2. Key Financial Technology Needs
Today’s Dealers and Asset Managers Need to:
Increase productivity
Manage operational costs more effectively
Reduce the financial footprint of Bloomberg
Ensure interoperability among disparate systems
Execute more trades electronically
Manage market and credit risk more effectively
Comply with compliance and reporting requirements
Enhance backoffice position and performance reporting
BondHawk’s Trading Technology Can Meet These Needs for
Buyside and Sellside Firms and in both the Front and Middle
Office Environments
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3. The Basic Problem
Financial Technology is a Service to be Purchased not an Asset
to be Capitalized, Developed, or Managed
Competing Solutions Meet Many of Today’s Needs but at an Excessive
Price Point.
Brand Name Front- and Middle-Office System Vendors Can Charge What
They Do Because They Lack Competition. Also, they
Offer No Pricing Flexibility or Ability to Downscale
Lack Critical Middle-Office Functionality
Do Not Provide Customized Applications
Experience Excessive Latency During Fast Markets
Do Not Offer Professional Services
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4. BondHawk and S&P .
Working to Provide a Better Solution
Goals:
Use BondHawk Trader (“BHT”) to supplant or enhance existing front- and middle-
office systems and facilitate backoffice interaction (better reporting, compliance, and
risk management)
Deliver the applications via the Internet at an unbeatable price point
Provide seamless access to security descriptive data and evaluated prices from
Standard & Poor’s respected data service
Tightly couple the BHT OMS with industry-standard settlement and clearance
systems to facilitate tight control over pre-, middle-, and post-trade business
operations.
Highly Confidential
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5. The Biggest Unmet Market Needs:
.
1. A Complete Stack of Trade Processing Functionality
2. A Blend of Advanced Buyside and Sellside Applications
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6. The Most Common OMS Technology Stack
(TOMS and Other Front Office Systems Have No Middle-Office Platform)
Market News and Prices
Front Office Applications
Trading, Sales and Risk Mgmt Functionality
Instant Messaging
ECN Functionality
Portfolio Management Functionality
Data Distribution Network
Security Master
Middle Office Applications
Trade and Position Reporting
Advanced Risk Management
Backoffice
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7. The Standard Street Solution
(Most Firms Build One-off Apps in the Middle Office Layer)
Market News and Prices
Instant Messaging
ECN Functionality
Front Office Applications
Repo
ARS
Trading, Sales and Risk Mgmt Functionality
Portfolio Management Functionality
Data Distribution Network
Security Master
ARS Support Trade Reporting Oracle DB Risk Mgmt Repo Support
Commercial Backoffice
Highly Confidential
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8. The Standard Street Solution (cont.)
Deploy TOMS or a Proprietary Trading System on the Desktop.
(No ability to customize system for proprietary use)
Use a Proven, Legacy Backoffice System.
(No ability to increase functionality or improve performance)
Build new Applications on a One-off Basis with Existing Components.
(Typically, these are one-offs with little documentation or support)
Enter Data Manually
(Suffer unacceptable error rates)
Link Legacy Systems and Outside Interfaces
(Most interfaces are one-offs that are not well supported)
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9. The BondHawk Solution
Fuse Existing Front- and Backoffice Platforms by Means of
BHT’s Middle-Office Layer and S&P’s Best-of-Breed Data
Build new Proprietary Front-Office Applications Easily and
Economically by Exploiting BHT’s Highly Functional,
Communications Layer
Develop Necessary Middle-Office Applications and Legacy
System Links as Needed
Expose BHT’s GUI to End Users to Replace Existing Desktop
OMS’s One-by-One as old Contracts Expire, Reducing
Operating Costs with each new Instance
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10. Fill the Middle-Office Gap with BHT
Market News and Prices
Instant Messaging
ECN Functionality
Front Office Applications
Trading, Sales and Risk Mgmt Functionality
Portfolio Management Functionality
Data Distribution Network
Security Master
BHT Middle Office Applications
Trade and Position Reporting
Advanced Risk Management
Commercial Backoffice
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11. Extend BHT’s M-O Layer as Needed
Market News and Prices
Instant Messaging
ECN Functionality
Proprietary Apps
Front Office Applications
Other KT Apps
Repo Apps
Trading, Sales and Risk Mgmt Functionality
ARS Apps
Portfolio Management Functionality
Data Distribution Network
Security Master
BHT Middle Office Applications
Trade and Position Reporting
Risk Management
Data and Prices
Commercial Backoffice
Highly Confidential
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12. Replace Existing Workstations One-by-One
(No Need for a Rip and Replace Approach)
Market News and Prices
Instant Messaging
ECN Functionality
Current
Repo Apps
Trading Asst
Bill Trader 1
Salesman 2
Salesman 1
Bill Trader 2
ARS Apps
CDl Trader
BHT Middle Office Applications
Trade and Position Reporting
Risk Management
Data and Prices
Commercial Backoffice
Live Price Feeds Trade Report Feeds
Data Feeds FICC & SWIFT Feeds
Highly Confidential
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