Value-Add Simulations
Compass Commercial Definitions
To get a better understanding of the Principal Components of our Value-Add proposition, we attempted to categorise the tangible value-add sections via Commercial Definitions
There's a huge amount of discretionary value of Compass via features that are harder to put a dollar value on e.g. how control over your spreads can attract more business. Growth in general is a very interesting subject
Tangibles
The value-added sim is an example of some forms of benefits the product brings that are less discretionary that can help rationalise when a business is in the right shape for taking on a Compass License.
Value-Add Simulation
This is an attempt to simulate and demonstrate our ROI capability with the least amount of assumptions.
It applies a bunch of known Compass based techniques to a client/prospect's trades using the prospect/client's fill price as a starting point and demonstrates what trades we would have done and at what price.
Helping to put a number on the value-add the product brings.
As with all simulations, this approach also, helps us tune our system configuration based on a client's flow. Arriving at a better configuration ahead of go-live and without risking capital.
Example
Current B-book PNL: $804.3K YIELD: $7.9/M CLIENT-ACCEPTED: $101.7B
Liquidity Reduction in Action
CLIENTS_LR_EXTSWEEP: PNL: $977.6K CLIENTS_LR_EXTSWEEP: YIELD: $9.6/M
CLIENTS_LR_CPTY: PNL: $3.0M CLIENTS_LR_CPTY: YIELD: $29.9/M
CLIENTS_LR_GLOBAL: PNL: $4.0M CLIENTS_LR_GLOBAL: YIELD: $39.0/M
Rolled up summary
CLIENTS_COMPASS: PNL: $4.3M CLIENTS_COMPASS: YIELD: $41.8/M
Execution if we filled using an aggregator
CLIENTS_PRICE_POOL: PNL: $-1.3M CLIENTS_PRICE_POOL: YIELD: $-12.7/M
Rome wasn't built in a day
As a strategy, it can be worth focusing where possible on
the highest Impact stuff we can help clients with,
which we think has the highest Confidence of succeeding with what we can achieve
with at least Effort for all parties.
ICE Prioritisation
Taking on too many things at once can
dilute execution focus. There's only so many things internally an organisation can prosecute
slow down the delivery of the higher value add parts of the product.
If the commercial imperative stands on its own with 5-6 features. Then a good way of prioritising those things is trying to put the big value-add projects in production first.
Our clients see us as an extended part of their team. Externally validated, plugged into multiple other similar teams facing off against a large surface area of learnings in the FX + Crypto + CFD space.