Orc Software s Offering How Trading Technology Can Develop The Market

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Orc Software’s Offering –

How Trading Technology Can Develop The Market

Anders Henriksson, President Benelux, Central and Eastern Europe ZSE 17th Annual Conference 12-13. October 2007

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Agenda

• Company Introduction & Global Offering • Regional Offering

• Case Study 1 • Case Study 2

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Orc Software Is The Leader in Advanced

Trading Systems & Connectivity

• More than 600 customer sites

• Global company with local

presence in every major financial center

• Acquisition of Cameron Systems in 2006 - the no 1 provider of FIX Protocol connectivity solutions

• Publicly listed, 2006 revenue of approx US$60 million, 250+ employees

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We Help Advanced Derivatives Traders

To Trade

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• Advanced trading of listed futures and options –

equities, FX, fixed income, commodities

• Automatic quoting, trading

and hedging, Synthetic order types, Pre trading

analysis, Risk Management, Volatility Management

• Algorithmic / Black Box

Trading System – Orc Liquidator

• Customers are proprietary

trading desks at investment banks, hedge funds, and trading firms

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And We Provide Connectivity

5 • Connectivity to all FIX counterparties globally with the

CameronFIX Universal Server FIX platform

• Largest FIX customer base – 500+ customers

• Advanced management and monitoring of FIX sessions

• Highly available infrastructure

• Market Gateways to connect to non-FIX exchanges

• Customers are exchanges, broker/dealers, asset

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More Firms Use CameronFIX Than Any

Other FIX Platform

BROKERS INVESTMENT MANAGERS EXCHANGES & ISV's

Barclays Capital-Global Fidelity Investments-Global International Securities

Exchange-CIBC World Markets-Global Capital Group-USA Market Axess

Credit Suisse-Global Western Asset Mgt.-USA Singapore Stock Exchange

TD Securities-Canada State Street Global Advisors-USA Warsaw Exchange-Poland

Banc of America FX-USA/UK MFS Investment Mgt.-USA ICE-USA

LaBranche Financial Svcs.-USA BlackRock-Global Australian Stock Exchange

Citigroup Global Markets-Australia AXA Investment Mgt.-UK Bond Exchange South Africa

Nomura Securities-Global TD Asset Management -Canada EBS-Global

Goldman Sachs JB Were-Australia (CDP) Caisse Depot -Canada FXall Macquarie Securities-Australia Legg Mason Asset Mgt. -USA Currenex Knight Securities-USA/UK Barclays Global Investors-USA Hotspot FX

DBS Securities-Singapore Citadel-USA Charles River Development

Merrill Lynch International-Asia Pacific Ronin Capital-USA Latent Zero

Agora Senior-Brazil Born Capital-USA Portware

UBS-Global AQR-USA Financial Models Company

BBV Bancomer-Mexico Tribeca Management (Citigroup)-USA Omgeo

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Global connectivity

- Native Market Gateways, non FIX

North America

• AMEX

• Archipelago

• Boston Options Exchange • Bourse de Montréal • BRUT • CBOT • CBOE • CFE • CME • Eurex US • INET • ISE • Nasdaq • NQLX • NYMEX • NYSE • OneChicago

• Toronto Stock Exchange • PCX

• PHLX • TSX • TSX Vent

Asia Pacific

• Australian Stock Exchange • SEHK • HKFE • KSE • ITS • NZX • OSE • SGX • SFE • TAIFEX • TSEC • TFX • TSE • TIFFE

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Global Connectivity

- Native Market Gateways, non FIX

Europe

• Amsterdam Switch (Switch) - Budapest stock Exchange (BSE) • CATS (CATS-OS)

• Copenhagen Stock Exchange (CSE) • Eurex (Eurex)

• EuroMTS (MTS) • Euronext

• Euronext.liffe (London, Paris, Brussels) • European Energy Exchange (EEX) • Euwax

• FORTS

• Iceland Stock Exchange (ICEX • Irish Stock Exchange (ISE XETRA) • Istanbul Stock Exchange (ISE) • Italian Stock Exchange (MTA) • Italian Stock Exchange (SeDeX) • Italian Derrivatives (IDEM)

• London Stock Exchange

(SEAQ, SETS, SETS DTS, RSP)

• Luxemburg Stock Exchange (Luxx) • Madrid Derrivatives (MEFF)

