KPMG Alpari Uk

Alpari (UK) Limited
(in special
administration)
Meeting of creditors and clients
12 March 2015
Agenda
Chairmans introduction
Key actions since appointment
Key continuing workstreams
Summary proposals
Creditors committee
Nominations currently received for
committee
Q&A in relation to proposals and conduct
Voting
2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative, a Swiss entity. All rights reserved.
Disclaimer
This presentation has been prepared by Richard Heis, Samantha Rae Bewick and Mark Granville Firmin, the
Joint Special Administrators of Alpari (UK) Limited (in special administration) (the Company) solely to comply
with their statutory duty under Rule 59 of the Investment Bank Special Administration (England and Wales)
Rules 2011 setting out the objectives of the special administration and for no other purpose. This presentation
is not suitable to be relied upon by any person, or for any other purpose, or in any other context
This presentation has not been prepared in contemplation of it being used, and is not suitable to be used, to
inform any investment decision in relation to the debt of or any financial interest in Alpari (UK) Limited
(in special administration)
Any estimated outcomes for creditors included in this presentation are illustrative only and cannot be relied
upon as guidance as to the actual outcomes for clients, creditors or other stakeholders. Any person that
chooses to rely on this statement of proposals for any purpose, or in any context, other than under Rule 59
of the Investment Bank Special Administration (England and Wales) Rules 2011 does so at their own risk
To the fullest extent permitted by law, the Joint Special Administrators do not assume any responsibility and
will not accept any liability in respect of this statement of proposals
Richard Heis, Samantha Rae Bewick and Mark Granville Firmin are authorised to act as insolvency
practitioners by the Institute of Chartered Accountants in England and Wales. The Joint Special Administrators
act as agents for the Company and contract without personal liability. The appointments of the Joint Special
Administrators are personal to them and, to the fullest extent permitted by law, KPMG LLP does not assume
any responsibility and will not accept any liability to any person in respect of the presentation or the conduct of
the special administration of the Company
Richard Heis Joint Special Administrator; chairman of meeting
Samantha Bewick Joint Special Administrator
Lynn Dunne Insolvency lawyer, Ashurst LLP
Drew Sainsbury Insolvency lawyer, Ashurst LLP
Objectives of the SAR

The Special Administration Regime has three objectives, having equal priority
The return of client assets
Timely engagement with market infrastructure bodies and the authorities
To wind the Company up in the best interests of the creditors
Purpose of the meeting

Discuss the Special Administrators Proposals
Consider the establishment of a creditors committee
Agenda
Summary proposals
Creditors committee
committee
Voting

Sought sale of Company and/or its business and assets
Realised client and house estate funds
Working to confirm final account balances and ensure KYC in order
Developed Claims Portal
Determined currency of Client Money Pool
Communication process including website and helpline
Liaised with the FCA and FSCS
Created work streams and teams comprising Alpari and KPMG personnel and, where
required, legal input
Other employees have undergone a redundancy programme following consultation with
employee representatives
Management of overseas affiliates
Secured Company data
Agenda
Summary proposals
Creditors committee
committee
Voting

Client demographic
Valuation of trades on 15 and 16 January 2015
Claims agreement including coordination with FSCS
Employees
Debtors
Other asset realisations
Client and creditor communication
Liaising with FCA and other regulatory requests and enquiries
Client demographic
Client claims by value*
Client claims by volume

1%
7%
24%
48%
0%
58%
44%
18%
Cash balance (49,433)
Zero balance (45,524)
Cash balance ($ 23.0m)
Zero balance ($0.0m)
CHF trade (1,241)
Non CHF trade (6,676)
CHF trade ($17.0m)
Non CHF trade ($56.4m)
Source: Alpari (UK) Limited Company records and KPMG analysis

Note:
Data may change following valuation of trades and further investigation of Company records.
CHF trade means any Client with one or more CHF trade at any stage on 15 / 16 January 2015
*
According to Company records
Client demographic
Client claims by volume
0%
4%
Client claims by value*
0%
1%
0%
8%
5%
21%
51%
9%
13%
88%
$0 - $99 (91,242)
$1,000 - $9,999 (4,215)
$20,000 - $49,999 (276)
$100 - $999 (8,090)

