risk management, margining
• Subscription and software-as-a-service solutions
• Connect market participants in end-to-end post-trade
• Automate Bank-to-client, bank-to-bank flows
• Per-message pricing model with tiered fees, minimum commitments
• Add value with services for credit, clearing, aggregation, compliance
• Enables more volume growth, reduces risk
• Enhances per-message fees and adds subscription revenue
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These materials do not constitute an offer to sell or the solicitation of an offer to
purchase any security. These materials contain "forward-looking statements" as
defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements
are based on current Company expectations and are subject to risks and uncertainties,
which could cause actual results to differ materially. Such risks and uncertainties
include, but are not limited to: fluctuations in interest rates and foreign currency
exchange rates; market acceptance of new trading technologies; global and regional
economic conditions and legislative, regulatory and political developments; and
domestic and international competition in the Company's global markets. Additional
information regarding these and other factors is available in the Company's
reports available on request from the Company.
............................................................................................................................................
This document may not be distributed where to do so would be unlawful. This
document may not be distributed in the UK except to persons falling within article 19 of
the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001.