• Madrid Stock Exchange (SIBE) • MOT

• Moscow Interbank Currency Exchange (MICEX)

• Nordic Growth Market (NGM) • OMX (Stockholm&Helsinki Stock

Exchanges) (SOM, HEX, SAXESS) • Oslo Stock Exchange (OSE)

• OETOB • Quotrix

• Riga Stock Exchange (RSE) • Swiss Exchange (SWX)

• Talinn Stock Exchange (TSE) • TLX

• Vienna Warrants • Virt-x

• Warsaw Stock Exchange (WSE) • Xetra

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Our Global Customer Base Uses Orc For

• Cash equities

• Equity futures/forwards • Single stock options • Index options • Exotic options • Convertibles • Bonds • Bond futures • Bond options

• Interest rate swaps • Repos

• Forward Rate Agreements • Equity swaps • Currency spots • Currency futures/forwards • Currency options • Currency swaps • Deposits • Baskets • Certificates • Warrants • Structured products • STIR futures • STIR options • Option spreads • Commodity futures • Commodity options

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Regional Connectivity

Central and South Eastern Europe

• Vienna, Available • Budapest, Available • Warsaw, Available • Zagreb, Available in Q4 • Bucharest, Available in Q4 • Prague, Available in Q4

Both cash and derivatives markets are available (where applicable)

In Planning: • Ljubljana • Belgrade • Athens

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Regional Usage

Both Cash and Derivatives, Mainly Equities: • Institutional Brokerage

• Retail Brokerage

• Electronic Execution

• Prop. Trading & Market Making:

• Trading & Market Making Index and Single Stocks Options • Futures Trading & Market Making

• ETF Market Making and Hedging

• Warrants and Certificates Pricing

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Our Example Deployment (I)

• The investment-bank of a large European Mid-Tier Bank active in the Region

• Orc package deployed as a platform covering all group related equities trading

• Business covers Prop. Trading &Sales/Brokerage related activities

• > 10 Direct membership markets connected

• All of US and Europe (cash and some derivatives) connected through brokers

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Our Example Deployment (II)

• Parts of Product Portfolio deployed: – Orc Trader – Orc Broker – AQ – OIM – Orc2Orc Technology – FIX Gateway

– FIX Out technology

– Model-builder, Financial Engineering Tool – Market Gateways

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Our Example Deployment (III)

• Desks covered:

– Market Making Domestic – Market Making International – Prop. Trading

– Sales Trading Domestic – Sales Trading International

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ORC ORC Online Online Reuters Reuters Xetra Xetra Bloomberg Bloomberg Station Station Thomson Thomson Autex Autex GL GL Trade Trade CATS OS ECN TQS Online Brokers

ORC Internal Market

ORC Internal Market Cameron Universal ServerCameron Universal Server SWIFTSWIFT--GWGW

ORC Platform ORC Platform EUREX XETRA FFM XETRA WIE EUWAX CATS ECN OMX SWX

VIRT-X Italy LSE Budapest Warsaw Brokers

Euronext, USA, Scandinavia,... Software Software Modules Modules Electronic Electronic Exchanges Exchanges

Quote Requests & Orders

Orders

Orders OrdersOrders OrdersOrders OrdersOrders OrdersOrders FIXFIX--OrdersOrders SWIFTSWIFT--OrdersOrders

SWIFTnet Internet/ Internet/ Citrix Citrix Software Software Modules Modules Software Software Modules Modules Group Companies Acting as Internal Brokers Local Markets

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Business Covered

• Electronic Execution for 400+ Branches • Internet platform integrated

• Institutionals connected by Real-Time Order Entry and Information Terminal or FIX Engine

• Execution Point 50+ Markets

• Cash, Warrants and Exchange Traded Bonds

• In addition we cover Market Making, Prop. trading and Derivatives Brokerage

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Settlement Branch Network LEGACY HOST SYSTEM SWX WSE XETRA

FFT XETRA_VIE EUREX

Connected Broker/s ORC - Software Broker X NYSE NASDAQ SEAQ EURONEXT SWX MIB FINL. SSE VIRT-X FTSE

Middleware (MQ, TIB/RV etc.)

Risk-system Order entry Robotic Trading FIX Internet Settle-ment 1. Orderentry 2. Market 3. Trades Dokumentation Order entry