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![A B L E | M A R K E T S
Irene Aldridge – President and Head of Research
• Recognized expert on HFT, 20 years experience in Finance
– most recently, quant trading
– previously, quant risk management, large systems integration, software and
hardware architecture, enterprise Internet security, software development
• BE Electrical Engineering Cooper Union, MS Financial Engineering Columbia U., MBA
INSEA, 2 PhDs – Ops Research (Columbia, ABD), Finance (ABD)
• Member CFTC panel on HFT since 2011
• Author, “High-Frequency Trading” (Wiley, 2009, 2013, translated into Chinese), co-
author of “Real-Time Risk” (Wiley, forthcoming)
Steve Krawciw [kro:sew] – CEO and Head of Institutional Sales
• 20 years of experience in financial product development, launch, business
development, integration and operations
– Launched $4+ billion products at Credit Suisse (7yrs at Credit Suisse in product
development, business development, technology and operations mgmt)
– Previously, asset management CIBC (4 years), 8 years at McKinsey & Co and
Monitor Co in business strategy, spanning financial improvements, corporate
reorganizations and acquisitions, restructuring and process improvements
• MBA (Finance) Wharton, BComm University of Calgary
• Co-author of “Real-Time Risk” (Wiley, forthcoming)
Team- Founders
Contact: Steve@AbleMarkets.com
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AbleOverview 20161107
- 1. A B LE | M A R K E T S CONFIDENTIAL AbleMarkets NOVEMBER 2016 Observe Market Activity No Human Eye Can See Contact: Steve@AbleMarkets.com
- 2. A B LE | M A R K E T S Agenda 2 1 Executive Summary 2 Our Story 3 Team 4 Business Overview Contact: Steve@AbleMarkets.com 5 Market Opportunity
- 3. A B LE | M A R K E T S Benefits from AbleMarketsproducts • Execution: Improve execution vs. VWAP by 500bps per annum on average • Portfolio Management: Avoid HFT and improve long-only portfolio rebalancing by 50bps per annum on average • Risk Management — Avoid trading when Flash Crashes are likely — Catch out of control algorithms in seconds — Improve portfolio management, volatility management with real-time social media alerts 1 3
- 4. A B LE | M A R K E T S 4ExecutiveSummary GAP So we’re crystalizing Real-Time Risk Management in a simple framework No-one has this technology – we’re the first mover AbleMarkets – est. 2014 Data products to manage real- time risks for investment professionals Execution Portfolio Management Risk Management Big Data techniques applied to market data, social media, news Proprietary Intellectual Property = analytical algorithms Volatility Until now, there haven’t been tools to manage it or to anticipate it Real-time Risks are the main concern of Investment and Financial Services Professionals 1 Contact: Steve@AbleMarkets.com
- 5. A B LE | M A R K E T S 5Our Story 2014 2007 Intellectual Property begins with Prop. Trading 2013 2009 2011 Publishing • High-Frequency Trading, Ed. 1, 2 (Wiley) • Quant Investors Almanac (Wiley) 2016 2015 AbleMarkets business: • Value Proposition built • Products launched • Initial clients • Trial marketing AbleMarkets technology 2014-15: Platform built Models finalized 1st Conference 2nd 3rd 4th Publishing • Real-time Risk (Wiley) AbleMarkets launched 2 Contact: Steve@AbleMarkets.com
- 6. A B LE | M A R K E T S • Two years ago we started AbleMarkets. We observed a gap between risks investors faced and the tools and techniques to manage those risks. The outcry against high-frequency trading, flash crashes and front- running didn’t match with how people use market data and monitor the news / social media. • Our specific insight was that the investment community needed data products that anticipated when the conditions were ripe for real-time risks. Big Data offered the solution and we knew how to achieve it. • What led us to this opportunity? Starting in 2007, when a previous company of ours did prop trading, we were aware that innovation in trading was moving in the direction of making use of large data sets, Big Data. We began to process very large amounts of market data, social media and news. – Our Eureka moment was that we could take these large amounts of unstructured data and turn them into structured indices in real-time that monitor and anticipate real-time risks. • How are we uniquely advantaged to build this business? We are first movers in our field. Our experience developing intellectual property regarding Real-Time Risks through thought leadership, algorithm development and product development • Teaming. How do we know each other? We met while working at CIBC World Markets / Wealth Management in 2005. We are a Mom and Pop shop. We started working together on AbleMarkets in 2014 and so far we’ve brought our products to market, closed on our first clients, tested our value proposition with trial marketing. Now we are making the value proposition repeatable and scalable 6Our Story2 Contact: Steve@AbleMarkets.com
