Strictly Private and Confidential 1The Spirit of TradeRichard BakerChief Executive Officer
Regulatory ReformOpportunity for changeSwaps instruments are nowsubject to new globalregulatory reform. In October2012, th...
What Dodd Frank did to me !• Global regulatory reform of the derivatives market will see the emergence of newexecution ven...
Introducing The Cleartrade ExchangeCleartrade Exchange provides seamless transaction flow of Futures & OTCderivatives from...
Some of our Members…
The Derivative Value ChainThe Derivative Value Chain captures the workflow of the market. We seekdifferentiation through p...
The impact of Dodd Frank (OTC Swaps)New defined regulated “roles” and “trade flow”Strictly Private and Confidential 7Intro...
Strictly Private and Confidential 8Execution to Clearing : Price Discovery : Trade Reporting : Risk ManagementEDGE Executi...
BrokersTradersLCH SGX NOS *CME Order Matching | Trade Processing| Recaps | Clearing | ReportingRegulated MarketPrivate Mar...
Trades Window Transparency WindowUser Definable Contract LayoutsQuick Trade / Order EntryHow we translate the rules…Screen...
Contract Widget Bar“Pick” contracts and drop on market to tradeMarket Contracts for TradingAnonymous “bids & offers”, dyna...
Trade Repositorya trade reporting portalStrictly Private and Confidential 1255,484 Trade items(27,742 matched buy/selltrad...
Strictly Private and Confidential 13Our mobile journey …
Going Mobile… in 3 months• Defined user role profiles– traders, brokers• Defined data sets to be distributed via API– Stat...
On Device User Interfaceemulates the desktop experienceStrictly Private and Confidential 15Configuration Menu“A tick list ...
On Device User Interfaceemulates the desktop experienceStrictly Private and Confidential 16Trade EventReal-time reporting ...
MarketingStrictly Private and Confidential 17Mobile is an integral component of the CLTX Platform andour commitment to pri...
The Results thus far…Strictly Private and Confidential 18Over 1800 Usersof the Service“Reaching new markets, new customers...
The road ahead…Strictly Private and Confidential 19
Cleartrade ExchangeMobile Roadmap prioritiesStrictly Private and Confidential 20• Move to a Single Sign on AuthenticationM...
FREIGHT METALS AGRICULTURE FUEL OILTHE COMMODITY DERIVATIVES MARKETPLACE• Regulated Futuresand SwapsContracts• Over 40 con...
Thank youQuestionsStrictly Private and Confidential 22
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OpenText EIM Day - Richard Baker

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OpenText EIM Day - Richard Baker

  1. 1. Strictly Private and Confidential 1The Spirit of TradeRichard BakerChief Executive Officer
  2. 2. Regulatory ReformOpportunity for changeSwaps instruments are nowsubject to new globalregulatory reform. In October2012, the Dodd-Frank WallStreet & Consumer ProtectionAct became enforceable viathe CFTC Swaps regulation.Swap Participants globally arerequired to be registered invarious guises and trade,report and clear trades undernew rules.Globally, regulators aretightening rules andemulating the Dodd-Frank Act.Strictly Private and Confidential 2RegulationTime2011 2012 2013MiFID / EMIR / ISOCOG20 Impact of CFTC RulesSwaps / Futures EvolutionG20 NationsImplement ISOCO PrincipalsFor OTC DerivativesWall Street Reform and Consumer Protection (Dodd–Frank) Act lays the foundation defining a new mode of executing, trading, reportingand clearing swaps contracts. A SEF embodies the key characteristics of this new world – a “facility, trading system or platform in whichmultiple participants have the ability to execute or trade swaps by accepting bids and offers made by other participants that are open tomultiple participants in the facility or system”.Cleartrade Exchange comfortably satisfies this definitionDodd-Frank ActCFTC SWAPS RULES2010 - Oct 2012 +Demand Curve of Regulation$700 TrillionDerivatives MarketWhat size market canwe expect to see ?
