NEX Optimisation Investor Day/media/Files/N/NEX/reports... · NEX Optimisation addresses both NEX and our clients’ demand for unification and simplification SIGN ON ... NEX Infinity

NEX OptimisationInvestor DayOctober 2017

Welcome and Strategy OverviewJenny Knott, CEO, NEX Optimisation

Simplify complexity, optimise resources

Agenda

TOPIC PRESENTER

Welcome and strategy overview Jenny Knott

Trade and Portfolio Management Andrés Choussy

Analytics Guy Rowcliffe

Regulatory Reporting Collin Coleman

Break

Financial Resource Optimisation Stuart Connolly

Data Insights Kevin Taylor

Opportunities Steve Gibson

Technology Guy Naor

Conclusion Jenny Knott

Questions and answers

3

Key points to take away from this presentation

NEX Optimisation is …

Transforming to solution pillars

Delivers revenue growth

Simplifying our operating model

Unifying data architecture through NEX Infinity

Enabling agile products

Leveraging converging technologies

Delivers cost savings

For NEX and for our clients

NEX Optimisation today | Why Change | Solution Pillars | Infinity | Summary 4

NEX Optimisation Financial Aspirations 1

• Revenue CAGR2 > 10% through to 2019/20

• Annualised cost savings of circa £15m delivered by 2019/20

• Operating Margin > 40% delivered by 2019/20

OUTCOME

1 As disclosed in the full year 2016/17 results presentation.2 Compound Annual Growth Rate.

5

Building on our existing scale, relationships and expertise

“Our mission is to enable clients to optimise

operations and financial resources in real-time,

leveraging our technology enabled solutions and

global network of connectivity and liquidity.”

• Established networks, with 6,500 existing connections

• Track record of innovation, agility and leveraging the latest technology

• 60+ individual products across the whole trade lifecycle

• Circa 1,000 clients, including banks, asset managers and hedge funds

• Talented and committed employees with subject matter expertise

NEX Optimisation today | Why Change | Solution Pillars | Infinity | Summary

NEX Optimisation – positioned to seize opportunities

NEX Optimisation can solve the legacy challenges that burden our industry

6

LEGACY IT AND SILOED SYSTEMS

FRAGMENTED DATA, MULTIPLE RECONCILIATIONS

MASS OF REGULATIONS

COST AND MARGIN PRESSURE

PROLIFERATION OF VENDORS

Facilitate growththrough innovation and agility,

while reducing costs

8%2016 Investment Bank Return on Equity1

$8bn+The amount the world’s 8 largest investment banks could save if blockchain-type trusted ledger technology were introduced2

1 Source: ‘Global Capital Markets 2017, Mastering The Value Migration’, BCG, 20172 Source: ’Banking on Blockchain’, Accenture, 2017


7NEX Optimisation today | Why Change | Solution Pillars | Infinity | Summary

NEX Optimisation addresses both NEX and our clients’ demand for unification and simplification

SIGN ON

HOW OUTCOME

NEX

OPTIMISATION

CLIENTS

• Unify data, services and infrastructure to transform the market

WHY

• Facilitate interoperability across the market

• Eliminate duplication and facilitate agility

• Same software as a service platform solves ours and our clients’ challenges

• Build once and use multiple times; Connect once and access multiple services

• Connect once and access multiple services; Save money and trust their data

Products are currently siloed across the industry


Our response: Transformation to solution pillarsDesigned to reflect how our clients consume products


Client data set is continuously enriched to deliver increasing value

NEX Infinity Connect once, seize opportunities

• Single data architecture

• Secure vault for data storage and continuous enrichment

• Meaningful and sustained revenue and profit margin growth

Client data will be continuously enriched as it flows through the solution pillars,

delivering increasing revenue to NEX Optimisation

The solution pillars will be delivered through our unification architecture, NEX Infinity

10

NEX Infinity will enable clients to access new products while reducing cost and complexity

HOW OUTCOMEWHY

• Connect once to access

NEX Optimisation and

third party solutions

• Eliminate duplication

and inefficiencies and

facilitate agility

• Connect once and access

multiple products

• Clients save money and trust

their data


NEX Infinity – Connect once, seize opportunities


Single data architecture

A secure cloud environment

NEX Infinity

NEX and Third Party Solutions

Trade lifecycle automation

Real-time financial resource optimisation

Legacy technology retirement

Will enable…

Single point of connection Agile access to new productsCase study: Third-party vendor for settlement optimisation

