WorldWideMarkets Partnership Brief

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Introduction to WorldWideMarkets The Most Profitable Partner for Financial Institutions Worldwide

Transcript of WorldWideMarkets Partnership Brief

Introduction to WorldWideMarkets

The Most Profitable Partner for Financial Institutions Worldwide

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WorldWideMarkets Credentials

Review of Products and Platforms

Risk Management and Technology

Introduction to WorldWideMarkets

Cooperation Scenarios and Integration

WorldWideMarkets Credentials

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WWM Credentials: Key Success Drivers

SuperiorRisk Management

and Technology

Comprehensive Product Line

Financial Strength &Regulation

PartnershipFocus

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WorldWideMarkets Credentials:Key Benefits to Partners

WorldWideMarkets provides online trading in spot Forex and commodities -both retail and institutional - and US Stocks and Options. Hedge Fund and other Managed Account investments are also offered to qualified customers.

Impeccable reputation for integrity and regulatory compliance.

» Authorized and regulated by the UK FCA, which is at the forefront of customer asset protection.

Broad range of trading and investment products to generate revenue.

Highest Partner payouts in the industry.

» Enabled by WWM’s proprietary advanced technology and risk management.

Primary focus is on supporting our Partners rather than direct business.

Highest Forex leverage available. 400:1 on all accounts on all position sizes.

» Offering both Fixed and Variable spread trading. Multiple, versatile platforms for Money Managers.

Proprietary back office modules seamlessly provide a single view of the business.

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WorldWideMarkets Credentials: Corporate History

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2010

A progression of strength and success in the financial markets.

2006 2007 200820032001

FX Solutions Founded

FinLabsFounded

BOA purchases FinLabs

Francisco PartnersAcquiresFX Solutions

City Index AcquiresFX Solutions

WWM Founded

WorldWideMarkets Credentials: Regulation

» United Kingdom – WorldWideMarkets Limited is our UK entity and is registered and authorized by the UK Financial Conduct Authority (Registration number 604779). The UK is a strategically chosen domicile due to its reputation for innovative oversight and being at the forefront of customer asset protection.

» Europe - The Markets in Financial Instruments Directive ('MiFID') is a European Union law that provides harmonized regulation for investment services across the 30 member states of the European Economic Area. MiFID is fully implemented by the Financial Conduct Authority of the UK, providing additional security and accountability for WWM customers that are residents of the EEA countries.

» The Americas - WorldWideMarkets Ltd, open to traders residing outside the United Kingdom, offers the quickest onboarding, a broader range of funding options and more frequent promotions. WorldWideMarkets, Ltd. is licensed with and regulated by the British Virgin Islands Financial Services Commission (“BVI FSC”); License No. SIBA/L/11/0960. WorldWideMarkets is one of only four companies to have a license for dealing in investments. This is the highest and most regulated license available in the FSC regulatory framework.

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Regulatory OversightTo support its diverse range of traders globally and ensure the highest level of security for its customers’

funds, WorldWideMarkets has established regulatory hubs in both Europe and the Americas.

Our Focus on IB Partners

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Why should Partners and Introducing Brokers choose WorldWideMarkets?

We offer forex trading, and a range of other investment products, that our introducing partners sell in to their client base through their local sales and service infrastructure. In exchange, we pay the most generous commissions/rebates in the industry for that business.

Highest rebate payouts in the industry. Fastest client onboarding in the industry. Fully regulated in the UK, Europe and the Americas and highly

accountable management means safety of funds. Business model and infrastructure caters to the IB – not direct business. Real time rebate earnings and tracking – not just once per month. Recognized superior trade execution means stickier customers. Forex trading with both Fixed and Variable spreads. Superior IB administration back end tool. Leads provided to IBs who prove to convert well. Monthly analysis and discussion of the IBs business with WWM. Platforms for Trade Advisors/Money Managers. Choice of the ever popular MetaTrader or AlphaTrader, our own newly

launched state of the art platform. Broad line of profitable products for clients.

