SMARTS Platform

8/6/2019 SMARTS Platform

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SMARTS® Market IntegritySMARTS® Market IntegrityPlatformPlatform

1Commercial in Confidence



• Introductions

• Quick summary about the Smarts Group

• Smarts Group Service Offerings

• Product demonstration

• SMARTS Online/Onsite/Managed

OutlineOutline




Company Objective: to improve market

integrity by providing technology solutionsand services to Exchanges, Regulators andMarket Participants

Company OverviewCompany Overview


We are the world’s leading supplier of market surveillance and market abuse

detection platforms



Smarts Group InternationalSmarts Group International

• Leading global supplier of market integrity & insight solutions for marketsurveillance, control and abuse detection

• Single and focused mission to improve market integrity by providingtechnology & services to Exchanges, Regulators and Market Participants

• Experienced staff and unique real-time products here today

• Origins in research centre at University of Sydney in 1994


• No other competitor comes close to Smarts Group in terms of marketcoverage & domain expertise



Smarts Group: Strategic valuesSmarts Group: Strategic values

6 key attributes of SMARTS that will enable your businessobjectives regarding market monitoring, supervision andregulation:

• Proven software assets and services which significantly reduceproject risk, cost and implementation timeframes

• Competitive time to market

• High performance architecture to meet the most demanding capacityand availabilit re uirements


• Flexible customisation by users to address future needs• A proven team with local and international market experience and

expertise linking the customer into a global surveillance community

• A long-term commitment to Research and Development in theMarket Integrity area



Exchange and Regulator clientsExchange and Regulator clients

Exchanges

Regulators

Indonesia

Russia

Hong Kong

Hong Kong

Singapore

Singapore

Copenhagen

Nigeria

Iceland Australia

India

Thailand

Malaysia

Newcastle

UAE SCA

London


1997 1998 1999 20022000 2001 200520042003 20072006

Micex - RussiaOslo

Stockholm

Helsinki

Abu Dhabi

London

Saudi Arabia

SwitzerlandNew Zealand

Tokyo

Dubai FinancialMarket

London

Tallinn

Riga

Vilnius



SMARTS ClientsSMARTS Clients• Moscow Inter-bank Currency Exchange 1996 (bills, bonds ,equities)• Russian Central Bank 1996 (bills, bonds ,equities)• Jakarta Stock Exchange 1997 (equities)• Hong Kong Stock Exchange 1999 (equities, warrants)• Securities and Futures Commission of Hong Kong 1999 (equities)• Oslo Børs 1999 (equities, warrants, options)• Singapore Exchange 2001 (equities, 2005 derivatives)• Monetary Authority of Singapore 2001 (equities)• New Zealand Stock Exchange 2002 (equities)• Stockholmsbörsen 2002 (equities, warrants, options)• Copenhagen Exchange 2002 (equities, warrants)• Helsinki Exchange 2002 (equities, warrants)• Iceland Stock Exchange 2004 (equities)• Ni erian Securities Commission 2004 e uities


• Australian Stock Exchange 2004 (equities, options, futures)• Tokyo Commodity Exchange 2004 (commodities)• Swiss Exchange 2005 (equities, warrants, options, bonds)• virt-x 2005 (equities, warrants)• Stock Exchange of Thailand 2006 (equities, bonds)• Securities and Exchange Board of India 2006 (equities, bond, options, futures)• Abu Dhabi Securities Markets 2006 (equities)

• Malaysian Securities Commission 2006 (equities) • Saudi Arabia Stock Exchange (Tadawul) 2006 (equities, bonds) • London Stock Exchange 2006 (equities)• UAE Securities & Commodities Authorities (SCA) 2006 (equities)• Dubai Financial Market 2006 (equities)• Plus Markets Group 2007 (equities)• 2 new clients (to be announced shortly) 2007 (equities)



Broker Footprint (50+ across 7 countries)Broker Footprint (50+ across 7 countries)




