Introduction to FXall October 2013 A Thomson Reuters Company.

Introduction to FXall October 2013 A Thomson Reuters Company

Thomson Reuters + FXall
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).

FXall Overview

A POWERFUL COMBINATION
THOMSON REUTERS AND FXALL THOMSON REUTERS A POWERFUL COMBINATION FXall Complementary Aspects Focus Areas Focus Areas Sell-side Pre-trade content Market Data Bilateral dealing Matching Messaging Transaction Solutions Buy-side Relationship trading Post-trade – Settlement Center ECN Customer bases Functionality Geographic Focus Benefits For Customers & Market Linking the Community Key distributors of liquidity End-to-end workflow solutions

COMPLETE TRADING, DATA AND WORKFLOW MANAGEMENT SOLUTIONS
THOMSON REUTERS AND FXALL COMPLETE TRADING, DATA AND WORKFLOW MANAGEMENT SOLUTIONS THOMSON REUTERS FXall Trade Execution Trade Execution Buy-Side: Order Book Portfolio OMS Sell Side: Collaborative Dealing Customer OMS Quick Trade Bank Stream Mid Book Thomson Reuters Dealing Thomson Reuters Matching Thomson Reuters Forward Matching Reuters Electronic Trading (RET) Thomson Reuters Dealing Aggregator Market Data & Reporting Market Data & Reporting Thomson Reuters Eikon Reuters 3000 Xtra Thomson Reuters Messenger Indicative Quotes Real-time Quotes Execution Quality Analytics Post-Trade & STP Post-Trade & STP Thomson Reuters Deal Tracker Thomson Reuters Trade Notification 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 Ranking 1. FXall (1) 2. FX Connect (State Street) (2) 3. 360T (4) 4. Currenex (State Street) (5) 5. TR Dealing 3000 (3) 6. FX Trading on Bloomberg (6) 7. Integral-FX Inside (7) 8. Hotspot FXi (8) 9. CME 0.5 Annual ADV* ($USB) (Source: Euromoney 2013 Survey) * ADV = average daily volume

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 Client OMS TMS Execution Solutions Indicative Quotes Request For Stream Collaborative Trading Bank Stream Anonymous Order Book Mid Book Match ECN Internal Dealing Liquidity Sources 80+ Providers 200+ Pricing Streams 500+ Currency Pairs 1,000+ Institutions 50+ Aggregation Vendors Spot, Swaps, Fwds MM, NDFs Options Clearing & Settlement Settlement Center CLS Settlement QuickConnect SWIFT FIX Rules-based permissioning Post -Trade Custodian CLS Bank Internalization FXall Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved).

Only Platform For Multiple Institutional Clients’ Needs
Trade to facilitate core business Facilitate trades / market making Trade to generate alpha Corporations Asset Managers Broker- Dealers Banks Hedge Funds CTAs HFTs Imports & Exports Hedging strategies Repatriation of earnings Cross-border M&A Foreign trade settlement Foreign dividend conversion Currency overlay management Market making FX brokerage Credit intermediation Market making Global payment services Agency treasury services Trading strategies Macro strategies Foreign trade settlement “58 of S&P Global 100 and 132 of the Fortune 500” “27 of top 100 U.S. institutional asset managers and 55 of the top 100 European institutional asset managers” “All of the top 25 banks in the FX industry globally as ranked by Euromoney” “6 of the top 10 institutional hedge funds as ranked by Institutional Investor” We are unique in the market in meeting the needs of the broadest range of market participants in one platform Corporations and Asset Manager use our Relationship Trading (disclosed bilateral) system to trade with their banks to facilitate their core business Broker-Dealers and Banks are market intermediaries who facilitate transactions and make markets – they often provide liquidity through our system and offset their residual market risk there as well Hedge Funds, HFTs and CTAs are active traders who trade to opportunistically with other market participants through our anonymous ECN Relationship Trading Active Trading Confidential and Proprietary. ©2012 FX Alliance Inc. (All Rights Reserved). 9 9

