FEX - The Financial and Energy Exchange Group

Mercari Direct is an OTC specific trading platform. Its flexibility allows it to effectively trade any OTC product and its configurability, market specific tailoring. Mercari’s automated feature effectively allows the OTC broker to multiply themselves. This means that a broker, who is prepared to takes advantage of these features, is able to service more clients over more products without a drop in their personal service levels. Their service is made more efficient and their workday made easier. Importantly the ability for individual brokers to broaden their effect service coverage with intuitive automation equates to more brokerage paid through them and potentially a far greater earn.

Features:

Dealer Emulation	Credit Manager
Dealer Communication	Sonics
Mercari Private	Order optimisation features
Notifiers	Permission Levels
Trade Notification	Reporting and Audit

Dealer Emulation

When Mercari Direct is set up as an intermediated broker market place, brokers emulate their client to act on their behalf so that each order is attributed to a trader. Moving from one client to the next or from market to market is as easy as clicking the mouse. Placing an order can be as simple click and send. There are many additional broker best practice options that customise how an order is delivered into Mercari Direct OTC market place maximising the chances of trading at the dealer’s optimum level in their preferred amount.

Dealer Communication

Relevant, unambiguous and timely communication between traders and their brokers is paramount to effective order promotion and trade execution. Mercari Direct OTC trading platform enhances traditional dealer communication in its markets through a series of manual and automated chat and notifier features.

Mercari Private

Mercari Direct gives brokers another communication option with their dealing clients through the Mercari Private feature. The broker can initiate a chat with his trader; elect to leave it on the dealers desktop if unanswered or remove it from their screen should it be only relevant for that moment. Group chats…

Notifiers

Notifiers are designed to keep both the broker and dealer fully informed unobtrusively. This allows both to either act on to the new information or to ignore it and continue their work with minimal interruption. The Mercari Direct notifier system makes life a whole lot easier for broker and dealer alike. Many orders placed in the system can become “set and forget” with the comfort that you will know immediately when something has changed. Brokers maintain have no need to interrupt their dealer unnecessarily because they receive notification not only of the event but also the dealers’ recognition that they are aware of it. If the dealer has left their desk and an important notifier goes unacknowledged the broker can then takes steps to make direct contact. This feature ensures that intermediary intervention in the transaction process is restricted to that which is important or relevant.

There are different forms of notifiers built in to the Mercari Direct OTC trading platform

• News and Alerts	• Name passing notifier
• Manual Personal Notifier	• Communication notifier in C and D check
• Automatic Personal Notifier	Detail passing notifier
• Negotiate notifier	• Screen scroll displays
• Action notifier	• Deal Discuss

Once names are passed for credit checking purposes Mercari Directs Credit and Detail Check feature can be configured to allow trading counterparties to chat directly with each other. If necessary dealers can here negotiate any special arrangements or amendments to a trade in view of the broker who can then make any agreed changes on the fly. Deal Done.

Trade Notification

Trade Advise Notification contact details are preloaded for each client. Settlement risks are minimized with Mercari Direct’s automation of the calculation and structure processes of each trade allowing notifications to be sent automatically and immediately once trader’s terms are agreed. Should changes be negotiated later, an automatic version 2 of the documentation will be sent after the new details are formally agreed.

For broker flexibility all fields within the Mercari Direct Credit and Detail Check are configurable so that dealers

Physical market screen setups allow for on line post trade transfer and confirmation of acceptance of registry or clearing house details.

Credit Manager

The Mercari Direct credit manager automatically creates credit rules immediately following any credit decline event. In OTC markets this can be an important feature as it allows the participants to reenter the market seamlessly, maintaining any queue position priority, appearing in the market place as a choice price for others to trade if they desire. The traders involved in the credit decline now see the best prices they can trade with a specific highlighter denoting if any bad credit is showing a better price.

Credit restrictions can also be entered manually for any dealer by his broker into the system on a product, specific tenor and structure basis. These restictions can be changed at any time at the initiating dealers request.

Sonics

Some markets, particularly those involved in rate setting periods, thrive on noise. A Mercari Direct sonics are automated voice calls of orders the sound, accent and speed of which can be tailored to suit the markets needs.

Order optimisation features

• Straight transparent levels	• Cloaked or Hidden levels
• Exchange for Physical (EFP)	• Off market trades
• Iceberg amounts	• Hidden Amounts
• Product switches calc and display	• Derived price liquidity
• Straight Requests	• Straight switch trades
• Multi leg switches	• Parent/Child orders
• Auto Bid/Offer on	• Improve to trade
• Ask me first orders	• Firm Up notifiers
• Auto trade levels	• Auto counter levels
• Auto notify levels	• Automatically improved
• Automatically moved back	• Level notifiers
• Curve notifiers	• Curve triggers
• Curve cancellations levels	• Currency bounds protection
• Auto cancellation time based	• Auto cancellation curve based
• Meet in middle negotiator	• Auto notifier levels
• Auto refer	• Referred order display
• Order park and edit	• Global parking
• Pricemaker run protection	• Bumped price rules
• Credit restriction input	• Specific group requests
• Meet in middle private request	• Special Run display
• Custom New Run structures

Permission Levels

Permission levels control the access that each type of User gets to the various Front, Middle and Back Office Screens. Permission levels are controlled on a product by product basis by the administrator with the potential for a “Dealer” on one product to have “View Only” rights on another.

• Broker intermediary Level: Access to all relevant areas. Information limited to the trades they acted for. Can emulate dealing clients to enter manage and execute trades on their behalf. Cannot see the identity of other brokers or their clients that have orders in the market.
• Dealer Level: Access all areas. Can view and input to all Screens & Reports.
• Manager Level: Can view all screens and reports but has no input rights.
• Middle Office Level: Cannot view or input to trading Screens. Can input limited details and view all reports.
• Back Office Level: Cannot view trading screen or input to any screen but can view reports.
• View Only Level: Can only View Trading Screens.
• Administration Level: Market convener that overseers market place and has access to all areas. The administrator is able to change a multitude of market setups and defaults

Reporting and Audit

Authorised participants using Mercari Direct can access a variety of different logs, histories, communication records and participation statistics.

Mercari’s commitment and obligation is to store this data for 7 years. Mercari also allows for 4 other access status levels other than “Dealer”. “Manager” status allows access to all screens and logs for review with the ability to trade. Desk managers can use this to log in at any time from anywhere (subject to remote authorisation) to see what his traders are doing real time. Compliance officers are also able to log in and review trades, their timing, their pathways to execution and any associated chat correspondence. Mercari’s records all direct line phone conversations which can be quickly reviewed at any time.

Back and Middle office authorisation allows convenient on line access to trade data and histories that can easily be downloaded in custom Excel files.

Time stamped audit Logs retained for 7 years include:

Transaction histories	RFQ request statistics
Cancel trade details	RFQ price making statistic
Amended trade details	RFQ entry logs
Order entry logs	Mercari Private Chat feature
User access logs	Deal Discuss feature
Automated Mercari quick text logs

Client Login

Email:

Password:

Forgotten Password?