How to enter the Fishpool Market?
CACEIS Solution
Q2 2015
Focus on
Clearing of the
Fishpool
contracts
1
CACEIS, a Solid Partner
CACEIS Key Figures
CACEIS, a leader in the Asset Servicing World
CACEIS is a banking group which serves a diverse client base:
Asset Managers, Hedge Funds, Investment Banks, Corporates…
CACEIS
A / A-1
Crédit Agricole S.A.
A / F1
A2 / P-1
 Shareholders: 85%
+ 15%
 Staff: 3,300 employees
 Located in 12 countries, 85 markets covered
A Leading Player
 N° 1 Fund Administrator in Europe
 N° 2 Depositary Bank in Europe
 N° 7 Custodian worldwide
Quality Management System
ISO 9001 Certified
An Extensive Product Offer
€1.4tr
€823bn
€2.4tr




Custody
Clearing & Execution
Hedge Funds services
Fund distribution
Industry Recognition – Securities Lending
Awarded




Depositary
Fund Administration
Capital markets
Collateral Management
Procedure and Control Optimisation
Type II Audited
3
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Execution and Clearing Services
CACEIS Execution & Clearing Service
One Stop Shop for your Business
Global & Multi Asset Class Coverage
60 Cash and Derivatives Markets Connection
Execution
•
•
Cash Equity Markets: Equities and ETFs (regulated exchanges, MTFs, Darkpools, ...etc)
Derivatives Markets:
- Futures and Options on financial instruments (Index, Equity, Fixed Income, FX, ... etc)
- Futures and Options on commodities instruments (Grains, Softs, Milk & Meat, ...etc)
Clearing
•
•
•
•
•
Clearing of all listed derivatives markets instruments (financial and commodities instruments)
Direct Access to the major Clearing Houses (Eurex, LCH, NASDAQ OMX...)
Intraday Risk Monitoring
Back Office and Client Support Team in house (Paris based)
Collateral Management Solutions
Large Client Base
Institutionnal Clients (asset management firms, banks, insurance companies)
Corporate Clients (manufacturers, farmers, cooperatives, trade houses...etc)
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Commodities Offering
CACEIS Commodities Offering
A Complete Offering
• As subsidiary of the Credit Agricole Group, CACEIS has a natural client
base to serve (farmers, cooperatives, manufacturers,...)
• With over 10 years of experience in commodities trading, the CACEIS
execution team has a strong expertise in advising clients with strategies
for hedging and speculative purposes.
• CACEIS is NOT an investment bank and has a very limited risk profile.
• CACEIS represents an alternative solution to commodities clients who
are very attentive to have their accounts in a safe place.
• CACEIS has the ambition to become a leader in commodities trading
and clearing
• France is the second largest market for salmon in the world
• The use of derivatives instruments is becoming essential in order to
protect against market fluctuations
• In order to complete our offering, CACEIS has become member of the
Clearing House NASDAQ OMX, the CCP of the Fishpool market
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3
Clearing of Fishpool Contracts
Clearing of Fishpool contracts
The Operationnal Set up
The Client sends an order via telephone to
Fishpool
1
Fishpool confirms the execution to the Client
2
Client
Fishpool enters the transaction into the
NASDAQ system
3
TRADING
The Client (and the Counterparty) must confirm
the transaction via email to the Clearer
4
Exchange
Fishpool sends the transaction details to the
Clients and its Clearer
5
6
CLEARING
Clearer
7
Clearing House
8
The Clearer checks the transaction details and
confirms the transaction into the NASDAQ
system
NASDAQ checks there is sufficient cash
(collateral) on clearer accounts to cover the
client exposure.
