The dealing activity is time-consuming and error-prone. In addition, the regulator wants a clear traceability as the markets became more complex. The Asset Managers are looking for to implement a structured processes which is incompatible with portfolio managers dealing directly with their orders.

The Best Execution is an issue : having the right costs of execution is mandatory. A trade execution impact could be 3 or 4 times the cost of the brokerage fee. That why Exoé teams and systems are dedicated to reduce, track and analyze this impact..

That is exactly Exo écore business ! Exoé won’t be more or less efficient in buying 500 Saint Gobain. But for small caps, large positions or unusual stocks Exoé will improve the liquidity and execution while if necessary combining it with the portfolio manager experience.

Using Exoé has nothing to do with interfering in their business decisions. It has to do with your company organization and performance. A change of business organization to improve performances not only means time and dialogue but also eagerness to do so. Current clients of Exoé also had to go on this road and today there satisfaction is up to 97% !

Our competitors are companies offering dealing desk delegation services .

Counterparties are not Exoé competitors. They deal with the execution while Exoé concentrate on trade transmission and the portfolio manager on investment.

Trading systems (OEMS) are not competitors but tools used by Exoé.

No. Market watchdogs do not require a particular process for an organization, they just order rules to be followed. The absence of a dealing desk implies that other persons will have to endorse this role in-house : IT+Compliance+Portfolio Managers+Marketing to track orders, fulfill best selection and execution, make reports…. all this having a non-negligible cost. Is it really their role?

Not at all! Exoé is talking to sales traders and market makers while Portfolio Managers continue to talk to sales who receive daily the allocation or the budget defined by the client and then has the tools to manage it.

The added value brought by Exoé to its clients lies in defending portfolio manager’s interests, finding liquidity, ensuring tracking, generating reports and best execution. Dealing desk outsourcing allow to reduce the cost compared to an in-house dedicated team (variable and mutualized cost vs fixed costs)

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If you want to transform your portfolio managers into traders why not? The free terminal is limited and you will quickly need to migrate to a costly OEMS. You will do the work by yourself, pay market data, create reporting, and make the controls…

In less than a year, you will need multiple terminals for middle office, management…you will have to hire assistants to transmit orders, controllers and pay for live market data …

And don’t change the terminal unless you want to lose your data. Don’t forget AMF mandatory declarations and subsequent controls (see 2012-03 AMF position)

Exoé is independent and free of any conflict of interest.

Exoé future is fully dependent on its client satisfaction and reactivity.

For 10 years Exoé learned to integrate external portfolio managers not used to work with dealing desks.

Thanks to 10 years of experience Exoé knows how to help Asset Managers lacking the infrastructures or processes of large institutional investors.

Exoé will put in place a lean process adapted to your particular situation.

If you want to transform your portfolio managers into traders why not? The free terminal is limited and you will quickly need to migrate to a costly OEMS. You will do the work by yourself, pay market data, create reporting, and control processes…

In less than a year, you will need multiple terminals for middle office, management…you will have to hire assistants to transmit orders, controllers and pay for live market data …

And don’t change the terminal unless you want to lose your data. Don’t forget AMF mandatory declarations and subsequent controls (see 2012-03 AMF position)

Exoé charges an RTO commission expressed in basis points of the total volume traded. The payment can be direct,indirect, charge to the asset Management company or its funds.

On average, our clients don’t pay more than before. But that depends of the services provide: you should access the right service for the fees you are paying (Exoé, research, Execution, compliance…)

Exoé thanks to its experience advise its clients. But it is always the client that chooses its counterparties during a selection committee.

Even if Exoé can provide benchmarks it is always the client that negotiate the fees with its brokers.

Reduce the market impact means lower expenses. Exoé has the tools, systems, specialized teams and a network of 140 counterparties to improve your liquidity.

Yes. Exoé will track in its system these orders and make a monthly report to the asset management executives on the percentage and performance of them.

Daily: Axes, blog, market trends, morning call, primary… and the live tracking of trades;

Monthly: reports by funds / broker….

Every semester: meeting analyzing performances, market change, counterparties list

On demand: funds’ performance reports, due diligence execution

Regularly: trading meeting, regular catch up and all the Exoé events to share good times!!

A claim generates a best execution report on the contested trade. An escalation procedure allow to track the problem and bring the right answer to the person who placed the order.

This does not concern Exoé. We do not receive any gift from intermediaries and we do not participate to any entertainment event organized by our clients’ suppliers.

Portfolio management system.

IT tool allowing the PM to manage several portfolio while respecting pre-trade constraints of holders or funds.

Recent PMS can generate simulations and orders and then transmit them through the FIX protocol or with a standardized export with a unique login.

Order Management System, Execution management system.

An OEMS allows to input or manage an order, a basket…. to apply constraints, rules, execution conditions, strategies, to have a real-time follow up of executions, variances to the benchmark and communicate live with the portfolio manager PMS.

Trading Cost Analysis

This IT and statistic tool allows to measure the execution performance being good or bad, by comparing the final price with the chosen benchmark. The analysis conducted on the largest spectrum of orders available can define if the process of counterparties selection / transmission and execution of orders creates or destroys value.

The benchmark is chosen by the PM or the trading desk as a reference to measure the execution performance. The most widely known are the VWAP and the Implementation Shortfall. As a example the following order cannot  be used as a benchmark : “ Smoothly, but not too fast, to be finished if it goes up and please be careful with the US opening…”

Transaction Reporting to the watchdog. AMF requires that all operations made on equity or fixed income financial products are disclosed to its services through a predefined format. Usually the broker deals with it on behalf of its clients. But for OTC transactions, the Asset Manager also has to fulfill this disclosure obligation.

Straight Through Processing: fully automated transactions treatment process from the order creation by the PM through the depositary agent/custodian/ fund accounting with no double typing and a unique login.

The dream of all compliance officer!!

A tag is a FIX protocol data field. Data fields are identified by numbers to distribute or retrieve particular information. For the definition click on the following link : http://btobits.com/fixopaedia/fixdic42/index_.html

Financial Information eXchange (FIX) is an electronic communication protocol allowing live financial instructions exchanges.

Since MIFI1 (2007) three transactions systems representing a third of the volume each are competing :

• Historical and regulated markets (Euronext, LSE…)
• MTFs who are very close in organization to historical markets except for Dark pools which are not regulated for pre-trade
• OTC

Request For Quote. It is an electronic request to several counterparties made by a table to have a price for a particular product. Usually trackers or fixed income.