WH Expert Elite Direct access buy side trading platform Guarantees: - - PowerPoint PPT Presentation

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WH Expert Elite

Direct access buy side trading platform

Guarantees: significant cost savings, superior execution speed, execution breadth and anonymity

Cost savings, speed and execution breadth are certainly three of the primary benefits buy-side firms are deriving from direct access. WST, Robert Sales

WH Expert Elite

• 1. The advantages of direct access
• 2. Main features + some particular features
• 3. Straight-through processing (STP)
• 4. Compare to Instinet
• 5. Free trial – rate indication

… institutional clients are now clamoring for increased efficiency, price transparancy, and lower trade costs. And one of the ways they think they can achieve this is through direct access technology. Celent Comms, Fritz McCormick

Why use our direct access platform?

Website/Tel/Instinet

Client Order

Broker decides

• Execute in market
• Trade against order flow
• Sell order to other broker
• Wait for match
• Trade only in broker’s book

Order

Route your own order to

• Stock exchange platform
• r
• ECN

+ manage the order yourself

Direct access Extremely FAST Get the BEST execution PRICE Manage your ORDERS very tightly – see them in level2 orderbook Order spread in the market guarantees ANONYMITY Direct access Extremely FAST Get the BEST execution PRICE Manage your ORDERS very tightly – see them in level2 orderbook Order spread in the market guarantees ANONYMITY

Broker

Direct access

Direct access to what?

• A. Stock exchange platforms
• A. Stock exchange platforms

Smart direct

• rder routing

to: Smart direct

• rder routing

to:

• B. Electronic Connectivity Networks (ECN)
• B. Electronic Connectivity Networks (ECN)

ISI (DOT & SuperDOT): NYSE & AMEX SNET (450 Market makers) + SOES: NASDAQ Options markets (5)

• C. Automated order routing
• C. Automated order routing

Island (ISLD) Archipelago (ARCA) Globalnet (GNET) Bloomberg Etc.

WH Expert Elite

• 1. The advantages of direct access
• 2. Main features + some particular features
• 3. Straight-through processing (STP)
• 4. Compare to Instinet
• 5. Free trial – rate indication

Main product features

• Windows based – design your own lay-out
• Manage your own orders
• Instant order confirmation
• Quotes directly from NQDS
• Market, limit & stop orders (incl. Trailing)
• GTC orders
• Island reserve orders
• Extremely stable
• Advanced technical analysis package

Level2 – Order entry – Time & Sales Order Manager

Create your own stock baskets

Stock scanner

Options calculator and charting

Order entry can be done individually or in a batch

• Enter orders and then
• batch place orders or
• place orders individually

Note: as detailed in the chapter

• n STP, order entry can also be

fully automated

• Enter orders individually

Note: see also page ? for a detailed order entry screen

WH Expert Elite

• 1. The advantages of direct access
• 2. Main features + some particular features
• 3. Straight-through processing (STP)
• 4. Compare to Instinet
• 5. Free trial – rate indication

Straight-through-processing is possible

Order entry Order entry

• 1. Manual (traders can work the orders)

and/or

• 2. Automated via FIX API link (e.g. computer generated trades)

Trade confirms Trade confirms

• 1. ‘Live’ drop copy in FIX protocol via VPN
• r
• 2. Hourly/daily copy via VPN or e-mail

Note: You can either use your own prime broker (DVP account) or use ours, Penson Financial Services Inc. Penson already serves large clients such as Charles Schwab and GNI. Using our prime broker is cheaper and easier but the choice is yours.

WH Expert Elite

• 1. The advantages of direct access
• 2. Main features + some particular features
• 3. Straight-through processing (STP)
• 4. Compare to Instinet
• 5. Free trial – rate indication

WH Expert Elite guarantees the best execution prices

Trial: On 19.12.2001 between 20.10 & 21.10 hrs CET we compared at random time intervals the Instinet quote with the WH Expert Elite quote of two stocks DELL & MSFT. In both cases WH Expert Elite gave superior execution prices (and these are some of the most liquid stocks). Note: request a free real-time demo and you can do the same test on your most frequently traded stocks.

HOUR DIRECT ACCESS INSTINET BETTER THAN INSTINET DIRECT ACCESS INSTINET BETTER THAN INSTINET 28,77 28,79 0,02 69,70 69,67 0,03 28,69 28,72 0,03 69,65 69,65 28,76 28,77 0,01 69,68 69,66 0,02 28,71 28,74 0,03 69,79 69,73 0,06 28,60 28,65 0,05 69,71 69,70 0,01 28,83 no quote 69,60 69,51 0,09 28,81 28,81 69,52 69,52 0,00 28,80 28,80 69,67 69,58 0,09 28,80 28,82 0,02 69,60 69,57 0,03 28,81 28,83 0,02 69,68 no quote 28,81 28,82 0,01 69,56 69,55 0,01 28,80 28,80 69,52 69,49 0,03 0,19 0,37 Total number of orders: 12 Total number of orders: 12 Assume: 1.000 shares/order Assume: 1.000 shares/order Total saving vs Instinet on these 12 orders: $190 Total saving vs Instinet on these 12 orders: $370 Assume: 20.000 orders/month. Average saving: $316.000/month Assume: 20.000 orders/month. Average saving: $616.666/ WE BUY DELL WE SELL MICROSOFT 20.10 20.17 20.23 20.26 20.31 20.36 20.40 20.46 20.50 20.53 21.01 21.04 21.90

WH Expert Elite

• 1. The advantages of direct access
• 2. Main features + some particular features
• 3. Straight-through processing (STP)
• 4. Compare to Instinet
• 5. Free trial – rate indication

Would you like to do a free real-time trial?

For a FREE real-time trial Return by fax to: +352 422 575 25 For a FREE real-time trial Return by fax to: +352 422 575 25

Full Name: …………………………………………. Company: …………………………………………. E-mail: …………………………………………. Telephone: …………………………………………. Language:…………………………………………...

Our base rates are competitive: USD 0.015/share* + ECN fees if applicable If you provide an answer, however, to these 6 questions we will submit an aggressive quote Our base rates are competitive: USD 0.015/share* + ECN fees if applicable If you provide an answer, however, to these 6 questions we will submit an aggressive quote

• 1. On average, how many orders do you do every month?
• 2. On average, how many shares do you trade a month?
• 3. What is your average ticket size?
• 4. What % of your trades are Nasdaq vs. NYSE & Amex?
• 5. What is the total amount of assets associated with your U.S.

trading?

• 6. What is your current method of routing orders? At what

cost?

* Plus a DVP charge if you prefer a DVP account If you do retail size orders, when can quote a fixed fee per order