  3. 3. What Dodd Frank did to me !• Global regulatory reform of the derivatives market will see the emergence of newexecution venues emulating listed exchange traded markets.• Cleartrade Exchange (CLTX) has been the first to operate a Regulated CentralMarket and evolve the off exchange market as well as offer lower cost and agilitywhen compared to full listed exchanges.Strictly Private and Confidential 3OFF EXCHANGEOTC DerivativesON EXCHANGELISTEDFUTURESCentral Markets/Execution VenueDerivativesCleared
  4. 4. Introducing The Cleartrade ExchangeCleartrade Exchange provides seamless transaction flow of Futures & OTCderivatives from electronic execution through to clearing house(s), and back...4Strictly Private and Confidential 4Cleartrade Exchange TimelineMarket StudyRegulated Market2009 2010(FEB) Cleartrade ExchangeIncorporation in SingaporeTechnologyDesign & Build2011Credit Filter& 1st Clearing House1st IDB RMO LicenseOver400,000LOTSProcessedLive Trading &3 Product FamiliesMemberOnboarding2012ContainerFreightPaaSLaunchedDMA &Mobile AppsFuelOil
  5. 5. Some of our Members…
  6. 6. The Derivative Value ChainThe Derivative Value Chain captures the workflow of the market. We seekdifferentiation through points of control.Strictly Private and Confidential 6Bid / Offer“Price Discovery”Matching“Trade Efficiency”Trade Management& Reporting“Trade Transparency”Clearing“Risk Management,Position & Open InterestDisclosure”• Electronic Order books multipleinstruments• Price Discovery• Event Ticker• Liquidity generation throughdepth & spreads• Graphing & Analytics toforecast order interest• Auction/RFQ/Routing• Market Making• Smart Order Management• Electronic Order Matching• Hit & Lift matching• Risk, Credit, Position andNetting Management acrossmultiple clearing houses• CCP account management• Multi-commodity trades(complex strategies)• Trade Event Ticker• Trade novation to CCP• Clearing ID Tag managementand reporting• Recap production/Financeintegration• Trade Repository store/retrieve• STP connections to multipleclearing houses• In line credit/position/marginfiler integration to order books• Trade Reconciliation and RiskManagementDerivative – A financial instrument derived from a physical underlying commoditythat offers risk protection and allows innovative investment strategies.
  7. 7. The impact of Dodd Frank (OTC Swaps)New defined regulated “roles” and “trade flow”Strictly Private and Confidential 7IntroducingBrokerExecutionVenue(SEF/DCM/FBOT)Swaps DealerMajor SwapsDealerUSPersonSwapsParticipantClearingHouse(CCP)On October 12th 2012, CFTC rules for Swaps became law. This has a global impact because of the definition ofa US Person, the requirement for trade reporting and clearing and the international reach of the CFTC.OwnExchangeClearingTrade RepositoryRegulators (CFTC & SEC in the USA) all G20 nations followingUS PersonFCM/GCMDirectMembers
  8. 8. Strictly Private and Confidential 8Execution to Clearing : Price Discovery : Trade Reporting : Risk ManagementEDGE Execution PlatformOrders, Routing, RFQ’s, & TradeManagement, Credit Matrix,Recap EngineRules & algorithmsDMATRADE HUBPost Trade Reporting and ManagementFIX5.0HUBAPILCHNOSSGXTrade HubWeb interface(Trade &Recap reports)CleartradeClearingOperations3rd PartyTrading ScreensSTP GatewayCreditMatrixPrincipalsGCM’sCleartrade ScreensBroker – Trade - GCMLink to BrokerTrade / recapManagementSystemsCMECleartrade MobilePrice & Trade DiscoveryCleartrade Credit Matrix for GCM’sSet financial margins by accountimport positions, Net P&L risk viewQuote VendorFeedsEDGEExecution: Pre & Post TradeProcessing : Marketplacemanagement,trading rules andalgorithmsEDGEAPIThe Cleartrade Platformthe infrastructure of aregulated marketplaceWAVE
