Introduction to FXall October 2013 A Thomson Reuters
Introduction to FXall October 2013 A Thomson Reuters Company
Table Of Contents FXall Overview Execution Solutions Workflow & STP Solutions Settlement Center Reporting/EQA Thomson Reuters + FXall Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 2
FXall Overview
THOMSON REUTERS AND FXALL A POWERFUL COMBINATION FXall THOMSON REUTERS Focus Areas Complementary Aspects • Sell-side Focus Areas • Buy-side • Pre-trade content • Customer bases • Relationship trading • Market Data • Functionality • Bilateral dealing • Geographic Focus • Post-trade – Settlement Center • Matching • Messaging • Transaction Solutions Benefits For Customers & Market • Linking the Community • Key distributors of liquidity • End-to-end workflow solutions • ECN
THOMSON REUTERS AND FXALL COMPLETE TRADING, DATA AND WORKFLOW MANAGEMENT SOLUTIONS • • • THOMSON REUTERS FXall Trade Execution Thomson Reuters Dealing Thomson Reuters Matching Thomson Reuters Forward Matching Reuters Electronic Trading (RET) Thomson Reuters Dealing Aggregator Market Data & Reporting • Thomson Reuters Eikon • Reuters 3000 Xtra • Thomson Reuters Messenger Post-Trade & STP • Thomson Reuters Deal Tracker • Thomson Reuters Trade Notification Buy-Side: • • Portfolio OMS Collaborative Dealing Quick Trade Bank Stream • Order Book Sell Side: • Customer OMS • Bank Stream • Mid Book Market Data & Reporting • Indicative Quotes • Real-time Quotes • Execution Quality Analytics Post-Trade & STP • Settlement Center • Custom integrations • Channel partners
FXall Is The Leading Electronic FX Platform § Market-leading provider of electronic FX trading solutions – Part of Thomson Reuters Group since August 2012 – Top-ranked industry platform by Euromoney, FX Week, Global Finance, Financial News, Profit & Loss – Global presence with offices in: • NY, London, Singapore (Service Centres) • Zurich, Boston, Washington, Tokyo, Sydney, Mumbai § Deep liquidity from 85+ providers and 1, 300+ institutional clients – Average daily trading volume of $100 billion (2012) – 24 x 5 access to the FX market in over 65 countries § Broadest product set with multiple execution methods – FX Spot, Forwards, Swaps, Non-Deliverable Forwards (NDFs) and Options, Money Markets and Precious Metals § Strategic partner to the institutional FX market – Regulatory support for new SEF and OTF requirements – Delivering insight around cost savings and execution quality Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 6
A growing market share of an expanding business Multi-Bank and Independent Platforms % Market Share 2013 2012 Ranking 2012 Annual ADV* ($USB) 1. FXall 26 22 (1) 2. FX Connect (State Street) 15 19 (2) 90 3. 360 T 13 15 (4) 80 4. Currenex (State Street) 12 8 (5) 5. TR Dealing 3000 11 19 (3) 6. FX Trading on Bloomberg 10 8 (6) 7. Integral-FX Inside 6 5 (7) 8. Hotspot FXi 5 3 (8) 9. CME 0. 5 100 70 60 50 40 30 20 10 0 (Source: Euromoney 2013 Survey) 2006 2007 2008 2009 2010 2011 2012 * ADV = average daily volume 7
End-To-End Best Practice § § Full STP workflow and comprehensive post-trade automation solution Multiple execution strategies and deep liquidity Ultra low latency and multiple connectivity alternatives Full control and compliance FXall Client Execution Solutions OMS TMS §Indicative Quotes §Request For Stream §Collaborative Trading §Bank Stream §Anonymous Order Book §Mid Book Match ECN §Internal Dealing Liquidity Sources Providers § 200+ Pricing Streams § 500+ Currency Pairs § 1, 000+ Institutions § 50+ Aggregation Vendors §Spot, Swaps, Fwds MM, NDFs Options Clearing & Settlement Post Trade Custodian § 80+ §Settlement Center §CLS Settlement §Quick. Connect §SWIFT §FIX §Rules-based permissioning Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). CLS Bank Internalization 8
Only Platform For Multiple Institutional Clients’ Needs Trade to facilitate core business § Imports & Exports § Hedging strategies § Repatriation of earnings § Foreign dividend conversion Cross-border M&A § Currency overlay management “ 58 of S&P Global 100 and 132 of the Fortune 500” Trade to generate alpha Broker. Dealers Hedge Funds CTAs HFTs Asset Managers Corporations § Facilitate trades / market making § Foreign trade settlement “ 27 of top 100 U. S. institutional asset managers and 55 of the top 100 European institutional asset managers” Banks § Market making § Trading strategies § FX brokerage § § Macro strategies § Credit intermediation Global payment services § Foreign trade settlement § Agency treasury services “All of the top 25 banks in the FX industry globally as ranked by Euromoney” Relationship Trading “ 6 of the top 10 institutional hedge funds as ranked by Institutional Investor” Active Trading Confidential and Proprietary. © 2012 FX Alliance Inc. (All Rights Reserved). 9
