Mercap Software is an Argentine company that provides financial software solutions. It has 20 years of experience in the Argentine market and is now expanding globally in Latin America, the US, and Europe. The presentation outlines Mercap's products, clients, functionalities, and analysis tools. Key products include Mercap Treasury for banks and Mercap Portfolio for asset managers. Functionalities cover the front, middle, and back office needs of financial institutions. Analysis tools include VaR, yield curves, and options valuation. Current projects focus on cloud access, global integration, and remote approvals.

2. Agenda
Corporate Presentation
Analysis Tools
Current Projects
Set of Reporting
System Functionalities

3. Mercap Software®
Corporate Presentation

4. Corporate Scope
20 years of experience in the business
Mercap Software is a company focused on providing solutions to the
financial market
Clients in Argentina and Latin America
Currently has decided to face a new stage of its business strategy based
on global expansion in the Latam regional market as well as the
international financial markets of USA and Europe

5. Board of
Advisors
About Us
Alejandro Gabriel and Alicia Echeverría
• Alejandro in Linkedin
• Alicia in Linkedin
Founders
Interdisciplinary team of IT,
mathematics, economics and financeTalent Team
Creation of Mercap Board of Advisors in
order to emphasize its core business: the
financial business
Board of
Advisors

6. Multiple Solutions
• Solutions oriented to Banks, Insurance Companies, Pension Funds, Mutual Funds,
Hedge Funds, Family Offices, Brokers y Corporates
Core Business
• Systems development and support services to financial transactions through
instruments, securities and tools operating in global markets
Market Share
• Mercap has a market participation of 10% in the Argentinean Financial System.
Manages AuM USD 8.5 billion
Smalltalk Technology
• Mercap offers an integrated platform, using SmallTalk teconology the same one of
JP Morgan in its system KAPITAL and also the one of Thomsom Reuters in KONDOR
Integrated Platform
• The software goes through all the stages of the financial transaction starting in
Front office, through Middle office and ending in Back Office
Mercap in a Nutshell

7. Its embedded workflow
engine allows the modeling
of business processes
involving no additional
programming
Homogeneous structure of
instruments based in flows is
very useful in creating and
configurating VaR and stress
testing
Provides flexibility in defining
views for screens and reports
Algebra Group Feature
Structure of Instruments based
in flows
Workflow: Speed and
Adaptability
Mercap has a flexible architecture technology, which is also both robust and
scalable
Its superiority lies in the design
of embedded algebra, expressed
in measurements rather than
amounts and exchange rates
Mercap’s Strengths (I)
Multi-Currency Model

8. Quality Certification
Mercap is a company with high focus on quality that has been
certified ISO 9002: 2008 in the Services sector for all processes
Customizable products
A particular benefit provided by the products ability to adapt to the
specific requirements of a client according to the characteristics of its
business
Globalization
Mercap is able to collaborate effectively in the globalization of your
business or company. The consolidation of information can occur through
different ways: Multi-company, multi-branch, multi-location, multi-division
Mercap’s Strengths (II)

9. Financial
Institutions
• Treasury
• Custody
• Private Banking
Portfolio
Management
• Assurance
Companies
• Pension Funds
• Mutual Funds
• Portfolio Managers
• Hedge Funds
• Family Offices
• Brokers
Corporates
• Otreasury
• Asset and Liability
Management
• Financial
Investments
Targeting different types of clients:
Soluctions

10. Front
Office
Middle
Office
Back
Office
Functional Structure
•Fixed Income
•Equities
•Exchange
•Money
•Derivatives
•Market Risk
•Performance
•Valuations
•Cash Flow
•Positions
•Results
•Operational Risk
•Counterparty Risk
•Investment
Policies
•Autorizations
•Confirmations
•Settlement
•Custody
•Market rates
•Accounting
•Commissions
•Fees
•Corporate
Events
•Parameterization
•Transfers
•Guarantees

11. • Oriented to banks managing the financial trading and custody
business of a financial institution
• Competitive Advantage: completeness of the functional scope
that covers all the needs of the bank
Mercap Treasury®
• Oriented to Insurance Companies, Pension Funds, Mutual
Funds, Portfolio Managers, Hedge Funds, Family Offices, Brokers
and Corporates
• Competitive Advantage: Set of reporting and analysis tools that
provide added value to the investment management and
collaborate effectively in the Portfolio Manager´s decision
making process
Mercap Portfolio®
Products

12. National and International
National:
• Banco Hipotecario
• Banco Macro
• Banco del Chubut
• Banco La Pampa
• Cardif Argentina
• Caja de Previsión
Social para
Abogados de la
Provincia de Bs As
• Colegio de
Escribanos de la
Provincia de Bs As
• Consultores Asset
Management (CAM)
• Nación Seguros
• Provincia Vida
International:
• Cardif Perú
Clients

