FX Electronic Trading

Transcription

1 Deutsche Bank Foreign Exchange FX Electronic Trading

2 2 About Autobahn Since 1996, Autobahn has been connecting clients to Deutsche Bank s innovative Capital Markets products and services. Having started life as an execution tool, the new Autobahn now offers an integrated experience, and provides electronic access to Deutsche Bank s wealth of sales, trading and research know-how as well as seamless access to all of our transaction banking services. Autobahn is a simple, intuitive and consistent way for users to: Gain unparalleled access to markets and liquidity Electronically trade across multiple asset classes: Foreign Exchange, Fixed Income, Equities, Commodities, Credit, Rates and Emerging Markets Intuitively access Deutsche Bank s powerful analytics and published content 24/7 access to all of your transaction banking services, independent of physical location New in 2011: The App Market available via multiple access points

3 3 Contents Electronic FX Trading on Autobahn 4 Why Autobahn? 4 Key Features 4 Inside Autobahn 6 FX Spot, Forwards and Swaps 6 FX Fast Orders 6 FX Request for Stream 7 FX Order Book 7 FX Trade Blotter 7 Precious Metals 8 FX Indices 8 EFP Offering 8 Foreign Exchange Algos on Autobahn 9 Foreign Exchange Options on Autobahn 10 Foreign Exchange Structured Deposits 12 Why Deutsche Bank? 12 Products 12 Potential Users 12 Streaming Prices on Application Programmable Interfaces (API) 13 API: How it Works 13 Foreign Exchange Prime Brokerage 14 Autobahn - your electronic link to the world s biggest FX trading machine

4 4 Electronic FX Trading on Autobahn Autobahn is Deutsche Bank s award-winning electronic distribution service offering access to our FX trading capabilities. Designed by FX experts and leveraging off Deutsche Bank s ecommerce knowledge, it provides easy-to-use trading functionality, state-of-the-art order functionality in cash and options, complemented with dynamically priced executable streaming prices customised to suit each client s requirements. In a world where the ability to offer truly deep liquidity is paramount to clients, Autobahn sets itself apart from its peers by tapping into its vast internal and external franchise. In today s world, the dynamics of the markets can change very quickly. The ability to develop timely market-leading solutions for our clients is crucial. Autobahn rises head and shoulders above its competitors by continually delivering revolutionary products and functionality. Why Autobahn? Quick and easy access to dedicated market liquidity Competitive and reliable prices in over 200 currency pairs and precious metals Streaming Pricing on Options as well as Spot, Outrights and Swaps 24-hour availability 6 days a week: you can trade even when your local market is closed Ability to trade inside the spread with Fast Orders Dedicated 24-hour client support team: contactable by chat, and telephone Ability to handle Straight through Processing (STP) Application Programmable Interfaces (API): deliver streaming prices 24 hours a day Possibility to connect via 3rd party portals Access to sophisticated execution tools via FX Algos Key Features Dynamic Pricing on Spot: prices adjust according to size of trade Commission-free dealing Customisable algorithmic execution on full range of currency pairs Single or Double click trading available Exceptional range of Non-Deliverable Forwards (NDFs) available Customisable Trade and Expiry Blotters Post trade operations available on demand: aggregation, rolls, and allocation and SMS Notifications can be sent to multiple destinations for all trade and order types Exchange for Physical (EFP) pricing available for wide selection of currency pairs and precious metals Wide range of structured investments available, such as DCIs FX indices available in a selection of currencies and baskets Autobahn - powerful FX insight and execution