Global Client Base Of Over 1, 000 Institutional Clients 57 of the S&P Global 100, 30 of the FTSE 100 27 of the NASDAQ 100, 47 of the NYSE 100 32 of the Top 100 Asset Managers 7 of the Top 10 Hedge Funds All of the top 10 Banks Volume by Customer Type Banks/BDs 23% Asset Managers 24% Volume by Region Corporates 25% Hedge Funds 28% CONFIDENTIAL AND PROPRIETARY © 2012 FX Alliance, LLC (all rights reserved) 10
Deep Liquidity Via 80+ Leading Global Providers Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 11
Comprehensive Suite of Products And Capabilities Order and Execution Management § Upload, evaluate, aggregate and manage orders at the best price on ECN or multi-dealer platform Trade Execution § Single point access to multiple execution methods or trading mechanisms for over 400 currency pairs Post Trade Services § Facilitates post-trade messaging between clients, counterparties, custodians and prime brokers § Supports multi-account allocations, automated matching and net settlement Connectivity & STP § Integration increases client efficiency and control in trade and operational workflows Market Data & Reporting § Trade Execution Comprehensive real-time market data and analytics to assist in auditing trade execution activity and quality Order & Execution Management Market Data & Reporting Post Trade Services Connectivity & STP Creating your edge Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 12
Consistent Market Leadership § Euromoney (#1 multibank and independent platform) 2002 - 2013 § Profit & Loss (Best Trading Platform for Asset Managers) § Financial News (Best electronic FX trading exchange, Buy-side) 2008, 2011, 2012 § Global Finance (Best independent online FX trading system) 2005 - 2013 § TMI Awards (Winner Technology Award – FX Dealing Portal) 2013 § FX Week (#1 multibank platform) § FX&MM (#1 ECN Venue) 2011 - 2012 2005 - 2012 2010 Confidential and Proprietary. © 2013 FX Alliance, LLC (All Rights Reserved). 13
Execution Solutions
FXall’s Platform Supports Multiple Trading Models Relationship Trading Multi-Bank Model Liquidity Provider Active Trading Licensed White-Label ECN Model Single-Bank Model Hedge Fund One Liquidity Provider Broker. Dealer Bank ECN Platform Asset Managers Corporate Hedge Fund Broker. Dealer HFT White Label Asset Managers Hedge Funds, HFTs, CTAs Corporate Broker Dealers Banks Corporate Hedge Funds CTAs Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 15
Active Trading / Aggregator
Aggregator Combines Anonymous Order Book Liquidity With Bank Stream Continuous Executable Rates Benefit Maximize liquidity, reduce costs and trade anonymously Features § Access streaming real-time prices from Banks and an anonymous ECN § Deeper liquidity and tighter spreads § Smart display shows best price § Shift execution strategies as market conditions or requirements change § Utilize advanced order types § Leave resting orders to avoid paying spread § Minimize expenses and maximize internal resources with cost-effective ASP model Best Bid / Offer: Continuous streaming spot prices from the top providers Bank Stream: Continuous streaming spot prices from your banks Order Book: Anonymous liquidity through Accelor ECN & the platformerly known as Lava. FX Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 17
Multiple Order Book Views Show Depth of Book Level I – best price summary for first and second best price Best price summary for first and second best price Best price level Level II Best price summary with collapsed Order Book with orders aggregated by price level Next best price level Quantity at aggregated levels Level III Weighted Average View Best prices summary and full Order Book A real time average price for each amount calculated based on user defaults Cumulative quantities Edit default amounts and discretion and use rounding Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 18
Multi Tier Montage Window for Bank Stream Aggregator Level I Best price summary for up to 4 tiers Level II Detailed view per price tier Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 19
