EXTENT-2015: LSEG Technology Overview

LSEG Technology Overview

Kirill Zagorouiko, Exactpro

11 November, 2015

London Stock Exchange Group

The London advantage

London Stock Exchange Group Page 2

Internationally focused open market culture

World’s largest pool of international equity assets – $2trn of international

equity AUM

Leading foreign exchange trading centre with 41% of global turnover

The key western centre for Islamic finance

Global centre for derivatives trading, with 49% of OTC interest rate turnover

Largest centre for international banking, with 17% of cross-border

lending

20% of global hedge fund assets managed in London, 75% of the

European HF market

Leading exporter of financial services in the world with a trade surplus of

$71bn

LSEG operates at the heart of the world’s financial centre. Working with us gives our customers unique access to the City of London

Source: TheCityUK – 2014 report

Introducing LSEG


Market capitalisation of c£9bn; successful execution and delivery of strategy through organic growth and M&A

Diversified revenue by currency Revenue growth

FY 2009 $1,014m CY 2014 $2,085m

Sources: LSEG 2014 Annual Report

CY 2014 Total income incl. Frank Russell

London Stock Exchange Group


A leading diversified international exchange and infrastructure group with assets across the entire exchange value chain

Not all assets shown

Primary TradingMiddle &

Back OfficeClearing

Settlement & Depository

Information

Technology

Exactpro: 4 QA and Software Development

Centres in Russia

FTSE-linked ETFs traded over 25

exchanges worldwide

International reach


LSEG has c5,000 employees based in 21 cities, delivering services worldwide

LSEG offices

Global Primary Markets franchise with companies from 115 countries

MillenniumIT technology deployed in 40 countries and venues around the world

Source: LSEG

Turquoise is trading in 18 countries, linked to 3 interoperable clearing

houses

Innovative Elite Programme inclusive of 17 European countries

Technology

Customer Solution, configured with business rules (BID)

MillenniumIT product family

Millennium Exchange™

Ultra-low latency, flexible and scalable multi-asset trading

platform

Millennium Surveillance™

Multi-market, multi-asset class

monitoring and compliance

MillenniumSOR™

Ultra-low latency, flexible and

intelligent order routing

Millennium PostTrade™

Real-time, cross-asset clearing,

settlement, risk and CSD solutions

Millennium Advanced PlatformUltra-Low Latency | Flexible | Resilient | Scalable | Low CostMulti-threaded | Distributed | Infiniband | FPGA | C++ | Linux | TCP/IP | Windows

Millennium MarketData™

Ultra-fast and efficient data for financial markets

Millennium LiveOps™High availability IT operations for capital market firms

MillenniumIT products span the entire capital markets value chain, including live ops support



GATElab solutions in LSEG

Founded in October 1989, an LSEG company since December 2012


GATElab customer solutions


GATElab customer solutions


International order book (IOB)

Enables investors to unlock the potential to world’s growing markets through a single central electronic order book

Direct access to securities via DRs from over 44 countries, including those in Central and Eastern Europe, Asia and the Middle East.

World leading technology, deep pool of liquidity and CCP clearing service provide opportunities to approximately 100 members trading on the IOB

The largest market in Russian instruments outside of Moscow



IOB Trading Statistics - August 2015 - TOP 10by Volume of Trades

Number of Trades

USD Value Traded

Volume of Trades

Security Country of Inc Totals (Off book & IOB

Matched)

Totals(Off book & IOB

Matched)

Totals(Off book & IOB

Matched)

1 SBERBANK OF RUSSIA Russian Federation 198282 1,612,472,307 356,621,430

2 OAO GAZPROM Russian Federation 146218 1,183,214,965 281,934,333

3 OJSC OC ROSNEFT Russian Federation 72193 350,703,731 97,879,452

4 JSC VTB BANK Russian Federation 28825 201,114,979 97,742,247

5 MMC NORILSK NICKEL Russian Federation 124768 719,642,391 47,179,293

6 LUKOIL (OAO) Russian Federation 144021 1,379,733,644 37,282,602

7 SURGUTNEFTEGAZ Russian Federation 31117 132,524,389 26,139,806

8 JSC URALKALI Russian Federation 58032 331,323,853 22,955,530

9 HON HAI PRECISION INDUSTRY CO LD Taiwan 2634 123,664,709 21,688,179

10 GLOBAL TELECOM HOLDING S.A.E. Egypt 2038 29,864,866 20,030,044

Grand Total of 110 securities 1,151,787 9,579,591,932 1,199,959,223

Combined TOP 8 vs. Grand Total of 110 securities by Volume of Trades Russian Federation 70% 62% 81%



Trading system Common underlying technology infrastructure, Millennium Exchange™

Clearing and settlement

CCP allows full pre- and post-trade anonymity, protection from counterparty risk and a buyer protection service

Access Direct membership or via a broker (including DMA and Sponsored Access)

Market hours London trading calendar, but has a separate settlement calendar observing US public holidays

Regulated status LSE is a Recognised Investment Exchange regulated by the FCA

Key features and benefits:

The event will provide an opportunity to meet with LSE team and network with other industry professionals.


