edgewater digital technology...2019/06/04 · edgewater digital’s mission is to improve the...
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Edgewater Digital TechnologiesNew York Chicago London Singapore Mexico City Santiago
EDGEWATER
DIGITAL
www.edgewaterdigital.io
+1.312.766.3290Introduction – June 2019 A Revolution in Digital Trading
The Investment Opportunity
COMPANY & OPPORTUNITY 02
EDGEWATER
DIGITAL
Edgewater Markets is launching a new company, Edgewater Digital, to establish a best-in-class crypto trading platform to meet the requirements of institutional money managers and traders globally.
Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency, enhancing price discovery and reducing transaction costs, by leveraging Edgewater Market’s proprietary technology, currency trading expertise and existing tier-1 relationships.
Edgewater Digital Security Token
• Equity ownership and profit sharing
• Listed on security token exchanges (planned)
• Automated compliance (smart contract)
• Interoperability across token assets (ERC20)
• Liquidity after required lock-up period
The Edgewater Markets Advantage
HISTORY 03
EDGEWATER
DIGITAL
INSTITUTIONAL PLATFORM
• Low Impact Trading
• Algorithmic Execution
• Efficient, Secure Settlement
• Risk Mgmt & Portfolio Analytics
• Compliance & Reporting
EXISTING RELATIONSHIPS
• 300+ institutional customers
• Over 50 countries
• Global Vendors and Partners
PROPRIETARY TECHNOLOGY
• TCA
• OMS
• Matching Engine
• SOR
• CLOB
PROFESSIONAL SUPPORT
• 24/7/365 OTC Desk
• Multi-Lingual Live Support
• GUI and API
• Mobile Access
EXPERTISE
• Successful Electronic Currency Trading Business
• Institutional Market Focus
• Advanced Trading Technology
• Global Liquidity Management
GLOBAL NETWORK
• Data Centers: NY, LD, TK, MX
• Low-Latency Data Communications
▪ Founded in 2009
▪ 300+ institutional customers in over 50 countries
▪ Profitable track record
▪ Executing over $10 billion daily fiat trading volume
▪ Proprietary trading technology
▪ Global trading network with data centers in New York, London, Tokyo, Mexico City
▪ Experienced team of 65 professionals located in Europe, Asia, Latam and N America
▪ Edgewater Markets private equity partner FTV Capital
Edgewater Management Team
MANAGEMENT TEAM 04
EDGEWATER
DIGITAL
The Edgewater team has decades of experience in institutional trading, technology and global financial services management.
Members of our team have held senior roles at some of
the largest financial institutions in the world and many
have been early adopters of blockchain technology.
Since the company’s founding in 2009, the multi-lingual
Edgewater team has built a global network of
relationships with customers, partners and regulators
that has enabled them to sustain rapid growth and a high
level of success.
Skovran Schreder CEO
Alessandro Scarsini
President
Jeff JohnsonCOO
Jason Aubrey CTO
Alessandra Bozzo CAO
Michael NaylorBus Dev
Mike Johnson Development
Nate ArenchildRisk Mgmt
Michael SerpaLiquidity Mgmt
Shilpa Dubey Asia-Pacific
Emanuel Georgouras
Europe
Rob Sanchez Latam
Matthew Roszak Richard Rofe
Strategic Advisors
Crypto Market Opportunity
CRYPTOCURRENCY MARKET 05
EDGEWATER
DIGITAL
▪ Crypto’s extraordinary pace of innovation is forecast to allow crypto to surpass historical Fiat growth rates
▪ In December 2017, Crypto daily volume reached $50B1
highlighting crypto trading potential
▪ The Crypto market has been forecast to reach up to $2 Trillion ADV by 20272
▪ Fiat grew at over 60% CAGR from 1977 – 1987
▪ As a mature product, Fiat experienced 20%+ annual growth over the past 10+ years of tech innovation (“Electronification of FX” above)
▪ Growth of electronic trading created a multi-faceted array of firms with dozens of providers co-existing to provide institutional liquidity.1CoinMarketCap.com (April 2018); businessinsider.com 2Apply FX CAGR from 1977-1987 (61%) to recent Crypto ADV $30B
Large Orders are Expensive and Difficult to Execute
CURRENT LANDSCAPE 06
Excessive Risk
Lack of Depth
Fragmentation
Latency
Security Gaps
High Costs
Inefficient Execution
EXCHANGE 5 BUY 18 BTC
“Buy 100 BTC, market”
Exchange 1
BUY 22
BTCExchange 2
BUY 33
BTC
Exchange 3
BUY 27
BTC
Exchange 4
Missed it
4 orders, 4 confos
EDGEWATER
DIGITAL
Current Situation
Leveraging Existing Institutional Trading Technology
EDGEWATER SOLUTION 07
CRYPTO PRIME
TRADER™
1 order, 1 confo
“BUY 100 BTC, MARKET”
Fast, easy, low impact
EDGEWATER
DIGITAL
Our Solution
Best-in-Class Security
Institutional Size Orders
Global Aggregated Liquidity
Reduced Costs