Enhanced Variable TWAP Order Need Minimize market impact when executing large trades FXall Advantages § § Multiple configurable variables control TWAP execution strategy Slices reduce market awareness and minimize market impact Additional opportunity to executive passively and save bid offer spread Ability to automate executions in advance of key fixing points to beat indices Break up larger order to market amounts Vary the frequency of your “slice” Vary the amount of your “slice” Limit the total execution by Maximum Rate or Average Rate Stop the execution if the spread become too wide Load with a preset start time Execute by pegging or no pegging Peg exactly where you want Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 20
Pegged Order Accumulates a Position Need Maintain presence in the book and execute passively without driving the market FXall Advantages § Ability to accumulate a position within a price range § Move with the market bid or offer at a specified offset price § Be the best bid or best offer at all times § No need to manually price countless orders to remain at the top of the book § No latency because orders rest in the data center adjacent to liquidity sources § Ability to hide order from market Total amount with or without show Limit price becomes the “Top”/”Low” of the pegged range Discretion can be used Set Price Option: -No low -Fixed low -Floating low Floor/Ceiling Price Options Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 21
Limit Order Locks in Profits Need Lock in profit should the price move to your advantage FXall Advantages § Post at the limit price or sweep all available market liquidity to get all price improvements § Use as an immediate or cancel (IOC) or post Click to Toggle to Enter Total Buy or Sell order amount balance based on predefined Time-In-Force (TIF) options § Discretion Feature – Look for bids and offers within the price plus discretion range and deal on those prices § Reserve (Iceberg) Feature – Control visible quantity of order shown to the market instead of showing total size Choose to enter Discretion Enter the size that you would like to “show” to the market Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). Hide entire order from the Market (which “grays” out shown quantity) 22
Hidden Orders Eliminate Market Awareness Need Receive price improvement while being hidden from the market FXall Advantages § § Hide entire order from the market for price improvement Catch price improvements if the market gaps through your hidden order Click to Toggle to Buy or Sell Enter Total order amount Enter Order Rate Shown box “grays” out when Hidden chosen Choose to enter Discretion Check Hidden to hide entire order from the Market Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 23
Trade Averaging Helps Reducing Costs Need Reduce costs by aggregating trades prior to the Prime Broker submission FXall Advantages § § § Generate and submit aggregated trades to your Prime Broker Replace and cancel individual trades Group trades by: Worksheet Tab: Select Averaged Trades Tab: View Drop – – – Prime Broker Account Currency Pair Bid/Offer side Value Data All at an Average Price individual orders for averaging Copy Notifications submitted to the Prime Broker Preview Window: review for accuracy in grouping and rate averaging prior to submission to Prime Broker Action Buttons: Select required action Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 24
Quick Trade / Request for Quote
Quick. Trade offers RFS based trading for rolls, spot trades, minor/exotic currencies, NDFs and Options Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 26
Quick. Trade offers RFS based trading for rolls, large spot trades, minor/exotic currencies, NDFs and Options Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 27
Leverage Relationships With Key Providers Need Execute any type of trade with your selected banks FXall Advantages § § § § Relationship-driven execution offers deeper liquidity and reduces fees Best bid and offer buttons highlight best price Prime broker can be default for ties Direct any order to any provider with one click No obligation with “Nothing Done” option Choice of pricing streams Full audit trail and deal log Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 28
Trade Collaboratively With Portfolio OMS And Stage Orders Benefit Feed FX orders automatically by STP or with manual entry into a powerful staging blotter with advanced execution and workflow functionality Features § § § § Upload orders by STP, file or manual entry Trade directly with a single bank or launch a multi-bank RFQ Access resting orders and execution algorithms Net and allocate trades Review a portfolio of orders with your bank for best execution (Collaborative Trading) Quick, easy and flexible integrations Duty segregation 29