Volume by Customer Type
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 Volume by Region 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 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 Comprehensive real-time market data and analytics to assist in auditing trade execution activity and quality Trade Execution Order & Execution Management Post Trade Services Market Data & Reporting Connectivity & STP We service the entire deal life-cycle including Pre trade services such as order and execution management The execution of the trade itself Post trade services like deal enrichment and third party trade notifications Connectivity and integrations to facilitate STP Market data and reporting for transparency and insight We will continue to invest in new products such as options to grow our wallet share and client footprint We remain a unique value proposition for clients, offering a set of services together that would otherwise require integration with and coordination of multiple vendors Creating your edge Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved). 12

Consistent Market Leadership
Euromoney (#1 multibank and independent platform) Profit & Loss (Best Trading Platform for Asset Managers) Financial News (Best electronic FX trading exchange, Buy-side) , 2011, 2012 Global Finance (Best independent online FX trading system) TMI Awards (Winner Technology Award – FX Dealing Portal) FX Week (#1 multibank platform) FX&MM (#1 ECN Venue) We’ve consistently demonstrated market leadership - Don’t Just Take Our Word For It Lots of competition in FX platforms – we continuously invest in our technology to stay at the front of the pack, and we plan to be around a long time Confidential and Proprietary. ©2013 FX Alliance, LLC (All Rights Reserved). 13

Execution Solutions

FXall’s Platform Supports Multiple Trading Models
Relationship Trading Active Trading Licensed White-Label Multi-Bank Model ECN Model Single-Bank Model Liquidity Provider Liquidity Provider Liquidity Provider Hedge Fund One Liquidity Provider ECN Platform Broker- Dealer Bank White Label Bank Broker- Dealer Corporate Asset Managers Hedge Fund HFT Asset Managers Hedge Funds, HFTs, CTAs Corporate Broker Dealers Banks Corporate This highlights FXall’s technology is adaptable to handle multiple market models Relationship trading is the traditional multibank model which allows risk to be transferred efficiently from customers to liquidity providers for the broadest range of currency pairs, instruments, transaction sizes and market conditions Our active trading ECN allows participants to interact anonymously as peers We also white-label our technology enables us to capture flows from captive client bases of our partners and reduce our client acquisition costs Because our technology meets all these needs we are Positioned for future market evolution Less sensitive to changing market conditions Agnostic to how our clients choose to trade so we can be a trusted advisor who always recommend the most appropriate solution 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 Talking Points Our Aggregator was designed to demonstrate the benefits of relationship streaming in full amounts to active traders who are typically using ECNs to show them they can get more liquidity and access to the benefits of their bank relationships – one click away. Order Book: Anonymous liquidity through Accelor ECN & the platform formerly known as LavaFX 17 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 Level I – best price summary for first and second best price Level II Best price summary with collapsed Order Book with orders aggregated by price level Best price level Next best price level Quantity at aggregated levels Level III Best prices summary and full Order Book Weighted Average View 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).

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).

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).

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 Limit price becomes the “Top”/”Low” of the pegged range Total amount with or without show 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).

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 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 Click to Toggle to Buy or Sell Enter Total order amount Enter the size that you would like to “show” to the market Hide entire order from the Market (which “grays” out shown quantity) Discretion Choose to enter Discretion Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved).

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).

FXall Advantages 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: Prime Broker Account Currency Pair Bid/Offer side Value Data All at an Average Price Worksheet Tab: Select individual orders for averaging Averaged Trades Tab: View Drop 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

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 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 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

Cross Currency Netting
Choose a base (local) currency, and view net position in other currencies

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 Clients can take command over their FX position more than ever before to identify and manage risk More efficiency – view automated netting for the portfolio, communicate with your bank, and execute order 32 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

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

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

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

Select a maturing swap / forward from Trade History and then roll forward

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

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 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. Limit Market Stop / Stop Limit Algos CS X DB GS JPMC Barclays

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

Order Entry Window

Stop and Algo Order Entry Windows
Select Venue to get a list of strategies available from that provider

Orders will be monitored and modified via the Active Order Blotter
Cancel / Modify Action buttons Close Action button

User completes Post Trade Allocations and submits to the Provider

Providers will use TC to approve/reject Post Trade Allocations

Option Trading

Manual quotation via FXall Treasury Centre:
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 QuickTrade 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 1M, 3M, 6M 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

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

Simple mode - best rate is highlighted

Place £25m with MMBANKA Full deal log

Advanced Mode - MMBANKA’s best rate is highlighted - MMBANKD can offer rate for a smaller size