  9. 9. BrokersTradersLCH SGX NOS *CME Order Matching | Trade Processing| Recaps | Clearing | ReportingRegulated MarketPrivate Market Solution*For Private Market Trades onlyCleartrade Exchange Open MarketDirect Market Access (DMA) Connectivity GatewayTRADE REPOSITORYDMACLTX ServicesMOBILE PRICE DICOVERYMARKET DATACREDIT MATRIX FILTER
  10. 10. Trades Window Transparency WindowUser Definable Contract LayoutsQuick Trade / Order EntryHow we translate the rules…Screen Familiarization
  11. 11. Contract Widget Bar“Pick” contracts and drop on market to tradeMarket Contracts for TradingAnonymous “bids & offers”, dynamic spreadsand ratios across all asset classes“Market Events” – pre trade market activityAnonymous order activity for whole marketand market depth toolTrader MemberPrincipal“ClearingOpen/Close”“Quick Trade”PresetsHot Keys“Trades Tape” – post tradeAnonymous trade history for whole marketDetailed history for own trades
  12. 12. Trade Repositorya trade reporting portalStrictly Private and Confidential 1255,484 Trade items(27,742 matched buy/selltrades)processed since June 20112,602 matched trades averageper month items in 201252,975 lots averageper month items in 201231,230 Trade items(15,615 matchedbuy/sell trades)in CY2012
  13. 13. Strictly Private and Confidential 13Our mobile journey …
  14. 14. Going Mobile… in 3 months• Defined user role profiles– traders, brokers• Defined data sets to be distributed via API– Static snapshots, updates, layouts, real-time & delayed• Defined device support (IOS/Android/Blackberry)– No touch of apps on device for CLTX, a managed service– Integrated via Web services API to Exchange feeds– Dynamic population of contact dataStrictly Private and Confidential 14DefinitionPhaseUser InterfaceDesign & ShowcaseService Build &IntegrationApril 26th June 1stApril 1st
  15. 15. On Device User Interfaceemulates the desktop experienceStrictly Private and Confidential 15Configuration Menu“A tick list of contracts tomonitor”Select contract tabsto view prices and volumesConfiguration and Price Selection
  16. 16. On Device User Interfaceemulates the desktop experienceStrictly Private and Confidential 16Trade EventReal-time reporting of exchangetradesOrder Activity & Trade EventsMarket EventReal-time reporting of exchangeorders on the marketTransparency + Liquidity = CONFIDENCE
  17. 17. MarketingStrictly Private and Confidential 17Mobile is an integral component of the CLTX Platform andour commitment to price and data transparency
  18. 18. The Results thus far…Strictly Private and Confidential 18Over 1800 Usersof the Service“Reaching new markets, new customers andextending our brand in a highly competitive landscape”
  19. 19. The road ahead…Strictly Private and Confidential 19
  20. 20. Cleartrade ExchangeMobile Roadmap prioritiesStrictly Private and Confidential 20• Move to a Single Sign on AuthenticationModel across CLTX assets• Expand data offering with inclusion ofnew contracts, daily reports, openinterests positions and volumes• Adoption of Mobile Wave 4.0 (May’13)• Support Hybrid HTML5.0 and NativeApp experience across price view, tradehub and data center• Evaluating Broker Block TradingApplication (Sept’13)
  21. 21. FREIGHT METALS AGRICULTURE FUEL OILTHE COMMODITY DERIVATIVES MARKETPLACE• Regulated Futuresand SwapsContracts• Over 40 contractsacross Freight,Metals, Fuel Oiland Agriculture• Straight throughprocessing tomultiple clearinghouses• Market dataaccess via majorquote vendors,web and mobile• Electronic Executionvia Web GUI• Trade Reporting• Hybrid Voice &Screen Trading• Real-time CreditMargin Management• Broker specificfeatures andincentives
  22. 22. Thank youQuestionsStrictly Private and Confidential 22

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