Beruflich Dokumente
Kultur Dokumente
September 2015
Executive Summary
September volatility remained higher than majority of 2015 and in result NTR was the 4 th best month in 2015.
NTR was led by our cash equities trading around the globe. Currently cash equities provide approximately
81% of our total NTR YTD. Europe and Asian Index Rebalancing also contributed approximately $800K in Sep
NTR.
Six teams are in the process of rolling out new strategies in various new products. This is consistent with our
plan to seed new teams that leverage our infrastructure and complement existing strategies. Success will help
diversify our revenue dependency on global cash equities. All new teams will not find success and appropriate
actions will continue to be considered. The 2016 budget process will provide the next opportunity to formally
consider targets and expectations.
Fixed Income is in a rebuilding stage and will be in a good position to provide growth in 2016. Some
exceptional work around microwave usage was driven by the FI team in October. This proved to be a great
example of the effectiveness of a more integrated approach. The FI team worked very closely with Network
and Core Dev teams and the results were only possible due to that close exchange of knowledge and
perspectives. FX has been fully migrated to Newedge and with the new financing line the team should be able
to grow the IHM trade to new levels. The EU market making strategy re-write is getting closer to hitting
production. The team will be better positioned in November to efficiently iterate through changes to make
the strategies more intelligent a process we successfully underwent in US Equities.
Direct Expenses remain largely under control and will continue to be analyzed for savings in order to maximize
our efficiency in spending. As of September year to date Sun is over budget by $2.1 million. Our largest driver
of expenses is employees and technology which represents 87% of the total direct expense. We are over
budget in employee costs largely due to recruiting and severance costs (note we consciously did not budget
for all projected trader hires entering 2015). The new internship program will help control and reduce the
recruiting cost in the future. Technology spend is under budget for 2015 and under 2014 levels. Technology is
a key ingredient to success for Sun and will continue to invest in areas where needed to maintain our
competitive edge. The remaining budget overrun is from the fixed asset write-off in August. These were
assets no longer in production from Toro and Endeavor transaction.
Operating margin is at 29% through Sep and off our target of 47%. Several projects are underway to improve
this margin: one reviewing any expenses that are not needed or being utilized, two promoting existing
successful strategies to new geographies and three seeding teams to better leverage existing platform. We
will be reviewing our strategic plans over next two months to ensure we enter 2016 aligned behind the right
plans to meet our targets.
Confidential
Page 1
Category
NTR
Other Revenue
Total Revenue
Employee Costs
Technology
Other Costs
Total Direct Exp
Operating Income
YTD
63,003
(465)
62,538
20,225
18,397
5,585
44,207
18,331
YoB
(16,085)
(508)
(16,592)
(1,269)
386
(1,277)
(2,160)
(18,752)
FX Currency Impact
Currency
YTD NTR
2014 Avg 2015 Avg
AUD
5,631,825
0.89904
0.77483
CAD
2,606,878
0.90348
0.80127
EUR
2,488,333
1.32160
1.10910
GBP
767,586
1.64640
1.52788
JPY
2,135,104,706
0.00941
0.00830
CHF
1,954,485
1.08972
1.06119
Estimated Total for Main Currencies
(4,013,077)
Esitmated YTD P&L Impact **
(4,606,752)
** all currencies
Global Equities Volume and Volatility
YoY
(7,127)
(297)
(7,424)
(2,476)
1,170
60
(1,246)
(8,670)
Team
USE E&F
USE EFT Arb
USE Basket
USE Index Arb
USE Initial
ADR
USE Stat Mom
FX Initial
Futures Alpha
Futures Comm RV
Futures Active
EU EQ Initial
EU Futures
Asian EQ Initial
FI US
FI Initial
OPTIONS
Total
Location
Chicago
London
New York
Total
YTD
(27)
(76)
29
2,140
25,659
1,752
1,051
1,492
1
0
0
11,809
(419)
12,983
0
5,946
0
62,340
Budget
563
281
900
1,125
31,500
563
563
2,063
281
0
0
15,938
0
12,000
0
13,313
0
79,088
LYTD
0
0
0
0
24,955
(182)
37
1,481
0
0
0
12,342
0
9,497
506
10,698
(880)
58,454
Confidential
YoB
(590)
(357)
(871)
1,015
(5,841)
1,190
489
(571)
(280)
0
0
(4,129)
(419)
983
0
(7,367)
0
(16,748)
Q4
0%
YoY
(27)
(76)
29
2,140
704
1,934
1,014
11
1
0
0
(533)
(419)
3,486
(506)
(4,752)
880
3,886
YTD
0%
0%
0%
3%
41%
3%
2%
2%
0%
0%
0%
19%
-1%
21%
0%
10%
0%
100%
Core MM
Volatility Change Sep Participation Participation Rate Change in
Core MM Sep Core MM Sep Core MM 2015 2014 YTD
Rate Sep
3 Mo Avg
Participation % 2015 NTR
2014 NTR
YTD Avg NTR Avg NTR
Region vs 3 mo Avg
AU
2.30%
3.98%
4.12%
-0.14%
278
87
316
16
EU
2.00%
3.18%
2.79%
0.39%
908
1,452
987
1,452
JP
5.10%
2.85%
2.86%
-0.01%
1,113
1,015
1,120
1,278
US
2.30%
2.35%
2.30%
0.05%
2,953
1,894
1,748
2,680
ZA
1.40%
3.09%
2.63%
0.46%
243
85
CA
0.00%
0.80%
0.79%
0.01%
146
75
145
27
25.00%
4.00%
20.00%
3.00%
15.00%
2.00%
10.00%
1.00%
5.00%
0.00%
AU
EU
Participation Rate Sep
JP
US
Participation Rate 3 Mo Avg
GL # Team
FTE
11 USE E&F
12 USE EFT Arb
13 USE Basket
14 USE Index Arb
15 USE Initial
17 ADR
18 USE Stat Mom
25 FX Initial
26 Futures Alpha
27 Futures Comm RV
28 Futures Active
30 EU EQ Initial
31 EU Futures
35 Asian EQ Initial
42 FI Initial
50 OPTIONS