- 7. A B LE | M A R K E T S Irene Aldridge – President and Head of Research • Recognized expert on HFT, 20 years experience in Finance – most recently, quant trading – previously, quant risk management, large systems integration, software and hardware architecture, enterprise Internet security, software development • BE Electrical Engineering Cooper Union, MS Financial Engineering Columbia U., MBA INSEA, 2 PhDs – Ops Research (Columbia, ABD), Finance (ABD) • Member CFTC panel on HFT since 2011 • Author, “High-Frequency Trading” (Wiley, 2009, 2013, translated into Chinese), co- author of “Real-Time Risk” (Wiley, forthcoming) Steve Krawciw [kro:sew] – CEO and Head of Institutional Sales • 20 years of experience in financial product development, launch, business development, integration and operations – Launched $4+ billion products at Credit Suisse (7yrs at Credit Suisse in product development, business development, technology and operations mgmt) – Previously, asset management CIBC (4 years), 8 years at McKinsey & Co and Monitor Co in business strategy, spanning financial improvements, corporate reorganizations and acquisitions, restructuring and process improvements • MBA (Finance) Wharton, BComm University of Calgary • Co-author of “Real-Time Risk” (Wiley, forthcoming) Team- Founders Contact: Steve@AbleMarkets.com 3 7
- 8. A B LE | M A R K E T S • For Hedge Funds, Pension Funds, Execution Managers and Other Investment Professionals – Who want to manage real-time risk – Who are looking to protect themselves from high-frequency trading, flash crashes and front-running • Our offering is a suite of products for real-time risk identification across all markets. Our products are unique data feeds; the analytical algorithms are proprietary. • They are a breakthrough because they use Big Data techniques on order flow / microstructure to develop insights on pricing and market movement. Analyzing only completed trades doesn’t generate the same insights. • Our products are unlike the competition: no-one has developed real-time risk management products that specifically address investors main concerns 8Business Overview: Value proposition4 Contact: Steve@AbleMarkets.com
- 9. A B LE | M A R K E T S 9Roadmap to Building a Successful Startup Startup Stages Idea Confirm Create Validate Repeat Scale Profitable Predictable Vision Prototype Product Initial Clients Go to Market More clients + References Additional Products Business Model Financial Model Exit De-risking the business Increasing Value AbleMarkets progress Operations + Support Functions 4 Less risky More risky Contact: Steve@AbleMarkets.com
- 10. A B LE | M A R K E T S 10 Subscription based data feeds 10 Packaged Insight Do-It-Yourself Tools Portfolio Rebalan- cing Analyze Orders Risk Mgmt. Indices Analyze Transacti on Costs Organize your Trades, Orders Execution Algos Analyze Internet of Things Datasets Contact: Steve@AbleMarkets.com Future Development Social Media, News Indices Event Analysis Powered by: • Aggressive High- Frequency Trading Participation Index • Institutional Participation Index • Flash Crash Index • Abnormal Trading / Runaway Algorithms Index 4 10
- 11. A B LE | M A R K E T S • How the market will evolve? – Investment Professionals are increasingly aware of real-time risks • How will we will lead it? – AbleMarkets is light years ahead of the competition in being able to address real-time risks for clients – AbleMarkets has built its products, developed clients and a comprehensive scalable platform that will expand into new datasets and new financial markets. • What is our mission? – Our platform enables and empowers our clients to manage real-time risk. 11Vision & Mission5
- 12. A B LE | M A R K E T S TargetClients and Addressable Market(US only) 12 15,000 funds $360,000/annum $30,000/month Assuming 2 products per client 6,000 $360,000/annum $30,000/month Assuming 2 products per client TOTAL : Hedge Funds, Prop Trading, Family Offices X = $5.4B Long-only Pension Funds X = $2.2B + = $10.4B Through its cutting-edge research, ABLE Markets is targeting the following markets, well in excess of $1 Billion potential: • 15,000+ hedge funds, pension funds, proprietary trading firms and family offices • 6,000 state and local pension funds • 1,000 Worldwide exchanges • 50 major financial regulatory agencies Contact: Steve@AbleMarkets.com 5 8,000 Execution Teams $360,000/annum $30,000/month Assuming 2 products per client Execution Managers X = $2.9B + 12
- 13. A B LE | M A R K E T S Internet of Things companies CompetitiveLandscape / MarketMap Low News / Social Media focus High Analysis of Market Data Social Media Quotient $17M revenue Raised $3M in funding in 2015 Aggressive HFT Index Integrated with Thomson Reuters Raised $5M in funding in 2014/15; $12M in 2016 Google is an investor Acquired by CBOE in 2015 Analysis of Non-Market Data Institutional trading activity Runaway algo detection News Analysis IEX 5 13