Institutional Trading & Market Making Professional Order and Post-Trade Management
The Solution People Curiosity is always the first to tackle a problem that needs solving. Galileo Galilei XCOM AG is one of the leading providers of banking, brokerage and business solutions in Germany. We also offer hardware and software products, as well as consulting and IT services. Our customers are banks and financial institutes with international operations, as well as medium-sized companies in all sectors. The motto The Solution People spells out our company philosophy. From trading via IT services to outsourcing entire business processes, we develop individual IT solutions which allow our distinguished clients day by day to successfully concentrate on their core business. In doing this, consultation and development are just as important to us as the production and maintenance of the finished product. 2
The Locations Always nearby Willich Head office Consulting Distribution and Marketing Finances and Administration Düsseldorf Computer Centre System Operation Andernach Banking Berlin Service and Infrastructure Zwickau e-banking Banking Payment Trading System Operation Controlling Frankfurt Trading 3
Data and Facts about XCOM AG The merging of 12 firms to form XCOM AG Foundation of biw Bank für Investments und Wertpapiere AG Acquisition of ViTrade AG 1988 1999 2003 2005 2011 2013 2015 Foundation as XCOM BCC in Langen Purchase of XCOM Bank Acquisition of biw AG Participation of FinTech Group AG More than a quarter-century of expertise and commitment Foundation of XCOM BCC on 30/09/1988 Assets in 2014: approx. 25.2 million euros Registered office in Willich near Düsseldorf 29.8 million euros annual turnover in 2014 223 employees at 6 locations Active across Germany Shareholder structure: 51% FinTech Group AG 49% in free float 4
The IT company with its own bank biw AG - the XCOM AG bank White Label Banking the best of both worlds biw AG The XCOM Group company biw AG is a hi-tech bank which offers both White Label and outsourcing solutions. The partners remain the first point of contact for their customers and are responsible for acquisition and ongoing maintenance. It is aimed at everyone who is seeking a visionary partner with a banking licence for its financial ideas Along with our daughter company ViTrade AG, we are running and developing cutting-edge online platforms. 5
Data and Facts about biw AG Acquisition of two XCOM AG locations Acquisition of 100% of biw AG by XCOM AG Market start-up of the online retail bank benk 2005 2007 2010 2012 2013 2014 Foundation of biw AG Opening of a branch in Vienna First German bank offering mobile payment. Innovative ideas require experienced partners Assets: approx. EUR 19.9 million Participating institute in Einlagensicherungsfond Deutscher Banken e.v. Approx. 152,000 customers with around 206,000 accounts Assets under administration: approx. EUR 5.2 billion Deposit volume: approx. EUR 1.032 billion More than 100 employees 6
Our strengths Creative, pragmatic, customer-oriented
Partners for Innovation Banking e-banking Trading Payment System Operation and Infrastructure Sales and Marketing Finance and Administration XCOM Group has established itself as one of the leading providers in Germany in the banking and trading sector, as well as the services sector. Operating from Germany, we offer everything from software provision to hosting, to the complete banking process with our own resources and self-developed solutions. Well-known banks and FinTech companies rely on the quality, expertise and experience of the XCOM team. Our other areas of business include brokerage and deposits, along with transactions, cards and credit. Interest portals, C2C solutions, social trading and strategy depots complete our offer. 8
Subsidiaries and Investments Quality from passion Key focuses of our work include development, ongoing support and advice for future-proof and efficient solutions in the Banking, e-banking, Trading, Payment and IT sectors, as well as outsourcing. Our customers get solutions which can be implemented straight away. While we work with our business partners to develop the business solutions of tomorrow, we provide you with everything you need for cutting-edge customer support today. 9
Your value added Our strengths for your success XCOM AG Solutions biw AG Service Banking White Label Banking e-banking Trading Client Service Documentation Equity Capital Markets Payment e IT Transactions Cash Logistics 10
Your value added Our commitment for your success Expertise Flexibility Experience High levels of banking know-how gained through, amongst other things, market assistance of our in-house bank (biw AG) Far-reaching know-how in the automation of process chains Technical expertise Philosophy of standardised individual development Client-targeted, future-proof system development Short time2market More than 25 years experience in the financial services environment Recognised development partner of many major and private banks Tested and stable Team 11
Overview of the Trading Suite Institutional Trading & Market Making
Partners for Innovation Innovative ideas require experienced partners XCOM AG The banking market is changing due to regulatory requirements, new technology and also through changing client behaviour. missing bank licences if needed. Since the early days, XCOM group has specialised in offering their clients modern banking IT as a bespoke service. Whether entering the market or remaining competitive: for both situations, we offer modern and flexible IT which is characterised by highly automated processes. In addition, we also offer XCOM AG delivers IT processes in the background and biw AG delivers Business Process Outsourcing services (BPO). Our partners can therefore concentrate fully on their core business. 13