0
1
2
2
10
1
1
7
0
2
2
4
2
1
4
0
39
Total
ZA
Volatility Sep
0.00%
CA
Volatility 3 mo Avg
65.1%
36.9%
49.8%
29.0%
39.0%
47.4%
29.3%
13.9%
2009
2010
2011
2012
2013
2014
2015
(YTD)
Budget
2015
Page 2
NTR Trending
Jan
Core Market Making
Asia Equities
968,219
Australia
252,610
Canada Equities
172,491
EU Equities
1,126,071
Fixed Income
660,102
Futures
FX
166,526
South Africa
US Equities
2,658,084
Total Core Market Making 6,004,103
Prop Strategies
EU Equities
Asia Equities
Fixed Income
Futures
FX
US Equities
Total Prop Strategies
Event Strategies
Asia Equities
EU Equities
Canada Equities
Futures
US Equities
Total Event Strategies
Total NTR
% of Core MM
% of Prop
% of Event
FTE
NTR per FTE
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
YTD
YTD Avg
Daily NTR
Trendline
2014 YTD
2014 AVG
Daily NTR
Growth
1,151,079
227,237
168,097
986,039
854,491
198,795
1,567,362
5,153,100
1,123,355
308,348
165,789
1,325,603
690,652
306,585
(1,371,194)
2,549,139
1,032,137
350,110
118,351
1,371,586
670,829
(19,506)
8,995
1,279,500
4,812,002
984,382
509,612
98,829
1,060,329
865,727
306,276
75,785
1,304,295
5,205,234
1,255,422
414,687
123,471
628,453
624,381
131,395
119,281
1,596,403
4,893,492
1,220,087
293,872
86,051
748,579
546,735
(319,341)
138,066
1,653,532
4,367,581
1,231,427
213,965
223,998
730,225
473,605
672,762
179,887
4,087,953
7,813,822
1,113,480
278,118
146,445
907,965
306,574
(2,211)
425,432
242,994
2,953,200
6,371,997
10,079,588
2,848,559
1,303,521
8,884,851
5,693,097
(2,211)
1,868,923
765,007
15,729,135
47,170,470
53,331
15,174
7,139
47,025
30,089
10,555
6,819
83,957
254,087
11,498,270
142,608
242,608
13,063,991
12,679,534
1,630,023
24,122,852
63,379,885
61,488
763
1,297
69,861
67,805
8,717
128,999
338,930
(8,157)
14,411
5,842
(22,836)
(37,716)
1,838
6,819
(45,043)
(84,843)
56,899
(3,780)
1,130,757
1,183,876
(102,612)
963,618
861,006
787
(23,877)
1,551,186
1,528,096
11,058
3,024
(360,182)
(346,100)
28,877
(11,799)
(2,359)
951,270
965,989
63,563
(90,104)
(44)
297,048
270,462
51,888
(1,595)
3,322
1,469,138
1,522,753
6,036
133,469
30,769
1,788,933
1,959,207
(13,583)
73,697
(66,698)
(34,076)
331,682
291,022
(13,583)
235,906
(103,293)
(6,169)
8,123,451
8,236,311
1,573
(981)
(176)
42,417
42,833
1,138,232
1,089,397
2,227,629
6,087
5,826
11,912
1,573
(7,068)
(176)
36,592
30,920
(38,124)
(96)
18,218
520,992
500,989
64,453
42,398
11,592
560,889
679,333
(93,213)
199,303
33,131
842,648
981,869
(2,058)
(7,586)
3,848
289,954
284,158
117,002
283,209
3,334
117,058
520,604
84,924
359,456
1,640
23,198
350,533
819,751
14,728
(20,400)
6,101
8,981
438,456
447,866
101,461
157,743
3,535
(40,022)
2,371,181
2,593,899
119,640
715,833
(220)
(434,581)
239,029
639,701
368,813
1,729,862
81,178
(442,423)
5,730,739
7,468,168
1,951
9,153
430
(5,085)
30,321
36,770
888,799
497,450
5,106,214
6,492,463
4,753
2,660
27,306
34,719
(2,802)
6,493
430
(5,085)
3,015
2,051
7,688,967
78%
15%
7%
133
57,812
6,693,439
77%
13%
10%
135
49,581
5,059,104
50%
30%
19%
139
36,396
4,750,060
101%
-7%
6%
139
34,173
6,691,827
78%
14%
8%
137
48,845
5,983,705
82%
5%
14%
136
43,998
6,338,199
69%
24%
7%
136
46,604
12,366,928
63%
16%
21%
135
91,607
7,302,720
87%
4%
9%
131
55,746
62,874,950
75%
13%
12%
131
479,961
333,690
76%
13%
11%
135
2,472
72,099,977
88%
3%
9%
3,277,272
10%
0%
1%
(2,943,582)
Diversification (Core)
Diversification (Prop)
Diversification (Event)
Diversification (Type)
12%
13%
Core Market Making
Prop Strategies
Asia Equities
Canada Equities
Fixed Income
FX
US Equities
Australia
EU Equities
Futures
South Africa
Confidential
75%
EU Equities
Asia Equities
Fixed Income
Futures
FX
US Equities
Event Strategies
US Equities
Page 3
Monthly (September)
Budget Variance
Last Yr
8,788
(1,493)
6,805
5
(82)
(103)
8,792
(1,574)
6,702
Actual
7,295
(77)
7,218
Actual
63,003
(465)
62,538
Year to Date
Budget
Variance
79,088 (16,085)
43
(508)
79,130 (16,592)
Last Yr
70,130
(168)
69,962
Total Expense
Bonus and related expenses
Operating Income
(4,958)
(1,211)
1,049
(4,538)
(1,761)
2,493
(420)
550
(1,444)
(4,324)
(1,019)
1,359
(44,207)
(9,945)
8,386
(42,047)
(15,849)
21,234
(2,160)
5,904
(12,848)
(42,962)
(12,708)
14,292
0
292
0
(42)
0
334
0
(276)
0
376
0
(377)
0
753
0
(1,884)
1,341
2,451
(1,110)
1,083
8,762
20,858
(12,096)
12,408
Net Income
FTE
NTR Per FTE
Cost Per FTE
Daily NTR
Daily Cost
Operating Income Margin
131
55
-38
347
(236)
31%
141
62
-32
455
(216)
48%
-10
-7
-6
-108
-20
-17%
126
53
-34
324
(206)
35%
131
477
-337
333
(234)
29%
141
561
-298
455
(222)
47%
-10
-84
-39
-122
-11
-18%
126
555
-341
373
(229)
39%
Sept NTR (GAAP) was $7.3mil for the month compared to budget of $8.8 mil and Sep 2014 month of $6.8mil. Year to date NTR
is down by 20% (or $16mil) compared to budget. USE Initial led the month with $3.7mil in NTR, EU Equities $2.0mil and Asia
Equities $1.3mil. EU Futures lost $471K due to the EU Futures Expiry strategy. EU Equities outperformed target in Sep due to
the European and Asian Index Rebalance trade, NTR was approximately $835K. Overall, NTR YTD is approximately $7.1mil
lower than last year. Half of the variance is due to the March VIX error of $3.5 and remaining variance is due to the US dollar
strengthening against major currencies (especially Japanese Yen) - $4.6mil. Japanese Yen is down 12% comparing the average
USD/YEN conversion rate year over year. FTEs reduce temporarily in Sep to 131 which increased our NTR per FTE to 477K.
