Cme Group Inc. · NASDAQ:CME
Cme — Tradition Financial Services (TFS) — Conference Presentation (March 2006)
18 slides from Cme's conference presentation, Mar 21, 2006
Slide 1: US Property Derivatives
US Property Derivatives March 21, 2006 Waldorf-Astoria New York, NY 1
Slide 2: TFS To Broker Housing Derivatives
TFS To Broker Housing Derivatives TFS, acting as non-principal agent, will broker: ¾ CME housing futures ¾ OTC housing derivatives ¾ OTC commercial property derivatives 2
Slide 3: CME Housing Products
CME Housing Products Trading CME Housing Futures: ¾ Straight long/short ¾ Inter-city spreads ¾ Time spreads ¾ Options on futures 3
Slide 4: The CME Housing Futures Will Be The Hub
The CME Housing Futures Will Be The Hub The CME will make: ¾ A central pool of liquidity for forward housing prices ¾ The basic building blocks for OTC structures ¾ Transparent forward curves for OTC pricing ¾ One index stream for pricing, risk management and settlements 4
Slide 5: Futures Allow For OTC Markets
Futures Allow For OTC Markets Futures and OTC will be interchangeable: ¾ No settlement basis risk ¾ Ability to offset and close-out OTC swaps positions ¾ Ability to hedge OTC options positions 5
Slide 6: Types of OTC Markets
Types of OTC Markets OTC products can now include: ¾ Structured notes with housing embeds ¾ Risk protection products ¾ Custom derivatives for corporate end-users ¾ Portfolio overlays, both long and short 6
Slide 7: Example Simple OTC Housing Swaps
Example Simple OTC Housing Swaps Example fixed price trades: ¾ 2 year Las Vegas fixed price ¾ 3 year Chicago vs Denver spread ¾ Spring 2007/2008 New York spread ¾ 2007 10-city Composite fixed price ¾ Total Return Swaps? 7
Slide 8: Example Simple OTC Housing Options
Example Simple OTC Housing Options Example options: ¾ 2 year San Diego call ¾ 3 year Los Angeles put ¾ 3 year Miami straddle ¾ 2008 Washington DC collar 8
Slide 9: Getting Started to Trade
Getting Started to Trade Account Set-up for futures trading: ¾ You need an account with a clearing member of the CME ¾ A signed give-up agreement (this is a non-exclusive enabling document - no costs involved) ¾ This is an easy process - TFS has extensive experience OTC trading: ¾ Requires ISDA
Slide 10: TFS Introducing Broker (IB)
TFS Introducing Broker (IB) TFS is a registered IB to several large banks ¾ Facilitating the opening of futures accounts for clearing CME housing futures contracts ¾ Matching the best clearing services and fees to TFS client needs 10
Slide 11: Potential Commercial Property Derivative Products
Potential Commercial Property Derivative Products Commercial Indexes: ¾ NCREIF© – trades have been made in 2005/2006 ¾ GRA© Products: ¾ OTC total, capital and income swaps ¾ OTC options ¾ If/when the CME lists, then futures and options 11
Slide 12: UK Property Derivatives
UK Property Derivatives UK Commercial Property Derivatives ¾ Commercial: ~ GBP 1.3 billion traded since 2005 ¾ Residential: ~ GBP 100 mm traded since 2005 ¾ No futures market, only OTC trading 12
Slide 13: Rankings and Awards
Rankings and Awards TFS rankings for 2005 in industry publications include: ¾ Top Currency Derivatives Broker by Risk Magazine ¾ Top Equity Derivatives Broker by Risk Magazine ¾ Energy Broker of the Year by Commodities Now ¾ Top Environmental Broker by Commodities Now 13
Slide 14: About TFS
About TFS Founded in 1985, TFS is a subsidiary of Compagnie Financière Tradition (CFT) Switzerland ¾ World’s third largest inter-dealer broker TFS and CFT are part of Viel & Cie ¾ Europe’s No. 1 inter-dealer broker 14
Slide 15: Global Coverage
Global Coverage Located in 12 countries with over 400 employees LONDON FRANKURT COPENHAGEN GUANGZHOU HONG KONG NEW YORK SINGAPORE STAMFORD TEL AVIV TOKYO HOUSTON DUBAI JOHANNESBURG MELBOURNE PERTH SYDNEY 15
Slide 16: About TFS
About TFS With offices in the world’s major financial centers, TFS covers: ¾ Currency Derivatives ¾ Energy ¾ Equities ¾ Freight ¾ Precious Metals ¾ Property Derivatives ¾ Pulp and Paper 16
Slide 17: Disclaimer
Disclaimer Although information herein contained is from sources believed to be reliable, Tradition Financial Services makes no warranty or representation that such information is correct, and is not responsible for errors, omissions or misstatements of any kind. All opinions expressed herein are
Slide 18: Contact Fritz Siebel
Contact Fritz Siebel Office: 1.203.351.1560 Mobile: 1.917.657.1149 fsiebel@tfsbrokers.com www.tfsbrokers.com www.tfspropertyderivatives.com 18
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