DMA enabling Algo Global Trading DMA open up possibilities and more

DMA enabling Algo Global Trading DMA open up possibilities and more importantly, creates a new ground for open competition

Global Trading Algorithmic trading is defined as “placing a buy or sell order of a defined quantity into a quantitative model that automatically generates the timing of orders and the size of orders based on goals specified by the parameters and constraints of the algorithm”. Trading systems use very advanced mathematical models for making transaction decisions in the financial markets. The strict rules built into the model attempt to DMA- Trading ? the least determine the optimal time forAlgorithmic an order to be placed that will cause amount of impact on a price of the financial instrument. Within the equities, futures and bonds markets large orders for shares are usually purchased by dividing any share block into smaller lots, allowing the complex algorithms to decide when smaller blocks are to be purchased. Algorithmic trading is most commonly used by large institutional investors as a result of the large amount of shares they purchase daily. Complex algorithms allow these investors to obtain the best possible price without significantly affecting the stock's price and increasing purchasing costs. N2N Connect All Rights Reserved

Global Trading What are some of the commonly use Algorithmic Methodology There are a variety of algorithms in common use within the financial industry. The two main parts of a trading algorithm are sequences of steps determining when to trade and how to trade. Algorithmic Methodology Determining when to trade is a decision that revolves around watching the changing market data and detecting opportunities within the market. Building an Algo Trading modules typically uses an advance mathematical model as well as TWAP, VWAP etc to measure the trading pattern, price spread and trading velocity to identify best timing and profit opportunity to perform pairs trading and arbitraging. Support technical indicator such as MACD, Bollinger Bands etc can also be employed to identify the spread between the two or more counters or instruments in the case of hedging, that has exceeded certain standard deviations or breaking resistance or support line. N2N Connect All Rights Reserved

Global Trading Examples of Possible Methodology & Techniques VWAP, TWAP, Target Volume, Arrival Price, DMA Percent ofFast, Volume, - Act Algo - Act Automatically Small Order, Pegging, Discretion, DMA/Smart Order Router, Spread (Pairs) Trading, Manage the Close N2N Connect All Rights Reserved

Global Trading User DMA-Algo is suitable for use with both the Buy side (fund houses, investment boutique, government investment arms and insurance investment division) and Sell side execution such as InvestmentWho Banks,will brokerages etc. benefit from DMA-Algo Application Type Algo can be sophisticated or simple It can be Client side or Server side Algo Can be for trading large volume with minimum price distortion, hedging or mutual funds basket trading or arbitrating or just opportunistic trading, etc N2N Connect All Rights Reserved

Global Trading High Speed Execution, Robust Order Management, Parameterise Risk Control, Real Time Market Data Mobile Management System FIX Connection System What are the pre-requisite to building Algo Risk Management System Execution Management System N2N Connect All Rights Reserved Order Management System Portfolio Management System Customer Management System Feed Management System

Hmm – Need to imagine how it works Global Trading N2N Connect All Rights Reserved

What To Expect from the DEMO Global Trading To give a more visual impact for those new in DMA Trading, we will attempt the following demos with NO GUARANTEED of Success: Trading via the DMA Channel Trading using Order Injector – Click Trading Trading using Client Side Algo with DMA Entry

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