Global Trading DMA enabling Algo DMA open up possibilities and more importantly, creates a new ground for open competition

Global Trading N2N Connect © All Rights Reserved Algorithmic trading is defined as “placing a buy or sell order of a defined quantity into a quantitative model that automatically generates the timing of orders and the size of orders based on goals specified by the parameters and constraints of the algorithm”. Trading systems use very advanced mathematical models for making transaction decisions in the financial markets. The strict rules built into the model attempt to determine the optimal time for an order to be placed that will cause the least amount of impact on a price of the financial instrument. Within the equities, futures and bonds markets large orders for shares are usually purchased by dividing any share block into smaller lots, allowing the complex algorithms to decide when smaller blocks are to be purchased. Algorithmic trading is most commonly used by large institutional investors as a result of the large amount of shares they purchase daily. Complex algorithms allow these investors to obtain the best possible price without significantly affecting the stock's price and increasing purchasing costs. DMA-> Algorithmic Trading ??

Global Trading N2N Connect © All Rights Reserved What are some of the commonly use Algorithmic Methodology There are a variety of algorithms in common use within the financial industry. The two main parts of a trading algorithm are sequences of steps determining when to trade and how to trade. Determining when to trade is a decision that revolves around watching the changing market data and detecting opportunities within the market. Building an Algo Trading modules typically uses an advance mathematical model as well as TWAP, VWAP etc to measure the trading pattern, price spread and trading velocity to identify best timing and profit opportunity to perform pairs trading and arbitraging. Support technical indicator such as MACD, Bollinger Bands etc can also be employed to identify the spread between the two or more counters or instruments in the case of hedging, that has exceeded certain standard deviations or breaking resistance or support line. Algorithmic Methodology

Global Trading N2N Connect © All Rights Reserved Examples of Possible Methodology & Techniques VWAP, TWAP, Target Volume, Arrival Price, Percent of Volume, Small Order, Pegging, Discretion, DMA/Smart Order Router, Spread (Pairs) Trading, Manage the Close DMA - Act Fast, Algo - Act Automatically

Global Trading N2N Connect © All Rights Reserved User DMA-Algo is suitable for use with both the Buy side (fund houses, investment boutique, government investment arms and insurance investment division) and Sell side execution such as Investment Banks, brokerages etc. Application Type Algo can be sophisticated or simple It can be Client side or Server side Algo Can be for trading large volume with minimum price distortion, hedging or mutual funds basket trading or arbitrating or just opportunistic trading, etc Who will benefit from DMA-Algo

Global Trading N2N Connect © All Rights Reserved High Speed Execution, Robust Order Management, Parameterise Risk Control, Real Time Market Data What are the pre-requisite to building Algo Execution Management System Portfolio Management System Feed Management System Risk Management System Customer Management System FIX Connection System Mobile Management System Order Management System

Global Trading N2N Connect © All Rights Reserved Hmm – Need to imagine how it works

Global Trading What To Expect from the DEMO To give a more visual impact for those new in DMA Trading, we will attempt the following demos with NO GUARANTEED of Success: Trading via the DMA Channel Trading using Order Injector – Click Trading Trading using Client Side Algo with DMA Entry

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Global Trading N2N Connect © All Rights Reserved Questions & Answer