UNX Presentation

ure Experts

 Market Structu

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 1[UNX] 

About UNX®UNX is an innovative electronic trading and technology company that is constantly evolving and developing new products and services with one thing in mind: keeping

h d f th k b h i t di biliti i th t tl h iyou ahead of the pack by enhancing your trading abilities in the constantly changing marketplace.

Founded in 1999, UNX is an electronic broker/dealer serving both buy-side and sell-Founded in 1999, UNX is an electronic broker/dealer serving both buy side and sellside institutional clientsWe remain one of the only agency independents; we have no proprietary trading or conflicts of interest with our clients200+ li t b th i th US d E

ure Experts

200+ clients, both in the US and EuropeFull agency offering, including

Unique execution fabricFine-grained transaction cost analysis

 Market Structu Fine grained transaction cost analysis

Desktop trading applications, for both single-stock and programsFull commission management solutionsCentralized clearing

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 2

Provider of ASP solutions to the financial community

Products and ServicesAlgorithmic Market Access

Direct Market AccessAdvanced Execution ServicesAdvanced Execution ServicesAlgorithmic Server Solutions

Advanced Trading ApplicationsBasket Center MetaBook®

Post-Trade MeasurementHigh-touch and Program Trading Services

ure Experts

Outsourced Trading DeskCommission Management Services

28e facilitation, easy-to-use web management toolsIndependent Agency Brokerage

 Market Structu Independent Agency Brokerage

Consolidated ticket serviceProactive Service and Support

Support staff include experienced traders

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 3

pp p

Connectivity/Routingy/ gure Experts

 Market Structu

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission.

* ‐ integration process is underway

4

Rule Based RoutingRule Based RoutingRules Based Routing ‐ Combines a series of layered user defined filters 

to select trade implementation strategies. These filters include:

Security type (Listed, OTC, BB, Pink sheet, and ETF) 

Order type (Market/Limit)

Average daily volume (ADV)

Order sizeure Experts

Order size

Time filter (Pre‐Open, End of Day)

 Market Structu

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 5[UNX] 

Rule Based Routing ExampleRule Based Routing ExampleSecurityType

OrderType

ADVOrderSize Tactic

0 – 999 shares

1,000 – 9,999

IOC MidpointProbe

ImpactManagement

ListedOTCETF

Market

Li i

< 2 % ADV

shares

> 10,000 shares

ManagementEngine

Ma

Limit

M k t

> 2 % ADV

> 1 % ADV

Agency Desk Or

Algo Trading Tools

Order

arket Centers

Bulletin BoardPink Sheet

Market

Limit< 1 % ADV

> 250 shares

0 – 249 shares STORM

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 6

Execution Fabric ‐ TacticsExecution Fabric  Tactics

Sweep

Synthetic Order Type PostDiscretion yp

(Tactic)PostDiscretion

ure Experts

Pegging

 Market Structu

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 7

Execution Fabric – Defining a TacticExecution Fabric  Defining a Tacticure Experts

 Market Structu

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 8

Execution Fabric ‐ PlansExecution Fabric  Plans

Stage 3Stage 2Stage 1

Ladder STORM

NASDAQ Hidden Post

Sweep AUTO‐MARKET

ure Experts

Hidden Post

Dark Sweep STORM

 Market Structu

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 9

Execution Fabric – Defining a PlanExecution Fabric  Defining a PlanA rule‐based environment for combining tactics and order handling logic to create complex 

h i dsynthetic order types

– Technical service organization

– Technical service team

ure Experts

 Market Structu

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 10

Putting it all togetherPutting it all together

Algorithms

Plans

TacticsTactics

ure Experts

DMA

 Market Structu

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 11

UNX AlgorithmsUNX AlgorithmsGOAL STRATEGY PARAMETERS

Sweeps multiple venues and then hides User choice between hidden post and UNX

STEALTH Aggressively take available liquidity without ever posting out loud.

orders in UNX engines which seize discretion opportunities across the

marketplace.

dark server. Limit orders of any size. Does not accept market orders. Orders may be replaced for price and quantity.

ECLIPSEParticipate at as many venues as

possible without showing your order out loud.

Hides orders at multiple price levels and at a variety of venues - both traditional and

dark.

3 aggressiveness levels control pricing of stages. Limit orders only up to 100,000 shares. No market orders. Orders may be replaced

for price and quantity only.

ORBITMaximize liquidity extraction across

fragmented marketplace while minimizing quote impact.

Periodic, randomized liquidity probes allowing for quotes to fill in.

3 aggressiveness levels control pricing and frequency of probes. Market orders up to

10,000 shares are accepted and limit orders up to 100,000 shares.

DARK SPIN Trade outside traditional markets without affecting prevailing quotes.

Repeated, periodic sweeps and posts in numerous Dark Pools. Limit orders of any size, no market orders.

ure Experts VWAPSeeks to match or beat the

consolidated VWAP for a user-determined trade duration.

Slices orders based on historical, intraday volume arcs and executes with price-

improving tactics.N/A

VOLUME PARTICIPATION

Actively participates with volume using a rate of execution that is in

proportion to the actual volume traded in the security

Employs a variety of tactics at different price points simultaneously.

Market or limit orders of any size. Start time, End time, participation rate, and 3 levels of

adherence.

 Market Structu traded in the security.

ATOM Seeks to price-improve small orders. Efficiently sweeps and posts at most liquid destination. Limit orders of any size, no market orders.

CUSTOM Design your own trading strategy.

Work with software implementation specialists to build virtually any

strategy using UNX's component Your imagination and our building

blocks.

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 12

tactics.

UNX web‐based TCA: http://tca.unx.comUNX web based TCA: http://tca.unx.comure Experts

 Market Structu

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 13

Customizable TCACustomizable TCAUNX TCA is designed to allow the easy creation of customized reports.

ure Experts

 Market Structu

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 14

TCA – Component by ComponentTCA  Component by ComponentThe ability to also measure functional components allows us to  continually drill‐

down and refine the quality of execution

ure Experts

 Market Structu

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC. All rights reserved. Not to be reproduced without permission. 15

LifecycleLifecycleConcept Custom Tactics TCAConceptConcept Custom Tactics TCAConcept

Custom Rule Based RoutingTCA

ure Experts

TCACustom Plans/Algos

 Market Structu

[UNX] 

© 2008 UNX, Inc., Member FINRA/SIPC.  All rights reserved. The material is not intended to rate or recommend any security or any type of strategy or service for trading any security. Market conditions and system performance may delay system access, real‐time data and trade execution.  UNX and MetaBook are trademarks of UNX, Inc. 062508A 16