Product EvolutionProduct Evolution

Bonds , FX,Equitiescapabilities

Migration fromUNIX environmenttoWindows Clients

Cross- marketfunctionalityenabled

Derivativeshandlingcapabilities proven

Commodities & Futures capabilitiesproven

* Reuterslinkage for topmarketscoverage

New Modules: ARC & Eagleeye

Cross-marketcapabilities

enhanced

* ComplianceExplorer toolfor brokersdelivered viaweb (CMSS)

Performance Capacityfurther boosted; provenat 30,000 transactions /second

* R&D partner –CMCRC awarded forHealth InsuranceFraud Detection Tool(Dtecht) at CRC

Awards 2005

Enhanced Functionality:

Case ManagementComprehensive Analysis

* ComplianceExplorer Toolawarded TopInnovation at CRC

Awards 2006


1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

HKEX SFCOSE

BSE NASDAQ

NZX OMX HEX CopenhagenNSC

RS Canada TOCOM

ASX ASX-DTICEX TOCOMSWX virt-x

FSA SWX SSE

SGX-DTSEBISET

Abu DhabiMSECLSETadawul & CMAPLUSTLX SpA

SGX MAS

RCBMICEX JSX



SMARTS Functional ArchitectureSMARTS Functional Architecture




The Surveillance Process (a typical analyst’s

workflow)

Manage

Analyse Alerts

Gather AdditionalInformation

REPORT ARC


Understand

the Market

METRICS

ALDIT Alice LanguageFacts Language

ALMAS

SPREADREPLAY

Define andCreate Bench-marks and Alerts

FACTSEAGLEYE



Metrics - Purpose

• Understanding the market

– identifying patterns of trading within days.

– identifying patterns of trading across days. – studying the relationship between variables/metrics.

• Facilitating benchmark creation


– distinguish between normal and abnormal/aberrant behaviour.



Alice

• 4th Generation Programming Language

– Does not need to be compiled – Made up of regular English language terms typically used in the

finance industry such as trade, volume, value, etc..


• Designed specifically for the manipulation of financial data – Automates many common finance tasks.

• E.g. Option valuation, CAPM

– Financial data types

• E.g. Price, Volume, Security

• It is impossible to crash the system from within ALICE.



SMARTS Alerts

• Customised and calibrated for the market

• Capable of handling very high transactionrates


• Logic is separated from the core software

• Extensive experience in designing andimplementing all surveillance scenarios

across a large variety of market structures



ALMAS – The Control Room

• Provide analysts with a tool for:

– Identifying and managing the alerts generated – Preventing work duplication and sharing analysis

– Querying security or suspect history’s –


• Provide management with a tool for: – Performance evaluation

– Work load management



SPREAD

• Visualise trading activity in

time-series

• Instantly gives the analyst


• Allows quick decisionson how to proceed



REPLAY

• Visualise trading at one point in time

• Replay a market transaction by transaction at any desirable speed.

• Assists:

analysts in understanding thesequence of events culminating


n an a er .

teachers in explaining thedynamics of a financial market.

researchers in interrogatingdata at a much deeper level.



Getting More Information

• ARC

• Customised Intelligent Alerts• Uses the ALICE language


• Form based database query tool

• INFORM

• Information announcements• Audit events



Solution OfferingsSolution Offerings

SMARTSOnsite SMARTS Managed Service SMARTSOnline

• Client-specific location

• Daily operations managed &

monitored by client’s IT

• SMARTS provides 2/3rd linesupport

• Hosted solution in data centre

• Managed service delivery

• Daily operations managed & monitored by Smarts

• SMARTS provides all levels of


variable

• Maintenance of Core softwareby SMARTS

• Primarily used by tier 1

exchange/regulator

• License fee is paid upfrontacross term of contract

support , including outsourcedservices

• Maintenance of gateway/Alice & Core software by Smarts

• Primarily used by new oremerging exchange/regulator;business looking to outsource IT

• License fee is annualised

SMARTS Platform

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