TRANSAQ Perfect software for broker-dealer services Russian and International Markets
Contents 3 Facts about TRANSAQ Advantages of the system 7 Markets and architecture Available trading floors, platform structure, interfaces 14 Functional services Margin trading, Practice accounts, Asset management, TRANSAQ Connector, TRANSAQ SubBroker, MACCESSOR, TACCESSOR, TRANSAQ Handy, Replicator of databases, FIX gateway, Parallel servers, Newswires INTERFAX, PRIME TASS, THOMSON REUTERS, Universal information gateway, English users interface, TRANSAQ Intra, Cryptography 32 Developer About Screen Market Systems 35 Contact information 2
Facts about TRANSAQ 3
Facts about TRANSAQ TRANSAQ is a fully functional software for broker-dealer operations on the Russian and International markets, both stock and derivatives ones.» Over 10 ths. traders use TRANSAQ every day.» Daily we register over 150 ths. trading operations. The TRANSAQ trading platform is nowadays one of the leading programming applications on the Russian stock and derivatives market. 4
Advantages of TRANSAQ high productivity reliability information security resource effectiveness technologies and know-how 5
It should be mentioned that TRANSAQ Supports over 5 ths. connections to one server Offers the unique system of margin lending risk management with online control of the essential parameters of client portfolios Ensures stability on bad channels with low bandwidth capacity Contains functionality for dynamic search and automated initialization of instruments with automatic swapping of price history data Implements hot mutual stand-by of parallel servers which synchronize all the necessary data, etc. 6
Market access and architecture 7
Trading floors MICEX Stock Exchange (Equity and Bond Market) Leading Russian stock area. Over 670 organizations are professional participants of this market, with approximately 600 000 clients - legal entities and individuals. The MICEX Index is the key indicator of the Russian stock market. MICEX Government Securities & Money Market, or GKO/OFZ market Russian trading floor for government-backed securities (GSM market), with approximately 300 stock market participants. This is the order driven market. RTS Derivatives Market FORTS Russian leading futures and options market. Among the traded instruments are derivatives based on stocks issued by Russian companies and RTS Index. RTS Stock market Stock market of the RTS exchange. Its participants can operate with highly liquid shares, 2-tier equities, bonds and mutual investment funds. Investors also have access to the spot market. MICEX Derivatives market The united market for derivative financial instruments (futures and options) of MICEX Group. Among the traded instruments, stock derivatives and MICEX Index derivatives are traded. Deutsche Boerse: Xetra pan-european trading platform for equities, certificates, warrants, exchange-traded funds and subscription rights and Scoach the biggest market for structured products worldwide with more than 400.000 securitized derivatives such as certificates, warrants or reverse convertibles. 8
Platform architecture Trading systems of the Exchange Exchange gateways TRANSAQ gateways Trading desk Swapping opening balance utility TRANSAQ Server Technical monitoring Administrator Database 9
TRANSAQ platform The platform is the central programming module, which... includes the server and user interfaces ensures the coordinated functioning of modules, exchanging of data and technical monitoring Embedded features: Various client reports (without addressing the broker) in the standard user s trading desk Archives of the market information, historic data for previous trading sessions and automated swapping of data from the server 10
User s trading desk Functions: Monitoring the process of trading on the market Handling orders Controlling over the portfolio structure Receiving news and messages Viewing reports Embedded features: Wide array of technical and graphical analysis means Embedded programming language TRANSAQ ATF Prepared orders package function Real-time export of data to Excel, systems of technical analysis and text file Real-time import of transactions and their processing in the settlement system 11
Administrator The broker s representative working station, which allows to control and manage parameters of the TRANSAQ software. Embedded features: United cash position for the MICEX stock exchange and the RTS stock market Convenient input and output of assets by the Administrator (securities or cash) in the client account, and the transfer of assets among client account with the imputation / write-off operations. 12
Technical administrator The system s technical administrator allows: Conducting monitoring of the current connections of users Setting restrictions on the account access from the indicated IP. The functions of the interface for Brokers include: Viewing and analyzing statistics of client connections and requests processing Analyzing the volumes of received and sent data, the trading activity, the quality of IP-connections and other relevant information Monitoring attempts of possibly unauthorized access to client accounts 13
TRANSAQ services 14
