Role of Technology in Market Development Tony Weeresinghe

Technology Role is proven beyond doubt –Increase in Liquidity –Increase in revenue –Increase in Profits The Scenario The only way to survive

Role of the Exchange

The Role is Changing Stock ExchangeSell Side Firm Buy side Firm

Regulations Reg NMS Mifid Institutions Internalization Stock Ex_1 Stock Ex_2 ECN Dark Pool SMART ORDER ROUTER

Futuristic Exchange Enterprise Nervous System (ENS) –Must be able to support multiple asset classes –Flexible to cater for Market Demands –Link to Multiple Business Process Networks (BPN) to access a larger participant audience. –Standards –Bullet Proof Surveillance –Easy Clearing & Settlement –High Capacity Performance –Latency almost at Zero –Maintain a very low cost structure

Outright products; Equity Exchange Traded Funds (ETF’s) Fixed Income (Bonds, Bills) Commodities Energy Synthetic products; Futures Options Repurchase Agreements (Repo) Swaps/ Spreads Multiple Asset Classes

Heterogeneous partition Liquid scripts Options

Numerous types of orders Market, Limit, IOC, FOK, DAY, GTC/GTD/GTT, AON, Min Fill, Drip, Iceberg, Contingent, Pegged, Managed, Implied, Partnered, Only Best, Indicative, Cross, OTF, FAF… Various kinds of matching Continuous/Auction, Time Priority/Parity, Negotiation, Price Improvement, Selective execution, Selective priority, Execution price control, Spread control, Away market routing, Credit checks, Exposure checks, Balance checks… Market Demands

Connectivity SOR

Standards FIX Protocol –4.2 –4.4 –5.0 Messaging –Swift

Online event driven system using Advanced Pattern Recognition Multi-Dimensional view with Graphics Market Replay Case management Pattern Mining tools In built report utility Surveillance

T+? Trade for Trade Contractual Institutional Delivery Link to RTGS Clearing & Settlement

Partition /secPartition /sec High Performance 100,000 orders per sec, under 1ms

Latency <1ms

Lower Cost of Acquisition

Creating the Pan African JSE Comm. MSE GSE NSE SOR

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