Overview. Integrated Front-mid-back office as well as standalone Front office or Back-office solution or Trading Channels

Transcription

1 Securities Trading

2 The adoption of technology is rapidly changing the dynamics of the brokerage industry. The increasing use of smartphones and tablets represent a transformation in the way in which investors access the web and trade in a variety of instruments. The challenge for the application provider is accommodating diverse mobile devices and form factors and to keep up with the pace of development of new mobile platforms. The "institutionalization" of the retail investor is leading to the demand for analytics and actionable data based on social media sentiments and technical-pattern detection tools. On the institutional side, rapid adoption of algorithmic trading and co-location facilities is driving the race to low latency platforms. The securities trading solution from TCS BaNCS is a multi-market, multi-asset trading solution. It can be deployed as an integrated front-to-back office solution with securities processing solution from TCS BaNCS or on a standalone basis integrating with 3rd party/in-house back-office system. The modular nature of the solution allows independent components such as channels, risk management, FIX Enricher to be deployed independently. The channels (Internet, mobile/tablets) are based on responsive web design ensuring portability across different devices and form factors. The institutional module supports different execution types like worked orders, Direct Market Access (DMA) and algorithmic trading. Use of In-memory architecture and High performance computing principles has enabled low levels of latency.

3 Overview Today, both retail and institutional customers are making sophisticated choices and demanding better services, making it difficult for brokerages to attract and retain customers. Retail investors expect the same superior user experience that they are used to getting from innovative financial services organizations. Brokerages are under pressure to provide consistent, multi-channel user experience with seamless connectivity across all the channels such as branch, call centers, Internet and mobile. This, along with personalization, multimedia content, and actionable analytics could go a long way in improving user experience. To generate new opportunities, institutional customers need to build and customize their trading strategies without having to depend on the broker. A low latency trading platform can help brokerages compete effectively in the market. Retail and Institutional Trading Multi asset, Multi lingual, Multi market Real time Risk Management Integrated Front-mid-back office as well as standalone Front office or Back-office solution or Trading Channels Solution for Sell side broker-dealer, Private banks Hosted/White label solution for exchanges to offer to broking community

4 Benefits The securities trading solution from TCS BaNCS can accelerate business growth for a sell-side firm offering the following benefits: Increased trading efficiency and control Support for all types of executions, viz, care orders - direct market access and algorithmic trading, increasing dealer productivity and efficiency Custom trading strategy for greater control over trade execution Superior risk management Pre-trade validation for buying power limits and market-specific regulations prior to sending orders Highly effective order-level risk management and overall exposure monitoring via an extensive rule base Anytime, anywhere trading Convenient access channels - such as the Internet, mobile/tablet, ATM, and IVR to improve market accessibility for investors. Support for increasingly popular smart phones such as iphones, Blackberry and Android phones Informed decision-making capability Advanced trading and decision support features over multiple channels enable investors to trade profitably while increasing trading volumes for the sell-side Straight-Through-Processing (STP) Standard interfaces for real-time connectivity with the global custody solution from TCS BaNCS and other back-office processing systems, enabling real-time risk management, position monitoring, trade push and allocation, thus facilitating STP Advanced technology architecture Future-proof architecture design enabling horizontal and vertical scalability, and providing high throughput to manage growing business volumes Low latency trading capability enabling splitsecond response to fleeting trading opportunities Glocalized trading and multi-market connectivity Flexibility to trade in local language across global markets Connectivity to buy-side and sell-side order routing networks/global order management systems to speed up access to multiple markets

5 Connectivity Order Management Risk Management Execution Management Connectivity ATM/IVR Mobile /Tablet Call Center Clients Call Center Mutual Funds, IPO Exchange Traded Bonds/ETF s Order Routing Networks Third-party Order Management Systems FIX Enricher FIX Order Routing System Order Management Order Blotter Portfolio Limit Management Position Management Pre-Trade Compliance Analytics Direct Market Access Electronic Desk Access Waving & Scheduling Basket Trading Exchanges Colocation Order Routing Networks Partner Brokers Active Trader Internet Trading Trader Work Station Risk Manager Trader Sales Trader Listed Derivatives Equity Decision Support Charting Pattern Detection Tool Social Media Monitoring Algorithmic Trading Broker Strategy Access Advanced Trading FIX Market Data Exchange Market Data Market Data vendor News vendor Interfaces Payment Gateway I Depository I Post Trade Settlement and Back-Office Systems I SSOL Access Channel Entities Asset Classes Models Institutional I Retail I Financial Superstore I Bank Broker An overview of the securities trading solution