Margin trading, or the online lending risk-management The Broker can limit the total volume of the available credits in cash or assets and specify the conditions under which they can be used by its clients. Cost for for 50 50 simultaneous connections: License fee --90 90 ths.rur Monthly fee 4,5 ths.rur The usage of assets borrowed from the broker without sufficient coverage is absolutely impossible. The system contains the technology of the structured analysis of client portfolios with the calculation of order and correction of coverage to the required level. Automatic real-time system of crediting trading operations and the evaluation of client assets / liabilities The system implements the parameters of Coverage and Margin Level (leverage). 15
Practice accounts, or the leading educational module of TRANSAQ The service presupposes real access to the exchange, so that users can view the appearance of market data and try to place orders and complete trades on a virtual account. Cost for for 50 50 simultaneous connections: License fee --45 45 ths.rur Monthly fee 4,5 ths.rur The client s order is not transferred to the exchange. It is handled by the TRANSAQ server, that models the situation as if it was real (what-if). The module helps reducing the cost of education of the new inexperienced investors. The module allows to test automated trading strategies without running any risks. 16
Asset management and settings for client accounts of the Broker The module includes: the interface to enter orders for groups of client accounts facilities for portfolio monitoring Cost for for 50 50 simultaneous connections: License fee --45 45 ths.rur Monthly fee 4,5 ths.rur The service can be used for managing assets of private, corporate and institutional investors. 17
TRANSAQ Connector for external robots and algotrading The universal programming interface which allows connecting various external applications to the system. Among them are: Proprietory informational / trading applications Programs for algotrading (robots, signal generators) Accounting systems realizing all sorts of portfolio management techniques Cost for for 50 50 simultaneous connections: License fee --75 75 ths.rur Monthly fee 4,5 ths.rur The module connects the robot directly to the TRANSAQ server, which allows placing orders and monitoring their execution without extra delays. The interface is based on XML-messaging technology with the function library TXmlConnector.dll. The application interacts with the TRANSAQ server with the authority (name and access rights) of a registered trading client. 18
TRANSAQ SubBroker The module unites: Service components for the Broker Adapter and user s interface for the Subbroker Cost for for 50 50 simultaneous connections: License fee --75 75 ths.rur Monthly fee 4,5 ths.rur Any Subbroker can organize broker services on the stock market (corporate securities on the MICEX and RTS) without gaining membership to the Exchange. With this scheme, the Subbroker can open client accounts and manage credit modes at its discretion, but within the limits set by the Broker. 19
MACCESSOR MACCESSOR allows building interaction between TRANSAQ and Broker s systems (back office, risk management). The interaction is conducted through SQL stored procedures. Cost for for 50 50 simultaneous connections: License fee --75 75 ths.rur Monthly fee 4,5 ths.rur The following information is available: Connection of users to the TRANSAQ server Current parameters of crediting clients in TRANSAQ Requirements concerning the level of margin Clients orders and trades Balance of cash and securities on the clients accounts Features: Changing balance of client s accounts (cash and securities) Entering and cancelling orders Registering new users and managing their properties Managing parameters of financial instruments Sending messages to traders Correcting parameters of client accounts, such as the maximal level of margin 20
TACCESSOR Broker s software envelope for client access to the TRANSAQ system and development of proprietory client applications. The service is based on COM data exchange procedures. Cost for for 50 50 simultaneous connections: License fee --75 75 ths.rur Monthly fee 4,5 ths.rur TACCESSOR is intended for the connection of: Mechanical trading systems by the User or the Broker Web interfaces of the Broker to deliver data and send transactions The module functions on the leading trading floors: MICEX Stock Exchange RTS Stock Market RTS FORTS Government securities market MICEX Xetra (Deutsche Boerse) 21
FIX gateway The module enables the connection of external user applications and standard software to the TRANSAQ server. FIX Cost шлюз for for 50 50 simultaneous connections: License fee 105 ths.rur Monthly fee 9 ths.rur Financial Information exchange Protocol is the international messaging standard for trading systems and applications. It is used by exchanges, brokers, investment companies and banks for the electronic communication of traderelated messages. FIX Protocol supports straight-through-processing technology. 22
TRANSAQ Handy for PDAs and communicators running on Windows Mobile TRANSAQ Handy grants fully featured mobile access to the services of the TRANSAQ platform. Cost for for 50 50 simultaneous connections: License fee 75 75ths.rur Monthly fee 4,5 ths.rur Work windows: Instruments Quotes Charts Orders Trades News Клиент N The users of TRANSAQ Handy can: Trade on all the available markets Search and activate instruments of foreign markets 23