5 5 World s No 1 FX House Deutsche Bank is the world s leading foreign exchange service provider. We ranked No 1 in the Euromoney FX industry poll every year for the past six years. Deutsche Bank makes markets in more FX contracts than any other firm. We have the largest trading book in the FX market. Deutsche Bank is a top-rated provider of FX Prime Broking services. We are a market leader in Non-Deliverable Forwards which allow clients to take a view on emerging market currencies with trading restrictions. Foreign Exchange Trading on Autobahn Outrights Autobahn Foreign Exchange Spot FX Indices Autobahn Swaps Structured Products Euromoney, FX Poll 2011 No 1 Overall with 15.64% market share No 1 in Western Europe, North America, Asia, Australasia & Japan No 1 E-Trading (Proprietary Platforms) by market share No 1 Options Profit and Loss, Digital FX Awards 2011 Foreign Exchange on Autobahn awarded Best Prime Services Best Emerging Markets Platform Best Leveraged Sector Platform FX Week, e-fx Awards 2010 Foreign Exchange on Autobahn awarded e-fx Initiative of the Year (Bank) Best Liquidity Outsourcing Service Profit and Loss, Autobahn Digital FX Markets Foreign Awards Exchange Foreign Exchange on Autobahn awarded Best Options Platform for Hedge Funds 2009 & 2010 Global Finance World s Best FX Banks Awards World s Precious Best Metals FX Bank, Best FX Research - Strategy / Hedging Best FX Bank Western Europe Swaps Structured Products Foreign Excha Indices Non- Deliverable Forwards Precious Metals Spot Outrights Options Non-Deliverable Forwards

6 6 Inside Autobahn FX Spot, Forwards & Swaps Streaming, dealable prices for Spot, Outrights and Swap trades are displayed on dedicated liquidity windows (LW). The Spot LW allows you to display a ladder of prices. Users can define the amounts on the rungs of the ladders based on their unique trading requirements, speeding up the trade execution process. The Spot LW also allows you to change the value date to execute to an Outright date. The Spot rate and the Swap points are displayed but upon execution an Outright is confirmed. Example: To sell 10M from the ladder, double click on this rate. Spot Liquidity Window with Ladders Spot and Swap Liquidity Windows FX Fast Orders An exciting feature allowing clients to submit and cancel Take Profit orders directly from Spot LW. Use just three clicks to leave at market orders. Fast Orders execution has been enhanced with the introduction of Inside Fill. This feature allows our client s Fast Orders to be filled without always having to cross the spread. By matching mutual interest, our customers benefit from quicker fills without the market having to touch that level. Spot Liquidity Window with Fast Orders

7 7 FX Request for Stream User defined Swap LW and Outright LW are also available. With our Request For Stream (RFS) function, get streaming rates for larger amounts, uneven swaps or odd-dated outrights or swaps. Just double click to execute the trades. Request for Stream FX Order Book Autobahn has a fully integrated order book which allows you to manage and execute a wide variety of orders. The easy-to-use order entry screen allows you to enter the following order types: SL, TP, IFDSMP, OCO, OT, LOOP, DLOOP or IFDOCO. Orders can be executed automatically against the Deutsche Bank price feed or manually by the Deutsche Bank traders. The Order Monitor shows all orders in a sortable table, using colours to enable quick distinction among order types. Autobahn also has the ability to upload orders directly from an excel file of a predefined format. FX Trade Blotter Autobahn offers two trade blotters for Spot, Outright, Swap and Option transactions: Today s and Trade History. It also offers a dedicated Expiry blotter for Option trades. The Trade History blotter allows you to view historical transactions based on your specific criteria, with an easyto-use filter functionality. Trade blotters can be printed or exported to excel. Trade Blotter

8 8 Precious Metals Autobahn also offers pricing on a select group of precious metals. EFP pricing available on XAU, XAG, XPT and XPD Gold XAUUSD * XAUAUD * XAUEUR * XAUGBP * XAUJPY * Silver XAGUSD * XAGJPY Platinum Palladium XPTUSD XPDUSD *includes outright and swap pricing. FX Indices Trade Weighted FX Indices (FXI): USDFXI CHFFXI EURFXI AUDFXI GBPFXI NZDFXI JPYFXI CADFXI NOKFXI SEKFXI Also available on demand are: ASEFXI Basket of Asian currencies versus Euro ASUFXI Basket of Asian currencies versus US Dollar DXYFXI Exchange traded USD Index given up to the ICE The Indices are traded on a non delivery basis to the IMM dates. EFP Offering Deutsche Bank now offers a wide range of EFP currency pairs (Exchange for Physical) both on Autobahn and over our API. Autobahn clients benefit from their own dedicated source of liquidity 24 hours a day and are able to clear their currencies via a synthetic futures contract over the CME or FINEX. EFP - Currency Futures