Operating margin YTD remained steady at 29% which is approximately 10% off last year.
Team
Monthly Target
MoM Var
Actual YTD
YTD Target
YoY Var
NY
(3)
63
-105%
(27)
563
-105%
NY
(56)
31
-279%
(76)
281
-127%
13 USE Basket
NY
29
100
-71%
29
900
-97%
NY
300
125
140%
2,140
1,125
90%
15 USE Initial
Chi
3,791
3,500
8%
25,659
31,500
-19%
17 ADR
NY
(554)
63
-986%
1,752
563
211%
NY
83
63
33%
1,051
563
87%
25 FX Initial
Chi
375
229
64%
1,492
2,063
-28%
26 Futures Alpha
NY
31
-100%
281
-100%
27 Futures Comm RV
NY
28 Futures Active
Chi
30 EU EQ Initial
UK
2,009
31 EU Futures
UK
35 Asian EQ Initial
Chi
1,389
40 FI US
Chi
42 FI Initial
UK
375
50 OPTIONS
Chi
Total NTR
Location Actual Mo
11 USE E&F
(471)
0%
0%
1,771
13%
11,809
15,938
0%
0%
1,333
4%
12,983
12,000
8%
0%
5,946
13,313
1,479
7,267
8,788
-75%
0%
-17%
(419)
62,340
79,088
0%
0%
-26%
0%
-55%
0%
-21%
Confidential
Page 4
Below is the major currencies year over year average USD conversion rates and P&L impact on our daily conversion. YTD FX
impact of $4.6mln and $3.5mln trading error is approximately 49% of the budget shortfall. Majority of the FX impact is due to
JPY earnings.
Currency
YTD NTR
2014 Avg 2015 Avg P&L Impact
AUD
5,631,825 0.89904 0.77483
(699,520)
CAD
2,606,878 0.90348 0.80127
(266,441)
EUR
2,488,333 1.32160 1.10910
(528,760)
GBP
767,586 1.64640 1.52788
(90,972)
JPY
2,135,104,706 0.00941 0.00830
(2,371,618)
CHF
1,954,485 1.08972 1.06119
(55,767)
Total for Main Currencies
(4,013,077)
Total for all Currencies
(4,606,752)
US Equities Initial spiked in Q3 to 52% of NTR due to the August volatility and performance. Of the YTD NTR total US Equities
represents 41% of total, EU Equities represents 19% of the YTD NTR, Asia trading representing 21% and Fixed Income trading
10%. Global cash equities are 81% of NTR.
Team
USE E&F
USE EFT Arb
USE Basket
USE Index Arb
USE Initial
ADR
USE Stat Mom
FX Initial
Futures Alpha
Futures Comm RV
Futures Active
EU EQ Initial
EU Futures
Asian EQ Initial
FI US
FI Initial
OPTIONS
Total
Q1
0.0%
0.0%
0.0%
6.3%
35.1%
1.2%
2.5%
3.0%
0.0%
0.0%
0.0%
19.3%
0.0%
20.9%
0.0%
11.5%
0.0%
100%
% of NTR
Q2
Q3
Total
-0.4%
0.1%
0%
0.0%
-0.3%
0%
0.0%
0.1%
0%
0.1%
3.5%
3%
31.6%
52.0%
41%
3.3%
3.7%
3%
0.3%
2.0%
2%
2.0%
2.1%
2%
0.0%
0.0%
0%
0.0%
0.0%
0%
0.0%
0.0%
0%
23.9%
15.4%
19%
-0.2%
-1.5%
-1%
26.1%
17.2%
21%
0.0%
0.0%
0%
13.3%
5.6%
10%
0.0%
0.0%
0%
100%
100% 100%
The average daily NTR was $347K in Sep compared to $614K previous month and last Sep 2014 was $324K. Sep average NTR
was the 4th highest month in 2015. This was driven by slightly higher volatility. The average daily NTR goal for 2015 is $455K
putting Sep 23% below our goal. NTR per FTE for Sep is $55K and cost per FTE in Sep excluding bonus is $38K slightly over
budget of $32K. YTD cost per FTE is lower than previous year of $337K vs $341K but higher than budget $298K. The main
driver on expense is recruiting cost. Recruiting cost for the year is $1.3mil compared to budget of $577K and previous year
$1.1mil. Recruiting expense is accounting for 59% of the budget overrun.
Volatility in US Equity markets remained higher than 3 month rolling average 15% vs 12.9%. US Equities Initial realized $3.7mil
NTR for the month of Sep which remains higher than the YTD average of $2.8mil. Japan volatility increased in Sep 22% vs 3
Confidential
Page 5
month rolling average 17%. Asia Equities NTR was fairly flat compared to 2015 average NTR ($1.1mil in Sep vs $1.1mil 2015
avg). EU Equities market making is still in the process of being revamped and was slightly lower than their YTD average NTR
(Sep $908K vs YTD avg $987K). Volatility in Europe markets was 21.8% in Sep compared to 19.8%. Overall, no major changes in
participation rates except for South Africa which increased to 3.09% compared to 3 month avg of 2.63%. Volatility in South
Africa remained fairly constant 14.4% in Sep vs 3 month average of 13%.
Volume and Volatility Report
- Market volume is single counted i.e every trade is counted only once either on the buy side or sell side.
- All Sun trades are counted i.e. all buys and sells.
- Shares are in millions. Notional values are in million USD.
- Participation Rate = Sun volume / Single Counted Market Volume.