WorldWideMarkets Credentials: Team

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Our TeamThe company was founded by

successful e-commerce financial services executives with

impeccable records in regulatory compliance and integrity. CEO

Thomas Plaut founded FX Solutions, a leading on-line

broker.

Management

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Thomas F Plaut, Chairman and CEO. A prominent industry veteran, Mr. Plaut directs all aspects of the company’s

strategic direction and day to day operations as Chairman, CEO, Founder and Principal Owner. Mr. Plaut is the co-

founder and former co-CEO of FX Solutions, a leading FX trading platform which was named to the Inc. 500 list of fastest

growing private companies for three consecutive years. Prior to FX Solutions, Mr. Plaut co-founded Financial Labs, a high

frequency FX trading operation, that was sold to Bank of America in 2006. Prior to that he had a successful career

trading foreign exchange and equities, holding various senior level management positions at major Wall Street institutions

including Credit Suisse AG, Merrill Lynch and Lehman Brothers. Mr. Plaut was the co-winner of the Ernst & Young

Entrepreneur of the Year in NJ in 2009 and one of the final four national finalists. Mr. Plaut holds a BA in economics from

the University of Michigan, Ann Arbor.

Arthur J. Dembro, CPA, Chief Financial Officer. With over twenty years experience, in accounting, consulting,

and mergers and acquisitions, Chief Financial Officer Arthur Dembro oversees all financial operations of the Company.

Prior to joining WorldWideMarkets, Mr. Dembro was the founder of Greenwood Financial Advisory Services, a firm that

led financial due diligence projects for Platinum Equity, Summit Partners and numerous other corporate and private

equity acquirers. Prior to that he was a Director at Ernst and Young where he specialized in transaction advisory services

and merger integration services. Arthur has also held senior level positions at Grant Thornton and KPMG. Mr. Dembro

holds a Bachelor of Science degree in Accounting-Economics from Babson College (Cum Laude) and Master of Science in

Finance and MBA degrees from Boston College. Arthur also holds CPA and CFA designations.

William G. O’Leary, Chief Revenue Officer. Mr. O’Leary oversees and optimizes the company’s revenue growth

investments such as marketing and sales spend to grow revenue faster and more efficiently across teams, processes and

products. His responsibilities also include WorldWideMarkets’ global marketing team and strategy, strategic partnership

marketing and Business Analytics. Mr. O’Leary joined WorldWideMarkets from FX Solutions LLC where he held the position

of Marketing Director, International. Prior to the financial services industry, he held a range of senior brand management and

international business development positions in the consumer packaged goods industry, including ten years at Unilever

Bestfoods and positions with Novartis Consumer Health, iRobot Corporation and a marketing consultancy. Mr. O’Leary holds

a B.A. in Economics from the University of Pennsylvania and an MBA in Marketing and International Business from the

Columbia Business School.

Management

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Edward L. Liva, III; Chief Legal Officer. Mr. Liva serves as Chief Legal Officer of TAB Networks and Director/CEO

of WorldWideMarkets’ European operations. Mr. Liva has owned and worked at multiple financials firms, regulated by

both the NFA and FINRA. These firms focused on financial ecommerce, with a focus on Forex, Equities, and Futures. He

is admitted to the bar in the states of New York, New Jersey and Florida. Mr. Liva earned his Bachelor of Science degree

from the McIntire School of Commerce at the University of Virginia where he graduated with a double major in Finance

and Economics. He obtained his Juris Doctor from Emory University, School of Law.

Ronald J. Andriulli, Chief Technology Officer. As Chief Technology Officer, Mr. Andriulli ‘s role is to assure the

successful execution of the company’s technology mission through development and deployment of the company’s

technology offerings. Mr. Andriulli has over 16 Years of IT experience, with a successful history of designing scalable

enterprise applications with a keen focus on the end user experience. He also oversees all technical staff across the

organization. Prior to his role at WorldWideMarkets, Mr. Andriulli was the Chief Technical Architect at FX Solutions where

he was the principle architect of the Global Trading System (GTS); managing its development, delivery and ongoing

improvements. Earlier in his career, he was the Lead Technical Architect at American Express where he helped pioneer the

use of technology to automate business processes.

