CapNET - Connecting Fund Managers with Stock Brokers

© Chella Software Private Limited 2015Confidential 1

CapNetConnecting Investment Managers and Brokers

Chella Software Private Limited


• Portfolio Management team takes investment decisions and updates house view

• Orders sent to dealer through emails and shared workbooks

• Orders are generated for the new rebalanced positions

• Portfolio positions are rebalanced based on house view

Equity and Fixed Income Trading - Today

• Dealer after agreeing with brokers over phone, sends orders through email

• Brokers execute these orders in the market. They update the status over phone and email


CapNet

• Portfolio Management team takes investment decisions and updates house view

• Portfolio positions are rebalanced based on house view

• PM enters allocated orders

CapNet

• Dealer picks the orders and sends them to Broker with whom the deal has been agreed• Brokers receive orders

• Brokers execute the orders in the exchange

• Executions / Fills are updated in real time. Contracts from broker are available in real-time


The Road Map

Q3 2014

• CapNet Conceived

• Discussions with Pinebridge to validate the concept

Q4 2014

• Broader discussion with other players

• Discussion with Pinebridge, US to get technology validation

• Product development starts

Q1 2015

• Inputs taken from multiple players

• Product screen shots and look and feel validated

Q2 2015

• First prototype shown to Pinebridge

• Product tested in a hosted environment

Q3 2015

• CapNet ready for roll out

• Business model discussed with market players

• Launch fixed for 4th

week of September


• Better executions as dealer can monitor the market in real-time

• PM can take decisions in real-time, against the current end of day / once a week planning

Improve Performance

• Straight through processing eliminates errors and omissions

• Complete automation ensures minimum manual intervention. Effective use of PM and Dealers time

Reduce Costs

• Full visibility of all transactions across all brokers

• Execution efficiency of a broker can be monitored

• Contracts are available in real-time. Can be downloaded and uploaded to existing investment management system

Better Execution and Real time Control

Benefits


• CapNet will be available on a monthly subscription on a per terminal basis after the pilot phase.

• No long term lock in, annual maintenance contracts and implementation cost

• No hidden costs

Monthly Subscription

• CapNet will be provided form a hosted and managed environment.

• No additional cost for hardware and software licensees.

• No additional IT staff / resources required

No Investment in Hardware and System Software Investment

• Allows for better planning as the subscription costs are fully transparent.

• No costs associated with technology upgrade or obsoleteness.

Scales with your Business

Investment and Costs


Thank You

Economy & Finance

CapNET - Connecting Fund Managers with Stock Brokers