- First set of green cells signify increase in market share compared to most recent three months rolling average.
Next two set of green cells signify year on year increase.
Stocks
09/01-09/30
9/1/2015
9/30/2015
Market
Participation
Rate
Sun
Intraday Volatility
Future
Rolling 3 Months
Current
Previous
Year
Year
12.86
19.79
13.35
16.99
1.19
4.26
0.42
4.87
13.74
13.00
09/01-09/30
ES:XC
S&P Emini
FESX Euro Stoxx 50 Index
Z:IL
FTSE 100 Index
NK225:OSNikkei 225 Index
ZT:CB 2Y US Treasury
ZN:CB 10Y US Treasury
FGBS Euro-Shats
FGBL Euro-Bund
AP:AS Australian Stock Index
ALSI:SX South African Stock Index
15.19
21.77
15.54
22.14
1.11
4.00
0.43
4.50
16.00
14.40
Market
Market
Sun
Participation Rate
Sun
Jan - July
Current
Previous
Year
Year
Market
Participation
Rate
Sun
AU
AP:AS
Shares
Notional
Volatility
1,994
4,234
16.0%
79
119
3.98%
2.81%
1,955
4,210
13.7%
81
107
4.12%
2.54%
2,108
4,519
12
39
0.56%
0.85%
1,903
4,397
69
90
3.63%
2.04%
1,896
4,393
36
58
1.90%
1.32%
Shares
Notional
709
8,655
6
109
0.80%
1.26%
703
8,254
6
114
0.79%
1.38%
696
10,224
3
86
0.42%
0.85%
768
9,112
5
124
0.65%
1.36%
779
9,880
4
97
0.45%
0.98%
Shares
Notional
Volatility
5,457
55,994
21.8%
173
2,084
3.18%
3.72%
5,448
55,371
19.8%
152
1,920
2.79%
3.47%
4,701
46,950
139
2,302
2.95%
4.90%
5,962
58,399
175
2,426
2.94%
4.15%
5,677
55,102
171
2,599
3.02%
4.72%
Shares
Notional
Volatility
2,837
27,319
22.1%
81
705
2.85%
2.58%
2,981
27,861
17.0%
85
746
2.86%
2.68%
2,603
22,703
85
642
3.28%
2.83%
2,932
26,820
15.41%
82
713
2.80%
2.66%
2,891
25,919
92
718
3.18%
2.77%
Shares
Notional
Volatility
7,340
286,237
15.2%
173
5,873
2.35%
2.05%
7,324
293,568
12.9%
169
5,840
2.30%
1.99%
5,609
250,550
137
5,693
2.45%
2.27%
6,854
279,910
11.86%
135
5,118
1.98%
1.83%
6,565
273,430
145
5,732
2.21%
2.10%
Shares
Notional
Volatility
294
1,566
14.4%
9
93
3.09%
5.91%
269
1,490
13.0%
7
84
2.63%
5.66%
212
0.00%
255
1,493
5
66
2.03%
4.45%
CA
EU
FESX
JP
NK225:OS
US
ES:XC
ZA
ALSI:SX
CME
09/01-09/30
Market
Agriculture
Currency
Energy
Equities
Rates
Metals
Other
812,029
833,750
1,651,764
2,909,047
4,418,447
252,014
3,171
VIX
Sun
974
4,449
105
7,925
15,654
45
Participation
Rate
0.12%
0.53%
0.01%
0.27%
0.35%
0.02%
0.00%
09/01-09/30
Market
251,344
Participation
Rate
1,051
0.42%
Sun
Market
Market
#DIV/0!
Sun
764,465
693,629
1,300,181
2,031,416
5,485,724
263,093
2,993
1,586
21
620
39,947
129
Participation Rate
0.00%
0.23%
0.00%
0.03%
0.73%
0.05%
0.00%
Market
991,964
792,910
1,635,257
2,194,860
5,239,014
304,115
3,143
Sun
2,383
Sun
1,392
2,034
200
5,255
26,601
107
Participation
Rate
0.14%
0.26%
0.01%
0.24%
0.51%
0.04%
0.00%
Participation Rate
1.21%
Market
210,874
Participation
Rate
1,051
0.50%
Sun
#REF!
#REF!
#REF!
#REF!
#REF!
#REF!
Market
Market
Confidential
#REF!
#REF!
#REF!
Page 6
Overall direct expense for YTD Sep is 5% higher than budget. Current month expense was $4.5mil compared to budget of $4.3mil.
YTD expense is $44.2mil vs budget of $42.7mil a variance of $2.1mil or 5%. Year over year is higher by $1.2mil - $44.2mil vs
$42.9mil. The majority of the over budget is due to recruiting cost $1.3mil actual expense compared to budget of $577k. Other
factors affecting the budget overrun is Business Travel and Other Expense which will be discussed below.
Total Employee compensation and related expenses were $2.2mil slightly higher than month to date budget of $2.1mil. YTD cost
is 7% higher mainly due to recruiting costs of $1.3mil vs budget of $577K. Severances were $165K for the month of Sep bringing
YTD total to $252K which no budget was created for 2015.
o
o
o
o
o
Employee costs continue to be flat to budget YTD 1% off but 15% above last year.
Severance costs YTD are $252K with no 2015 budget.
Benefits variance is slightly flat to budget by 0%.
Employee recruiting costs for the month was $97K compared to budget of $64K. YTD remains higher than budget for 2015
by $739K (Actual $1.3mil vs Budget $577K).
Total current headcount is 131 compared to budget of 141 and 126 Sep 2014.
Location
London
Chicago
New York
Total Sun FTE
Additions
Terms
Net
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
22
92
19
133
22
93
20
135
22
94
22
138
21
95
23
139
22
92
23
137
23
90
23
136
23
90
22
135
23
90
22
135
24
85
22
131
5
1
4
2
0
2
5
1
4
4
3
1
2
4
-2
1
2
-1
5
6
-1
2
2
0
4
7
-3
Budget Difference
21
3
98
-13
22
0
141
-10
Technology spending for the month is slightly higher compared to budget. Current month expense was $2.1mil. YTD remains
under budget by $385K, $18.3mil compared to $18.7mil budgeted or 2% better than budget. Last year YTD Sep expense was
$19.5mil, or a $1.2mil decrease year over year.
o Data fees & Port fees are 14% better than YTD budget ($465K) due to cancellation of ports by IT and better monitoring tools.
o Colocation & Connectivity costs are 4% better than YTD budget ($156K).
o Market Data expenses are 8% higher than budget ($286K). Project underway to analyze market data usage.
o Leased expenses are 3% better than budget ($44K).
o Other Technology Expenses are 20% better than budget ($353K).