Case study: Real-time portfolio reconciliation

Case study: Single point of connectivity

Case study: Real-time market risk capital optimisation

12

Converging technologies deployed to deliver benefits now

DISTRIBUTEDLEDGER

Trusted source of data

Encrypted, secure, cloud-hosted vault used by all internal functions

Remove processes and retire technology

Simplifying and standardising processesAccess to vended solutions

A self-service modelCloud hosted solutions delivered as a service accessible via a single portal

Transformative and sustainable

Delivered as a service, and compatible with Distributed Ledger

The time is now -convergence of new technologies enables NEX to transform industry data processing and offer previously impossible workflows

A single connection simplifies operations

Improves controls, data accuracy and transparency

Reduces costs

SMART CONTRACTS

MICRO-SERVICES

CLOUD & DATA

ARTIFICIAL INTELLIGENCE


13

Summary


> 10%Revenue CAGR> 10% through to 2019/20

TRANSFORMING TO SOLUTION PILLARS

SIMPLIFYING OUR OPERATING MODEL

UNIFYING DATA ARCHITECTURE THROUGH NEX INFINITY

ENABLING AGILE PRODUCTS

LEVERAGING CONVERGING TECHNOLOGIES



> 40%Operating margin > 40% by 2019/20

~ £15mAnnualised cost savings of circa £15m by 2019/20

14

Business Unit to Pillar Revenue Transition2


Trade & Portfolio Management

Analytics

Regulatory Reporting

Financial Resource Optimisation

Data Insights

38%

20%

37%

2%

3%

Revenue by Pillar2

£240m

NEX Optimisation – Our business is in a position to seize opportunities

Revenue Performance1

1 Full year 2014/15 and 2015/16 figures restated using 2016/17 FX rates to provide constant currency comparison. 2 Full year 2016/17 revenue re-mapped from business unit to solution pillar.

2014/15 2016/172015/16

£220M£216M £240M

BUSINESS UNIT PILLAR

Trade and Portfolio ManagementAndrés Choussy, Head of Trade and Portfolio Management

FINANCIAL RESOURCE OPTIMISATION

Connect once to use your enhanced data to optimise resources and deliver growth

Our optimisation solutions use your trusted data set to show you how to get the most from your financial resources. Our networks have the depth and scale needed to help you manage your risk, optimise margin, capital and liquidity and redistribute resources to grow from one connection.

DATA INSIGHTS

Connect once to gain insight based on real data, to make the best decisions for your business

Our insight services draw on real data from trading venues to give you an accurate picture of the markets. We offer a range of data covering major asset classes and markets, from indices to reference rates. Our focus is to let you understand the full market context around your business and give you fresh insights from one connection.

REGULATORY REPORTING

Connect once to report the right data for every trade, in every regulatory regime

Our regulatory reporting solutions enable you to keep your business safe and compliant. We help you to understand what you need to report and where you need to report it. We ensure you are able to report accurate information in all global regulatory regimes at the right times from one connection.

ANALYTICS

Connect once to use your data to understand the financial risks facing your business

Our smart tools eliminate the complexity in risk, finance and regulatory calculations. They allow you to use your data set to calculate and analyse risk so your business can fully understand the implications of each trade and your portfolio. We enable you to more easily understand the risks facing your business from one connection.

16

Trade and Portfolio Management

TRADE & PORTFOLIO MANAGEMENT

Connect once to establish trusted trade and portfolio data for your business

Our trade-processing network connects you to the world’s markets. We translate and normalise information from diverse sources to give you transparency and confidence in your trade and portfolio data. We reconcile your data with the market, enabling you to build a solid foundational data set for your business from one connection.

