Exgate presentation 020514
Transcript of Exgate presentation 020514
EXGATE
Trade Bitcoin Globally MT4
WHAT IS EXGATE ?
EXGATE is a global trading solution for institutions that paves the way for
FX, Commodity, Derivative markets & Bitcoin to be physically delivered &
exchanged in the open markets.
The EXGATE solution establishes an industry standard bar for Bitcoin
integration into any existing financial market infrastructure with a
high‐performance, scalable, low‐latency global Electronic Communication
Network (ECN), which aggregates conventional/non‐conventional liquidity
providers with end‐users.
Our flexible engine bridges the MetaTrader4 Platform as a final piece to a
full turn‐key Institutional trading solution for professional traders to add
Bitcoin to their trading portfolios & models.
EXGATE
Trade Bitcoin Globally MT4
WHAT IS THE PROBLEM?
BITCOIN COMMUNITY CURRENTLY REMAINS INEFFICIENT AND
LIMITED DUE TO THE FOLLOWING FACTORS:
Extremely poor technological solutions
Lack of industry standard practices
Less than 5% of all arbitrages being truly realized due to extremely
substandard technology & integrations
Exchanges are not connected to each other
BTC currency pairs are transacted through manual procedures
Non‐standard settlements
Non‐deliverable Bitcoin CFDs hurt liquidity & deliverable assets
The majority of trading occurs off‐exchange in auction style non‐computerized formats & needs technological innovation
EXGATE
Trade Bitcoin Globally MT4
SOLUTION: Flexible Full-Turn-Key
EXGATE COMPLETE SOLUTION INCLUDES, BUT NOT LIMITED TO:
1. Written in Generic Native "C" to Improve Hardware Adoption, Latency and Digital Currency Implementation
2. Brokerages, Market Makers, Hedge Funds, High Frequency Traders, Money Managers, Trusts and Exchange-to-Exchange
3. Industry Standard MetaTrader4 (MT4) Interface with FIX Bridge and Multiple MT4 Plug-ins for Global Wall Street adoption of Physical Bitcoin Trading and Delivery Capabilities
4. Web Browser Interface and Mobile App Capabilities for Expanded Economic Appeal beyond MT4 Users
5. Bitcoin PHYSICAL Delivery to and from any External Corporate Wallet to MT4 Clients Trading Accounts
6. PHYSICAL Bitcoin Trading Capabilities directly to open FOREX, Commodities, Metals and Energy markets
7. Fiat-to-Fiat Currency PHYSICAL conversion Built-in Capability8. Customized Instant Risk Management at Exchange Level and Sub-Level per
Exchange per Tradable Instrument setup Feature9. Price Best Bid & Offer from Multiple Exchanges, Financial and Non-Financial
entities and Order Matching, facilitating Institutional Size Trading
EXGATE
Trade Bitcoin Globally MT4
SOLUTION: Flexible Full-Turn-Key
10. Matching and Limit Order Capability enables 24 x 7 Trading in Bitcoin, FOREX, Commodities, Derivatives and etc.
11. Routing of Limit Orders to Liquidity Providers or the capability to Match Client-to-Client orders
12. Algorithmic Trading Ready with Instant Switching feature to change Pre-Loaded Program Models
13. Market Inversion Trading Opportunities through Proprietary Engine not available on standard MT4
14. Latency Sensitive Goals currently at <10ms with short term Objective of <25us15. Bitcoin Exchange System upgrade as a PARTIAL or FULL-SOLUTION to comply
with Industry Standard Trading Systems 16. MT4 Community of over 1 million clients worldwide can now access Bitcoin
exchange & PHYSICAL DELIVERY through the EXGATE MT4 Solution17. Complete Industry Standard Back-End , Risk Management Tools, Institutional
Reporting/Tracking and Functionality 18. Virtual Real Time Demo Trading Platform19. Full Integration Capabilities to all Professional Trading Platforms and Operating
Systems (not just MT4 Server)
EXGATE
Trade Bitcoin Globally MT4
BTC MetaTrader4 Platform
EXGATE
Trade Bitcoin Globally MT4
METATRADER 4 PLATFORM
MT4 Server, as the most popular worldwide recognized FX platform, combined with Pay Server & Bitcoin Server, becomes the main marketing tool to be offered to all existing MT4 based Brokers:
• Over 1 million users instant access
• Over $5 trillion transacted in the FX markets daily
FIX MT4 Bridge with Limit Order routing and matching capabilities
Physical delivery of Bitcoins directly to MT4 platform clients accounts
Physical exchange of Bitcoins to:
• Fiat Currencies
• Metals
• Commodities
• Energy
Dual Account opening process enables funding and trading in Crypto
and / or Fiat Currencies
EXGATE
Trade Bitcoin Globally MT4
THE MARKET
Estimated that 70% of Bitcoin transactions occur
Off - Exchange, which now can be automated
through EXGATE
$37B
* Volume Bitcoin in 2014
$555M
** Commission & Spread revenues
* Based on www.bitcoincharts.com volume plus 2014 estimation
** Assuming 0.5 % average Commissions & average Spread Buy & Sell
EXGATE
Trade Bitcoin Globally MT4
COMPETITIVE ADVANTAGE
Generic “C” language, BBO, Order Matching, Built-in WEB Server, FIX Engine
Limit Order forwarding and Matching capabilities allows 24 x 7 FX, Commodities, Derivatives & Crypto trading.
EXGATE’s focus is on market makers, high speed traders, hedge funds & financial institutions that want to trade Bitcoin efficiently.
Professional traders who need physical delivery & exchange of Bitcoin to Currencies for specific trading strategies.
MT4’s use as retail distribution, completing a full solution offered to institutions.