Joseph Trevisani, Chief Market Strategist.. Mr. Trevisani began his twenty-four year career in the financial markets at

Credit Suisse in New York and Singapore where he worked as an interbank currency trader and trading desk manager. Mr.

Trevisani joined the on-line financial industry in 2001 as one of the founding partners of FX Solutions. Over ten years he

served in turn as Chief Dealer, Head of Institutional Sales and Chief Market Analyst. He joined Worldwide Markets in 2012

as Chief Market Strategist. Mr. Trevisani appears frequently on CNBC in New York as a currency analyst. He has been

quoted in the Wall Street Journal, Reuters, Associated Press, Bloomberg, the Washington Post, the New York Times, Dow

Jones Newswires, the Chicago Tribune, Futures Magazine and other media outlets. He has a Bachelor Degree and a Masters

in International Politics and Finance from Columbia University in New York City.

Management

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Steven F. Santamouris, Chief Business Development Officer. Mr. Santamouris works closely with the CEO to

strategically build global and regional partnerships while providing senior leadership for sales and business development staff

throughout all WorldWideMarkets locations. Prior to WorldWideMarkets, Mr. Santamouris was a Senior Vice President and

lead business development executive at FX Solutions LLC, where he originated a significant portion of the firm’s base of

business. In addition to responsibility for driving new business development to contribute to the company’s global expansion,

his purview extended to overseeing and developing all sales teams and sales operations. Mr. Santamouris has over 17 years

senior level experience working with financial institutions globally in the areas of retail and institutional FX, CFD's, Equities

and Risk Management.

Bassam Maalouf, Managing Director, Middle East. As Executive Vice President and Managing Director,

Middle East, Mr. Maalouf manages strategic partnerships and leads business development opportunities

throughout the Arab world. Prior to WorldWideMarkets, Mr. Maalouf managed the Arabic business at FX

Solutions LLC where he specialized in client relationship management for financial institutions and important

individual traders. Bassam has a broad knowledge in the field of financial markets, including CFDs, Forex and

equities. Mr. Maalouf holds a Bachelor of Science degree in Engineering from Damascus University.

Justin T. Liva, Chief Operating Officer. Mr. Liva manages the company’s overall operations functions, with

responsibilities that include Trading, Intraday Risk Management, Customer Service and Administration. Mr. Liva joined

WorldWideMarkets from FX Solutions LLC where he held the position of FX Dealer/Risk Manager. His role involved

managing the day to day global risk of one of the largest retail FX desks in the industry. Mr. Liva holds a B.S. in Finance,

with a minor in Law from Bentley University in Massachusetts.

Risk Management / Financial Engineering

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Dr. Aaron Sokasian. Dr. Sokasian is responsible for risk management and financial engineering. Since 2001, Dr. Sokasian

has been engaged in developing computer driven trading models for use in foreign exchange, equities and futures markets as a

result of extensive experience in developing fast computational techniques for use in multidimensional problems. Prior to his

role at WorldWideMarkets, Dr. Sokasian was the co-founder and CEO of Financial Labs, where he managed a team of

scientists and successfully developed and implemented algorithmic trading models specialized for the foreign exchange

markets. Upon Bank of America’s acquisition of Financial Labs in 2006, Dr. Sokasian served as Head of Quantitative Strategies

for FX, and subsequently Interest Rates at Bank of America and spearheaded the development of FX algorithmic trading and

risk systems for the bank. Dr. Sokasian earned a B.S. in astrophysics from Cornell University in 1998. He received his Ph.D. in

2003 from Harvard University in the field of computational astrophysics.