$10,000 - $19,999 (422)
> $50,000 (126)
$0 - $99 ($0.7m)
$100 - $999 ($4.5m)
$1,000 - $9,999 ($20.5m)
$10,000 - $19,999 ($8.9m)
$20,000 - $49,999 ($12.2m)
> $50,000 ($49.6m)
Source: Alpari (UK) Limited Company records and KPMG analysis

Note:
Data may change following valuation of trades and further investigation of Company records.
*
According to Company records

Client demographic
Employees
Debtors
10
Valuation of trades - overview
Majority of clients had

positions closed out
due to lack of margin
(15-16 January) or
decision to close the
book (16 January)
Due to the market

conditions
following the SNB
announcement,
many clients hit
margin limits.
Board took the

decision to close
out all remaining
open positions on
16 January.
Determine whether all

transactions were
executed in
accordance with
contractual rights and
applicable regulations
The contractual
position between
the company and
clients is
governed by the
Client Agreement.
Account statements
and client balances
issued
Make any necessary

change to prices
Examine all fact

patterns to ascertain
whether the prices
received in any of
the close out
transactions need to
be amended for the
above, or any other,
reasons.
Clients will receive

notification when they
are able to agree their
claims in the Claims
Portal.
11
Clients with open trades 15 / 16 January 2015
CHF
Non - CHF
Thursday 15
January 2015
Under review
Market
Friday 16
January 2015
Market
Market
Market - prices received by clients per Company records on 15 / 16 January 2015.

Under review - further analysis is required with respect to the treatment of CHF positions
closed out on 15 January
Clients with no CHF trades are expected to be given access to the Claims Portal to agree
their claims by 20 March 2015 subject to any other individual client issues
12

Client demographic
Employees
Debtors
13
Overview of category of claim
Clients
Clients with client money protection
Creditors
Clients without client money protection

Unsecured / trade creditors / employees
Shortfall to Clients (if any)
14
Where do I rank?
The assets realised fall into two categories: client money and non-client assets. The funds
realised, after costs, will be distributed to clients and creditors, as set out below
Client money realisations
Non-client asset realisations
Preferential creditors
(will be paid in full)
Clients
Creditors and Clients

regarding client money shortfall (if any)
To the extent that the Client Money Pool is insufficient to repay Clients in full, any unpaid
amount will rank equally with the unsecured creditors against the non-client asset realisations
15
Client claim agreement

Clients with a claim in the Client Money Pool
Number: c. 110,000 Clients
Value: USD 96.4 million
Claims Portal
Developed to agree Client claims
Cost effective and efficient method to
agree high number of Client balances
Released to majority of Clients by 3
March 2015
Envisaged available to the majority of
remaining Clients by end of March
Claims Portal is live for c. 83,840

Clients (c. USD 48.0 million)
To date 4,553 Clients have logged
onto the Claims Portal
As at 10am on 11 March 2015, 2,812
Clients have agreed their claims
(USD 13.4 million)
16
Claims Portal What does it do?
View account
balance(s)
Dispute one or
more balance
Agreed all account

balances
Zero balance
No claim
Positive balance
Assign claim to
the FSCS
Claim in special
administration
Payment by the
FSCS
Distribution
from special
administration
Waive all claims
Send explanation
and evidence
Await contact
No claim
17
Claims Portal agreement update
Value of Clients who have

completed the Claims Portal
0%
Volume of Clients who have

completed the Claims Portal
1%
2500
44%
55%
Number of Clients
2000
1500
1000
2203
500
609
59
318
Agreed and intend to assign to the FSCS ($7.5m)

Agreed and no intention to assign to the FSCS ($5.9m)
Disputed claims ($0.04m)
Waived claims ($0.1m)
Source: Alpari (UK) Limited and KPMG analysis
Note:
Data as at 10am 11 March 2015
Agreed and intend to assign to the FSCS

Agreed and no intention to assign to the FSCS
Disputed claims
Waived claims
Source: Alpari (UK) Limited and KPMG analysis
Note:
Data as at 10am 11 March 2015
18
Creditor claim agreement