6 Features TCS BaNCS with its extensive experience and knowledge of capital markets has built a comprehensive best-in-class trading solution that caters to the needs of retail and institutional brokerage firms, such as: Support for multiple asset types, including equity, equity-based futures and options, ETFs, commodity derivatives as well as the collection of IPO and mutual funds Facilitates creation and introduction of new investment products in a rapid manner Multi-lingual trading Centralized and real-time order-level risk management across asset classes Connectivity to global liquidity pools either directly, via native/fix protocol, or through partner brokers over FIX Multi-market, buy-side/sell-side connectivity using industry standard FIX Protocol over Global Order Routing Networks (Bloomberg EOR, ROR, among others) Retail Brokerage "Complete channels universe for trading with analytics and social media integration Multiple access channels, including dealing and advisory desks, web-based trading, high-speed trading terminals with streaming market data, mobile phones/tablets and ATMs Standard interfaces, to help manage lien marking for funds and securities in real time Support for direct connectivity to exchanges as well as partner/broker model (disclosed/omnibus) Support for advanced trading (conditional orders, slicing, basket orders) and charting from multiple investor channels Personalized front end-customizable screen layout and functionality Hybrid mobile architecture A single application supporting different mobile platforms and devices Analytics and Social Media Monitoring - Pre-built integration with technical analysis and social media monitoring tools enabling informed decisionmaking by investors.

7 Institutional Brokerage "Low latency platform with algorithmic trading strategies for best execution Electronic access to the order blotter as well as Direct Strategy Access for portfolio managers/fund managers over an optimized, embedded FIX engine Scheduling orders based on combinations of price, time, and quantity, with intelligent rule-based routing to liquidity pools Program trading along with management of lists, baskets, and trading on baskets Direct market access to liquidity pools and order routing networks (ROR, Marco Polo, and partner/broker) over FIX Algorithmic trading support for industry standard protocols (for eg. VWAP, TWAP, Volume Participation Arbitrage-Cash-to-Futures, Future-to-Future) as well as access to algorithms developed by brokers or with third-party systems Integration with algorithmic workbench to create customized algorithms Automated, rule-based trade allocation and electronic connectivity to the middle and back-offices FIX Enricher Support for different FIX dialects for seamless integration with different counterparties Suitable for co-location and high frequency trading requirements Integrated Risk Management capabilities allow the brokers to monitor the risks associated with trading in the equity and the derivatives segment. It provides the flexibility to set risks limits and monitor margin utilization and exposure of the various entities in the system. A flexible rule engine allows the system to mimic the unique requirements of different trading members. In a nutshell, the securities trading solution from TCS BaNCS helps sell-side firms to compete successfully in the broking business by improving client acquisition and retention, while increasing trading efficiency and controlling operational risk. Technology Advantage Unix, Linux support resulting in low TCO Data Access Layer Supports all prominent databases Responsive web design Framework Optimal viewing experience across devices Low latency Architecture - In Memory Database architecture, High performance parallel computing For the broking subsidiary of a leading Financial Group, Tata Consultancy Services implemented the integrated multi-exchange, multi-asset, bi-lingual (English & Arabic) securities trading platform and helped in replacing their existing, disparate trading systems. This trading platform helped the customer to streamline their trading operations and provide a convenient, easy-to-use and feature-rich single point trading access to their investors. In a year's time, the firm was able to capture market share and moved into the Top 5 league.

8 Why TCS BaNCS The TCS BaNCS product suite for banking, capital markets and insurance enables business transformation in financial services. Increasing operational efficiency and helping financial institutions stay agile, our solutions deliver a competitive edge with unmatched certainty. We aspire to be better than established benchmarks, which is why we have embedded an Alpha ( á ), representing superior returns delivered to our customers, consciously and prominently within our brand. The plug and play, component-based product suite consistently turns in impressive benchmark results, with a fine-tuned, highly scalable technology architecture that supports financial institutions with the highest capacities for transaction volumes, peak transactions per second, and transaction history size. With such a track record, it is only natural that the TCS BaNCS product suite can help financial institutions of any size gain a distinct, competitive edge. Contact To learn more about how we can help you innovate, transform and experience certainty through our Securities Trading solution, connect with us at or tcs.bancs@tcs.com About Tata Consultancy Services Ltd (TCS) Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering TM and assurance services. This is delivered through its unique Global Network Delivery Model, recognized as the benchmark of excellence in software development. A part of the Tata Group, India s largest industrial conglomerate, TCS has a global footprint and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at IT Services Business Solutions Consulting All content / information present here is the exclusive property of Tata Consultancy Services Limited (TCS). The content / information contained here is correct at the time of publishing. No material from here may be copied, modified, reproduced, republished, uploaded, transmitted, posted or distributed in any form without prior written permission from TCS. Unauthorized use of the content / information appearing here may violate copyright, trademark and other applicable laws, and could result in criminal or civil penalties. Copyright 2014 Tata Consultancy Services Limited TCS Design Services I P I 01 I 14