Traiana: Business & Product Overview. Gil Mandelzis - CEO, Traiana Inc. February 2012

Transcription

1 Traiana: Business & Product Overview Gil Mandelzis - CEO, Traiana Inc. February 2012

2 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 2

3 Cost Reduction Drives Additional Growth in Tickets R 2 = 0.92 OTC Equity Derivatives Commodity Derivatives Rates Derivatives Credit Derivatives Post-trade enables market growth FX Derivatives Rates FX Listed Derivatives Cash equities Lower cost drives more volume 50% decrease in average costs in line with a 175% increase in volume 3

4 10 FXPB Market Larger Than Entire FX Market from 04 Source: BIS, BCG CAGR FX market 7% FXPB 30% FX Market 0.9 FXPB ($T per Day)

5 End-to-End Post Trade Solutions Messaging, Matching (Message Center) Aggregation/ Netting (NetLink, CLS JV) Real-time Risk (CreditLink) Clearing & Regulation (CCP Connect) Client-Dealer/Prime Interbank Tri-party limits CCP Connectivity Dealer-Dealer/Prime Client ECN Limits/Killswitch SDR Exchanges/ECNs Retail Designation Notices SEF/MTF Limits 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 Delivering OTC trades to top clearing houses - LCH, CME, ICE, SGX, others Reporting to SDRs 5

6 Leading Banks and Brokers 6

7 Leading Platforms and ISVs 7

8 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 8

9 Traiana Harmony Growth 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) AVERAGE DAILY VOLUMES: DEC 2008 SEPT

10 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%+ 10

11 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 11

12 CreditLink ECN/Exchange KillSwitch Initiative Launched June 2010 Supported by leading Prime Brokers/Clearers Partnership with top ECNs Live with EBS, HotSpot, Bloomberg, Currenex 12

13 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 13

14 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/

15 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 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 15

16 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 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