Partners for Innovation Successful electronic exchange trading requires efficient tools. XCOM Group provides credit institutions and financial service providers with precisely these tools to optimise trading and processing. The corresponding performance for selection, acquisition and processing are self-evident. In addition, easy use as well as a high level of transparency and clarity score particularly highly. This applies to decision making, as well as for functional topics like risk analysis and regulatory requirements (MiFID II, HFT). 14
Partners for Innovation You trade with the best From the increased efficiency in order processing through quicker examination of the legal and contractual investment limits in the back office to a complete system for online brokers - XCOM AG provides tested, innovative and professional solutions for all areas of the securities business: Professional order and post-trade management by experts for experts. Order Management Market Maker System OTC Trading Platform Professional Trading Market Data & Low Latency Services 15
Order Management System Take advantages of our strengths for your success
Order Management System TradiX TradiX, our order management system, has successfully been used for over 15 years by many brokers. Experience for yourself the advantages of our trade solutions. You can bank on flexibility, security and speed when trading securities and derivatives electronically with TradiX! Through TradiX, XCOM AG offers credit institutions and financial service providers complete order management with Straight Through Processing (STP), from the acceptance of a client order through to the management of execution and regulatory exception reporting. Increase the efficiency, flexibility and performance of your processes. 17
Order Management System TradiX Main performance features: Professional high-end tool for performants and high level automated security trading on stock markets and OTC markets through to trade execution Real time position management with risk indicators (P/L, VaR) Import /Export opportunities for additional profit centres or trading books Electronic connection to institutional clients for VWAP Orders (IW) Real time pricing on level 1 and level 2 quality via XCOM Infozone (CEF, KDV, a range of OTC markets) STP from order placement to settlement Professional trade support via individually configurable order templates Shortcuts, Single-/Double-Click Trading, Fast Order Entry, inactive orders, portrait function, RTD Plausibility checks via WM core data Electronic connection to external and institutional clients via FIX, Bloomberg, Reuters, Autex, Sungard, GLTrade and client front end Complete mapping of AQR and IW order handing with VWAP monitoring Integrated sales team centre with trade allocation for commission and VWAP orders Automated settlement instructions as well as the ability to send fax and e-mail 18
Order Management System TradiX Your benefits at a glance: Scalability through a high level of modularity High level of transparency (order and securities portfolio) Simple and convenient order management Automated or selective management of trade processing and booking Large range of electronic connections to clients via standard interfaces (FIX 4, Swift MQ) and order routing networks (Bloomberg, Sungard GLTrade) Expertise from notable brokers, banks and investment companies 19
Market Maker System Fast, reliable and secure
Market Maker System SkontriX SkontriX - real time execution SkontriX is our market maker system for financial service providers - so-called order book managers, specialists or liquidity providers for the provision of liquidity and setting of prices on German and international stock markets, and other markets. Skontrix continually monitors the current order book situation and shows possible trades in real time. It therefore guarantees that all executable trades in the market are promptly executed. 21
Market Maker System SkontriX SkontriX - real time execution Use for efficient hedging and the provision of liquidity from different pricing sources with reference pricing. Available orders in the order book are compared to the reference price and possible executions are identified and shown in real time. With Skontrix, the market maker can therefore optimise the trades in the portfolio he manages through the utilisation of cheaper rates for the order giver, through reference pricing and thus, setting a better rate. 22
Market Maker System SkontriX Your benefits at a glance: Quotation and rate setting for different trading books, markets, classes of securities, as well as liquidity categories Rate setting in illiquid markets Time controlled and rule based configuration of quotations and rate setting Selection of different reference sources (domestic and international prices, as well as other sources) Scalability of the volume of quotations according to the volume of quotations on the stock market Automatic arbitrage protection and quotation stop 23
Market Maker System QuotaX React quickly with QuotaX QuotaX is the quotation system for Market Makers on German and international stock markets, and other markets. For stock market systems and brokers, the availability of tradeable sale and purchase prices on the market (Bid-Ask spread) is a significant part of trading. In order to be able to react to current market conditions as quickly and as suitably as possible, the automation of the Bid Ask position for shares, bonds, funds, warrants and certificates is vital. The quotation system allows automated and secure price setting with minimum personnel costs. 24
Market Maker System QuotaX Your benefits at a glance: Central control of all management processes for quotations A wide range of information markets Integration of numerous plausibility checks to secure the liability of the quote Extensive configuration possibilities for calculation algorithms Grouping of securities to be quoted according to liquidity categories International reference markets Configuration of Bid Ask amendments, minimal quote changes, maximal and minimal spreads, minimal and maximal quote volume, choice quotes Freely configurable chronological quotation schemes Emergency stop and quote stop for individual securities, groups of securities and global stop for all managed securities Audit logs for complete validation management for all activities 25