Other Expense is over budget by $104K for the month and YTD is over budget by 30% or $1.2mil. The over budget in Sep Other
Expenses is due to an annual membership which could possibly be reversed and treated as a pre-paid. YTD over budget is largely
due to the assets from the Toro and Endeavor transactions which were written off in Aug in the amount of $663K.
o Business Travel continues to be over YTD budget by 104% or $229K due to increase travel between offices.
o Rent & Occupancy is over YTD budget by 3% or $42K. Rent escalation for 2015 was not included in budget.
o Professional fees are over YTD budget by 52% or $359K. This is mainly due William Blair (equity/debt raise), employee
matters and Lombard consulting.
o Depreciation expense is under budget by 2% or $26K. This is under budget due to the Aug write-off of Toro and Endeavor
assets.
o Other Expenses is over YTD budget by 106% or $671K. Previously this category was under budget as SIPC fees are low for
2015. The Fixed Asset write-off of $663K is the cause of the budget overrun.
Chicago office represents $16.8mil of Net Income, London office $3.4mil of Net Income and New York office represents a loss of $1.8
(below is the NTR performance, Expenses and Net Income by office).
Confidential
Page 7
The pre-tax operating profit for the month was a profit of $1.0mil compared to budget of $2.4mln and last year was a gain of
$1.3mil. YTD pre-tax operating profit is $8.3mil compared to budget of $21.2mil and last year $14.3mil. Overall, NTR decreased in
Sep compared to previous month due to the large volatility spike in Aug but Sep NTR was the 4th best month in 2015. Total expense
for the month was slightly higher than budget by $419K due to additional recruiting expenses ($97K) and severances totaling
($165K). YTD NTR has been impacted by; USD strengthening against most major currencies resulting in a $4.6mil loss overall of the
variance year over year, March $3.5mln Vix trading error and lower NTR performance by Team 42 $7.3mil, USE Initial $5.8mil and EU
Equities $4.1mil compared to target NTR.
Net Income After tax is a profit of $1.3mil for the month compared to budget of $2.4mil and a profit of $1.0mil a year ago. STI is
operating at an YTD loss of $416K, therefore resulting in a tax credit of $376K for the year. YTD after Net Income After Tax is
$8.7mil versus $20.8mil budget, off by 58% and compared to last year is off by 29%.
Sep operating income margin remained at 29% and is off compared to budget of 47.4% and previous year 39%. Expenses
remain under control and slightly over 2015 budget which is mainly due recruiting expense, severances and the fixed asset
write-off. Revenue is off target compared to budget by 20% and 10% off compared to Sep 2014. Volatility in Sep remained
better than YTD average but decreased compared to prior month. Several teams remain under target due to the slow market
volatility in the first half of 2015.
Confidential
Page 8
MONTHLY
MONTHLY
MONTHLY
MONTHLY
MONTHLY
MONTHLY
MONTHLY
MONTHLY
YTD
FULL YEAR
FULL YEAR
FULL YEAR
FULL YEAR
FULL YEAR
ACTUAL
ACTUAL
ACTUAL
ACTUAL
ACTUAL
ACTUAL
ACTUAL
ACTUAL
ACTUAL
ACTUAL
BUDGET
ACTUAL
ACTUAL
ACTUAL
ACTUAL
Jan
20
Feb
19
Mar
22
Apr
21
May
20
June
22
July
22
August
21
September
21
2015
188
2015
252
2014
252
2013
252
2012
252
2011
252
Revenue:
Trading Gains
Interest, net
Dividends, net
Less: Comm, clrg, brkrge & other trading costs
Net Trading Revenue
$13,465,399
$11,783,617
$10,153,791
$10,133,007
$11,737,693
$12,282,482
$12,741,518
$19,733,137
$14,386,219
$116,416,863
$105,450,000
$147,958,109
$141,572,154
$84,107,603
($318,012)
($328,136)
($435,750)
($547,364)
($522,288)
($395,396)
($374,363)
($515,471)
($3,700,958)
$820
($3,330,955)
($1,957,027)
$35,119
$28,102
$157,588
($16,034)
$37,973
($288,727)
($36,202)
($91,520)
($933,747)
($1,107,448.06)
$56,400
($2,052,763)
$1,196,940
($49,140,996)
($42,149,462)
($27,364,650)
($30,555,643)
$93,433,394
$98,662,604
$55,348,553
$73,405,270
$86,500
($5,689,277)
($4,673,734)
($5,263,720)
($4,581,461)
($4,793,261)
($5,615,978)
($5,974,388)
($6,370,887)
($5,642,391)
($48,605,097)
$7,547,062
$6,819,973
$4,719,524
$5,099,761
$6,435,041
$5,855,489
$6,335,532
$12,896,367
$7,294,611
$63,003,360
$105,507,220
($2,130,804)
$109,394,934
($264,179)
$736,403
($3,960,996)
($1,473,025)
$4,719
CCYgain/loss:BrokerBalances/Consolidation
Total Other Trading Income (Costs)
Total Revenue
$5,001
$5,001
$5,095
$5,018
$105,247
$132,827
$229,827
$127,690
($484,973)
$149,778
$4,772
($445,639)
$65,622
$400,893
$5,001
($53,974)
$76,295
($163,992)
$5,018
$32,637
($81,552)
($570,527)
($345,895)
$56,877
$7,857
$95,802
($480,254)
$154,550
($380,017)
$405,894
($48,974)
$81,296
($158,974)
$37,733
($76,534)
($465,280)
($213,068)
$286,705
$135,547
$182,302
$7,066,808
$6,974,523
$4,339,507
$5,505,655
$6,386,068
$5,936,786
$6,176,558
$12,934,099
$7,218,077
$62,538,080
$105,507,220
$93,220,326
$98,949,309
$55,484,100
$73,587,572
$1,613,287
$1,639,782
$1,651,364
$1,698,102
$1,745,005
$1,733,365
$1,840,885
$1,729,543
$1,673,566
$15,324,897
$20,255,210
$17,913,040
$15,292,185