Orders for execution are easy to prepare § § § Upload orders or create requirements manually Automatic netting takes into account – Restriction on trading different accounts together – Bank mappings for each account and any additional pre-requirement restrictions Up to three levels of segregation of duty (builder, approver, executor) enforce compliance with internal procedures 30
Cross Currency Netting § Choose a base (local) currency, and view net position in other currencies 31
Collaborative Dealing To Partner With Your Bank Need: Net multiple trades for large transactions, less-liquid currencies or to transfer risk for complex portfolios FXall Advantages § Manage and execute multi-currency portfolios directly in real-time § Consolidate positions into a single currency or currency pair for better rates § Improve risk management and decision-making around complex positions § Trade outrights directly, avoiding the need to deal spot positions & roll them forward § Direct trades to bank salesperson through shared views and instant chat 32
Trading options: A) Trade deals electronically over FXall § § § Any order can be selected for custodian only or competitive dealing The new Difference column highlights pre trade the cost differentials between the best offer, and each of the others Settlement Centre sends out & matches confirmation immediately after each trade 33
Or B) Manually book trades agreed over the phone § § § Highlight order, and then enter bank name and agreed rate This then provides a single database, audit trail and reporting for all trades, both etraded and telephone Settlement Centre sends out & matches confirmations as for FXall dealt trades 34
Or C) Send details, whereby bank is prompted to enter details § § § Trader enters only the name of the bank. The bank is prompted to enter the rates agreed on the phone Trader is then prompted to confirm that the banks details are as agreed on phone As before, Settlement Centre sends out & matches confirmations 35
Trade blocks (strip of Forwards) in Competition § § Any order with multiple value dates can now be traded in competition The best price button (and the difference amounts) takes into account: § each bank’s spot rate § and the forward points for every value date 36
Select a maturing swap / forward from Trade History and then roll forward 37
Benchmark fixings facilitate best execution § § Portfolio OMS now enables clients to submit orders for execution at a fix – Independent auditable FX rates provide an accurate reflection of the market at the time of execution Submit request-for-stream and benchmark orders through a single integrated service Access industry-standard fixing series: -Citi -RBS -Deutsche -HSBC -JPMorgan Other providers are currently integrating 38
Resting (O/N) / Algo Orders
Overview § Resting and Algo orders will allow customers to leave orders at a bank to be filled based on their requested style and/or strategy Limit Market Stop / Stop Limit CS § Algos X DB X X GS X X JPMC X X Barclays X X Additional banks will and can be added asap without users requiring a new GUI release. The next banks we are working with are: CITI and MS. 40
Resting Orders Offer Additional Execution Models § § Send limit and ‘stop’ orders directly to your preferred Providers Access Providers’ proprietary Algo’s over a single GUI Post Trade allocate where necessary Net fills and roll/book at average rate 41
Order Entry Window 42
Stop and Algo Order Entry Windows Select Venue to get a list of strategies available from that provider 43
Orders will be monitored and modified via the Active Order Blotter Cancel / Modify Action buttons Close Action button 44
User completes Post Trade Allocations and submits to the Provider 45
Providers will use TC to approve/reject Post Trade Allocations 46
Option Trading
Liquidity providers Auto quote via API: - BAML - Credit Suisse - Citi - GS - HSBC - JPMC - Morgan Stanley - HSBC - UBS ( Pipeline - RBS (coding) - Nomura (coding) - CA-CIB (coding) Manual quotation via FXall Treasury Centre: - Nomura (active) - BARC (active) - BTMU - Deutsche (active) - Nordea - Wells Fargo - ZKB Banks with Treasury Center (Options turned off) - ING - SG - Danske
FXall supports FX Option trading You can also create and store Options in the Options Requirements Blotter. Click on the Quick. Trade Button and select “Option”, from the drop down menu to open a deal ticket.
