Rubik and Revex enter into license arrangement.

Rubik Financial Limited (Rubik), the ASX-listed global provider of financial technology and software, last Friday announced it has entered into a term sheet with Revex Solutions Pty Ltd (Revex), containing an option for COIN to acquire Revex,  and a four year exclusive reseller agreement with Revex.

The term sheet entered into with Revex is non-binding. The parties have agreed to negotiate on an exclusive basis for a period of 180 days to agree full form, binding, transaction documentation.

Revex is revenue management software for Australian Financial Services Licensee’s and financial planning practices offering automated management of revenue, including commissions and client fees as well as relevant business information reporting.  Revex was established by John Brabender, the father of commission and revenue management software, having been the original founder of DMS, which was acquired by Xplan.

Reseller agreement

It is intended that on execution of a full form reseller agreement, Rubik will hold the distribution rights over the Revex software on an exclusive basis for Rubik Wealth’s customers, covering institutions, independent financial advisors (IFAs) and industry superannuation funds, as well as non-exclusive rights for  other customers with Revex continuing to support and market to its direct relationships.

Option agreement

The terms of the proposed option provides Rubik with the option to purchase the Revex business outright, at the end of a three year period.  The consideration will be based on a multiple of revenue achieved in the final 12 months prior to the exercise of the option.  The multiple paid will be dependent upon the source of the revenue.

Rubik Managing Director Wealth, Wayne Wilson, said that entry into the proposed deal would be a significant strategic outcome for Rubik. “Revex software solves the dilemma facing planners in the industry – and offers efficient commission and revenue management that meet the requirements of the FoFA reforms,” Mr Wilson said.

“The reality is that revenue and commission information needs to be collated from each of the many different investment products that clients hold. Often these fees are bundled together, and the task of itemising the fees, and unbundling them to account for those that are FoFA defined, can be onerous.

“Every institution has a different solution to this FoFA requirement. It is a time-consuming exercise that many practices are performing manually. When Revex is integrated with COIN it will provide fully merged FoFA documents, in an automated fashion, at the touch of a button.”

Revex Managing Director, John Brabender, said: “With the competitive and regulatory landscape changing, the pressure is on dealer groups and financial planners to provide cost effective and value add solutions to both advisers and clients. In this environment, technology efficiency solutions become a business focus.

“With Revex, fee management is simply managed and ongoing transactional reports are available enabling integrated transparency for reporting purposes.”

Key features of Revex include:

• Efficient processing of all commissions and fees regardless of source
• Fee invoice management including recurring invoices
• Effortless payment of all entitlements to advisers and referrals
• Extensive management reporting
• Export information to your General Ledger.

“In anticipation of entry into full form agreements, work has commenced on integrating Revex into the various COIN client systems. Rubik expects to have a fully integrated version of Revex available to all clients by November 2013,” Mr Wilson concluded.

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When its legacy software (VisiPlan and ProPlanner) and white label relationships are taken into account, IRESS is the main planning software supplier for 45% of planners. COIN is the second-most widely used with 23% of planners using it as their main planning software.

The April 2012 Planner Technology Report is an in-depth study of Australian financial planners and their technology needs. The study is based on a survey of 1,412 financial planners concluded in April 2012.

AdviserNETgain takes the lead in overall satisfaction as industry level satisfaction hits a four year high
55% of planners now rate their main planning software as ‘good’ or ‘very good’, up from 52% in 2011 and the highest level seen in four years.

“As an industry, planning software providers increased satisfaction fastest with integration with platforms, the production of comprehensive financial plans, and ease of use and improved user interface design playing major roles,” said Investment Trends Senior Analyst Recep Peker.

“This is reflective of the development work undertaken in these areas over the last 12-18 months.”

Among primary users of software (independent of relative size):

• AdviserNETgain received the highest average overall satisfaction rating, achieving particularly strong ratings for user interface, integration with platforms and production of client review reports. AdviserNETgain also received the highest rating for ‘value for money’.
• COIN saw the fastest increase in overall satisfaction from 2011, with notable gains to satisfaction with the production of comprehensive financial plans, ease of use and integration with platforms.

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CMC Markets has launched a new pattern recognition tool to help traders sort data, identify patterns and execute trades with ease. It is thought to be the first time in Australia that pattern recognition software has been integrated into an existing platform rather than using a third party provider.

Pattern recognition is free to all clients using CMC Market’s desktop and web based CFD platforms. Since being launched to CMC Markets’ existing clients in Australia, almost 40% of active clients have taken up the tool.

Pattern recognition is one of the most versatile skills that a trader can have and focuses on finding price patterns and using them to look for breakouts and momentum shifts across markets and timeframes. It has multiple applications and can assist clients to work out where to enter, set stop loss orders and set profit targets. It can be as advanced as complex algorithms or involve nothing more than a pencil and a ruler.
CMC Market’s new software identifies both completed and emerging patterns over short or medium time frames and ranks the quality of the chart signals based on technical indicators such as moving averages.

“One of the biggest benefits of the software is it allows traders to scan a wide variety of markets swiftly and rank them,” David Land, CMC Markets Chief Market Analyst said.

“By integrating it onto our platform, traders who already trade confidently but are currently using third party applications can now scope out simple or complex patterns then execute positions with ease,” said Mr Land.

The integrated software can also educate traders who don’t currently use technical analysis as part of their technique, with free video tutorials and an internally-written software guide.

“CMC Markets has a strong focus on education and it is important to ensure clients are equipped to use the tools effectively. The key is for traders to build their experience gradually and spend time learning the basic rules around pattern recognition,” Land said.

Once patterns have been identified, it is then up to the trader to decide whether to execute the trade. They can take long or short positions based on chart signals. In periods of volatility where markets appear to be moving sideways, identifying emerging patterns can assist in generating returns.

The software allows traders to customise the type and number of patterns that are displayed to identify trades and understand the risks associated with a position.

“We are providing our clients with a powerful, customisable piece of software and have made it as easy to use as possible. Pattern recognition is based on carefully tested methods and is another way to equip traders with the tools that are crucial for their success,” Mr Land concluded.

How pattern recognition works

CMC Markets’ integrated pattern recognition tool can follow price patterns for traders, and allows them to trade when they feel the moment is right. Triangles? Wedges? Channels? Head and shoulders? Diamonds? Each pattern has a story to tell about the direction of the market. Traders can pinpoint and overlay any pattern on any chart, and then watch it develop in real time.

Some patterns are on their way to becoming opportunities and some are already there. The tool can be used to tag emerging patterns and get an alert when the pattern is complete. If traders would like to know how previous patterns have panned out, the tool also the ability to review.

Every pattern gets a one- to five-star rating based on a range of indicators including MACD, the RSI, stochastic oscillator, 21- and 55-day period moving average, the DMI plus and DMI minus. The more stars, the stronger the signal.

In the following chart you can see the blue lines are pointing to one of the most common patterns, the symmetrical triangle. Triangles are one of the most common patterns that allow a trader to see opportunities on both the long and short side, and capture the point at which the price consolidates, allowing a trader to see where an eventual “breakout” will occur.

Seeing this chart from a normal point of view it is just a trading chart. But from a pattern recognition point of view, the blue lines form a symmetrical triangle, pointing to where a trader can pick a break out in the price.

With the new integrated platform, once they have identified a pattern, a trader has all the normal features that allow them to open an order ticket and place a trade in the normal way.

Another feature of this platform is the ability to open charts and then add patterns in real time as well as look at how these same types of patterns have performed in the past. This can be done across many different time frames to give an idea of the success of a certain type of pattern.

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