$14,440,321
$13,753,289
$0
$0
$35,379
$11,552
$5,615
$16,667
$2,953
$14,269
$165,677
$252,112
$281,474
$175,757
$104,956
$270,090
$309,735
$301,615
$293,592
$3,197,987
$4,161,408
$3,927,353
$3,204,449
$3,306,664
$3,351,380
$769,849
$1,715,065
$351,176
$464,740
$553,733
$0
$0
$52,053
$32,718
$23,412,006
$23,087,570
$25,868,169
Operating Expenses:
EE
Salaries
EE
Severance
EE
Employee Benefits
$464,580
$576,482
$348,661
$304,253
$296,414
$302,655
EE
Employee Recruitment
$345,808
$85,030
($10,370)
$337,144
$138,652
$163,343
$82,785
$76,099
$97,903
$1,316,392
EE
Other (expats)
$0
$0
$0
$27,397
$22,624
$6,613
$64,314
$6,180
$6,076
$133,205
IT
$272,299
$347,040
$307,176
$318,286
$305,285
$310,776
$324,473
$326,582
$343,927
$2,855,845
$4,428,599
$4,421,930
IT
$454,927
$458,486
$408,619
$515,315
$491,697
$495,885
$428,939
$429,881
$495,956
$4,179,706
$5,757,027
$5,987,611
IT
$487,241
$500,944
$498,246
$511,075
$464,336
$534,460
$515,624
$569,855
$515,536
$4,597,316
$5,051,709
$6,076,696
IT
$388,184
$430,174
$421,797
$413,604
$516,688
$458,816
$389,525
$396,605
$464,100
$3,879,493
$4,866,279
$4,637,851
IT
$149,006
$58,465
$195,828
$118,707
$128,212
$271,945
$152,654
$154,369
$216,405
$1,445,591
$1,954,742
$1,716,140
IT
$177,026
$231,220
$162,653
$182,862
$167,479
$165,500
$133,521
$112,467
$106,315
$1,439,043
$2,475,181
$2,570,339
$58,936
$37,081
$51,553
$61,315
$54,122
$48,353
$55,955
$47,294
$35,161
$449,768
$394,067
$539,931
$445,297
$436,944
$552,989
$137,291
$155,635
$132,992
$164,336
$159,777
$159,678
$140,738
$158,014
$150,957
$1,359,417
$1,731,726
$1,865,399
$1,533,697
$1,574,872
$1,282,404
$112,405
$99,642
$230,415
$78,303
$79,059
$120,263
$102,476
$152,711
$78,475
$1,053,749
$904,350
$1,185,010
$1,352,958
$650,161
$2,227,340
$146,258
$145,327
$152,807
$154,929
$165,660
$221,963
$166,169
$130,776
$131,244
$1,415,134
$1,928,511
$2,806,513
$2,570,697
$3,138,989
$3,663,475
$75,553
$115,136
($11,846)
$56,153
$55,146
$36,566
$101,429
$695,879
$182,965
$1,306,981
$848,274
$1,258,045
$1,341,285
$498,700
$690,551
$4,882,800
$4,880,444
$4,953,331
$4,795,771
$5,046,846
$4,812,175
$5,302,139
$4,957,856
$44,206,635
$55,526,932
$56,902,396
$49,679,508
$47,755,971
$52,246,138
OTHER Other
Total Operating Expenses
Operating Income before bonus and related taxes
Bonus Accrual and related taxes & interest
Operating Income before bonus & related taxes
Total Restructure Costs
NET INCOME BEFORE TAX
Foreign Income Tax
NET INCOME
$4,575,275
$2,184,009
$2,094,079
($235,768)
$552,324
$1,590,296
$889,940
$1,364,384
$7,631,960
$2,260,221
$18,331,445
$49,980,288
$36,317,930
$49,269,802
$7,728,129
$21,341,434
$1,558,113
$925,458
($1,165,008)
$730,057
$1,176,176
$806,945
$1,043,853
$3,657,810
$1,209,698
$9,943,102
$21,132,113
$16,673,529
$19,925,377
$8,049,128
$11,370,562
$625,896
$1,168,620
$929,240
$414,120
$82,995
$320,531
$3,974,151
$1,050,523
$8,388,342
$28,848,175
$19,644,400
$29,344,424
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$379,176
$625,896
$1,168,620
$3,974,151
$1,050,523
$8,388,342
$28,848,175
$19,644,400
$28,965,248
($1,716,009)
$6,078,718
$0
$0
$501,563
$2,054,382
$4,695,684
$1,797,793
$2,293,676
$625,896
$1,168,620
$28,346,613
$17,590,019
$24,269,564
($3,513,802)
$3,785,042
($177,732)
$0
$929,240
($177,732)
($215,817)
$56,705
$1,145,056
($234,437)
$414,120
($2,353)
$416,473
$82,995
$320,531
($64,978)
($15,685)
$147,973
$336,216
$157,592
$3,816,559
($291,918)
$1,342,442
($376,455)
$8,764,797
($321,000)
$1,395,010
$9,970,872
$3,892,154
Metrics
Salaries & Benefits (% of NTR)
34.3%
33.0%
46.7%
43.2%
34.6%
37.4%
37.2%
16.5%
31.0%
32.3%
23.9%
25.6%
19.2%
33.1%
22.0%
13.3%
-26.8%
13.3%
18.4%
13.6%
16.9%
28.3%
16.8%
15.9%
20.0%
17.9%
20.1%
14.5%
15.5%
27.3%
29.1%
46.0%
37.4%
32.5%
37.7%
31.5%
15.4%
29.7%
29.4%
23.3%
27.3%
23.7%
41.6%
35.2%
Occupancy (% of NTR)
Operating Income Margin (% of NTR)
Total Headcount
24.4%
1.9%
2.2%
3.1%
3.0%
2.5%
2.7%
2.3%
1.2%
2.1%
2.2%
1.6%
2.0%
1.5%
2.8%
1.7%
30.9%
30.0%
-5.4%
10.0%
24.9%
15.0%
22.1%
59.0%
31.3%
29.3%
47.4%
39.0%
49.8%
13.9%
29.0%
133
135
139
139
137
136
135
135
135
135
141
127
121
108
103
$377,353
$358,946
$214,524
$242,846
$321,752
$266,159
$287,979
$614,113
$347,362
$335,124
$418,679
$370,767
$391,518
$219,637
$291,291
$244,140
$256,865
$207,967
$235,873
$239,789
$229,402
$218,735
$252,483
$236,088
$235,142
$220,345
$225,803
$197,141
$189,508
$207,326
$53,134
$51,663
$31,219
$39,609
$46,614
$43,653
$45,752
$95,808
$53,467
$463,245
$748,278
$734,018
$817,763
$513,742
$714,442
$16,421
$15,512
($1,696)
$3,974
$11,608
$6,544
$10,107
$56,533
$16,742
$135,788
$354,470
$285,968
$407,188
$71,557
$207,198
$36,713
$36,151
$32,916
$35,635
$35,006
$37,109
$35,646
$39,275
$36,725
$327,457
$393,808
$448,050
$410,574
$442,185
$507,244
$2,459,125
$2,579,150
$2,550,241
$2,574,884
$2,587,461
$2,824,204
$2,511,502
$3,174,433
$2,721,042
$23,982,042
$30,340,464
$33,065,464
$30,655,941
$29,387,236
$34,284,928
Page9
SunHoldings,LLC
P&LBYTRADINGTEAM
YTDActualasofSeptember30,2015
USE
REVENUES:
TradingGainsandLosses,net
Interest,net
Dividends,net
Less:Commissions,Clearing,Brokerage,etc.