Enter your Option details to calculate a price Select the currency pair, account, strategy and request type.
Enter your Option details to calculate a price Next choose a volatility source (one bank’s vols or a blended feed) and enter your trade details. FXall recognises K and T for thousands and M for millions. You can use 1 M, 3 M, 6 M etc for periods as well as entering in dates.
Users can request No Delta Exchange or Spot Delta Selecting Spot Delta will bring up another set of choices the user can edit.
Users can also edit spot and settlement details If no Spot rate is input, FXall will snap in an indicative Spot value when the user hits “Calculate”.
FXall shows the indicative Premium and indicative spot Delta adjusted Premium (if selected) Edit any values and click on “Calculate” to view the changes to the Premium. “Refresh and Calc” updates the Spot Rates, if the user has not entered their own values.
Choose banks and click “Start” to get live Premiums
Click on price to trade or click “Nothing Done”
Users can manually create a number of Option strategies from the drop down menu
FXall supplies a number of standard csv Templates to allow users to create and import strategies Users enter details and Save the csv file then upload via the FXall Options Requirements Blotter.
Money Markets 59
Money Market Deposits § § One-click multi-dealer, automated quoting model replaces multiple phone calls Simultaneously negotiate rates and amounts with multiple providers – Spread the risk of deposit across providers § § Automate Settlement Center confirmations for SWIFT 320 Loans and deposits across full trade lifecycle Roll trades and positions quickly and easily Bilateral ‘chat’ to finalize rates/amounts 60
Supports ‘simple’ and ‘advanced’ execution § ‘Simple’ mode for automated trading – Traditional RFQ – Customer requests price for fixed amount and executes with a single provider § ‘Advanced’ mode for relationship-based trading – Complex, negotiation-based multi execution model – Capital can be split across multiple providers based on requirements – Bilateral ‘chat’ to finalize rates/amounts 61
Simple mode - best rate is highlighted 62
Place £ 25 m with MMBANKA Full deal log 63
Advanced Mode - MMBANKA’s best rate is highlighted - MMBANKD can offer rate for a smaller size 64
Blotter - select trade & payment date and highlight positions to be rolled 65
Workflow & STP Solutions
Enhance Your Risk Management and Control FXall Advantages § Fully integrate exchange of trade and confirmation data between your OMS and FXall § Flexible, automated data feed into partner post-trade systems via API § Multiple upload and download methods are available: FIX (Financial Information e. Xchange Protocol), Quick. Connect, HTTPS Direct Prices requested from Banks 1 Client FX OMS Client’s FX Orders uploaded to FXall Trade details sent to OMS Trade Executed Bank 1 2 FXall Trading 4 Competitive Quoting Bank 2 3 Bank 3 5 Matched Trade Details Downloaded to OMS 10 FXall sends trade details to Settlement Center 9 3 rd Party Notifications MT 304 CLS Bank 5 FXall Settlement Center Custodian Bank 12 Bank 4 3 rd Party Payments MT 202/210 11 Trade Matched and Confirmed Trades Netted MT 300 Confirmation 8 6 7 MT 300 confirmations sent with Settlement Instructions attached Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 67
Seamless Integration With 90+ Leading Technology Vendors Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 68
Trading and Market Data Connectivity Options Activity FIX Submit, cancel/replace and cancel orders and execute reports Drop copy execution reports (STP) Accelorate. TM ü ü Market Data ü § Recommended minimum bandwidth: – 512 kbits/s for active API trading across 16 currency pairs – 256 kbits/s for active API trading across 8 currency pairs – 128 kbits/s for GUI users § Standard STP Options – FIX – XML real-time Java API – E-mail § Premium STP Options – TOF – Direct printer feed Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). ü 69
Settlement Center 70
