MiFID II and impacts on trading workflow EXTENT June 2017 V1.0 Page 1

Page 2 Price Discovery and Best Execution Trade Costs and Liquidity Analysis Benchmarking & Analytics Pre-Trade Transparency Execution Post-Trade Transparency New paradigm in trading flow RM & MTF OTF OTC execution SI if you have • a good trading desk with quantitative, qualitative and holistic capabilities, • a powerful best execution process, • an unbundled research-execution cost, • a good feedback from performance control, • a good centralized regulatory hub, nothing has to be done for MiFID II

Page 3 Price Discovery and Best Execution Trade Costs and Liquidity Analysis Benchmarking & Analytics Pre-Trade Transparency Execution Post-Trade Transparency Capture, Discover & Analyze What you need to capture: • huge amount of data, coming from different types of external or internal sources (i.e. feedbacks from previous steps); To do what: • to support the discovery process of the best price per each instrument; • to analyze discovered liquidity and hence to understand the cost of a trade; • to feed relevant information to the next steps With which challenges: • handling good real-time & snapshot structured & unstructured data; • putting in place good strategies & analytics to evaluate. RM & MTF OTF OTC execution SI

Page 4 Price Discovery and Best Execution Trade Costs and Liquidity Analysis Benchmarking & Analytics Pre-Trade Transparency Execution Post-Trade Transparency Validation & Pre-Trade What you need to capture: • huge amount of data, coming from different types of external or internal sources (i.e. feedbacks from previous steps); To do what: • to validate discovered/defined prices and liquidity against related benchmarks and assess their impact on internal risk; • to spread defined and verified prices • to feed relevant information to the next steps With which challenges: • handling good real-time & snapshot structured & unstructured data • putting in place good strategies & analytics to evaluate RM & MTF OTF OTC execution SI

Page 5 Price Discovery and Best Execution Trade Costs and Liquidity Analysis Benchmarking & Analytics Pre-Trade Transparency Execution Post-Trade Transparency Execution & Post-Trade What you need to capture: • internal sources (i.e. feedbacks from previous steps); To do what: • to execute trades and evaluate their impact; • to spread trades to APAs, ARMs and CTPs; • to feed relevant information to the next steps • to reconstruct trades & capture sales workflow With which challenges: • handling good real-time & snapshot structured & unstructured data • putting in place good strategies & analytics to evaluate RM & MTF OTF OTC execution SI

Price Discovery and Best Execution Trade Costs and Liquidity Analysis Benchmarking & Analytics Pre-Trade Transparency Execution Post-Trade Transparency Winning points to tame MiFID II Data Management Platform for • handling structured and unstructured data • easy configurable rules for quality and enrichment • handling not only MD, but also voice as a text, mail, unstructured text, news with AI support (sentiment analysis) • easy programmatic and enriched UX (with chatbots) interfaces Strategy and Analytics for • liquidity discovery and analysis, pricing with Adjoint Algorithmic Differentiation and AI support (machine learning and deep learning) • transaction cost analysis and benchmarking • risk, margin and portfolio optimization Page 6 RM & MTF OTF OTC execution SI

Client Realtime Data Lake Data Quality and Aggregation On Demand Trade Reconstruction Email Voice Documents Pre Trade Markets Trading Platforms Execution Post-Trade Clearing & Reporting Clients Client Reporting Surveillance & Alerting TCA Analysis Transaction Reporting Post-Trade Transparency ARMs APAs Snapshot Sales Traders Validation & Enrichment Data Sourcing Aggregation and Storage Calculation and Data Services Monitoring and Oversight Client & Front Office Access Reporting & Submission Internal Analytics GATElab for MiFID II platform Customer/Third Party Analytics Page 7

Regulatory Hub Centralize data from different data sources for different asset classes to implement a MIFID II-compliant data lake. Avoid costs for adapting to multiple trading systems Capture and combine different types of events in different forms: from structured electronic messaging (e.g. FIX Protocols) to Email, Documents and Voice trading systems Monitor all trading flow executions – historical or intraday - in conjunction with real-time market data. Open access to Front Office, Sales, Clients and Compliance users View all of the quote, order & trade flows in real-time for all of your connected platforms, bridge the gap among your trading platforms. Single Straight Through Processing channel from front office trading platform and execution venues to post-trade platforms (Transaction Reporting, Post-Trade Transparency, …) Insert and keep track of Voice Orders in compliance with MIFID II focusing on derivatives/structured business Voice Workflow Unstructured Data Compliance Monitoring Trading Performance Trading performance analytics shows the quality of execution performance relating to a variety of benchmarks (e.g. Arrival Price). Real-Time Global View STP Feed Page 8 GATElab for MiFID II platform: key points

Trading+Algo Platform SOR Platform Listed Instruments OTC Platform Cleared Trades Bank Systems Broker Trades Email Voice Documents Trade Events Compliance TCA Analysis Trade Reconstruction Client Compliance Client Regulators Transaction Reporting Trade Reconstruction Reports Client Clients Client FO Admin Configure Surveillance Surveillance Compliance Post-Trade Transparency Clients Sales Voice Recorder ARMs APAs Page 9 How GATElab can help GATElab Market Data Management & Analytic Platform

Many thanks! GATElab 10 Paternoster Square, EC4M 7LS London (UK) [email protected]