NEX Infinity


17

Solution Value Proposition Clients

Trade and Portfolio ManagementConnect once to establish trusted trade and portfolio data for your business

Function: Operations

Segment:

BanksAsset ManagersFund AdministratorsHedge Funds

We normalise and streamline trade data processing across the financial industry helping clients connect to each other in the most efficient way

We provide a platform so that financial industry participants can reconcile and establish a trusted source of data for their portfolios, risk exposure, and funding obligations

We provide workflow tools and actionable analytics that allow clients to act on exposure, financing, cash and collateral management opportunities

Messaging and Matching

Established network of cross-asset trade workflow solutions

Traiana Harmony Message CentreTraiana ClientLInk

Portfolio and Margin

Reconciliation

Established network of portfolio reconciliation solutions

triResolve Portfolio Reconciliation, triResolve Margin and Initial Margin Exposure Manager1

Portfolio Management

Established network connecting market participants

ENSO Core / Edge

Function: Operations

Segment:

BanksAsset ManagersFund AdministratorsHedge Funds

Function:Operations and Treasury

Segment:Asset ManagersHedge Funds

1 In collaboration with AcadiaSoft

18

Solution Growth Drivers

Trade and Portfolio ManagementAreas driving future growth

• Extending our network across all asset classes and key relationships

• Unifying and linking underlying data facilitating additional products

• Providing more valuable trade management tools


Portfolio and Margin

Reconciliation

Portfolio Management• Providing holistic cash and collateral management products

• Delivering enhanced payment solutions

• Moving end of day batch processes to intraday reconciliations

• Increased use of portfolio and margin reconciliation, driven by regulation

• Adding independent valuations to shorten error resolution timescales

19

NEX Infinity

Trade lifecycle automationCase study: Real-time portfolio reconciliation

Real-time financial resource optimisationCase study: Real-time market risk capital optimisation

Legacy technology retirementCase study: Single point of connectivity

Will enable…


NEX Infinity use cases delivered by this pillar




Agile access to new products

Case study: Third-party vendor for settlement

optimisation





Complex calculationsCase study: Real-time

calculations


Case study: Real-time market risk capital

optimisation

Enhanced

insightsCase study: Real-time

data insights

1 2 3 4 5 6

Confidential | 27 SEPTEMBER, 2017

Operational Metrics

Trade and Portfolio ManagementConnect once to establish trusted trade and portfolio data for your business

Revenue Performance2,3

2014/15 2016/172015/16

£82m£79m £92m

c£240m£240m

2016/17 Revenue Contribution to NEX Optimisation1

Other Optimisation - 62%Trade & Portfolio Management - 38%

Subscription - 93%Transactional - 7%

£92m

£92m

£148m

£86m

£6m

Messaging and Matching Portfolio ReconciliationMargin Reconciliation

Treasury and Portfolio Management

1,000+ 700k 1,900+ 500k 100+ $1tn+

Number of users Avg. daily uniquetickets processed

Number of users Avg. monthly party-party reconciliations

Number of clients Client assets under advisory

1 Full year 2016/17 revenue re-mapped from business unit to solution pillar.2 Full year 2014/15, 2015/16 and 2016/17 revenue re-mapped from business unit to solution pillar.3 Full year 2014/15 and 2015/16 figures restated using 2016/17 FX rates to provide constant currency comparison.

20

AnalyticsGuy Rowcliffe, Head of Analytics




DATA INSIGHTS



22




ANALYTICS






NEX Infinity


Analytics

23


AnalyticsConnect once to use your data to understand the financial risks facing your business

Function: Risk, Treasury and Finance

Segment: Banks


Segment:BanksAsset ManagersHedge Funds


Segment:Asset ManagersHedge Funds

Credit and Risk Management

Pre-trade credit checking, credit reallocation and credit agreement management

Traiana CreditLink, Traiana Limithub

Derivative Pricing and Risk Analytics

Price, report and validate complex risk calculations

triCalculate

Margin and Funding Replication

Real-Time Prime Broker statement validation

ENSO Margin Replication, ENSO Finance Replication

We provide a suite of products to help optimise the allocation of credit lines, in a world of increasingly constrained balancesheet and capital

Leveraging quantitative expertise and high capacity cloud processing, we can offer users sophisticated risk and valuation capabilities

Our analytical tools help funds predict and manage their end of day prime brokerage margin and funding calls

24


• Enforcement of regulatory pre-trade clearing limit requirements

• Client growth in FX credit limit allocation product

• Extending our network of trading venues



Margin and Funding Replication• Continuous addition of more prime brokerage valuation methodologies