NASDAQ proceeds to the novation fo the
transaction
9
Clearing of Fishpool contracts
Risk Management
REPORTING
available to Client
1
(daily distribution via email or FTP conection)
•
•
•
•
Global Statement Report (pdf)
Transactions Report (xls)
Open Positions Report (xls)
Cash Balance Report (xls)
CCP
UBIX
2
CACEIS Back Office Tool
Booking of Positions
Calculation of Client Margin Requirement
Clearer
Instant Control
3
CACEIS Risk Management Tool
Monitoring of open Client Positions
Monitoring of financial impact
4
Client
NASDAQ CCP* calculates the Initial
Margin Requirement (amount needed to
cover the Client exposure) and sends
the amount to be paid to the Clearer
CACEIS proceeds to the payment of the
Initial Margin Requirement to NASDAQ
CCP
CACEIS debits the amount on the Client
account
CACEIS sends reports to enable the
client to reconcile its cash and positions
accounts
Client Service
• Hotline available from
08am until 8pm
• 10y experience team
• Team located in France
Cash account
(minimum amount to be
defined)
Securities
Account
Booking of Client positions
Please note that NASDAQ requires prefunding, i.e sufficient cash on Client account
5
The Client will be debited/ credited next
day of the Variation Margin (Markt to
Market procedure: a daily offsetting of
profits and losses resulting from the
price changes in open positions)
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4
The Legal Set Up
Clearing of Fishpool contracts
The Legal Set up
Fishpool Trading
Membership Agrement
Exchange
Client
CACEIS
Clearing Agreement
Clearer
Fishpool tripartite
agreement with the
Client
NASDAQ
Global Clearing
Membership Agrement
Clearing House
12
Clearing of Fishpool contracts
The Legal Set up
Documents to be provided (non-exhaustive list):
-
Audited financial statements
ID cards copies of the managing directors
Commercial register extract
Company’s articles of association/ incorporation
List of authorised signatures (incl. specimens)
Company org chart
List of beneficial owners
FATCA Status
LEI (EMIR reporting)
-
Anti-Money Laundering Questionnaire
CACEIS Clearing Agreement
Please note that all documents should be translated in English/ French (certified translation needed)
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CACEIS Value Proposition
CACEIS Value Proposition
10 reasons to clear Fishpool contracts with CACEIS
1. Historical and Strong presence in Commodities
2. Financial Strength
3. Non risk taker, No proprietary trading
4. Financing solutions with the Credit Agricole Group
5. Front to Back-Office teams experience
6. Back Office Teams inhouse (no outsourcing), located in France
7. A reactive Client Service team dedicated to you
8. Competitive commission fees
9. Flexible Collateral Management
10. Diversified client panel
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Contacts
CONTACTS
Florence Besnier
Business Development Manager
Prime Fund Solutions
Execution and Clearing Services
[email protected]
Tel: +33 (0)1 57 78 03 24
Agnès Dambreville
Head of Onboarding
Prime Fund Solutions
Execution and Clearing Services
[email protected]
Tel: +33 (0)1 57 78 12 32
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Appendix
Appendix
Fishpool Order Confirmation
19
Appendix
Fishpool Pending Clearing
Confirmation
Please note that the Clearer can accept a transaction for clearing until T+1 (7pm)
20
Appendix
Example of Initial Margin Requirement (IMR) Calculation
NASDAQ OMX IMR indicative rates
1 contract/ lot= 1000 kg
Market
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Seafood
Series
FPSA_AUG14
FPSA_DEC14
FPSA_JUL14
FPSA_JUN14
FPSA_NOV14
FPSA_OCT14
FPSA_SEP14
FPSA15_APR15
FPSA15_AUG15
FPSA15_DEC15
FPSA15_FEB15
FPSA15_JAN15
FPSA15_JUL15
FPSA15_JUN15
FPSA15_MAR15
FPSA15_MAY15
FPSA15_NOV15
FPSA15_OCT15
FPSA15_SEP15
Margin %
9,89
9,01
11,04
11,51
9,01
9,01
9,36
9,02
7,94
7,93
9,01
9,01
8,02
8,34
9,01
8,49
7,94
7,94
7,93
If a client holds a position of 200 tonnes of FPSA_AUG14
-> The IMR is NOK 700 212 (200 contracts x 1000 kg x NOK 35,4 x 9,89%),
-> The VM (daily Markt to Market settlement) from 06.06.2014 to 10.06.2014 is NOK -60 000 (200
x 1000 x NOK -0,3).
21
Please note that the above calculation is for information purpose only
Appendix
Example of Daily Statement Report sent to the Client
CACEIS reports are available in English or French
22
Disclaimer
This non-contractual document has been sent by CACEIS Bank France (« the company »), authorized and
regulated as investment service provider by French Autorité des Marchés Financiers and Autorité de
Contrôle Prudentiel.
It is a promotional document that has not been elaborated accruing to the regulation on independent
research; hence this document does not constitute any investment recommendation or any financial advice
and must not be considered as an offer to buy or sell any financial instrument or product.
This document has been produced for the exclusive use of its addressees and to be circulated in France.
Any communication of this document to a third party must be first approved by the company. The
information and the views presented in this document are those of the authors cited.
They try to use as much as possible sources, assumptions and the most reliable valuation methods, which
are, however, no warranty, express or implied, as to accuracy, completeness and perfection. Also the views
were developed based on market conditions and levels which may vary at any time significantly. Investors
are therefore asked to self-evaluate risks that may be important in certain financial products and the
opportunity to invest. More generally, all the opinions and estimates contained in this document are from
judgments made at the time of publication and may be changed or discontinued without prior notice.
The Company assumes no liability whatsoever for any direct or indirect losses resulting from any use of
this document or its contents.