Increase Efficiency & Reduce Operational Risk Need Streamlined system to automate reconciliation of settlement details FXall Advantage § Out-of-the-box integration between trading and confirmation for FXall deals § Automatically confirm trade details regardless of original trade source § Store, auto-attach, and settlement instruction data § Automatically notifies interested third parties § Fully compliant with SWIFT standards § Free back office staff to focus on exception management § User-based permissions enforce segregation of duties § Time-stamps record all actions § Reduce risks associated with thirdparty dealing for corporate treasurers § Automated matching reduces errors Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 71
Enhance Post-Trade Efficiency Need Manage post-trade processing to enhance efficiency and reduce errors FXall Advantages § § § Automatic confirmation, matching, netting and settlement Seamless, secure notification and payment messages to custodians and third parties Automated calculation of net position payments Support for on and off-platform deals Exception management prevents failed trades by identifying errors before settlement Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 72
Settlement Center Relieves Pressure § Centralize all FX post-trade in one place – Supports trades executed on and off the FXall platform § Customize an implementation to match your needs – Product specialists implement your specific integration – Our Quick. Connect platform creates a seamless interface to TMS, OMS § Full Trade life cycle coverage and management of operational issues and related risks – Confirms FX Spot, Forward, Swap and NDF, and MM, intraday – Immediate highlighting of exceptions for review – Creates and delivers all Custodian and Counterparty messaging § Robust community-side solution – 80+ banks plus custodians – Audit trail of all activity related to any particular deal 73
Integrated end-to-end workflow 2 Treasury Mgmt System 9 Matched trade details downloaded to TMS FX orders uploaded to FXall Bank 1 FXall Portfolio OMS 4 5 a Trade details downloaded to TMS Deal details inc non FXall deals sent to FXall SC Bank 2 Trade @ “best” price 3 Bank 3 5 b 8 FXall Settlement Center Single Quoting or Competitive Quoting 1 Request prices from Bank(s) Bank 4 6 MT 300 confirmation sent with SSIs attached 7 MT 300 confirmation returned Trade matched and confirmed 74
Standard Workflow Deal Fund Manager/ Corporate MT 300 FXall Settlement Center Counterparty Bank CLS Member Bank MT 300 TCOPY MT 304 CLS MT 304 Custodian Bank MT 304 CLS Bank where counterparty bank is a CLS Settlement member Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 75
Matching Blotter Gives You a Complete View Our Deals Auto-updated, pending confirm from Counterparty. Display includes: • CLS status • link to view xdetails Counterparty Deals In: pending your action Out: pending action by counterparty Completed Matched Deals 76
What Constitutes a Match - Full Audit Trail 77
SSIs are Automatically Populated on Outgoing MT 300 s, MT 320 s, MT 304 s, MT 202 s and MT 210 s 78
Setup Custodian Notification per Your Specific Needs 79
Reporting
Effective Reporting Enhances Control & Compliance A wide range of reports can be accessed: § § § § Print ticket – Executed deal details including complete quotes and benchmark against FXall IQ Trade audit trail – Shows all the quotes sent by all banks for a single deal and the quote accepted Trade activity report – Summary of all transactions Trade allocation details – All details for a single trade Trade history report – Shows the history of a trade and highlights amendments Customer savings report – Compares the prices received for each trade between dealt, second average Provider activity summary – Actively including every trade with each bank RMA report – Relationship Management Advisor provides a summary of bank performance 81
Customer Savings Report § Summary of trading activity for any date range, currency pair, user(s) and account(s). 82
Trade activity details: trade ticket § Shows details of each trade including any competing quotes at the time of the trade, the market rate and savings made 83
Trade activity details: trade audit trail § Complete breakdown of all quote requests and responses for any trade(s) 84