Dr. Daniel Harvey. Dr. Harvey is a senior member of the quantitative research team. Dr. Harvey has extensive experience

in applying mathematical and computational methods to analyze large datasets as it relates to high frequency trading. Prior to

his role at WorldWideMarkets, Dr. Harvey was a member of the Financial Labs research team, and more recently worked for

Bank of America to develop automated trading and risk management models. Dr. Harvey graduated in the first class from

Oxford (UK) where he earned an undergraduate Master’s degree in physics in 1998. He received his Ph.D. from Harvard

University in 2003 in the field of astrophysics.

Dr. Nicholas Choly. Dr. Choly is a senior member of the quantitative research team. Prior to his current role at

WorldWideMarkets, Dr. Choly was a member of the Financial Labs research team, and then worked for Bank of America to

develop automated trading and risk management models. Dr. Choly holds a B.S. from California Institute of Technology and

a Ph.D. in Applied Physics from Harvard University. When he attended graduate school at Harvard University, his thesis

topic was in the arena of computational materials science. His doctoral research focused on achieving efficient methods for

the calculation of electronic structure of condensed matter systems. He also developed novel simulation methods that permit

coupling of multiple simulation methodologies. Dr. Choly has extensive experience with a wide range of numerical methods

for modeling complex systems.

Products and Platforms

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Comprehensive Product Line

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Broad line of products means more earning potential for Partners

• Forex/CFD Trading - Retail. We offer aggressive rebates, as well as retail leads to key Partners. Customers stay due to unequaled trade execution, stellar customer service and a world class new trading platform. Choice of Fixed or Variable spreads.

• Forex/CFD Trading - Institutional. Accommodate your large scale FX trading clients via our Currenex product.

• Forex/CFD Trading - Trading Advisors. Manage all your client accounts from one dashboard, with superior allocation flexibility. Choice of MetaTrader or our proprietary platform.

• US exchange traded Equities - Offer non US citizens the ability to easily open accounts with a fully US licensed broker, a reliable platform and competitive commission rates, while earning a large portion of each commission.

• US exchange traded stock Options - Segment tends to trade frequently – generating relatively high commission revenue per customer.

Managed Accounts

• US Equities - Managed Account. Many will prefer to avail themselves of the strategies of professional money managers.

• Hedge Fund - Access to a 5 Star rated manager with a ten year track record, specializing in a range of sector weighted ETFs and offering a very low beta.

• Managed Forex/Forex Funds - Participate in Market-Maker profit margins by investing in a fund that provides liquidity to clients via ECNs.

Our Platforms

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WorldWideMarkets offers a full range of Platforms

Retail FX

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Retail FX: Trading continues to grow rapidly

Source: The Aite Group, BIS.

• Foreign Exchange as an investment is increasingly recognized as a traded asset class.

• Electronic execution continues to lower transaction costs.

• Automated and “Social” trading

strategies gaining popularity with retail traders, driving volume..

• Dealer business model allows for attractive payouts to IBs relative to other asset classes.

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24 hour

trading

All can trade

Short and

Long

Automated

Trading

High leverage

available

Volume

growth 32%

2010-2013

No debit

balances

Efficient: No

commissions,

tight spreads

$5 trillion

daily and

growing

Largest and most liquid asset class in the world – US$5.3 Trillion traded per day on average. $150B of this is retail.

Institutional FX: Currenex

WorldWideMarkets has partnered with Currenex to bring an institutional level platform to clients who trade substantial volume. Our Currenex platform is designed exclusively for larger orders typical of institutional trading, hedge funds, money managers, and individual traders that need a deeper liquidity pool. WWM’s highly scalable

business model allows us to offer lower commissions and highly competitive spreads.

Our Currenex product offers you:

» Deeper liquidity for larger order sizes.

» Trading inside the spread.

» Aggregate liquidity streams from more than sixty banks.

» Latest order-matching and liquidity aggregation technology.

» Advanced electronic order management system and sophisticated trade settlement.

» Use of a high-speed, low-latency API, or the WWM/Currenex user interface.

» Volume discounts for low commission/low spread trading.