9 9 Foreign Exchange Algo on Autobahn Foreign Exchange Algo allows you to control the slicing, timing and fills of large orders with much greater precision and transparency than was possible before. You can now decide in advance exactly how large orders will be executed: in what size and frequency and at what spreads. You can also see, second by second, how your order is progressing and can stop, pause or amend strategies at the click of a button if market pricing becomes unfavourable at any point during execution. Foreign Exchange Algo is one of most advanced products of its kind produced by Deutsche Bank, offering many unique features accessed via an easy to use order input system. How does it work? We currently offer three execution strategies: Limit Order+, Slicer and Limit Order Slicer. Each strategy can be customised to suit your own personal needs and can be saved using a handy template function. Algo Trading Monitor instantly shows you any order execution with the rate and time of the fill. It also shows the average rate achieved and the amount executed in real and percentage terms. You can Deutsche also pause, Bank amend or stop the strategy instantly at any time. notifications and SMS Tradable prices messages can be received notifying when a strategy begins and ends, or if it is paused or amended at any time. Limit Order+ is designed for clients who want to Client achieve a particular price on their trades with a chance of improvement in price. Key features External Black Box Clients Calculations You select Internal your price Payment limit You can select Clients start Engines and end times You can impose a minimum size for any fill Any price improvements achieved will be passed on Full Flexibility Prices Prices Prices Prices Full Transparency Limit Order+ Limit Order Slicer Slicer Algo Cost Control Slicer is designed for clients who want to get the best possible price with minimal market impact. By splitting the orders up into a number of much smaller orders, and then drip-feeding them into the market, you can reduce the impact the whole order has on the market. Key features You select the clip size You decide the frequency of the trades You can impose a limit price on any execution You can impose a maximum spread at which orders will execute You can select start and end times You can impose a price level at which the strategy will start LOGOMARK TRI 1 Deutsche Blue Limit Order Slicer allows you to trade using a Slicer but with the added ability to 072C leave C100 orders M80 Y0 K10 during PROCESS BLUE C the execution period to capitalise on any favourable market moves. Key features You select the clip size You decide the frequency of the trades You can select start and end times At each time interval an order is placed which is relative to the current price. The order can be placed at mid, bid/ ask or customised to your Deutsche needs Blue Dark Blue Bright Blue PMS 072C PMS 289C PMS 2925C If an order has not been filled within its own time interval C100 C100 C85 the algo will go to market M80 to complete M76 it M21 Y0 Y12 Y0 A limit price can be set K10 for the whole K68 strategyk0 80% 80% TRI 2 C100 M13 Y1 K2 Mid Grey PMS 7544C C34 M14 Y11 K32 80% 60% 60% 60% Time Efficiency 40% 40% 40% 20% 20% 20%

10 10 Foreign Exchange Options on Autobahn Options can be traded via a dedicated Option Streaming Window within Foreign Exchange. Foreign Exchange prices a wide range of options contracts including Calls, Puts, Strangles, Straddles, Risk Reversals and Calendar Spreads. Customers are able to customise their screens so that they can view, execute and report option trades exactly the way they want to. Clients are able to have their foreign exchange option trades feed directly into their systems using our STP solutions. Portfolio Pricing Panel allows you to price and trade multiple exotic products with multi-leg capabilities for client structured transactions. Clients can share templates amongst other Autobahn users which enhances trade generation and idea sharing. Request for Stream functionality is available for larger notionals. Users can receive option trade confirmations by as well as via other communication channels. The Option Expiration Management Tool allows users to view any options booked with expiries in any date range of their choice. Users can exercise or cancel any long option contracts online. Clients can choose the spot rate at which they hedge their option trades, as well as the size of the hedge. Clients can view price unit in terms of Volatility, Premium, Pips or % Price, depending on their preference. Clients can specify the currency the premium is paid in eg: choose a USD premium for a EURJPY Option. Foreign Exchange has the ability to offer Cash Settled Options. Clients can save Options strategies using the Option calculator/ Execution window. The Options Streaming Volatility Grid allows clients to view customised, tradeable volatility surfaces. Autobahn has the ability to place orders on vanilla option strategies. Options Fast Orders provides an innovative and interactive way for clients and banks to deal with each other in an electronic market. Now with Option Fast Orders, clients can keep their options interest or views active and work it through Autobahn using orders. Clients manage their risk smarter and more efficient by having Deutsche Bank watch the orders and manage the risk electronically. Streaming Volatility Grid

