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EXTENT-2015: LSEG Technology Overview

Exactpro
November 18, 2015

EXTENT-2015: LSEG Technology Overview

LSEG Technology Overview
Kirill Zagorouiko, Exactpro
11 November 2015
Trading Technology Trends & Quality Assurance Conference in St. Petersburg

Exactpro

November 18, 2015
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  1. The London advantage London Stock Exchange Group Page 2 Internationally

    focused open market culture World’s largest pool of international equity assets – $2trn of international equity AUM Leading foreign exchange trading centre with 41% of global turnover The key western centre for Islamic finance Global centre for derivatives trading, with 49% of OTC interest rate turnover Largest centre for international banking, with 17% of cross-border lending 20% of global hedge fund assets managed in London, 75% of the European HF market Leading exporter of financial services in the world with a trade surplus of $71bn LSEG operates at the heart of the world’s financial centre. Working with us gives our customers unique access to the City of London Source: TheCityUK – 2014 report
  2. Introducing LSEG London Stock Exchange Group Page 3 Market capitalisation

    of c£9bn; successful execution and delivery of strategy through organic growth and M&A Diversified revenue by currency Revenue growth FY 2009 $1,014m CY 2014 $2,085m Sources: LSEG 2014 Annual Report CY 2014 Total income incl. Frank Russell
  3. London Stock Exchange Group London Stock Exchange Group Page 4

    A leading diversified international exchange and infrastructure group with assets across the entire exchange value chain Not all assets shown Primary Trading Middle & Back Office Clearing Settlement & Depository Information Technology
  4. Exactpro: 4 QA and Software Development Centres in Russia FTSE-linked

    ETFs traded over 25 exchanges worldwide International reach London Stock Exchange Group Page 5 LSEG has c5,000 employees based in 21 cities, delivering services worldwide LSEG offices Global Primary Markets franchise with companies from 115 countries MillenniumIT technology deployed in 40 countries and venues around the world Source: LSEG Turquoise is trading in 18 countries, linked to 3 interoperable clearing houses Innovative Elite Programme inclusive of 17 European countries Technology
  5. Customer Solution, configured with business rules (BID) MillenniumIT product family

    Millennium Exchange™ Ultra-low latency, flexible and scalable multi-asset trading platform Millennium Surveillance™ Multi-market, multi- asset class monitoring and compliance Millennium SOR™ Ultra-low latency, flexible and intelligent order routing Millennium PostTrade™ Real-time, cross- asset clearing, settlement, risk and CSD solutions Millennium Advanced Platform Ultra-Low Latency | Flexible | Resilient | Scalable | Low Cost Multi-threaded | Distributed | Infiniband | FPGA | C++ | Linux | TCP/IP | Windows Millennium MarketData™ Ultra-fast and efficient data for financial markets Millennium LiveOps™ High availability IT operations for capital market firms MillenniumIT products span the entire capital markets value chain, including live ops support London Stock Exchange Group Page 6
  6. London Stock Exchange Group Page 7 GATElab solutions in LSEG

    Founded in October 1989, an LSEG company since December 2012
  7. London Stock Exchange Group Page 10 International order book (IOB)

     Enables investors to unlock the potential to world’s growing markets through a single central electronic order book  Direct access to securities via DRs from over 44 countries, including those in Central and Eastern Europe, Asia and the Middle East.  World leading technology, deep pool of liquidity and CCP clearing service provide opportunities to approximately 100 members trading on the IOB  The largest market in Russian instruments outside of Moscow
  8. London Stock Exchange Group Page 11 International order book (IOB)

    IOB Trading Statistics - August 2015 - TOP 10 by Volume of Trades Number of Trades USD Value Traded Volume of Trades Security Country of Inc Totals (Off book & IOB Matched) Totals (Off book & IOB Matched) Totals (Off book & IOB Matched) 1 SBERBANK OF RUSSIA Russian Federation 198282 1,612,472,307 356,621,430 2 OAO GAZPROM Russian Federation 146218 1,183,214,965 281,934,333 3 OJSC OC ROSNEFT Russian Federation 72193 350,703,731 97,879,452 4 JSC VTB BANK Russian Federation 28825 201,114,979 97,742,247 5 MMC NORILSK NICKEL Russian Federation 124768 719,642,391 47,179,293 6 LUKOIL (OAO) Russian Federation 144021 1,379,733,644 37,282,602 7 SURGUTNEFTEGAZ Russian Federation 31117 132,524,389 26,139,806 8 JSC URALKALI Russian Federation 58032 331,323,853 22,955,530 9 HON HAI PRECISION INDUSTRY CO LD Taiwan 2634 123,664,709 21,688,179 10 GLOBAL TELECOM HOLDING S.A.E. Egypt 2038 29,864,866 20,030,044 Grand Total of 110 securities 1,151,787 9,579,591,932 1,199,959,223 Combined TOP 8 vs. Grand Total of 110 securities by Volume of Trades Russian Federation 70% 62% 81%
  9. London Stock Exchange Group Page 12 International order book (IOB)