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US Equities: The Opportunity

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No other equity market comes close to the size diversity and transparency of the U.S. stock market.

US equities represent almost 40% of the world’s total market capitalization, with Japan a distant second at 6%.

10% average annual return over the past twenty years.

Over 5,000 companies to invest in.

NYSE Euronext is the world’s largest equity market, trading more than one-third of the world’s cash equity volume.

Online Equity trading is a large and growing market.

25MM online accounts

100% growth in online accounts predicted within 5 years

30% of all retail trading volume on NYSE and Nasdaq from only10 online firms

US Equities: WWM’s Offering

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The major US online brokers will not open accounts for non US residents - or make it extremely difficult – due to regulatory costs and AML concerns. By specializing in non-US customers, WWM accesses a large unserved market.

• Non-US customers can open and fund accounts with minimal red tape, plus the hassle and delay of mailing documents is eliminated.

• Credit cards accepted. Low $500 minimum initial deposit.

• All trades are subject to U.S. regulations and are executed with a registered U.S. Broker-Dealer governed by FINRA and the SEC in the United States.

• Trade and US listed stock, option or ETF; including bulletin board and penny stocks.

• Advanced, user friendly web based trading platform in multiple languages. Tested by thousands of satisfied traders.

• Managed product, with 5 Star fund manager available.

• Trade on margin at up to 4X leverage.

• Competitive commission rates with volume discounts.

• Full suite of Research and Stock Screeners to generate trading ideas.

Managed Products

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Non self-directed traders are a growing and profitable market segment.

Managed Products

Tactical Opportunity Fund (TOF): Access a US Hedge Fund with superior, low beta, investment returns. Ready access to the US equity market (no red tape for non–US investors). Fund Manager with a rare 5-Star rating from Morningstar with 10 year track record.

» Separately Managed Accounts (SMA): For smaller investments, customers can model TOF’s ETF portfolio investment strategy in an

individual WWM Equity trading account.

Forex Funds: Forex Market Making Fund: Participate in the returns generated in the business model of Market Makers in the foreign exchange market. Earns returns by providing liquidity to clients via ECNs.

-------------------------------------------------------------------------------------------------------------Cayman Equity Ventures: Fully regulated Corporate entity overseeing all the managed products.

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WWM expands Partners’ businesses development scope by offering Investment

products as well as those for speculative trading.

Tactical Opportunity Fund

Stocks – Hedge Fund

Low beta investment in selected sector specific ETFs.

Paul Frank, rare 5-Star rating from

Morningstar with almost 10 year track record

1. Unleveraged (1X)

2. Leveraged (3X) : Market exposure of three dollars for every

one dollar invested.

3. Managed (SMA): Portfolio managed according to individual

specifications and risk tolerances.

Historical Returns:

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FUND INFORMATION

Annual Management Fee:

1X Account Type: 2.0%

3X: Account Type 6.0%

Incentive Fee:

20% of Net New Profits annually.

Lock Up:

3 Months

Subscriptions: Monthly

Minimum Investment:

1x and 3x: $1,000,000

Managed (SMA): $100,000

Redemptions:

Quarterly, 15 days notice.

Bankers:

Bank of America.

One Bryant Park

New York, NY 10036

Fund Manager:

Cayman Equity Ventures, Ltd.

103 South Church Street, 2 Floor

George Town, Grand Cayman

Cayman Islands, KY1-1106

Auditor:

KPMG

Century Yard Building, 2F

Grand Cayman, Cayman Islands

Legal Counsel:

Onshore: Ruddy Law Office, PLLC

Offshore: Travers Thorp Alberga

Administrator/Investor Contact:

Kaufman Rossin Fund Services

2699 S. Bayshore Drive, 9F

Miami FL 33133

P: 305.646.6080

» Asset Class:

» Investment Thesis:

» Account Manager:

» Account Types:

Risk Management and Technology

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Risk Management and Technology

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Risk Management Our unmatched risk

management expertise maximizes spread income

and provides greater profit yields for

Introducing Broker Partners than competitors.

