ORC TRADING FOR WARRANTS MARKET MAKING

IMPROVE WARRANTS MARKET MAKING WITH FAST, RELIABLE MULTI-MARKET ACCESS

Expand your business. Win market share.

Market making has never been more competitive. The need to reduce latency and be first to market has become paramount for success. With thinning margins, many firms are also looking for new ways to grow their business. Solutions that provide ultra-low latency access to existing and new markets have become the key drivers for many market makers today.

Orc Trading for Warrants Market Making delivers customers the choice of a customizable or a complete out-of-the-box solution.

ORC TRADING FOR WARRANTS MARKET MAKING HAS HELPED FIRMS:

ORC TRADING TAKE ADVANTAGE

• Improvequotetimingwithultra-lowlatencyconnectivity

•Quicklyexpandwarrantsmarketmakingacrossnewmarkets

•Reduceinfrastructurecostswithascalable,flexibletechnologyplatform

• Increasequotingincompetitivemarketswithahigh-throughputtradingengine

WHO NEEDS ORC TRADING FOR WARRANTS MARKETING MAKING?HEADS OF WARRANTS at market making desks needing to increase profits and send warrants quotes to the market at various depth levels.

•Wouldyouhavemoreconfidenceinyourtradingifyoudidnotneedtomanuallyinsertquotesatdifferentdepthlevels?

•Woulditbeeasiertoquoteanumberofwarrantswithatemplate that you could design, configure and apply to those warrants?

•Wouldyoubeabletoincreaseprofitsifyourtraderscouldquotehundredsoreventhousandsofwarrantsfromasingle screen?

•Wouldyoubemoreprofitableifyoucouldtakeadvantageofeconomiesofscalewhenquotingwarrants?

•Wouldyoufinditeasiertoexpandyourbusinessifyoucould have your current market makers handle more trades rather than hiring difficult to find, experienced warrants market makers?

Orc Solution → Use Orc Trading for Warrants Market Making for a multi-level quoter and single trading platform.

DEVELOPMENT MANAGERS looking for open strategy control and the ability to prioritize strategies in production

•Whendeployingcomplexwarrantquotingstrategieswould deployment time be reduced if you could use a powerful yet intuitive user interface for developing and modifying strategies?

•Whenwritingstrategiesforwarrantsmarketmaking,wouldgreaterbenefitsbegainedusinganopen,flexiblelanguage that is compatible with other 3rd party software and existing class libraries written in other languages?

•Whenexecutingtradingstrategies,wouldyourtradersgaincomfort and confidence in their trading by knowing that all their strategies, regardless of priority, will be executed?

Orc Solution → Use Orc Trading for Warrants Market Making for Code Manager, Strategy Editor and fully customizable Java API.

New market conditions place added emphasis on high-performance and automated trading solutions. Managingwarrantstradingrequiresincreasedefficiency,based on key parameters such as low latency and high throughput.

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”Anders Henriksson, Business Development, Orc Software

ORC TRADING FOR WARRANTS MARKET MAKING SOLUTION FEATURESBUSINESS LOGIC

•Market making engine- QuoteenginebasedonATMinOrcTrader- Customizablequoteenginebasedon OrcLiquidator

•P&L and risk management- Risk sensitivities, scenario analysis and

P&L analysis in Orc Trader- External application using calculations

from Orc Protocol- External risk system using positions (and

potentially more) from Orc Protocol

•Parameter management- Pricing parameters (vols, dividends, etc)

in Orc Trader- Trading parameters (refills on trades, quotevolumesetc)inOrcTraderor OrcLiquidatorclient

- External application on top of Orc Proto-col/OrcLiquidatorprotocolforpricingand/or trading parameters

•Pricing- Orc pricing and volatility models in OrcTrader/OrcLiquidator

- Custom pricing and volatility models in OrcTrader/OrcLiquidator

- External application on top of Orc Proto-colfeedingOrcTrader/OrcLiquidator

•Hedging engine- Click trading in Orc Trader- Trade/portfolio hedging in Orc Trader- Custom trade/portfolio hedging in OrcLiquidator

MARKET ACCESS

•Connectivity to most warrants venues across Europe and APAC

•Optimized for high throughput

•Low latency connectivity to cash and futures markets for hedging

TECHNICAL EXCELLENCE

•Java-enabled, server-based algorithmic trading engine

•Reliable

•Scalable

Trade futures, options, and cash products on multiple exchanges

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Monitor and adjust trading strategies

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Post-trade risk and position information to support trading

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View executed trades4

Manage and adjust volatility

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Design your own trading strategies in Java

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Take Advantage Orc Trading is used by leading financial firms worldwide for enhanced trading, pricing and risk management on electronically traded derivatives. Orc Trading provides the competitive edge to trade from a single platform, on any listed instrument, across all asset classes, on 100+ markets. Orc Trading comprises market leading applications including among others Orc Trading for Algorithmic Trading, Orc Trading for Arbitrage, Orc Trading for Market Making, Orc Trading for Risk Management and Orc Trading for Volatility Trading.

Orc is a leading global provider of technology for advanced derivatives trading and connectivity. Customers include leading banks, trading and market-making firms, exchanges, brokerage houses, institutional investors, hedge funds and software vendors.

sales@orcsoftware.com www.orcsoftware.com

Amsterdam, Chicago, Frankfurt, Hong Kong, London, Milan, Moscow, New York, Paris, Stockholm, Sydney, Vienna

HEAD OF WARRANTS AT A MARKET MAKING DESK

The Head of Warrants at a market making desk (an exist-ing Orc customer) wanted to expand his warrants business significantly. However the firm was aware it could not expect itstwomarketmakerstoquoteatsuchanincreasedlevel,ortherequireddepths.Theyalsoknewtheywerelackinginthefloorspaceandbudgettohiretheadditionalnumberofmarketmakersrequiredtoachievetheirgoal.Inspeakingwith Orc, the head of warrants learned that their two market makerscouldeasilyexpandtheirexistingwarrantquotinglevel by ten times by using a strategy-driven application with an intuitive interface from Orc.

THE DEVELOPMENT MANAGER AT A MARKET MAKING DESK

The development manager at a market making desk (an existing Orc customer with many years experience using Java) wanted to customize strategies for warrants market making using existing strategies from other applications. Using Orc Trading for Warrants Market Making they were able to utilize other strategies from third-party applications thereby decreasing warrants market making strategy devel-opment time by 30%.

ORC TRADING FOR WARRANTS MARKET MAKING SUCCESS STORIES

ORC TRADING TAKE ADVANTAGE