TradingRevenue,net
USE
USE
E&F
ETFARB.
BASKET
INDEXARB
INITIAL
STATMOM
INITIAL
ALPHA
COMMRV
ACTIVE
INITIAL
Team11
Team12
USE
Team13
Team14
Team15
USE
Team17
ADR
Team18
USE
Team25
FX
FUTURES
Team26
Team27
Team28
Team30
($18,477)
($3,572)
($55,673)
($23,035)
$29
$2,294,831
($40,848)
$33,534,653
($709,350)
$2,398,834
($504,136)
$1,096,450
($6,335)
$2,112,336
$1,452
($4,921)
($26,971)
$2,355
($76,352)
($0)
$29
($114,372)
$2,139,611
($7,166,458)
$25,658,845
($142,502)
$1,752,196
($39,146)
$1,050,969
($620,042)
$1,492,294
$1,452
FUTURES
FUTURES
EUEQ
EUFUTURES
ASIANEQ
Team31
Team35
FIMETIS
FI
Team41
Team42
INITIAL
$11,999,991
($7,483)
($419,066)
($0)
$13,978,554
($786)
$5,864,418
($183,024)
$11,809,485
$39
($419,027)
($994,646)
$12,983,122
$82,059
$5,946,477
OtherIncome
SubsidiaryIncome
FXgain/loss
TotalOtherRevenue
TotalRevenues
($26,971)
($76,352)
$29
$2,139,611
$25,658,845
$1,752,196
$1,050,969
$1,492,294
$1,452
$11,809,485
($419,027)
$12,983,122
OPTIONS
FIRM
TOTAL
INITIAL
$5,946,477
Team50
$43,628,529
($2,405,413)
($1,107,448)
($39,424,439)
$691,229
$116,416,864
($3,700,959)
($1,107,448)
($48,605,097)
$63,003,360
$105,248
$105,248
($570,527)
($465,279)
($570,527)
($465,279)
$225,950
Page10
$62,538,080
SunHoldings,LLC
P&LBYTRADINGTEAM
YTDActualasofSeptember30,2015
USE
EXPENSES:
Salaries
Severance
Benefits(withoutbonusandaccronbonus)
Recruitment/Relocation
OtherExpats
SalaryRecharge
Employeecompensationandrelatedbenefits
Data&PortsFees
Colocation&relatedexpenses
Connectivity&relatedexpenses
MarketData&relatedexpenses
LeasedEquipment&relatedexpenses
OtherTechnologyexpenses
Technologyandcommunicationsrecharge
Technology&CommunicationsTotal
BusinessDevelopment&Travel
Rentandoccupancy
OutsideservicesorProfessionalFees
Depreciationexpense
Other
OtherExpensesTotal
USE
USE
E&F
ETFARB.
BASKET
INDEXARB
INITIAL
Team11
Team12
USE
Team13
Team14
Team15
$167,518
$225,690
$271,193
$565,864
$27,898
$18,832
$32,822
$117,619
$195,416
$244,522
$304,015
$13,500
$1,000
$77,745
$20,092
$11,320
USE
ADR
USE
Team17
FX
FUTURES
FUTURES
FUTURES
EUEQ
STATMOM
INITIAL
ALPHA
COMMRV
ACTIVE
INITIAL
Team18
Team25
Team26
Team27
Team28
Team30
EUFUTURES
ASIANEQ
Team31
Team35
FIMETIS
FI
Team41
Team42
INITIAL
$1,716,388
$34,577
$411,492
$33,569
$365,139
$140,517
$1,159,691
$230,204
$94,039
$264,712
$451,792
$150,000
$16,324
$264,159
$107,357
$44,281
$12,042
$44,662
$413
$1,056,968
$109,610
$224,417
$100,877
$190,210
$69,180
$29,515
$809
$126,597
$14,239
$683,483
$2,196,026
$434,319
$156,841
$1,531,207
$274,485
$106,081
$309,787
$1,491,872
$220,534
$578,389
$164,239
$73,468
$1,748,543
$482,000
$17,193
$1,707,245
$121,198
$9,650
$200,580
$121,302
$21,406
$187,356
$14,750
$26
$30,653
$234
$28,958
$200,114
$355,628
$525,248
$27,591
$937,831
$1,827
$1,675
$91,245
$21,326
$11,320
$104,122
$3,969,731
$150,182
$209,764
$532,319
$1,827
$300
$9,263
$20,632
$9,310
$340
$18,573
$1,595
$39,874
$4,035
$8,073
$234,795
$107,418
$3,912
$37,534
$242
$9,287
$14,170
$146,327
$7,942
$472
$18,526
$233,342
$321,528
$123,015
$83,461
$158
$2,724
$4,937
$121,916
$158
$1,849,022
$4,937
$883,262
$21,627
$50
$65,861
$2,519
$28,019
$30,490
$170
$96,571
$34
$9,597
$577
$30,520
$350
$19,263
$3,034
$48,537
$119,667
$469,953
$70,273
$111,719
$34
$9,563
$6,770
$175,208
$34
$19,032
$250
$1,691
$411
$411
$13,946
$152,337
$4,771
$13,217
$219,164
$403,436
TotalDirectExpenses
$296,258
$296,368
$334,598
$836,141
$6,635,710
$696,220
$376,167
$2,238,734
$295,344
$107,772
$310,356
$3,744,330
$253,490
$1,558,221
OperatingIncomeBeforeBonus&RelatedTaxes
($323,228)
($372,720)
($334,569)
$1,303,469
$19,023,135
$1,055,976
$674,801
($293,891)
($107,772)
($310,356)
$8,065,155
($672,517)
$11,424,901
($746,440)
$1,442
OPTIONS
TOTAL
$649,189
$27,993
$297,712