Efficient, Secure Settlement
Low Impact Execution
24/7 Live Global Support
Introducing Crypto Prime Trader™
PRODUCT ECOSYSTEM
EDGEWATER
DIGITAL
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POSITION MONITORING REAL TIME P&L
AGGREGATED LIQUIDITY
ADVANCED ANALYTICS AND CHARTING
CONSOLIDATED ORDER BOOK
INTELLIGENT TRADING ALGORITHMS
EFFICIENT, SECURE SETTLEMENT
SMART ORDERROUTER
WEB-BASED TRADING PLATFORM
CRYPTO MISSION CONTROL™
Best-in-Class Platform for Institutional Trading & Compliance • Exchange and OTC liquidity• Real-time P/L and trading algorithms
• Advanced analytics & charting
• Efficient, Secure Settlement
• Mobile Access
Crypto Prime TraderTM
PRODUCT OVERVIEW
EDGEWATER
DIGITAL
Product Ecosystem• Digital Limit Order Book TM
• Digital Exchange Gateway TM
• Crypto Mission Control TM
• 24/7 Live Multi-Lingual Support
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Launch Crypto Prime Trader, Build Brand/Product Awareness
• Conference sponsorship: crypto focused and traditional institutional
• Media relations – digital and social media: EWC news and promotional commentary
Promote Trading Volume, Build Trader Loyalty
• Issue ERC-20 compliant utility token to incentivize platform use
• Provide discounts on fees linked to trading volume
MARKET ENTRY
Go To Market Strategy EDGEWATER
DIGITAL
Introduce CPT to EWM Customers
• Leverage existing EWM sales
• Cross-sales and referrals
• Target institutional customers: trading firms, hedge funds, retail and institutional brokers, fund managers, emerging market banks, developed market banks
Introduce CPT to Crypto HFs, OTC Desks and Exchanges
• Establish EWC sales force
• Over 300 crypto HFs – approximately 100 with over $10M AUM1
• 30-40+ OTC desks2
• 200+ crypto exchanges3
Establish OTC Trading Relationships
• Establish EWC OTC desk
• Provide 24/7 live professional support
• Establish liquidity and custody relationships
Expand Institutional Market
• Target currency traders, money managers (fund/ETF managers, pensions, endowments) and FOs
• Over 20% of institutional trading firms actively planning trading function4
• 22% of institutional investors have exposure to digital assets, 40% say they are open to investments5
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1CryptoFundResearch.com
4Thomson Reuters Client Survey (April 2018)
2Medium: Cointastical/CMEgroup.com/EWM
3CoinMarketCap.com
5Fidelity/Greenwich Associates Institutional Survey (May 2019)
Q1 2019
Business Formation
Banking Relationships
Liquidity and Custody Connectivity (ongoing)
Crypto Prime Trader (CPT) Alpha Testing
Q2 2019
CPT Development: SOR, Smart Ticket, Algorithms, GUI design
Settlement/Custody
Crypto Mission Control
Private Placement Offering
Edgewater Digital Roadmap
PRODUCT ROADMAP
EDGEWATER
DIGITAL
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Q3 2019CPT Credit, Risk Mgmt and Post-Trade Reporting
CPT Digital Order Book
EWD Market and Credit Operations
Product Launch
Q4 2019CPT Utility Token Loyalty Program
Mobile Development
Risk Management & Portfolio Analytics
STO Exchange Listing
Crypto Prime Trader Development Timeline
DEVELOPMENT TIMELINE
EDGEWATER
DIGITAL
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➣ A – Connect customers with existing accounts, VWAP, smart execution
➣ B – Launch Edgewater Digital principal accounts, provide leveraged trading
➣ C – Launch Crypto Prime Trader Digital Order Book
Liquidity Sources
Customer Accounts
EWDT Principal Accounts
EWDT Digital Order Book
Rate Engine
Crypto Prime Trader
Smart Ticket
Smart Order Router
Customers
Pre-Trade Credit Check
Post-Trade
• Confirmation• Settlement• Credit • Custody• Reporting
EWDT Operations
• Market Risk• Credit Risk• Technology• Customer Svc
A
B
C
An Established Brand with Superior Positioning
INVESTMENT SUMMARY
EDGEWATER
DIGITAL
Read More About our Company Success at: www.EdgewaterDigital.io
• Existing Institutional Customer Base
• Existing Profitable Business
• Proprietary trading technology
• Transaction fees based revenue model
• 10+ years experience in Institutional Trading
• Global trading network - New York, London, Tokyo, Mexico City
Decades of Experience Positioned to be Market Leader in Digital Assets
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Thank You
New YorkEdgewater Digital Technologies Inc. 10 East 53rd Street, 12th FloorNew York, NY 10022Phone: +1-212-370-5270
ChicagoEdgewater Digital Technologies,111 West Illinois Street, 5th FloorChicago, IL 60654Phone : +1-312-766-3290
Email : [email protected]
EDGEWATER
DIGITAL