WWM Key Advantage: Risk Management

Risk Management is a critical aspect of the business model – allowing for a systematic and automated approach to position management.

Order Book Aggregation & Risk Modeling

WWM measures market exposure on a dollar denominated basis taking into account the aggregate of all currency holdings.

WWM utilizes algorithmic models to continuously measure the total market risk within the order book.

Improved Risk Management and Profit

Enables management to determine if market risk associated with order book exceeds pre-established risk thresholds.

Reduces the need to hedge, which reduces trading costs and increases profit.

Proprietary Trading Desk Downfalls

High cost of hedging.

Rely on employees to trade, cannot have a long term risk management plan based on a trader that can leave at any time.

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WWM Key Advantage: Technology Efficient infrastructure allows scalable growth

Technology

WWM has established an infrastructure that automates trade pricing and execution, minimizing the need for large trading desks.

WWM provides its highly advanced trading platform to IBs and Partners.

Scalability

Automation facilitates massive increases in trading volume with few additional costs

High degree of automation leverages partner resources and minimizes administrative support needs

Drives

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Cooperation and Integration

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Quick route to capturing the burgeoning interest in online trading.We offer forex trading, and a range of other investment products, that our introducing partners sell in to their client base through their local sales and service infrastructure. In exchange, we pay the most generous commissions/rebates in the industry for that business.

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Incoming inquiries to IB about Spot FX or US

Equities

Refer customer to dedicated WWM Welcome Page – Tag

customer to Partner

Partner receives rebates

for all trading

Cooperation ScenariosScenario 1: Introducing Broker Arrangement

Cooperation ScenariosScenario 2: White Label Solution

• WWM provides a turn-key Partner-branded trading product.

• Your multi-instrument portal receives real time rates to support price discovery and analytical functions.

• When client decides to trade, they are re-directed to customized Partner web application.

Multi-instrument Trading Portal

`

`

`

FX SolutionsTrading Engine

Orders

FX Solutions Web Application

User Login Iinformation

Real-timeRates

Real-time Rates for Display on Trading Portal

Partner

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White Label Explained

» WWM’s White Label solution offers a financial firm the ability to enter the retail

margin FX market with little up-front and ongoing costs, few dedicated employees, and low risk to its franchise name, and little financial risk.

» Most large financial firms will seek to White Label a retail FX business from an FX provider such as WWM. A White Label setup will allow the financial firm to offer spot retail FX under their own brand name; therefore utilizing their global and local recognition and reputation.

» WWM offers potential White Label partners a complete turnkey solution. A financial firm can license the WWM software, clearing services, FX products, and even outsource the complete customer service, operations, and marketing to WWM.

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White Label partner incurs zero trading risk and holds most of the client funds

Cooperation ScenariosScenario 3: WWM Custom Trading Application via FIX API

• WWM designs and implements custom front end, using Partner’s trading engine.

• Your trading application communicates directly with our servers via FIX API (TCP/IP).

• Partner’s fully integrated look and feel.

Multi-instrument Portal with

FX Trading Application

`

`

`

FX SolutionsTrading Engine

Real-time Rates via FIX

Orders via FIX

Partner

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Summary: Why WorldWideMarkets?

Strong management with impeccable reputation for integrity and regulatory compliance. Highest rebate payouts in the industry. Strong Regulatory oversight: Including a FCA regulated UK entity. WWM does not seek any direct business; focusing instead on supporting its IB partners’

customer acquisition efforts. IBs receive a high level of support from the entire organization.

Broad range of instruments to earn rebates on, including FX, CFDs, Commodities and Equities.

Full array of trading platforms, including MT4, to facilitatecustomer trading.

Highest Forex leverage available. 400:1 on all accounts. Multiple, versatile platforms for Money Managers. Proprietary back office modules seamlessly provide a single view of the business. Efficient online account opening and funding processes facilitate customer acquisition.

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