Relationship Management Advisor (RMA) § Summary of trading with each provider for any given time frame – US$ volume – RFQs sent/answered – Customer offers to deal/dealt – Pick-up as % hit rate or as 5 denied – Deals done – Average time to quote 85
Trade activity summaries: Liquidity provider activity summary § Overview of trades done with each provider § Percentage done § Volume § Average trade size and share by USD volume Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved 86
Execution Quality Analysis
Execution Quality Analysis – How Do We Deliver It? § Standardized report format about your trading on FXall § Monthly or quarterly summary overview report § Spot, Forwards and Swaps § Multiple Analyses with Charts § Spreadsheet format allows analysis of data in detail Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 88
Business Questions About Execution Quality What currencies are most actively traded? How does my trading compare with the highs and lows of the day? How does my trading compare with a reference rate? How does order size effect response time? When is the best time to execute orders by currency and size? What is the impact of my counterparty selection? What is my netting behavior? Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 89
Perform Your Own Detailed Analysis Of The Data Reports Include A Spreadsheet Format To Enable Further Analysis Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 90
Trade Summary – What Currencies Are Most Actively Traded? 28% of the client’s total volume executed during the report period was in GBPUSD Top 5 Currency Pairs By Volume 33% of the client’s trades during the report period were in GBPUSD Top 5 Currency Pairs By Number of Trades Other 9% Other 7% GBP. USD 28% EUR. PLN 13% EUR. JPY 11% GBP. USD 32% EUR. SEK 14% USD. JPY 14% EUR. USD 22% EUR. GBP 13% EUR. USD 24% Distributions provided for each of spot, forward and swap trades Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 91
EQA - Trades Against High And Low Of The Day Per Currency Pair Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 92
Could you improve performance by trading at a different time? Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 93
Am I Sending The Right Trades To the Right Banks? Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 94
Provider Comparison – What Is The Impact Of My Counterparty Selection? § What average spreads am I receiving by currency pair and size from my different providers? § What are the percentage breakdowns of my providers by winning quote, nearest quote, second nearest quote, and third nearest quote. § How are my quotes distributed between providers for each currency pair? § How is my total volume distributed amongst my providers? Note: Bank spreads are calculated from all two way quotes received in which the ask is greater than the bid. Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 95
Provider Comparison – What Is The Impact Of My Counterparty Selection? This client received a weighted average spread of 1. 4 pips for EUR. USD trades between $5 -25 m from Bank 3 - 0. 3 pips higher than their average traded spread. EUR. USD - Average Bid Offer Spread 4. 5 4. 0 3. 5 Spread in Pips 3. 0 2. 5 2. 0 1. 5 1. 0 0. 5 0. 0 Bank 1 Bank 2 Bank 3 $0 to 5 m Bank 4 $5 to 25 m Bank 5 Bank 6 Bank 7 Bank 8 Average Traded Spread Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 96
Provider Comparison – What Is The Impact Of My Counterparty Selection? Bank 6 was the nearest quote 6% of the time. Bank 7 was the nearest quote 3% of the time. Provider Performance EUR. USD Provider Position As a Percentage of Trades 70% 60% Percentage of Trades 50% 40% 30% 20% 10% 0% Bank 1 Bank 2 Bank 3 Winning Quote Bank 4 Nearest Quote Bank 5 2 nd Nearest Quote Bank 6 Bank 7 Bank 8 3 rd Nearest Quote Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 97
Provider Comparison – What Is The Impact Of My Counterparty Selection? Bank 1 quoted the client 28 times for EUR. AUD during time the report period, representing 41. 2% of all EUR. AUD quotes received. Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 98