• Extending product to include pro-active optimisation functionality

• Increasing prudential regulation requirements (e.g. FRTB1)

• Rising need for robust risk calculations

• Independent trade valuations and initial margin sensitivity calculations

• Margin valuation adjustment – expected lifetime cost of initial margin

AnalyticsAreas driving future growth

1 Fundamental Review of the Trading Book

NEX Infinity




Will enable…







optimisation






calculations



optimisation

Enhanced


data insights

1 2 3 4 5 6

25


26

AnalyticsConnect once to use your data to understand the financial risks facing your business

High Level EU Prudential Timeline


2014/15 2016/172015/16

£8m£8m £8m

c£240m£240m


Other Optimisation - 97%Analytics - 3%


£8m

£8m

£232m

£8m


2018 2019 2020 2021 2022 2023

26

Expected application of EU capital reforms

Expected EU implementation

e.g.•Leverage Ratio•FRTB (phase-in)•Net Stable Funding Ratio•Standardised Approach – Counterparty Credit Risk

Regulatory ReportingCollin Coleman, Head of Regulatory Reporting

ANALYTICS



28




DATA INSIGHTS









NEX Infinity



29


Function: Compliance and Operations

Segment:

BanksAsset ManagersHedge FundsProfessional Trading FirmsCorporates

Regulatory Reporting Hub

Data normalisation, enrichment, determination, reconciliation and validation

Reporting Repositories

End-to-end multi-regime reporting

Trade Repository Reconciliation

Record validation, inter-repository reconciliation and cross-jurisdictional matching

Through a secure and intuitive user interface, clients are able to submit their transactional data in multiple formats and from multiple sources

Sophisticated, regime-agnostic data analysis and process management for MiFID / MiFIR, EMIR, SFTR and REMIT, as well as emerging regimes in Switzerland, Asia and North America

Reduces the client burden and in-house resources required to meet regulatory standards of regulatory reporting accuracy


Segment:



Segment:


Regulatory ReportingConnect once to report the right data for every trade, in every regulatory regime

30

Regulatory Reporting Hub

Data normalisation, enrichment, determination, reconciliation and validation

Reporting Repositories

End-to-end multi-regime reporting


Record validation, inter-repository reconciliation and cross-jurisdictional matching


• EMIR Trade Repository (TR)

Anticipated approval this calendar year

EU27 domiciled TR

TR will open new client opportunities

• MiFID II / MiFIR

Go-live 3rd January 2018

Trade Reporting reported via Approved Publication Arrangement (APA)

Transaction Reporting via Approved Reporting Mechanism (ARM)

Large numbers of clients are currently making purchasing decisions with NEX well positioned to win a significant proportion

• Securities Financing Transactions Regulation (SFTR)

Increased transparency of Securities Financing Transactions

Expected requirement to report relevant trades through approved trade repositories

Expected phased go-live starting Q1 2019

Significant revenue opportunity for NEX Regulatory Reporting

• Leveraging NEX community

Cross-selling opportunities from other parts of the NEX Group

NEX Infinity architecture and a single MSA provides a simple and seamless onboarding for new clients

Regulatory ReportingAreas driving future growth

Operational Metrics


31

Regulatory ReportingConnect once to report the right data for every trade, in every regulatory regime

Award Winning Platform


2014/15 2016/172015/16

£1m£1m £4m

c£240m£240m


Other Optimisation - 98%Regulatory Reporting - 2%


£4m

£4m

£236m

£4m

Global regulatory end-point connectivity

• MiFID – ARM & APA• EMIR – Trade Repository (pending approval)

20%EMIR

volume market share

25%MiFID Ivolume

market share

15mNumber of

transactions processed daily

100+Number of

clients

Financial Resource OptimisationStuart Connolly, Head of Financial Resource Optimisation







ANALYTICS



33

DATA INSIGHTS






NEX Infinity


Financial Resource Optimisation

34


Financial Resource Optimisation Connect once to optimise resources and unlock capital, balance sheet and liquidity

Function:Trading, Risk and Funding desks

Segment:BanksAsset Managers


Segment: Banks


Segment:

BanksAsset Managers Hedge Funds

Portfolio Balancing and Compression

Multilateral compression and rebalancing of OTC derivative portfolios

triReduce and triBalance

Basis Risk Mitigation

Offsets basis risks across trading portfolios multilaterally

RESET

Settlement & Payment Netting

Cash and Collateral Optimisation

Optimising payment and funding exposures

Cash Flow Optimisation,

ENSO Color, ENSO Broker Vote

Reduces counterparty exposures, portfolio line items and gross notional outstandings to release balance sheet and regulatory capital

Balances counterparty exposures to reduce capital and funding costs

Mitigates second order risk exposures across trading books

Fixing risk in interest rate swaps, non-deliverable forwards and inflation swaps

Reduces costs, operational risk and settlement exposures

Manages allocation of assets to reduce margin and funding costs


Financial Resource Optimisation Areas driving future growth

• Balance sheet constraints of banks

• Expansion of compression capabilities into FX Options, FX Forwards and Swaptions

• Continuation of cleared interest rate compression

• Initial margin optimisation negating the impact of new margin rules



Settlement and Payment Netting


• New product and client growth

• Extending product across asset classes and instrument types

• Potential to net margin payments with cash flow payments

• Diversification into FX Options

• Likely increase in short dated global interest rates volatility

• Emergence from zero interest rate environment

• Improved user interface enhancing client experience and analytics

35

NEX Infinity




Will enable…







optimisation






calculations



optimisation

Enhanced


data insights

1 2 3 4 5 6

36


37


$1qn+

Financial Resource OptimisationConnect once to optimise resources and unlock capital, balance sheet and liquidity


2014/15 2016/172015/16

£93m£94m £88m

c£240m£240m


Other Optimisation - 63%Financial Resource Optimisation - 37%


£88m

£88m

£152m

£5m

£83m

Operational Metrics


TriReduce total notional compressed since launch

Currencies interest rate swaps available

28

37


RESET total notional risk mitigated in the last 5 years

$1qn+

Currencies available

33

Data InsightsKevin Taylor, Head of Data Insights







DATA INSIGHTS



ANALYTICS






NEX Infinity

Data Insights

39


40

c£240m

Data InsightsMake smarter decisions with valuable intelligence from real data covering global markets

£240m

Operational Metrics

Other Optimisation - 80%Data Insights - 20%


£48m

2014/15 2016/172015/16

£36m£34m £48m

£48m

£192m


400MILLION

Pricing and Analytics

DAILY TRADING VOLUME

1tn+US$20,000

DAILY UPDATESNUMBER OF RECORDS DELIVERED TO CLIENTS

Indices and Benchmarks

TRANSITION BACKED ELECTRONIC INDICES

200

40

£47m £1m

Revenue Performance2,32016/17 Revenue Contribution to NEX Optimisation1

41

Data InsightsMake smarter decisions with valuable intelligence from real data covering global markets

* 3% in Risk, Treasury Support, Insurance, Government Agency, Corporates, Central Banks

24%Regional Banks

28%Global Banks

28%Investment, Hedge Funds

17%Vendors,

Service Providers

3%Other*

Pricing & Analytics

Indices &Benchmarks

PRODUCTS SPEND CLIENTS

Sales and Trading

Risk Management

Compliance

Algo Trading


Corporate Treasurers

NEEDS

Price and Liquidity Discovery

Price Verificationand Mark to Market

Low Latency

Risk Management

TCA / Best EX

42

Client Function

Pricing & Analytics

Indices &Benchmarks

Diversify the client base by

both client type and geography

Increase revenue within existing

client base

Flexible delivery options

Expand our footprint with new products

from NEX Optimisation

Expand our footprint with new products from NEX

Optimisation

Expand partners and alliances programme

Be the leading transaction

backed index provider globally

Industry shift from unsecured towards secured

funding eg. Repo

Expanding index

portfolio

PRODUCTS GROWTH DRIVER

Data InsightsAreas for driving future growth

NEX Infinity




Will enable…







optimisation






calculations



optimisation

Enhanced


data insights

1 2 3 4 5 6

42


OpportunitiesSteve Gibson, CEO, Euclid Opportunities

45

Industry view on the application of emerging technology trends

Source: EY Report (produced in conjunction with Innovate Finance) “Capital Markets: Innovation and the FinTech Landscape”, 2016

