LAND Partnership The Leonteq Avaloq Numerix DBS (LAND) Platform

Transcription

1 Structured Product Distribution Solutions Agile and scalable solutions helping structured product issuers and clients trade efficiently and compliantly LAND Partnership The Avaloq Numerix DBS (LAND) Platform Erdem Ozgul Managing Director, Numerix June 2015

2 Actual Situation Lacking Efficiency on the Derivatives Market Market Participants struggle with Challenges Lack of pre trade CRM and market analytics Breadth and scale of products available in the market Numerous counterparties utilizing different modes of communication Increased time to market Complexity of integrating post trade processing into existing banking infrastructure Lack of post trade life cycle management, event management and reporting functions Consequences Lowered customer satisfaction Reduced re, cross, and up selling potential Lack of proper tools to analyze and decompose risk of increasingly complex structured products Lack of clarity on optimal product for a given client profile Potential risk of mis selling Manual process for price aggregation and trade execution results in inefficiencies Potential for human error resulting in reputational risk and/or monetary loss Loss of market share Lack of straight through processing (STP) results in potential bottlenecks in the post trade workflow Lack of scalability drives cost income ratio higher Lowered customer satisfaction

3 Our Objectives Creation of a Seamless Front to Back System to enable Partners to focus on their Clients Technology Enabler Ability to perform real time market analytics, CRM analytics and product optimization to give smarter investment advice Staff Empowerment Ability to perform real time product structuring, RFQ and trade placement on the fly to reduce time to market Single Unified Ecosystem Bringing together disparate players to create a thriving and vibrant marketplace for the buyand sell sides Customizability Easily customizable user interface to meet the individual bespoke needs of different players Scalability Reinvent the trade lifecycle workflow using technology and automation to increase scalability for both the buy and sell side

4 Best of Breed Partnership A Partnership of Equals with each Partner Contributing Individual Expertise to Solve an Industry Problem Technology and financial service partner with leading position in structured investment products in Switzerland Offices in Zurich, Geneva,Monaco,Guernsey,Frankfurt,Paris, London, Singapore, Hong Kong Covers entire structured investment services value chain: structuring to pricing, documentation, issuance, listing, settlement, risk management, market making, life cycle management and distribution Leading independent analytics institution providing cross asset solutions for structuring, pre trade price discovery, trade capture, valuation and portfolio management of derivatives and structured products Over 700 clients across more than 26 countries 20 Offices in Americas, Asia and Europe One of the largest financial services group in Asia Over 250 branches across 17 markets Headquartered and listed in Singapore Capital position among the highest in Asia Pacific ( AA and Aa2 rating) Full range of services in consumer, SME and corporate banking activities An international leader in integrated and comprehensive system solutions for wealth management, universal and retail banks Investing more in R&D than any other provider for the financial industry Reputation for the highest standards and achieved a unique 100% success rate in its implementation of banking solutions 1,800 employees serve more than 140 financial institutions in over 20 countries

5 Best of Breed Partnership A Partnership of Equals with each Partner Contributing Individual Expertise to Solve an Industry Problem Technology Partner Structured Product Distributor Technology Partner Business and Market Know how Anchor Buy and Sell Side User Technology Partner

6 Our Solution One Stop Shop Service to all Market Participants s Integrated Technology and Service Platform Automation of key processes in the pre and post trade value chain Numerix Connector to Avaloq Banking Suites Pre trade client suitability checks and post trade straight through processing (STP) LAND Platform A smart, fully integrated front toend platform LAND Multi lssuer Platform Price discovery and order fulfilment of vanilla and bespoke structured products across multiple asset classes Web based Multi User Solution with Secure 2FA login Real time analytics, structuring, pricing and dealing capabilities Numerix s Cross Asset Quantitative Engine Real time pre and post trade CRM analytics, RFQ price aggregation and order fulfilment s Smart Data Analytics Suite Data capture/analysis, underlying optimizer, product heat map and post trade analysis

7 Our Solution A Walk Through of the LAND Trade Lifecycle Lifecycle of Trade Market Analytics Client Suitability Pre Trade Document Market Access & Execution Post Trade Document Post Trade Processing Post Trade Analytics Post Trade Lifecycle Management Smart Data Analytics Product Heat Map & Underlying Optimizer Matrix Pricing Engine Numerix/ Avaloq CRM Analytics Suite for Pre Trade Portfolio Analytics and Client Product Suitability Checks Product Factsheet Constructor Product Overview Constructor LAND RFQ Engine LAND RFQ Aggregation Engine LAND Order Fulfilment Engine Product Termsheet Generator Product Overview Generator Numerix/ Avaloq Connector for Post Trade Straight Through Processing Numerix/ Avaloq CRM Analytics Suite for Post Trade Portfolio Rebalancing and Asset Reallocation Post Trade Analytics and Automated Event Management

8 Advantages for Buy and Sell Side A Multi Issuer Platform with Smart Data Analytics, Optimization Tools and Seamless Integrated Business Processes Sell Side Advantages Access to numerous buy side counterparties Compatible with existing sellside infrastructure Cost effective and scalable Buy Side Advantages One stop shop service Multi issuer platform with access to numerous products and counterparties Access to smart analytics and optimization tools RFQ engine (with order fulfilment capability) to collate and sort huge amount of data High degree of automation compatible with existing infrastructure Cost effective and scalable

9 Advantages for Buy and Sell Side Synergy in a Thriving, Vibrant Marketplace Cross Side Effects Same side Network Effects: More competitors attract more issuers/buyers on the other side, leading overall to a positive effect. Same Side Effects Sell Side LAND Platform Buy Side Same Side Effects Unique Selling Point of the LAND Platform: Not only a Marketplace but also a transformational tool and a technology enabler to future proof your business Cross Side Effects Cross side Network Effects: Increase in usage on the other side increases own sides utility due to larger selection of counterparties and products.

10 Services Catalogue 4 core services made available on the LAND Platform The whole expertise of

11 Start Your Engine Further planed functionalities & Solution Adapter The LAND Platform will provide Further Functionalities in Future Extension of the adapter to other existing banking software solutions (post trade STP for both the buy and sell side) Extension to other financial instruments Extension to interbank OTC transactions Ongoing optimization of user interface and customizability Smart volume aggregator Smart data initiative Big data storage and analysis

12 Structured Product Distribution Solutions Agile and scalable solutions helping structured product issuers and clients trade efficiently and compliantly Thank You Copyright 2014 Numerix LLC. All rights reserved. Numerix, the Numerix logo, and CrossAsset are