Creditors
Professional
clients
Volume: 66
Value: 12.2
million
Introducing
brokers
Volume: 3,189
Value: 1.1
million
Prime brokers
Volume: 2
Value: 7.4
million
Unsecured /
trade
creditors /
employees
Volume: 380
Value: 4.8
million
Statement of Claim
Client money
shortfall (if
any)
No action
required
19
Liaison with FSCS

The FSCS has confirmed that all products offered by Alpari (UK) Limited are eligible for
compensation.
The FSCS will assess eligibility of individual Clients to make claims on a case by case basis.
The Claims Portal allows Clients to indicate whether they intend to assign their claim to the
FSCS.
All Clients who agree their claims and confirm their intention to assign their claim to the FSCS
will be contacted directly by the FSCS.
Clients who chose not to assign their claims in the Claims Portal are not precluded from later
claiming from the FSCS.
As of Friday 6 March, 1,225 agreed balances had been passed to the FSCS.
Agreed balances will be passed to the FSCS on a weekly basis.
Once a claim has been assigned, the FSCS will receive any dividends in respect of that claim.
20
Claiming from the FSCS
If you choose to accept FSCS compensation, all of your rights to claim in the administration
are legally transferred to the FSCS.
The FSCS will take assignment of the claim in the special administration for the whole of the
Clients loss (even over 50,000).
When the FSCS receives dividends, it will pay the Client any amounts that they would
otherwise have received if the Client had accepted dividends before claiming from the FSCS.
The FSCS will not make a profit on any assigned claim.
The FSCS rules require that a Client is no worse off whether you claim from the FSCS first or
whether from the Joint Special Administrators first.
Representatives from FSCS are present at the meeting and available to answer any general
questions after the meeting
21
Examples of FSCS payout
Example 1:
Client account balance = 80,000
FSCS initial compensation = 50,000
Initial dividend announcement of 50p/ results in a payment from the Joint Special
Administrators to the FSCS of 40,000
FSCS pays further compensation of 30,000 to claimant so he is fully compensated (total
80,000), and retains 10,000 recovery for itself
TOTAL RETURN TO CLIENT = 80,000
Please note that this is an illustrative example, as we are not in a position to
estimate the dividend amount at present.
22
Example 2:
FSCS pays further compensation of 50,000 to claimant (total 100,000), and retains
nothing for itself
23

Example 3:
FSCS pays further compensation of 75,000 to claimant (total 125,000), and retains
nothing for itself
Second dividend announcement of 10p/ results in a payment from the Joint Special
Administrators to the FSCS of 15,000 to claimant (total 140,000), and retains nothing for
itself
If there are further dividends they will be paid from the FSCS to the Client until such time
(if any) that the Clients full claim of 150,000 is paid
If no further dividends are paid, the Client will suffer a loss of 10,000
24

Client demographic
Employees
Debtors
25
Employees
On appointment there were 166 employees
Employee representatives were appointed and consultation took place
All employees were retained and paid until 31 January 2015
On 30 January 2015, 104 employees were made redundant and 10 employees resigned
Those employees that were retained were split into specific workstreams including Claims
Portal development, valuation of trades and assisting the Joint Special Administrators with
their duties
At present 31 employees continue to be employed
26

Client demographic
Employees
Debtors
27
Debtors and other asset realisations
Debtors
Once final statements are issued, those that owe money to the Company will be contacted for
payment and settlement details
Overseas affiliates
We have sought a sale for the Japanese subsidiary but as yet no offers have been made
Sale of business
As previously reported the Companys trademarks, domain names and licences were sold in
February 2015 for USD 6.0 million
We are progressing negotiations with a preferred bidder based on a transfer of part of the
Companys business
28
Other activities
IT and systems
The Company was heavily reliant on a substantial IT infrastructure which has had to be
secured and adapted to ensure it could support the reporting and processing requirements of
the special administration.
Property and other assets
The lease for the offices is paid up until 24 March 2015. Owing to the cost of remaining in the
current offices, the Company and its remaining employees are moving to a Regus office at
substantially lower cost.
Tax
The Company remains liable for corporation tax while in special administration.
29
Agenda
Summary proposals
Creditors committee
committee
Voting
30
Summary proposals
Proposals were provided on arrival
Please indicate if you require a copy
31
Agenda
Summary proposals
Creditors committee
committee
Voting
32
Creditors committee
Clients and creditors may establish a creditors committee
Between three and five persons may be elected
The balance of the committee between clients and creditors is set to ensure that it reflects all
interested parties
Composition is
Up to three clients (which can include the FSCS)
Up to two unsecured creditors
If more persons than indicated wish to serve in each category, members will be determined by
vote
If fewer than three persons step forward there will be no committee
All members will be required to sign a confidentiality agreement
33
Agenda
Summary proposals
Creditors committee
committee
Voting
34
Nominations currently received for committee