11 11 Maximum deal size available for streaming price CCY Pair Selector Option Strategy Selector Notional amount can be specified in either base or quoted currency Option Expiry Date or Tenor Choose zone cut off option Strike can be specified as rate or delta (eg. 25D) User can select the display unit at the bottom of the screen Choose the currency in which option premium will be paid Choose the hedge type for the requested option (Spot, Outright, Live No Hedge) Status window shows errors, warnings and information messages related to this quote Cancel / Price button starts / stops streaming price Bid / Offer buttons used to leave Limit Orders based on Premium, Pips or % Price To be the best, one has to maintain a level of excellence. Over the years, Deutsche Bank has achieved this and the result is an e-fx offering that just gets stronger every year. Profit & Loss, 2009

12 12 Foreign Exchange Structured Deposits A dual currency investment (DCI) is a short-term, fixed rate money market deposit that offers higher returns than are available on plain vanilla deposits in exchange for investors accepting the risk that the principal might be repaid in a different currency. Clients can now trade these FX structured deposits and its variations on the Foreign Exchange platform. Deutsche Bank provides ready-to-use indicative term sheets for clients to deliver to their own customers as well as a range of other pricing and marketing tools. Why Deutsche Bank? Wide Range of Currency Pairs - Clients can trade dual currency products on 50 different currency pairs including EUR/USD, AUD/USD, NZD/USD, USD/MXN and XAU/USD. Competitive Pricing - The size and risk appetite of our global FX trading engine means we can offer exceptionally competitive pricing on all our structured products. Flexible - Clients can obtain prices on DCIs simply by entering a currency pair and the yield they wish to achieve, or by keying in FX rates they are comfortable with. Reliability - Foreign Exchange is renowned for being one of the most reliable on-line trading systems in the industry. Products Deposit Plus Range Bonus Deposit Range Bonus Plus American KI DCI American KO DCI European KI DCI American KI Deposit Plus American KO Deposit Plus European KI Deposit Plus Potential Users Institutional investors, retail investors and corporations looking for yield enhanced investment products. Institutions (corporate and financial) which are happy to have cash in a second currency other than their home or base currency because they have operations or suppliers in the relevant country. Investors looking to express a view on a particular currency pair via a money market product. Individuals who operate in multiple currencies. DCI Grid The DCI grid allows clients to customise and view different combinations to better suit their requirements

13 13 Streaming Prices on Application Programmable Interfaces (API) Deutsche Bank s API can be integrated into a wide variety of applications such as external client facing solutions, internal platforms, proprietary algorithms and corporate hedging engines. The streaming prices API solution is used by banks to deliver streaming prices to their clients, by hedge funds to ensure efficient execution, by intermediaries to redistribute FX prices to retail clients and by corporates to convert foreign currency cash flows. Deutsche Bank s API is available for Spot, Outrights and Swap pricing as well as a range of market orders and different styles of execution. Deutsche Bank s API allows clients to subscribe for and receive live, streaming tradable FX prices which can be used in the customers own application. The API enables clients to bring cost-effective currency pricing and a deep pool of liquidity to a wide spectrum of business models. Deutsche Bank s experienced technical team coordinates the API Integration. Our API is available in Java and FIX Connectivity, over the Internet or a VPN line. A wide range of STP solutions are on hand to suit any client s needs. API: How it Works Deutsche Bank Tradable prices le Prices Client Prices External Clients Prices Prices Black Box Calculations Black Box Calculations Internal Clients Payment Engines

