Global Markets ~ Business Plaining Model

Compare Apples to Apples!

Continued
Cost of doing business less.
Investments & Trading to be
execute only in Liquid ,
Assignable, Maturable, less
Default risk & Tradeable
Assets. for returns & CFDs.
Capital Gain / Loss

Risk Management to be based

on CVaR, RAROC, Systematic
Risk & Sentiments indicators,
measures to achieve RRR rate,
hence ensuring returns
to
shareholders and ensuring risk
control

Unlimited Market Opportunities.

Cost of doing Business very less.
Cost of Tariffs very less.
Requirement of Businesses are easy.
Very Highly Liquid Business daily turnover of
Global markets are more than 7 trillions dollars

Spot & Margin

Investment
&Trading

Cash &
Physical
Based
Investment &
Trading

Risk
Management

Management
& Admin

Trading & Investments.

Dividends.
Futures & Forward contracts
for Commodities hard & soft
both Buy / Sell to the End
users of the industry.
Arbitrage & Hedges

CIO , Research & Trading

Professionals.
Bank to Bank transaction
money transit secure, Tariffs,
& all types of settlements docs
& accounts should manage by
Admin & Accounts individuals.

Global Markets ~ Business Plaining Model

Continued

Vendors

Reuters or Bloomberg needed.

Office Structure

Quality office structure needed.

Quality
Networking

Gym

Quality I.T. Equipment's & Networking & LED large screen needed.

Traders Gym require for exercise to become mentally fit while trading &
investments needed.

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Global Markets ~ Business Plaining Model

Continued..

The success of this business model resides on offering a wide

spectrum of value added services through which the annual
objective can be achieved. In other words the aim to maximize the
wealth through rotating corporate funds in all over the global
markets will make sure our successes. This requires not only
efficient operations supported by appropriate technology, but also a
clear incentive system for the desks.

Admin &
Accounts
Desk

Asset
Generation

C.I.O

In addition to the foregoing, through incentive driven remuneration

for management and enhancement of synergies among activities,
through sharing of centralized resources, is a critical feature of the
Business Model.. The allocation of resources is evident from the
Organisational Structure proposed in the Business Plan.

Research,
Traders &
Risk Desk

Corporate Owners / Sponsors

Settlements
Desk

Global Market ~ Risk Management ~ Frame work

Risk Management Frame Work

Time on your hands!
The reason to evaluate % of QSP and a
% Confidence of CVaR should be
calculated is to ensure a Quality Trading
& Investments.

Equity Stock Price Risk.

Commodities Price Risk.
Forex Pairs Risk.

Concentration limits as we are not NBFC so no need to follow such regulations to manage Total Cash liquid
upto 90% should be in Assets. We should make ensure a diversified portfolio is maintaining in an organization
with different Assets classes. Stop Loss limits are deemed essential to ensure that traders do not take positions
in anticipation of desired changes, and further expose the company to risk but this will not applicable in every
environment of any of each markets means should assess trading and investments in details before execution
and no need to use of Stop loss unnecessarily. Limits on position size which will be calculated as to risk in the
market which are essential to restrict speculative positions taken by traders. CVaR limits force the traders to
calculate the requied capital and its availability prior to entering into transactions for different time frames.

Risk Measures
CVaR calculated at
required XX% confidence
interval of daily & days
basis i.e. stress CVaR on
a daily basis monitored.

Types of Risks

Limits to be Imposed
Stress Testing should be perform
as follows:
Scenario Testing.
Systematic Risk Trend Testing will
be applied
through a system
which is based on Applied Algebra
notion written by me Asad
Tirmazie.
Sentiment indicators

Additional Risk Control

Measures

We will Trade and Investments in Stocks,

Commodities & Forex

The Var calculated for the aforesaid Assets portfolios would be used to calculate the economic capital
required to sustain these investments, i.e. E.C = Wp/(1+r)n. The Economic Capital(EC=Regulatory capital
Expected Loss) hence calculated would be the limit imposed by ma nagement on capital for
Consumptions & Investments Assets Classes, i.e. Traders would need to detailed assess the required
capital for each transaction before executions, subject to the EC limit prescribed by the Risk
Management System. However I learned during my experience 75% of the regulatory capital that the
economic capital should be in our hands as liquid to remain ourselves as solvent in the Global markets
and we should not use more t han 15% to 25% of the Regulatory Capital or Total Capital assigned for the
Easy Money Making Businesses.
Cost of Capital must be less than RAROC annually.

Concentration Limits (this will not apply when 99% sure

expected returns)
Stop Loss Limits follows after de tailed and shall be only
applicable in high risky specific environment of the
Position sizing sho uld be follow before going into Execution
of Transactions.
VAR Limits should follow as stop loss if abnormal market
environment like free fall Market, Inflationary market price of
Assets. Or sudden change in trend which can be assess
through Real time trading platform or vendors platforms.

Stress Tests would be performed

and furthe r refined on the basis of
movement of the Assets. Scenario
Tests would be conducted on a
Weekly & Monthly & quarterly
basis given the worst case
scenarios provided by
the
Research team or Experts.

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