LSE Derivatives Markets (LSEDM)

On screen trading for options and futures, in the most liquid IOB securities, plus the FTSE RIOB Index, a market-cap weighted Index in USD, designed to measure the performance of of the 15 largest Russian DRs trading on the LSE International Order Book (IOB);

Flexible trade reporting for options and futures is also available on these;

Backed by CCP clearing with LCH.Clearnet (LCH).

Exactpro is: Clients Worldwide:• A specialist firm focused on functional and non functional testing of systems

that process wholesale financial products, particularly market infrastructure

• A UK company with operations in the US and four QA & software development centres in Russia

• Part of London Stock Exchange Group as of May 29, 2015

• Incorporated in 2009 with 10 people, our company has experienced significant growth as satisfied clients require more services - now employing 320 specialists

Exactpro: company overview


Sailfish:• Can test Order Entry, Market Data and Post Trade connections in one test scenario• Each test scenario is independent• Allows running test scripts in any sequence• Simulation of multiple user connections• Server simulators• All messages are stored into a data base• Generates test reports

ClearTH:• Post-Trade testing tool• Verifies each stage of the DLC• Integrated schedule• Automated matrices• Can create multiple days test scenarios• Concurrent multiple tests• Integrated simulators• SWIFT ISO protocol support

Dolphin:• Model-based testing of market surveillance systems• Production-scale capacity and throughput• Interactive real-time alerts and reports

Shsha:• Post-transactional tool• Analyzes clients' activity and forecasts system response • Parses and displays logs in a user-friendly way• Parses messages and then puts each to a data base table where each column corresponds to each message field• Allows making summarized reports, etc• Easy to understand GUI

Load Injector:• Simulates multiple client connections with a specified load shape for each connection or a group of connections• Up to 75K messages / second from a single CPU core• Measures latencies in microsecond range• Performance test reports

Minirobots:• Multi-threaded Trading Engine for simulating trading algorithms behavior and market conditions•Testers can develop trading robots in Java using an extensive and easy to use API•Testers can control the robots via a Web-based console. Metrics are available in real time•Hundreds of internal event flow validations verify the consistency •of responses from the trading •system in real time

Exactpro: building software to test software


• Competing conference papers go through a review by a number of leading software development and analysis experts and scientists

• The best papers are recommended for their inclusion in Russia’s leading professional and scientific publications

• 2 conferences to date in 2013 & 2014

• TMPA-2015 to take place in St. Petersburg, Russia

• Conference web-site: www.tmpaconf.org

CONFERENCE TOPICS

• Software test automation

• Static program analysis

• Dynamic methods of program analysis

• Parallel and distributed systems

• High-load and high-availability systems

• Methods of building quality software

• Software analysis, testing and verification tools

Exactpro: software engineering conferences


Exactpro: a talented and dynamic team

Page 17London Stock Exchange Group

Contacts


DISCLAIMER

This presentation/document contains text, data, graphics, photographs, illustrations,

artwork, names, logos, trade marks, service marks and information (“Information”)

connected with London Stock Exchange Group plc (“LSEG”). LSEG attempts to

ensure Information is accurate, however Information is provided “AS IS” and on an

“AS AVAILABLE” basis and may not be accurate or up to date. Information in this

presentation/document may or may not have been prepared by LSEG but is made

available without responsibility on the part of LSEG. LSEG does not guarantee the

accuracy, timeliness, completeness, performance or fitness for a particular purpose

of the presentation/document or any of the Information. No responsibility is accepted

by or on behalf of the Exchange for any errors, omissions, or inaccurate Information

in this presentation/document.

No action should be taken or omitted to be taken in reliance upon Information in this

presentation/document. We accept no liability for the results of any action taken on

the basis of the Information.

London Stock Exchange, the London Stock Exchange coat of arms device are trade

marks of London Stock Exchange plc.

Antonella Amadei Head of Global Development Market Infrastructures Tel +44 207 797 1624 Mobile +44 7827 349 [email protected]

Doug Sheffield Senior Manager Tel +44 207 797 3773 Mobile +44 7780 [email protected]

Mauro RomanoSenior ManagerTel +44 207 797 4388 Mobile +44 7748 703049 [email protected]

Luca BroglioClient Relationship ManagerTel +44 207 797 4274 Mobile +44 7717 [email protected]