Connectivity, integration and risk solutions Roman Anokhin deputy director on international projects

Connectivity, integration and risk solutions

Roman Anokhindeputy director on international projects

Contents

5

A. Who we are

B. Our view on risk management

C. Risk management system architecture

D. Business case examples:

1. Equities and derivatives portfolio margining

2. FX instruments and equities

3. Integration in FIX infrastructure

2

Front-to-back solutionsfor banks,

broker-dealers and investment

companies

300+ clients,incl.

Connectivity to 30+ venues worldwide

Exceptional focus on trading risk management

Who we are

ARQA Technologies - largest trading software vendor across CIS and Russia

2

OUR VIEW:new business opportunities

New services

Volumes increase

Profitability increase

CONVENTIONAL VIEW:protection

$31.7 mln $100 mln $440 mln

Our view on risk management

Risk management provides business advantages

201220132013

4

Risk management system architecture

Requirements

Multi -asset, -currency and -venue

Position keeping and pre-trade / post-trade control

Risk management models(fat fingers, limits, cash, margin, netting, SPAN, portfolio margining)

Flexibility

Visualization

Ease of integration

5

Risk management system architecture

RISQ solutions

Trading system 1,2..N

Risk calculationand control

Risk-managerRISQ terminal

RISQ server

Client / trader RISQ terminal

Approved transactionsTransactions

EMS / OMS / HFT-Algo

Position and risk parameters monitoring

Margin calls Position closing Alerts set-up

‘What-if’ calculator Position and limits

visualization Alerts set-up ‘View-only’ mode

FIX FIX / API

1. 2.

Market data and drop copy

FIX / API

6

Business case examples

1.Equities and derivatives portfoliomargining

Collateral optimization for arbitrage orhedging between equity and derivatives

Borsa Istanbul(equity)

RISQ serverEMS / OMS / HFT-Algo

Borsa Istanbul(derivatives)

Solution infrastructure

7

Business case examples

1.Equities and derivatives portfoliomargining

Collateral reduction

Trading efficiency increase

Commission income increase

Precise risk-control

Growing client base

Business advantages

8

Business case examples

2.FX instruments and equities

One currency in position – several currencies in trading

LSE(IOB)

FX trading venue(ICAP)

Solution infrastructure

Borsa Istanbul(equity)

RISQ serverEMS / OMS / HFT-Algo

9

Business case examples

2.FX instruments and equities

One currency in position – several currencies in trading

Cross-margining for FX positions

Revenue stream from FX conversion

Business advantages

10

Business case examples

3.Integration in FIX infrastructure

‘Plug-in’ integration results in reduced costs

Trading system 1,2..N

Solution infrastructure

Approved transactions3.

Approved transactions2.

Transactions 1.

EMS / OMS / HFT-Algo

11

RISQ server

Business case examples

3.Integration in FIX infrastructure

Same as in Cases 1 and 2

Simplification of the integration process

Business advantages

12