$29,624
Team50
$9,310
$7,625,784
$79,933
$1,436,885
$1,043,744
$133,205
$15,324,897
$252,112
$3,197,987
$1,316,393
$133,205
$1,004,518
$9,310
$10,319,552
$20,224,593
$98,536
$400
$2,855,845
$4,179,706
$4,597,316
$3,879,493
$1,445,591
$1,439,043
$10,000
$382,876
$260
$12,068
$2,729,628
$4,408,111
$200,015
$1,445,591
$1,280,294
$10,000
$481,672
$12,468
$10,063,639
$18,396,993
$37,573
$107,277
$845
$715
$324,680
$510,451
$924,865
$1,371,426
$842,426
$3,973,848
$449,768
$1,359,417
$1,053,749
$1,415,133
$1,306,981
$5,585,049
$3,873
$41,272
$186,967
$715
$174,239
$1,673,157
$22,493
$24,357,039
$44,206,635
($174,239)
$4,273,320
($22,493)
($24,131,089)
$18,331,445
Bonusandrelatedtaxesandinterest
OPERATINGINCOME
FIRM
INITIAL
$9,943,102
$9,943,102
($323,228)
($372,720)
($334,569)
$1,303,469
$19,023,135
$1,055,976
$674,801
($746,440)
($293,891)
($107,772)
($310,356)
$8,065,155
($672,517)
$11,424,901
($174,239)
$4,273,320
($22,493)
($34,074,191)
$8,388,343
($323,228)
($372,720)
($334,569)
$1,303,469
$19,023,135
$1,055,976
$674,801
($746,440)
($293,891)
($107,772)
($310,356)
$8,065,155
($672,517)
$11,424,901
($174,239)
$4,273,320
($22,493)
($34,074,191)
$8,388,343
TotalRestructureCosts
NETINCOMEBEFORETAX
ForeignIncomeTaxExpense
($323,228)
($372,720)
($334,569)
DepartmentExpenses
CorporateExpenses
TechnologyColocation
TechnologyConnectivity
TechnologyAllotherITexpenses
MarketData
AllocatedBonusControlDepartments
AllocatedBonusTechnologyStaff&MarketData
TotalAllocatedExpenses
$21,067
$118,926
$13,234
$44,892
$73,595
$28,009
$13,125
$24,352
$337,199
$51,067
$113,456
$28,234
$67,392
$73,595
$29,004
$13,125
$24,352
$400,225
NETINCOME(AfterAllocations)
($660,427)
($772,945)
NETINCOME(BeforeAllocations)
$1,303,469
$19,023,135
$1,055,976
$674,801
($746,440)
($293,891)
$51,067
$119,041
$28,234
$142,392
$103,576
$29,004
$13,125
$34,273
$520,711
$44,591
$160,640
$58,234
$163,392
$240,084
$29,004
$3,750
$69,516
$769,210
$576,325
$216,657
$2,832,770
$1,392,350
$2,282,309
$616,195
$148,125
$755,207
$8,819,938
$43,772
$153,009
$37,645
$123,160
$164,243
$14,004
$11,250
$54,347
$601,429
$58,362
$113,216
$28,234
$44,892
$73,595
$67,035
$15,000
$24,352
$424,686
$14,591
$134,719
$489,382
$351,780
$689,963
$140,044
$3,750
$228,306
$2,052,535
$14,591
$115,933
$13,234
$37,392
$73,576
$28,009
$3,750
$34,273
$320,757
($855,281)
$534,259
$10,203,197
$454,547
$250,115
($2,798,975)
($614,648)
($107,772)
($310,356)
$8,065,155
($672,517)
$11,424,901
($174,239)
$4,273,320
($22,493)
($376,455)
($376,455)
($33,697,736)
$8,764,798
ALLOCATEDEXPENSES:
$1,371,507
$821,949
$884,652
$715,015
$959,261
$266,084
$352,500
$317,416
$5,688,385
($107,772)
($310,356)
$2,376,770
$437,715
$347,227
$169,402
$165,619
$295,840
$70,022
$112,500
$97,892
$1,696,216
($672,517)
$9,728,685
$233,448
$209,524
$291,747
$647,404
$636,797
$84,027
$60,000
$210,714
$2,373,660
($174,239)
$1,899,660
($2,918,100)
($2,624,296)
($4,875,000)
($3,895,681)
($5,666,433)
($1,400,443)
($750,000)
($1,875,000)
($24,004,952)
($22,493)
($9,692,784)
Page11
$8,764,798
ASSETS
Cash and Investment Securities
$4,109,956
Securities Owned
$381,306,831
$471,021,046
Exchange Memberships
$5,247,620
$4,621,353
Other Assets
$2,277,200
TOTAL ASSETS
$868,584,007
$750,834,067
$4,481,795
$8,833,568
$14,198,741
$1,370,327
Distributions Payable
$716,781
TOTAL LIABILITIES
$780,435,278
MEMBER'S CAPITAL
$88,148,729
$868,584,007
Page12
$88,432,277.76
$8,764,798.06
Capital Withdrawls
($1,407,093.91)
($5,514,283.71)
($2,126,969.17)
$88,148,729.03
13.2%
Page13
TOTAL
YTD
NET INCOME
$8,764,797.88
$1,415,133.20
($0.01)
($2,481,120.35)
$1,297,680.84
$45,862.60
($4,537,479.65)
$143,384.24
$4,648,258.74
($1,211,030.94)
($1,211,030.94)
($9,048,346.79)
($9,048,346.79)
($5,611,118.99)
Page14