Source: EY Report (produced in conjunction with Innovate Finance) “Capital Markets: Innovation and the FinTech Landscape”, 2016

ILLUSTRATIVE BENEFIT TRAJECTORY FOR ENABLING TECHNOLOGIES

46

0-2 years 3-5 years 5 years & beyond

Cloud technology

Process and service externalisation

Robotic ProcessAutomation

Advanced Analytics

Digital Transformation

Artificial intelligence

Smart contracts

Internet of Things

Block chain

Proof of concept

Point of solutions

Enterprise-wide value

Potential game changers

LEVEL OF

BENEFIT

WHERE WE ARETODAY

Moving from the lab to enterprise: industry adoption of new technologies

47

Objective

Macro

Market drivers

Mandate

Value creation

Origination

Status

Deliverables

To build an investment portfolio of fintech firms

Market structure transformation Convergence of significant technology trends

Electronification Regulation Standardiation

Solving substantial

industry and client challenges

Adjacencies and synergies

with NEX Group

Transformational, scalable

platforms, models or technology

Founders with significant

industry credibility and technology

expertise

Strategic value and strong

economic return on capital

New markets New products Synergies for NEX New technologies

2,500 business plans reviewed since launch

Product partnerships8 portfolio companies

2 acquisitionsSource code agreements

Consolidation opportunities

Strong economic return on capital

Ecosystem of products & platforms for NEX clients

Objective, mandate and status

December 2016 - NEX Opportunities co-led

Axoni’s $20m Series A funding round. Other

investors include JP Morgan, Citi, Wells Fargo and

Goldman Sachs

October 2016 - NEX Opportunities participated

in OpenGamma’s funding round. Other

OpenGamma investors include Accel Partners,

FirstMark Capital and JSCC / JPX

July 2015 – NEX Opportunities participated in AcadiaSoft’s

latest funding round. AcadiaSoft’s investors include Goldman

Sachs, Deutsche Bank, JP Morgan, Barclays, Citigroup, BNP,

Credit Suisse, SocGen, State Street, UBS, BAML, HSBC and

Morgan Stanley

48

2011 2012 2013 2014 2015 2016 2017

Launched March 2011

Utility Settlement Coin

April 2016 – NEX acquire ENSO

April 2016 - NEX Opportunities invested in Cloud9

Technologies alongside JP Morgan and Barclays

October 2016 – NEX acquire Abide Financial

January 2017 – NEX Regulatory Reporting launched

August 2016 – NEX Opportunities joined UBS, Santander,

Deutsche Bank and BNY Mellon to advance the Utility

Settlement Coin project. In August 2017, HSBC, Barclays, JP

Morgan, ING and RBC joined the project

We partner with leading fintech innovators and investors

Portfolio creating significant network effects

49

Data Insights



triResolve


NEX Treasury

A NEX Markets Service

Treasury optimisation

Broker evaluation

OpenFinCommunity Edition

Distributed Ledger Technology


CapitalOptimisation

Artificial IntelligenceTreasury &


MiFID II

Client Experience

Approved Publication Arrangement

OTC Margining Services

ENSO Control

Product / Service

Market Opportunity

TechnologyGuy Naor, CTO, NEX Optimisation

51

Enabling growth through new technology and best practices

CLOUD BASED

ARTIFICIAL INTELLIGENCE

• High capacity data storage

• Agile deployment

• Analyse data and infer knowledge

• Translate and normalise data

DEVELOPMENT OPERATIONS

• Continuous software updates

• Ease of roll back and low risk

DISTRIBUTED LEDGER

• Permissioned access

• Secure and immutable records

MICROSERVICES

• Services developed independently

• Faster time to market

ConclusionJenny Knott, CEO, NEX Optimisation

53

Roadmap to NEX Optimisation’s financial aspirations


TRADE & PORTFOLIO MANAGEMENT > 10%

ANALYTICS > 10%

REGULATORY REPORTING > 50%

DATA INSIGHTS > 10%

FINANCIAL RESOURCE OPTIMISATION > 5%



> 40%Operating margin > 40% to be delivered by 2019/20


Revenue CAGR 2016/17 to 2019/20

54

We are positioned to deliver on our financial aspirations


EASIER AND MORE AGILE PROCESS TO DELIVER

NEW SERVICES

INTEROPERABILITY OF TECHNOLOGY AND DATA