Our proprietary "Latency Reduction" project is the highest priority to enable Exchange‐to‐Exchange Cross‐Currency trading.
Our engine's flexibility allows any B2B and / or B2C to be connected to the customized aggregated liquidity pool, creating a seamless trading web terminal.
Experienced team from all sides of trading world & developing FX trading systems with over 20 years experience each.
EXGATE
Trade Bitcoin Globally MT4
OPPORTUNITY
EXGATE is the first & only full‐solution that treats Bitcoin asa tradable commodity, provides physical exchange &delivery of Bitcoin to any major Currency in the openmarkets.
Our total solution has the speed, the right technology &experienced team to attract the most demanding high‐speed traders, arbitrageurs & hedge funds to furtherincrease volume, profitability & efficiencies.
EXGATE
Trade Bitcoin Globally MT4
FULLY FUNCTIONAL BACK END
RISK MANAGEMENT, RAW TIGHT SPREADS, POSITIONS, BBO,
MATCHING SYSTEM, CUSTOMIZED LIQUITY, HIGH FREQUENCY, HISTORY
EXGATE
Trade Bitcoin Globally MT4
Risk Management GUI
EXGATE
Trade Bitcoin Globally MT4
Web Based Client GUI
ALLOWS TRADING ON ANY TYPE OF OPERATING SYSTEM AND SMART PHONE
EXGATE
Trade Bitcoin Globally MT4
MARKETING STRATEGY
Market Maker direct Demo Educational campaign
High Frequency trading competition / partnership
B2B & BTC direct contact
Demo / Educational Accounts
MetaTrader 4 over 1,000,000 user base
Retail Trading Competitions
BTC Trading Gaming Partnership
Website Optimization
Trade Shows
EXGATE
Trade Bitcoin Globally MT4
EASY LIQUIDITY INTEGRATION
Exchanges E-Commerce Wallets ATM Networks Brokerages Banks Non-Bank Institutions Hedge Funds Latency Sensitive Traders Alternative Trading Systems Import and Export Retail Participants
EXGATE
Trade Bitcoin Globally MT4
.
OUR TEAM
DMITRY BATASHIVILI, CEO/Founder
• Entrepreneur & Tech Specialist
• Building trading systems since 1998
• Architected FX system for Major Banks
GREGORY MAZZEO, Business Dev
• Entrepreneur & FX veteran
• Partner in FX clearing since 2001
• Former President FX Clearing Corp
FRED HENTSCHEL, CTO
• Chief Financial Industry Programmer
• Admin financial systems since 1999
• Worked on all sides of FX trading world
EXGATE
Trade Bitcoin Globally MT4
OUR PARTNERS AND CLIENTS
JSC CAUFEX
LMAX
BitReserve
BTC China
Atlas ATS
AMI
CoinSetter
ItBit
ANX
Spottraderfx
NDB
FxOne
CoinDeavors
Quickey Coin
EXGATE
Trade Bitcoin Globally MT4
BUSINESS MODEL
Transaction fees for large volume Bitcoin trading 0.5% to 0.1%
Estimated Revenue:
• 2015 - $5M
• 2016 - $15M
• 2017 - $50M
Retail Fees 1%
FX MetaTrader4 and MetaTrader4 Bridge fees $3.50 per million of notional volume traded
Licensing for Turn-Key market-making exchange platform- one time fee of $75,000 plus monthly maintenance and transaction fees
Customized Software Development
Packaging and Reselling of Price Feed
Packaging and Reselling of Market Data
EXGATE
Trade Bitcoin Globally MT4
USE OF FUNDS
Compensation New Employees - $600,000
Outsourced Computing - $500,000
Software and Hardware for Employees - $50,000
Hosting and Equipment - $150,000
Legal Fees - $100,000
MetaTrader4 - $80,000
Rent and Insurance - $80,000
Hotel & Travel - $30,000
Marketing - $100,000
Clearing lines - $250,000 (in deposits)
EXGATE
Trade Bitcoin Globally MT4
App1-MT4 EXGATE Technology Flow
LIQUIDITYMultiple Liquidity
Sources
BBO EngineBest Bid/Offer Order Matching
FIX Engine, WEB Server
MT4 FIX BRIDGE
FIX APILimit/Market Orders
EXGATE
Trade Bitcoin Globally MT4
App2- All-in-One MT4 Bitcoin Mobile Turn-Key
EASY WAY TO FUND TRADING ACCOUNT DIRECTLY FROM SMART PHONE
EXGATE
Trade Bitcoin Globally MT4
Safe Harbor
• Assumptions and forward-looking statements
• Some of the statements and information presented may contain projections or other forward-looking statements with respect to future events or the future financial performance of Exgate LTD. (the "Company") as defined by Section
• 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Sentences which incorporate words such as "believes," "intends," "expects," "predicts," "may," "will," "should," "contemplates," "anticipates," or similar statements are based upon management's current expectations or beliefs. These projections and forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the Company's control, which could cause actual events to differ materially from those expressed or implied by our projections or forward-looking statements. The most important factors which could prevent the Company from achieving its stated goals include, but are not limited to, the following: (i) the current uncertainty in the global financial markets and the global economy, (ii) disruptions in the financial markets which could affect the Company's ability to obtain additional funding, (iii) public acceptance of our services, (iv) government regulations affecting financial markets, including, but not limited to, regulations with respect to the implementation of the JOBS Act, (v) our ability to grow our operations, (vi) our ability to penetrate markets, and (vii) our need for additional financing in order to fund our operations effectively. Additional factors include, but are not limited to, the Company's ability to do the following: (i) meet customer demands and generate acceptable margins, (ii) defend intellectual property and proprietary rights, (iii) adapt to rapid technological changes which lead to further competition, and (iv) attract and retain qualified management and personnel.