Blotter - select trade & payment date and highlight positions to be rolled

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 eXchange Protocol), QuickConnect, HTTPS Direct Competitive Quoting Prices requested from Banks Bank 1 Client FX OMS 1 Client’s FX Orders uploaded to FXall FXall Trading 2 Bank 2 Trade details sent to OMS Trade Executed 3 4 Bank 3 5 Bank 4 Matched Trade Details Downloaded to OMS 9 FXall sends trade details to Settlement Center Bank 5 10 3rd Party Notifications MT304 Custodian Bank FXall Settlement Center Trade Matched and Confirmed Trades Netted MT300 Confirmation 7 12 3rd Party Payments MT202/210 8 6 MT300 confirmations sent with Settlement Instructions attached CLS 11 Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved).

Seamless Integration With 90+ Leading Technology Vendors
Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved).

Trading and Market Data Connectivity Options
Activity FIX AccelorateTM Submit, cancel/replace and cancel orders and execute reports Drop copy execution reports (STP) Market Data ü ü ü 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 Premium STP Options TOF Direct printer feed Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved). 69 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 send 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 third- party dealing for corporate treasurers Automated matching reduces errors Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved).

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 Take re-keying out of your trade capture and custodial notifications – reduce errors significantly Fully automated custodial notifications and settlement instructions Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved). 72 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 QuickConnect 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 Reconciled continually throughout the day Exceptions for review – focus set through the choice of user configuration; reporting on process performance by trading counterpart Evaluates settlement paths by reviewing trades for CLS eligibility; queuing trades for settlement netting; applying settlement instructions on all transactions

Integrated end-to-end workflow
Request prices from Bank(s) 2 FX orders uploaded to FXall 1 Bank 1 FXall Portfolio OMS Treasury Mgmt System Bank 2 Trade details downloaded to TMS 3 “best” price Single Quoting or Competitive Quoting 4 Bank 3 9 Deal details inc non FXall deals sent to FXall SC 5b Bank 4 5a Matched trade details downloaded to TMS FXall Settlement Center Trade matched and confirmed MT300 confirmation sent with SSIs attached 8 6 MT300 confirmation returned 7

FXall Settlement Center
Standard Workflow Deal MT300 Fund Manager/ Corporate Counterparty Bank CLS Member Bank FXall Settlement Center MT300 MT300 T-COPY MT304 CLS MT304 Custodian Bank CLS Bank Pre-cursor executed transaction on FXall OR outside of FXall Automated loading of Deal records from both parties If executed on FXall can flow through automatically (except for Order Book) If executed elsewhere, can be loaded from OMS or other source via Quick Connect Splits can be loaded pre- or post-execution Bank notification comes in form of a MT300 Automated Match Process & Notification Accounts are verified and trades are enhanced with additional account information and settlement preferences (e.g. CLS, Gross, or Net as set up in SC Admin per counterparty) Validated trades are enriched with SSIs (if available) MT300 (Counterparty Confirmation) is generated in forms approved for that specific bank and delivered to bank counterparty MT304 (3rd party notification) is generated and delivered to custodian If Custodian is member of CLS, it can forward MT304 to CLS Other steps (not shown in illustration) Can attempt netting if matched and have net instructions (can be done automatically, not manually, based on entities, currencies, etc); banks must approve netted amounts Settlement Center will send MT 202/210 for payment to custodian MT304 where counterparty bank is a CLS Settlement member 75 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

What Constitutes a Match - Full Audit Trail
Deal Details are available for up to 3 months after the value date on any transaction. If you need to investigate or verify status, you can find all trade details and actions can be easily seen in one screen, but most clients don’t find a need to look at details unless there is an exception reported (see next set of slides).

SSIs are Automatically Populated on Outgoing MT300s, MT320s, MT304s, MT202s and MT210s
78 78

Setup Custodian Notification per Your Specific Needs

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 and average Provider activity summary Actively including every trade with each bank RMA report Relationship Management Advisor provides a summary of bank performance

Customer Savings Report
Summary of trading activity for any date range, currency pair, user(s) and account(s).

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

Trade activity details: trade audit trail
Complete breakdown of all quote requests and responses for any trade(s)

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

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 86 Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved

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).

