Brian Healy, Director of Traded Markets, Business Development, Operations

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WFE-MIT Exchange Technology Workshop
IT Strategies ISE Approach
Brian Healy, Director of Traded Markets, Business
Development, Operations Irish Stock
Exchange25th November, 2009
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Overview

• Irish Stock Exchange
• Business Context of Exchanges IT Strategies
• ISE IT Approach
• Conclusion

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Irish Stock Exchange

• ISE Traded Market capitalisation (as of 12/11)
• Equity 123bn
• Government Bonds 71bn
• World class market infrastructure based on
  strategic technology partnerships and on
  proprietary systems
• Globally accessible and transparent markets
• Global/European leader in Funds/Debt markets
• gt8,000 funds and 25,000 debt securities listed
• New products and services
• Global Exchange Market for Debt Securities
• ETFs in commodities alternative sectors

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Business Context of Exchanges IT Strategy

• Competition
• Consolidation
• Commoditisation
• Fragmentation
• Changed Regulatory Environment

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Business Context of Exchanges IT Strategy

• Upgrading of business models necessary to remain
  relevant
• Technology is key competitive advantage
• To compete exchanges need to have efficient,
  fast, cost competitive trading technology
• Continuous improvement and innovation in IT to
  meet customer demands for
• Latency
• Capacity
• Co-location, significant driver of exchange
  investment
• Development of new order types and market models
• System resilience
• Cost reduction

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ISE IT Approach

• Combine strategic outsourcing with proprietary
  capability
• If business priorities are
• Access
• Economies of scale
• Competing globally
• Cost competitiveness
• Then Partner/outsource
• If business priorities are
• Specialist knowledge
• Flexibility
• Intellectual Property ownership
• USP/Competitive advantage
• Then proprietary development

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ISE IT Approach

• Partnering
• Trading Systems ISE Xetra, EuroMTS
• Clearing Central Counterparty Eurex Clearing
  AG
• Settlement Euroclear
• Proprietary
• E-listing Platform
• MIS and Supervision

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ISE IT Approach
Trading Infrastructure Overview
Reduction in latency of interaction with issuers
as well as with trading firms
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Ex-Stream E-Listing Platform
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Conclusion

• No Single Answer
• Flexible approach to IT strategy to suit business
  model
• Competitive advantage

Deutsche Börse
Source FESE