Clients
FSCS
Astrocyte Capital Limited (represented by Mr Piero Carbone)
Creditor
Astrocyte Capital Limited (represented by Mr Piero Carbone)
Go Markets Pty (represented by Mr Robert Berkeley)
If there is anyone else that would like to nominate themselves for the committee please see
Helen Mansfield and Helen Seaman at the front of the stage
35
Agenda
Summary proposals
Creditors committee
committee
Voting
36

Please state your name and who you are representing
37
Break
15 minutes
38
Agenda
Summary proposals
Creditors committee
committee
Voting
39
Voting
Votes are calculated on the amount of a client or creditors debt
There are two classes
Clients who have claims into the Client Money Pool
Creditors
Each class votes separately
Each resolution is only approved if both classes approve it
Wholly secured creditors may attend but not vote (none identified to date)
Partly secured creditors must deduct the value of their security and may vote for the
unsecured balance
Client votes admitted based on Company records (Chairs decision)
A resolution is passed if a majority in value, of those present and voting (in person or by
proxy) vote in favour; unless
A resolution is invalid if more than half of the clients/creditors by value, who are not connected
to the Company, vote against
40
Resolutions for clients and creditors

VOTING FORM 1
Resolution 1:
To approve the Special Administrators proposals
Resolution 2:
That a Creditors Committee be formed
Resolution 3:
For the appointment of [insert nominated name] of [insert company name, if

applicable] representing [your name] as a member of the Creditors
Committee
41
Thank you
Presentation by Richard Heis
2015 KPMG LLP, a UK limited liability partnership,

and a member firm of the KPMG network of
independent member firms affiliated with KPMG
International Cooperative, a Swiss entity. All rights
reserved.
The KPMG name, logo and cutting through
complexity are registered trademarks or trademarks
of KPMG International.

KPMG Alpari Uk

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Alpari (UK) Limited

Objectives of the SAR

Purpose of the meeting

Key actions since appointment

Key continuing workstreams

Client claims by volume

Cash balance (49,433)

Zero balance (45,524)

Cash balance ($ 23.0m)

Zero balance ($0.0m)

CHF trade (1,241)

Non CHF trade (6,676)

CHF trade ($17.0m)

Non CHF trade ($56.4m)

Source: Alpari (UK) Limited Company records and KPMG analysis

Client claims by value*

$100 - $999 (8,090)

$100 - $999 ($4.5m)

$1,000 - $9,999 ($20.5m)

$10,000 - $19,999 ($8.9m)

$20,000 - $49,999 ($12.2m)

> $50,000 ($49.6m)

Source: Alpari (UK) Limited Company records and KPMG analysis

Key continuing workstreams

Valuation of trades - overview

Majority of clients had

Due to the market

Board took the

Determine whether all

Make any necessary

Examine all fact

Clients will receive

Clients with open trades 15 / 16 January 2015

Market - prices received by clients per Company records on 15 / 16 January 2015.

Key continuing workstreams

Overview of category of claim

Clients with client money protection

Clients without client money protection

Non-client asset realisations

Creditors and Clients

Client claim agreement

Value: USD 96.4 million

Claims Portal is live for c. 83,840

Claims Portal What does it do?

Agreed all account

Waive all claims

Claims Portal agreement update

Value of Clients who have

Volume of Clients who have

Agreed and intend to assign to the FSCS ($7.5m)

Agreed and intend to assign to the FSCS

Creditor claim agreement

Liaison with FSCS

Claiming from the FSCS

Examples of FSCS payout

Examples of FSCS payout

Examples of FSCS payout

Key continuing workstreams

Key continuing workstreams

Debtors and other asset realisations

Nominations currently received for committee

Q&A in relation to proposals and conduct

Resolutions for clients and creditors