Market Maker System xquote xquote - transparent and secure xquote enables the quotation of instruments in the framework of Designated Sponsoring on the XETRA trading platform from Deutsche Börse AG. liquidity as well as the minimisation or avoidance of trading losses through market making. XQuote safeguards an AA-rated performance through rule based quotation and an efficient provision of 26
Market Maker System xquote xquote supports: Targeted achievement of an AA rating Minimisation of trading losses Consistent use of the XETRA Market Model Automatic consideration of quotation strategies based on personal trading book positions Optimal support for the trader when quoting manually Minimisation of personnel costs when quoting Minimisation of quotation volumes to avoid fees due to excessive system use on the XETRA platform 27
OTC Trading Platform Trade directly with issuers
The OTC Trading Platform L.O.X. Limit Order Xervices. L.O.X is a trading platform for off-market limit order trades with the Deutsche Bank AG and Commerzbank AG as issuers. L.O.X. allows the setting of limited, daily, and long-term sale and purchase orders. In this way, brokers can place market, limit, and stop/stop limit, trailing stop and OCO orders on L.O.X, as well as the well known off-market quotation-based securities trades. Securities trades take place bilaterally between the broker and the issuer. In this way, investors can trade in over 300,000 products from Deutsche Bank AG and Commerzbank AG: from investment products and structured bonds and warrants to Knock-Out warrants. Using ilox, the internet front end, brokers can adjust secured securities orders to limit orders. 29
The OTC Trading Platform L.O.X. Benefits at a glance Off-market trading platform with the largest German issuers of leveraged products, Deutsche Bank AG and Commerzbank AG Standardised interfaces (FIX 4.2/FIX 4.4) and proprietary interfaces (CTI) Connection via a direct data connection or order routing networks (ULNET) The most important brokers from the DACH region and France, in total 17 brokers, of which 5 are not from the region, are order flow providers. Emergency front end and user front end for smaller brokers with stricter authentication for order input, change and removal via the internet 30
Professional Trading High end trading tool for experts by experts
Professional Trading HTX Trading Front End HTX is an exclusive trade front end for the active investor. With fast, innovative, and flexible platforms and individual tools. The high end trading platform with direct market access puts our clients in the position to act quickly and conveniently in the market. To guarantee a trading system which is as fast and as reliable as possible, we trust in the professional support of our daughter companies: biw Bank für Investments und Wertpapiere AG and ViTrade AG, who are responsible for account and deposit management, as well as securities execution. 32
Professional Trading Benefits at a glance Direct, high-performance market access, via Colocation Center DB AG, for instance Real time ultra rate information (XETRA/EUREX) Intra-day/overnight trading lines with threefold long and fourfold short leverage Support for covered short selling using securities loans or transparent option models RTD front end interfaces, chart trading and formation recognition Order statistics with detailed data from order fees Event based order types (OnEvent, IfDone with OCO, Discretionary Order) Cross border trading 33
Professional Trading benktrader+ With benktrader+, our new trading software for PC and Mac, you can trade like an expert. You can view your order and position portfolio and can react to market moves within a few seconds. Both platforms have also been developed for mobile devices. 34
Market Data & Low Latency Services Always have everything in view
Market Data & Low Latency Services Rate provision XCOM AG manages market data including different ticker data and the history of security classes for each market day for the past 10 years. We provide real time market data for XETRA, EUREX and all domestic markets. Naturally, we also provide market Benefits at a glance data for all off-market domestic trading platforms: XETRA Level 1 and Level 2 EUREX Level 1 and Level 2 Tradegate, regional markets including the stock market in Stuttgart and OTC issuers 36
Market Data & Low Latency Services Low Latency Services XCOM AG receives CEF ultra+ rate data for the XETRA trading platform and EUREX futures market using a high speed connection to the Deutsche Börse AG colocation centre (Equinix II). A low latency infrastructure developed by XCOM AG for the processing of CEF ultra+ market data streams enables the low latency processing and provision of unbalanced market data from the Frankfurt securities exchange (XETRA trading platform) and the EUREX derivative exchange for interested institutes, securities and Algo trading companies. 37
Market Data & Low Latency Services WM core data The data stream from WM (variable format) is fully automated and is processed every market day. Format checks and data integrity tests take place during the handling process. Finally, the processed data is made available to the connected broker systems. Benefits at a glance Provision of complete originals WM core data (current and historic) Adaptation of the core data fields for each client Daily update of broker systems Indication of a range of core and income data, capital measures, exchanges, draws and terminations 38
Contact us XCOM AG Allee 8 47877 Willich T +49 2154-9209-70 F +49 2154-9209 -77 info@xcom.de