    Trading system Common underlying technology infrastructure, Millennium Exchange™ Clearing and settlement CCP allows full pre- and post-trade anonymity, protection from counterparty risk and a buyer protection service Access Direct membership or via a broker (including DMA and Sponsored Access) Market hours London trading calendar, but has a separate settlement calendar observing US public holidays Regulated status LSE is a Recognised Investment Exchange regulated by the FCA Key features and benefits:  The event will provide an opportunity to meet with LSE team and network with other industry professionals.
  10. London Stock Exchange Group Page 13 LSE Derivatives Markets (LSEDM)

     On screen trading for options and futures, in the most liquid IOB securities, plus the FTSE RIOB Index, a market-cap weighted Index in USD, designed to measure the performance of of the 15 largest Russian DRs trading on the LSE International Order Book (IOB);  Flexible trade reporting for options and futures is also available on these;  Backed by CCP clearing with LCH.Clearnet (LCH).
  11. Exactpro is: Clients Worldwide: • A specialist firm focused on

    functional and non functional testing of systems that process wholesale financial products, particularly market infrastructure • A UK company with operations in the US and four QA & software development centres in Russia • Part of London Stock Exchange Group as of May 29, 2015 • Incorporated in 2009 with 10 people, our company has experienced significant growth as satisfied clients require more services - now employing 320 specialists Exactpro: company overview London Stock Exchange Group Page 14
  12. Sailfish: • Can test Order Entry, Market Data and Post

    Trade connections in one test scenario • Each test scenario is independent • Allows running test scripts in any sequence • Simulation of multiple user connections • Server simulators • All messages are stored into a data base • Generates test reports ClearTH: • Post-Trade testing tool • Verifies each stage of the DLC • Integrated schedule • Automated matrices • Can create multiple days test scenarios • Concurrent multiple tests • Integrated simulators • SWIFT ISO protocol support Dolphin: • Model-based testing of market surveillance systems • Production-scale capacity and throughput • Interactive real-time alerts and reports Shsha: • Post-transactional tool • Analyzes clients' activity and forecasts system response • Parses and displays logs in a user-friendly way • Parses messages and then puts each to a data base table where each column corresponds to each message field • Allows making summarized reports, etc • Easy to understand GUI Load Injector: • Simulates multiple client connections with a specified load shape for each connection or a group of connections • Up to 75K messages / second from a single CPU core • Measures latencies in microsecond range • Performance test reports Minirobots: • Multi-threaded Trading Engine for simulating trading algorithms behavior and market conditions •Testers can develop trading robots in Java using an extensive and easy to use API •Testers can control the robots via a Web-based console. Metrics are available in real time •Hundreds of internal event flow validations verify the consistency •of responses from the trading •system in real time Exactpro: building software to test software London Stock Exchange Group Page 15
  13. • Competing conference papers go through a review by a

    number of leading software development and analysis experts and scientists • The best papers are recommended for their inclusion in Russia’s leading professional and scientific publications • 2 conferences to date in 2013 & 2014 • TMPA-2015 to take place in St. Petersburg, Russia • Conference web-site: www.tmpaconf.org CONFERENCE TOPICS • Software test automation • Static program analysis • Dynamic methods of program analysis • Parallel and distributed systems • High-load and high-availability systems • Methods of building quality software • Software analysis, testing and verification tools Exactpro: software engineering conferences London Stock Exchange Group Page 16
  14. Contacts London Stock Exchange Group Page 18 DISCLAIMER This presentation/document

    contains text, data, graphics, photographs, illustrations, artwork, names, logos, trade marks, service marks and information (“Information”) connected with London Stock Exchange Group plc (“LSEG”). LSEG attempts to ensure Information is accurate, however Information is provided “AS IS” and on an “AS AVAILABLE” basis and may not be accurate or up to date. Information in this presentation/document may or may not have been prepared by LSEG but is made available without responsibility on the part of LSEG. LSEG does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of the presentation/document or any of the Information. No responsibility is accepted by or on behalf of the Exchange for any errors, omissions, or inaccurate Information in this presentation/document. No action should be taken or omitted to be taken in reliance upon Information in this presentation/document. We accept no liability for the results of any action taken on the basis of the Information. London Stock Exchange, the London Stock Exchange coat of arms device are trade marks of London Stock Exchange plc. Antonella Amadei Head of Global Development Market Infrastructures Tel +44 207 797 1624 Mobile +44 7827 349 593 [email protected] Doug Sheffield Senior Manager Tel +44 207 797 3773 Mobile +44 7780 614072 [email protected] Mauro Romano Senior Manager Tel +44 207 797 4388 Mobile +44 7748 703049 [email protected] Luca Broglio Client Relationship Manager Tel +44 207 797 4274 Mobile +44 7717 355614 [email protected]