13. Mercap Software®
System Functionalities

14. All the financial instruments available
Derivatives: Futures, Forwards, FRAs, Swaps, Options
Structured Products with Guarantees, Repos, Credit
Lines
Money Market: Call Money, Time Deposits, Loans
FX: Purchase, Sale, Repos
Mutual Funds Shares
Managed Funds
Equities, ADRs, CEDEARs
Fixed Income: Government Securities, Secured Loans,
Financial Trusts, Guarantes, Time Deposits using Bonds
Trading Operations
Funding Operations
Internal Orders
Investment Portfolio Management and
Customer Portfolios
Front Office Functionality (I)

15. Purchase of fixed-rate instrument
Multiple Markets: MAE, MERVAL, NYSE,
NASDAQ, etc.
Managing Debt with the more complex
structures by modelling their flows
Inflation-adjusted bonds, other indices, Piks,
capitalized, redeemable, floating and variable
rate, zero cupons, etc.
Check online cashflow and main bond
indicators (Yield, Amounts, Modified Duration,
DV01)
Front Office Functionality (II)

16. Yield Calculation of Input and Output of the
underlying security.
Assignment of coupons to the counterparty.
Valuation by curve, or Technical Repo rate.
Modalities: Titles in warranty (with or without
gauging) or Sell Buy Back.
Flexible structuring of Cashflow (online query and
restructuring)
Depreciation systems
Structured Product
Xddddddd
Front Office Functionality (III)

17. MULTIPLE VALUATION CRITERIA
Issuer currency valuation and another chosen
valuation (Multi-currency Model)
Multiple valuation rules for different criteria and
priorities configurable by group or instrument.
MTM valuation, Theoretical (Yield curves, Curve
Rates, Black & Scholes, Binomial Tree, Theoretical
Valuation Forwards and Swaps Technique, Amortized
Cost (IRR))
Estimating flat and forward prices.
Portfolio Valuation and its holdings
ALGEBRA GROUP ATTRIBUTE
Different views of the position based on
categories created by the user (Asset
Allocation, Investment Sector, etc).
Portfolios (or Sub-Portfolios) grouped by
Holdings.
Front Office Functionality (IV)

18. Investment Policies
Investment policies configurable to suit each portfolio
Composition limits (instrument, issuer credit rating,
maturity, etc.).
Credit risk limits and settlement.
Authorization and monitoring (on-line and batch)
compliance with policies.
Middle Office Functionality

19. Process of Back Office and Accounting
Cash and securities settlement
Corporate Events
Maturities
Notifications
Quotes Import (Bloomberg, Reuters)
Regulatory Interfaces
Interfaces with Core and External Systems
ACCOUNTING
Accounting of events with
parameterization
Multiple accounting by portfolio
Accounting restatements: Mark To
Market, Accruals, Capital Adjustment
Exchange difference and TIR-Market
Back Office Functionality

20. Mercap Software®
Set of Reporting

21. FrontOffice
Portfolio Valuation
Historical
Profitability
Performance
Attributtion
Position and Analysis
of Fixed Income –
Shares - Options
Sensitivity Analysis
MiddleOffice
VaR
VaR Stress Tests
Counterparty Credit
Risk Limit
Trader Credit Risk
Limit
Compliance
Market Risk
BackOffice
Unsettled
Transactions
Unconfirmed
Transactions
All vouchers
Creation of a Standard Set of Reports

22. Portfolio Valuation Report

23. El reporte muestra la Rentabilidad Mensual de
una cartera o portfolio para el período
seleccionado. Permite ver su evolución en el
tiempo y la Rentabilidad Acumulada.
Adicionalmente, a partir de la volatilidad
observada para los mismos períodos, permite
el análisis de la Rentabilidad Ajustada por
Riesgo y su evolución.
Profitability & Performance Report

24. Comparative Valuation Fixed-Income Report

25. Mercap Software®
Analysis Tools

26. Value at Risk
Historical, Montecarlo and
Parametric VaR
Histogram, Matrix of Correlations
and Volatility
Curves
IRR, Spot, Forward Yield Curves for
fixed-rate instruments
Sensitivity Analysis for instrument
valuation under different methods
Betas
Stock Portfolio Analysis
Calculation of Beta based on
Capital Asset Pricing Model (CAPM)
Black-Scholes
Theoretical Valuation of Options
using Black Scholes.
Greek Analysis and Implicit Volatility
(Smiles)
Analysis Tools

27. Parametric VaR y Matrix of Correlations

28. Yield Curve Valuation Method

29. CAPM: Calculation of Beta by Portfolio

30. Smiles: Implicit Volatility for Options

31. Mercap Software®
Current Projects

32. Mercap
in the
Cloud
Web
Access &
Reporting
Positions
and Cash
Flows for
Treasury
Global and
Regional
Integration
Remote
Approval
for Limits
Five Value Added Projects

33. Any questions?
Thank you
for your Interest
in Mercap Software!