Replicator of data bases The module maintains a reserve real-time database to increase the system s reliability parameters. Cost for for 50 50 simultaneous connections: License fee 75 75ths.rur Monthly fee 4,5 ths.rur The Broker can check the identity of databases indicated in the Replicator s configuration file and control for consistency. The service allows monitoring of the replication process and check the synchronism of databases. 24
Parallel servers The module ensures the brand-new reliability, resilience and scalability of the software. Cost for for 50 50 simultaneous connections: License fee 120 ths.rur Monthly fee 7,5 ths.rur The implementation of the service abolishes the standard program s quantity restrictions concerning 5 ths simultaneous connections to one server. As a result, the e-trading software becomes more effective. In case of emergency on one of the circuits the service guarantees completeness of all the essential data and its immediate availability on other circuits. * Simultaneous maintenance of two or more TRANSAQ servers. 25
Newswires on base of the universal news API The modules represent a programming component which helps Broker organizing the automatic distribution of news among its clients. INTERFAX Cost of of one newswire for for 50 50 simultaneous connections: License fee 18 18 ths.rur Monthly fee 0,9 ths.rur PRIME-TASS THOMSON REUTERS Any news source can be connected to the TRANSAQ server. Discretionary news dissemination Various data access parameters for clients 26
Universal information gateway The module transfers market data from external sources to the TRANSAQ system. Cost of of one newswire for for 50 50 simultaneous connections: License fee 75 75 ths.rur Monthly fee 6 ths.rur TRANSAQ has direct integration with all the major services of THOMSON REUTERS, among them: Reuters Market Data System Reuters DataScope Select Reuters Knowledge Direct Important functions: Translation of market trades Plotting of Charts Implementation of technical analysis 27
English version, user s interface The English version of the TRANSAQ trading desk supports: Technical elements of the interface Names of the financial instruments Messages of the TRANSAQ server and the Exchange trading system Cost of of one newswire for for 50 50 simultaneous connections: License fee 75 75 ths.rur Monthly fee 6 ths.rur The module supports group messaging function, so that the addressees are defined automatically by the trader s interface language. 28
TRANSAQ Intra The Service represents a user s interface functioning independently of the Exchange and modeling the trading activity on the computer screen. The Broker creates practice accounts. Cost of of one newswire for for 50 50 simultaneous connections: License fee 45 45 ths.rur Monthly fee 4,5 ths.rur The Broker manages the server and administrative parts of the system, thus acquiring the opportunity to train managers on Main trader and Administrators interfaces. Intra includes automatic generation of the trading activity feature, which models the real market. So, the module can function on a round-clock basis. 29
Cryptography, and other means of information security for traders Collaboration with crypto providers Crypto-PRO, Signal-COM and Microsoft RSA (X.509 certificate) Electronic digital signature for the authorization of the trading operations Cost of of one newswire for for 50 50 simultaneous connections: License fee 75 75 ths.rur Monthly fee 4,5 ths.rur TRANSAQ information security includes: Technical administrator for monitoring access statistics, processing requests and trading activity Synchronization and mutual hot stand-by of servers TouchMemory authentification 30
Sample packages Package 1. TRANSAQ Platform MICEX Stock Exchange Connection 10 licenses 50 licenses License agreement 108 ths. rur 225 ths. rur Attendance 9 ths. rur 19,5 ths. rur Package 2. TRANSAQ Platform MICEX Stock Exchange RTS Stock Market RTS FORTS Margin trading Cryptography Asset management News by REUTERS Practice accounts Connection 10 licenses 50 licenses License agreement 367,2 ths. rur 648 ths. rur Attendance 26,1 ths. rur 47,4 ths. rur The price of several modules doesn t depend on the number of users (sign ) The minimal quantity of licenses is 10 units. The fee for over 100 licenses is defined by individual agreement. The presentation doesn t represent a public offer. 31
About the developer 32
Screen Market Systems, JSC The company was created in 1999. TRANSAQ system was first installed in 2000. The managers and employees of the company have vast experience in the development of the real-time systems for the financial markets, including: the first fully electronic trading & clearing system for futures and options of the Moscow central stock exchange (МЦФБ) electronic systems for international news agencies Forex dealing centre online trading systems. 33
Our vision The mission of Screen Market Systems reflects our responsible position towards the professional participants of the financial markets and their customers. Our core philosophy is to maintain high level of safety, productivity, technical support and information security. 34
Contact details Screen Market Systems, JSC Address: Russian Federation, 129085, Moscow, Bolshaya Maryinskaya st., 9, bldg 1 Phones: +7 (495) 615-2008, 615-2470 Fax: +7 (495) 913-3931 Email: support@transaq.ru http://www.transaq.ru On marketing issues: avt@transaq.ru 35