14 14 Foreign Exchange Prime Brokerage Foreign Exchange Prime Brokerage provides our clients with a facility to deal in the foreign exchange markets in a highly efficient, thus low-cost, manner. If you are looking for access to multi-bank liquidity, while gaining efficiencies from reduced legal negotiations, credit exposure and operational consolidation, then Foreign Exchange Prime Brokerage is for you. Choice in Execution: Essential for the Best Prices and Liquidity Clients are able to deal in the FX marketplace with their choice of Banks or electronic venues using Deutsche Bank credit lines. Deutsche Bank acts as the clearer and outsourced back office for all FX Spot, Forward, NDF, Option and Bullion trades. are given up to Deutsche Bank who assumes the credit risk to both the client and the counterparty Bank. Operational Support: Global Coverage Around the Clock Dedicated relationship managers man Deutsche Bank FX Prime Brokerage support desks in London, New York, Tokyo and Singapore. Our website provides you, your operations team and administrator with real time exception based trade matching and comprehensive post trade reporting. Confidentiality of positions is paramount and policed through system controls, operational segregation, and senior management. Market Leadership: Leading the Way Through Innovation Deutsche Bank s range of Prime Brokerage solutions is extensive. Deutsche Bank was the first FX Prime Broker to create a specific system for straight through trade matching and allocation. We are the first to offer straight through processing and averaging solutions across electronic platforms. Deutsche Bank will work with you to optimise your trade and operational work flows.

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16 Deutsche Bank Foreign Exchange Further Information To find out more about our electronic FX products and services, please contact your Deutsche Bank salesperson or relationship manager. Frankfurt: London: New York: Brazil: Paris: Singapore: Sydney: Tokyo: Zurich: Web: autobahn.fx@db.com AWARDS Source: Euromoney, FX Poll, May 2011 Profit & Loss, Digital FX Awards, April 2011 FX Week, e-fx Awards 2010 Profit & Loss, Digital FX Markets Awards, 2009 & 2010 Global Finance Awards Marketing Material. This document is intended for discussion purposes only and does not create any legally binding obligations on the part of Deutsche Bank AG and/or its affiliates ( DB ). Without limitation, this document does not constitute an offer, an invitation to offer or a recommendation to enter into any transaction. When making an investment decision, you should rely solely on the final documentation relating to the transaction and not the summary contained herein. DB is not acting as your financial adviser or in any other fiduciary capacity with respect to this proposed transaction. The transaction(s) or products(s) mentioned herein may not be appropriate for all investors and before entering into any transaction you should take steps to ensure that you fully understand the transaction and have made an independent assessment of the appropriateness of the transaction in the light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction. For general information regarding the nature and risks of the proposed transaction and types of financial instruments please go to disclosures. You should also consider seeking advice from your own advisers in making this assessment. If you decide to enter into a transaction with DB, you do so in reliance on your own judgment. The information contained in this document is based on material we believe to be reliable; however, we do not represent that it is accurate, current, complete, or error free. Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results. This material was prepared by a Sales or Trading function within DB, and was not produced, reviewed or edited by the Research Department. Any opinions expressed herein may differ from the opinions expressed by other DB departments including the Research Department. Sales and Trading functions are subject to additional potential conflicts of interest which the Research Department does not face. DB may engage in transactions in a manner inconsistent with the views discussed herein. DB trades or may trade as principal in the instruments (or related derivatives), and may have proprietary positions in the instruments (or related derivatives) discussed herein. DB may make a market in the instruments (or related derivatives) discussed herein. Sales and Trading personnel are compensated in part based on the volume of transactions effected by them. The distribution of this document and availability of these products and services in certain jurisdictions may be restricted by law. You may not distribute this document, in whole or in part, without our express written permission. DB SPECIFICALLY DISCLAIMS ALL LIABILITY FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL OR OTHER LOSSES OR DAMAGES INCLUDING LOSS OF PROFITS INCURRED BY YOU OR ANY THIRD PARTY THAT MAY ARISE FROM ANY RELIANCE ON THIS DOCUMENT OR FOR THE RELIABILITY, ACCURACY, COMPLETENESS OR TIMELINESS THEREOF. DB is authorised under German Banking Law (competent authority: BaFin - Federal Financial Supervising Authority) and regulated by the Financial Services Authority for the conduct of UK business Deutsche Bank