Dah sing DCD sales solution

Dah Sing BankWealth Management Sales SolutionFunctional Overview and Commercial Proposal

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Agenda

• Project Objectives• Current Challenge and Business Impact• Solution Requirements• SuperDerivatives Solution• Key Considerations• SuperDerivatives Benefits• Commercial Proposal• Optional extension• Project Steps

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Agenda

• Project Objectives• Current Challenge and Business Impact• Solution Requirements• SuperDerivatives Solution• Key Considerations• SuperDerivatives Benefits• Commercial Proposal• Optional Extensions• Project Steps

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Project Objectives

Be the sole price provider of DCDs

Dah Sing RM will only offer DCD with embedded Dah Sing options and rates

Eliminate counterparties and offer better rates

Taking the vanilla leg into Dah Sing’s trader book

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Agenda

• Project Objectives• Current Challenge & Business Impact• Solution Requirements• SuperDerivatives Solution• Key Considerations• SuperDerivatives Benefits• Commercial Proposal• Optional Extensions• Project Steps

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Current Challenges and Business Impact

Current Challenges

Dah Sing does not have the technical infrastructure to becoming the sole distributor and price provider of DCD

Business Impact

Without the infrastructure Dah Sing will have to rely on outside counterparties rates

Less margin, loss of new revenue

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Agenda


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Solution Requirements

Core functionalitiesGive RM a simple interface for pricing DCD as well as other sales support tools

The interface should allow RM to generate Dah Sing branded term sheets

Allow Dah Sing traders to control DCD prices and vanilla spread

Enable traders to upload their own market data & funding rates

Allow RM to electronically request quotes from Dah Sing traders

Enable straight through processing to downstream systems

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Agenda


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SuperDerivatives Solution

FX Option Traders

Will be able to define catalog of products (DCD) in SD

Build custom pricing interface for RM

Define Dah Sing’s DCD Note Term Sheets and distribute to RM

Upload their own rates and control the vol/spread quoted to RM

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Relationship Managers

A customized pricing interface for DCD

Pricing based on Dah Sing traders’ rate

Save/Open past quotes

Generate Term Sheets (Pre-designed by Treasury)

Deal capture successful deals

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Request for Quote

RM can request quote via their interface

Traders receives incoming RFQ on their SD platform and respond with a quote

If deal is under a certain amount, RM can execute & capture on their own

If amount exceeds the threshold, RM will send RFQ to traders

Enforced as part of the deal approval process

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Integration with Dah Sing’s current systems

Successful trades are captured by RM into SD

SD electronically sends deal details to Dah Sing’s designated internal systems

Dah Sing needs to decide how information will flow between SD and Dah Sing internally

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SD Solution Workflow

RM / Sales Client

Trader

Request DCD

• Check SD for indicative price• Generate Term Sheet for Client• Deal Capture Trade after Client’s approval• Send RFQ for high notional deals

RFQ Quote

• Design and distribute RM interface • Use SD full pricing and tools for different

currency pairs and option classes• Upload and Adjust DCD Rates

Fenics & Kondor+

Deal Capture

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Agenda


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Key Considerations

Dah Sing needs to decide how information flow between the front and middle office risk systemOption 1: Send the option leg to Fenics and deposit to internal systemOption 2: Send both deposit and the option to Fenics. Fenics in turn forward details to Kondor+ and other internal systemsOption 3: Send the option leg to Kondor+ and the deposit to another internal system, and in parallel send only the option legs to Fenics

Dah Sing traders needs to consider the rates to feed into SuperDerivatives

Pricing needs to be consistent with Fencis Risk Management

Alternative: Replace Fenics with RMX (Optional extension)

Project Time Frame

When does Dah Sing expect the solution to be in full production?

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Agenda


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SuperDerivatives Solution’s Benefits

A dedicated distribution and booking infrastructure for Dah Sing

Covered all aspects of sales and distribution of DCDs

DCD pricing and sales tools for RM

Rates and market data control for traders

RFQ between sales and trading

Straight through processing to Fenics, Kondor+ and other internal systems

Fast time to market

Web-based with minor integration work

Some components ready for production from contract execution

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SuperDerivatives Solution’s Benefits

Free upgrades & maintenance

Performed weekly during off market hours (Sunday)

Past Experience

Successful project with interest rates operations

Proven market accuracy and technical competency

Delivered similar distribution solution for DCD in Europe

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Agenda


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Commercial ProposalUp to 2 licenses of SDX-FX

• For treasury FX option traders

• Customize RM DCD’s pricing interface, design and publish DCD term sheets

• Upload and control quoting rates

• Receive incoming RFQ

DCD pricing interface on SDX-FX

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Commercial ProposalUp to 50 licenses of SPX

• Customized pricing interface for RM

• Quick DCD price based on Dah Sing traders vol and rates

• Term sheet generation (Pre-designed by Treasury)

• Send RFQ to traders

• Deal Capture

SD-Connect

• For downstream integration with Kondor+ and other systems

DCD pricing interface on SPX (Sample)

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Agenda


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Additional options

Extension of product catalog

Distribute other structured products on the same SD infrastructure

SD TradeView™ for Relationship Managers

Blotter, CRM and client portfolio reporting (portfolio valuation, strategy analyses)

Real-time Risk Management for FX Option Traders

Replace Fenics with SD RMX Trader Risk Management module

Real-time risk management for vanilla and structured products

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Agenda

• Project Objectives• Current Challenge & Business Impact• Solution Requirements• SuperDerivatives Solution• Key Considerations• SuperDerivatives Benefits• Commercial Proposal• Additional Considerations• Project Steps

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Project StepsProject Steps Date

Product Scoping / Understanding Project Objectives Completed

System Trial Completed

Solution design and recommendations Completed

Confirm technical and functional specifications In Process

Commercial discussions TBD

Contract TBD

Project commences TBD

Questions?

Thank you