ELIMINATING INEFFICIENCIES FOR US AND OUR CLIENTS

UNIFYING DATA ACROSS THE INDUSTRY

ACCESS TO SMARTER TOOLS



> 40%Operating margin > 40% to be delivered by 2019/20


APPENDIX

56

How our businesses intersect with the new structure

TRADE & PORTFOLIO

MANAGEMENT

DATA INSIGHTS

FINANCIAL RESOURCE

OPTIMISATION

56

ANALYTICSREGULATORY REPORTING



Regulatory Reporting Hub (TR Connect)

Settlement and Payment Netting


Regulatory Reporting Hub & Reporting

Repositories

Portfolio and Margin Reconciliation




Pricing, Analytics, Indices and Benchmarks


Margin and Funding Replication


How our businesses revenue intersect with the new structure1,2

ANALYTICS

TRADE & PORTFOLIO

MANAGEMENT


DATA INSIGHTS

FINANCIAL RESOURCE

OPTIMISATION

£m £m £m £m £m

Total

1 Full year 2014/15, 2015/16 and 2016/17 revenue re-mapped from business unit to solution pillar.

2 Full year 2014/15 and 2015/16 figures restated using 2016/17 FX rates to provide constant currency comparison. 57

2014/15

2015/16

2016/17

2014/15

2015/16

2016/17

2014/15

2015/16

2016/17

2014/15

2015/16

2016/17

2014/15

2015/16

2016/17

48 48 46 8 8 8 1 1 1 5 4 3

48 42 37

- - 3

31 34 39 - - - - - - 41 47 47

34 36 48

- - 7 - - - - - 2

79 82 92 8 8 8 1 1 4 94 93 88 34 36 48

NEX Optimisation consists of a range of underlying businesses launched or acquired by NEX Group to provide the best possible service to our clients

TriOptima offers portfolio compression, reconciliation, margin processing and credit risk analytics

Traiana offers messaging & matching,

credit management, connectivity,

clearing & reporting workflows

Reset lets clients trade off unwanted risks using a sophisticated matching engine

NEX Data delivers high-value price data and indices to a global and diverse client base

Abide offers an end-to-end cross asset regulatory reporting solution across key global jurisdictions

ENSO offers data analytics, treasury and portfolio finance workflows to the asset-management industry

Opportunities invests in and nurtures innovative financial technology disruptors of the future

NEX Optimisation today – Our businesses

58

Alex Dee+44 (0)20 7050 [email protected]

All information contained herein (“Information”) is for informational purposes only, is confidential and is the intellectual property of NEX Group plc and/or one of its group companies (“NEX”). The Information is directed to Eligible Counterparties and Professional Customers only and is not intended for Retail Clients (as each term is defined by the rules of the Financial Conduct Authority ("FCA")) or equivalent in a relevant jurisdiction. This Information is not, and should not be construed as, an offer or solicitation to sell or buy any product, investment, security or any other financial instrument or to participate in any particular trading strategy. The Information is not to be relied upon and is not warranted, either expressly or by implication, as to completeness, timeliness, accuracy, merchantability or fitness for any particular purpose. All representations and warranties are expressly disclaimed. Access to the Information by anyone other than the intended recipient is unauthorised and any disclosure, copying or redistribution is prohibited without NEX’s prior written approval. If you receive this information in error, please immediately delete all copies of it and notify the sender. In no circumstances will NEX be liable for any indirect or direct loss, or consequential loss or damages including without limitation, loss of business or profits arising from the use of, any inability to use, or any inaccuracy in the Information. NEX and the NEX logo are trademarks of the NEX group. Certain NEX group companies are regulated by regulatory authorities. For further regulatory information, please see www.nex.com. ©NEX Group plc 2017

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NEX Optimisation Investor Day/media/Files/N/NEX/reports... · NEX Optimisation addresses both NEX and our clients’ demand for unification and simplification SIGN ON ... NEX Infinity