Provider Comparison – What Is The Impact Of My Counterparty Selection? This client executed $1. 8 Bil with Bank 2 during the reporting period. SPOT - Trading Volume by Provider 3500 3000 2500 $mio 2000 1500 1000 500 0 Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Bank 7 Bank 8 Distributions provided for spot, forward and swap trades Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 99
Netting Activity – What Is My Netting Behavior? For EUR. GBP trades, the nettable amount would have been $126, 090, 428 where you could have compressed your trades by 53%; however, given that on average your trades were executed almost an hour apart from each other, with a maximum time spread of 9 hours apart, netting may not have been conducive to your execution strategy § How often am I netting trades? § Are there additional netting opportunities in any currency pairs? § If there were additional netting opportunities, what savings could I have achieved? Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 100
Perform Your Own Detailed Data Analysis The EQA also comprises: § Summary and detail pages of your Spot, Forward Outright and Swap trades Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 101
EQA – Identify The Best Solution For Your Needs Trading and Operational Requirements Execution Methods Analyze Requirements Best Solution Select Execution Method Analyze Results Confidential and Proprietary. © 2012 FX Alliance, LLC (All Rights Reserved). 102
Thomson Reuters & FXall
FXall Global Contacts FXall Americas 909 3 rd Avenue 10 th Floor New York, NY 10022 E info@fxall. com T +1 646 268 9900 F +1 646 268 9996 FXall Switzerland Thomson Reuters SA Hufgasse 10 8008 Zurich E info@fxall. com T +41 44 208 3831 F +41 44 208 3500 FXall Boston 470 Atlantic Avenue 4 th Floor Boston, MA 02110 E info@fxall. com T +1 617 273 8115 F +1 617 273 8049 FXall Washington 1250 Conn. Ave NW Suite 200 Washington, DC 20036 E info@fxall. com T +1 202 261 6538 FXall Germany Thomson Reuters Deutschland Gmb. H Messeturm Friedrich-Ebert-Anlage 49 60327 Frankfurt am Main FXall India Level 1, Trade Center Bandra Kurla Complex Bandra (East) Mumbai 400 051 E info@fxall. com T +91 22 4070 0132 F +91 22 4070 080 FXall Asia #36 -23 UOB Plaza 1 80 Raffles Place Singapore 048624 E info@fxall. com T +65 6511 0650 F +65 6511 0651 FXall Australia 5 Lime Street King Street Wharf Sydney New South Wales 2000 E info@fxall. com T +612 9220 3570 F +612 9220 3535 FXall Japan Otemachi 1 st Square East, 4 th Floor 1 -5 -1 Otemachi, Chiyoda-ku Tokyo 100 -0004 E info@fxall. com T +81 3 5219 1308 F +81 3 5219 1430 FXall Hong Kong Suite 8 20/F One International Finance Center 1 Harbour View Street, Central Hong Kong E info@fxall. com T +852 3669 8124 F +852 3669 8008 FXall’s services are not intended for, and are not available to, private customers, and are not intended for distribution into any jurisdiction where such distribution is restricted by law or regulation. FXall’s services do not constitute investment advice or an advertisement, offer, or solicitation of an offer, for the purchase or sale of any investment, securities or other property, or a representation that any investment, security or other property is suitable for any person. In Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Greece, Ireland, Italy, Latvia, Netherlands, Portugal, Slovak Republic, Spain and Sweden, FXall acts through FX Alliance Limited (regulated by the Financial Services Authority), City. Point, 1 Ropemaker Street, 10 th Floor, London EC 2 Y 9 HT. In Australia and Singapore, FXall acts through FX Alliance International, LLC (ARBN 097 253 640), (a Delaware (USA) company, members' liability limited), 909 Third Avenue, 10 th Floor, New York 10022. In India, FXall acts through FXall International (Mumbai) Private Limited. In other jurisdictions, FXall acts through FX Alliance, LLC (a Delaware (USA) limited liability company), 909 Third Avenue, 10 th Floor, New York 10022. FXall, FXall Trading, Accelor, Settlement Center, Market Insight, Quick. Connect, Quick. Fill, Portfolio OMS, Quick. Trade, Order Book, Bank Stream, Accelorate, Treasury Service, Indicative Quotes, FXone and all associated logos, are the trademarks of FX Alliance, LLC. 104
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