EFTA02706731.pdf

GROUP ] Buttonwood Group Trading, LLC. Where Innovation & Excellence Take Root High Frequency US Equities Trader, Ph. D. 2013 Target Revenues $15M History & Key Successes • Extensive experience as a quantitative trader and researcher at Tower Research Capital for two years; 'fr. Responsible for alpha signal generation for multi-asset trading strategy with revenues over 30MM/year, leveraged annualized return on capital of over 700% and combined cross-product Sharpe ratio over 10; • Prior to Tower spent 8 years as a lead algorithmic execution quant at BNY ConvergeX, responsible for algorithmic execution of over 18$/daily in client flow in international and domestic equity markets; Models & Revenue Forecasts • 2013 Strategy highlights: Intraday, high frequency US equity strategy; ▪ Trades hundreds of equities using advanced statistical models; ▪ Does not rely on rebates; • Live Sharpe ratio is projected in 5-6 range; Expected annualized leveraged return on capital of around 1000%; ▪ Expected overall revenue of over 15MM for 2013; ▪ Resources & Leveraging BGT Infrastructure & Growth • Leverage ODIN Trading Platform, Servers & Co-Location (Nasdaq Initially) • Access to other major US Equity venues and dark pools may be utilized as part of expansion subject to cost/benefit analysis: ARCA/NYSE, BATS, Direct Edge and etc.; 'fr. Low latency lines between Carteret, Mahwah, Weehawken and Jersey City utilized as part of the above venue addition; • Access to a research server farm with at least 100 available nodes will be a significant benefit in optimizing trading parameters and further improving profitability; ▪ Leverage Bloomberg systems for upcoming corporate actions 6 2009 Buttonwood Group Trading, LLC. This presentation shall not be reproduced in whole or in part without the express written permission of Buttonwood Group Trading, LL EFTA_R1_02102751 EFTA02706731  BUITONW0DD CD Buttonwood Group Trading, LLC. Where Innovation 8 Excellence Take Root High Frequency US Equities Trader, Ph. D. 2013 Target Revenues $15M Next Steps in 2012 (November & December) 'e November and early December: complete execution optimization to bring slippage within cost limits, implement live trading API interface. Mid December: start live trading. Since all simulations use pessimistic execution assumptions, live performance is expected to be very close to backtest at lower exposure levels. Scaling Up in 2013 January: trade all 200 instruments in mixed lots - there is no odd lot penalty on Nasdaq. This allows to keep Sharpe at the highest level at the sensitive time of initial deployment. Exposure 2-10MM. Revenue Approx. $ 200K/month. February-March: exposure 10-20MM. March: Add all dark pools, BATS and Direct Edge. Revenue Approx.$ 500K/month ▪ April: evaluate cost-benefit of adding NYSE/ARCA ✓ April-May: exposure 30-40MM. Revenue Approx.$ 1M/month June-July: exposure 50-70MM using all venues. Revenue Approx.$ 1.5M/month ✓ August and beyond: analyze market impact and depending on results scale to 100MM. Revenue Approx.$ 2M/month 6 2009 Buttonwood Group Trading. LLC. This presentation shall not be reproduced in whole or in part without the express written permission of Buttonwood Group Trading. LL EFTA_R1_02102752 EFTA02706732