Trade Summary – What Currencies Are Most Actively Traded?
28% of the client’s total volume executed during the report period was in GBPUSD 33% of the client’s trades during the report period were in GBPUSD Distributions provided for each of spot, forward and swap trades Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved).

EQA - Trades Against High And Low Of The Day
Next we show you how your deals (Hi , Lo and Median price) compare to the market Hi Lo and Median for each pair Shows the range of the day in PIP’s vs the Median of the day and how your own trades, Hi, Low and Median compare to the day. By looking at this chart for each pair, you can quickly identify pairs where you may want to take a closer look and potentially adjust your execution style. What does this say about BUYS and SELLS? If I BUY at the Lo and SELL at the Hi, I am happy? Looking at Median without knowing B vs S, what info am I getting? Per Currency Pair Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved). 92 92

Could you improve performance by trading at a different time?
Next we look at the top 5 currency pairs you are dealing in show how the spreads you are receiving compare to the average we observe By time zone By Deal size And by counterparty bank – Do we really want to show clients how their spreads compare to other clients using the same bank?? Does the smallest or most negative bar for each ccy show the bank showing the client the best rates in that pair? Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved). 93 93

Am I Sending The Right Trades To the Right Banks?
Next we look at the top 5 currency pairs you are dealing in show how the spreads you are receiving compare to the average we observe By time zone By Deal size And by counterparty bank – Do we really want to show clients how their spreads compare to other clients using the same bank?? Does the smallest or most negative bar for each ccy show the bank showing the client the best rates in that pair? Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved). 94 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).

This client received a weighted average spread of 1.4 pips for EUR.USD trades between $5-25m from Bank pips higher than their average traded spread. Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved).

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).

This client executed $1.8Bil with Bank 2 during the reporting period. Distributions provided for spot, forward and swap trades Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved).

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).

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).

EQA – Identify The Best Solution For Your Needs
Trading and Operational Requirements Execution Methods Best Solution Select Execution Method Analyze Results Analyze Requirements Finally, at FXall we start by working with you on your operational requirements and provide you with several dealing methods. To make the most of these, we are now offering you analytical capabilities so that you can use all of the tools we offer, evaluate how your use of these tools is doing at achieving your goals and, working with your relationship manager, continuously evaluate and refine your use of FXall to achieve your execution goals. Confidential and Proprietary. ©2012 FX Alliance, LLC (All Rights Reserved).

Thomson Reuters & FXall

FXall Global Contacts 104 FXall Americas FXall Boston FXall Washington
909 3rd Avenue 10th Floor New York, NY 10022 E T F FXall Boston 470 Atlantic Avenue 4th Floor Boston, MA 02110 E T F FXall Washington 1250 Conn. Ave NW Suite 200 Washington, DC 20036 E T FXall Asia #36-23 UOB Plaza 1 80 Raffles Place Singapore E T F FXall Japan Otemachi 1st Square East, 4th Floor 1-5-1 Otemachi, Chiyoda-ku Tokyo E T F FXall Switzerland Thomson Reuters SA Hufgasse Zurich E T F FXall Germany Thomson Reuters Deutschland GmbH Messeturm Friedrich-Ebert-Anlage 49 60327 Frankfurt am Main FXall India Level 1, Trade Center Bandra Kurla Complex Bandra (East) Mumbai E T F FXall Australia 5 Lime Street King Street Wharf Sydney New South Wales 2000 E T F FXall Hong Kong Suite 8 20/F One International Finance Center 1 Harbour View Street, Central Hong Kong E T F 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), CityPoint, 1 Ropemaker Street, 10th Floor, London EC2Y 9HT. In Australia and Singapore, FXall acts through FX Alliance International, LLC (ARBN ), (a Delaware (USA) company, members' liability limited), 909 Third Avenue, 10th Floor, New York, New York 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, 10th Floor, New York, New York FXall, FXall Trading, Accelor, Settlement Center, Market Insight, QuickConnect, QuickFill, Portfolio OMS, QuickTrade, Order Book, Bank Stream, Accelorate, Treasury Service, Indicative Quotes, FXone and all associated logos, are the trademarks of FX Alliance, LLC. 104

Introduction to FXall October 2013 A Thomson Reuters Company.

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Introduction to FXall October 2013 A Thomson Reuters Company.

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Presentation on theme: "Introduction to FXall October 2013 A Thomson Reuters Company."— Presentation transcript:

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