Capital DeltaSystematic options
← Company roadmap

Section 12 / 12

Appendices

12. Appendices

This section contains supplementary materials that provide additional context, details, and reference information to support the main road-map document.

12.1 Glossary of Terms

TermDefinition
AIFMAlternative Investment Fund Manager. An entity regulated under the EU's Alternative Investment Fund Managers Directive (AIFMD) that manages alternative investment funds.
AIFMDAlternative Investment Fund Managers Directive. The European Union regulatory framework for alternative investment fund managers.
AMMAutomated Market Maker. A type of decentralized exchange protocol that uses a mathematical formula to price assets.
AUMAssets Under Management. The total market value of investments managed by a fund or investment firm.
CNMVComisión Nacional del Mercado de Valores. The Spanish government agency responsible for financial regulation of securities markets in Spain.
CPOCommodity Pool Operator. An individual or organization that solicits or accepts funds for participation in a commodity pool.
CTACommodity Trading Advisor. An individual or organization that provides advice on trading futures contracts, options on futures, or retail off-exchange forex contracts.
DDQDue Diligence Questionnaire. A comprehensive document that provides detailed information about an investment manager's business, strategy, and operations.
DeFiDecentralized Finance. A blockchain-based form of finance that does not rely on central financial intermediaries.
Delta-NeutralA portfolio strategy consisting of multiple positions with offsetting positive and negative deltas so that the overall delta of the assets in question totals zero.
ESGEnvironmental, Social, and Governance. A framework used by institutional investors and regulators to evaluate companies beyond traditional financial metrics.
FILFondo de Inversión Libre. Spanish regulated investment fund structure similar to a hedge fund.
GreeksFinancial measures of the sensitivity of an option's price to its underlying determining parameters (delta, gamma, theta, vega, rho).
Implied VolatilityThe market's forecast of a likely movement in a security's price, derived from option prices. Often referred to as IV.
ISAE 3402International Standard on Assurance Engagements 3402. A global standard for assurance reports on controls at a service organization, often required by institutional investors.
KPIKey Performance Indicator. A measurable value that demonstrates how effectively a company is achieving key business objectives.
LPALimited Partnership Agreement. The legal document that outlines the terms of a limited partnership investment vehicle.
MiFID IIMarkets in Financial Instruments Directive II. A legislative framework instituted by the European Union to regulate financial markets and improve protections for investors.
Multi-factor Risk AnalysisAn approach to risk assessment that incorporates multiple variables and data points to identify potential exposures not captured by traditional metrics.
PPMPrivate Placement Memorandum. An offering document provided to prospective investors that details the terms, risks, and other information about a private investment opportunity.
RAIFReserved Alternative Investment Fund. A Luxembourg investment vehicle that can be marketed to professional investors without requiring prior approval from the Luxembourg regulator.
RLReinforcement Learning. A type of machine learning where an agent learns to make decisions by taking actions in an environment to maximize a reward.
SGEICSociedad Gestora de Entidades de Inversión Colectiva de tipo Cerrado. Spanish regulated entity for managing closed-ended collective investment vehicles.
SGIICSociedad Gestora de Instituciones de Inversión Colectiva. Spanish regulated entity for managing collective investment institutions.
Sharpe RatioA measure of risk-adjusted return, calculated by dividing the excess return of an investment over the risk-free rate by its standard deviation.
SICAVSociété d'Investissement à Capital Variable. An open-ended collective investment scheme common in Western Europe, especially Luxembourg, Switzerland, Italy, Spain, Belgium, Malta, France, and the Czech Republic.
SIFSpecialized Investment Fund. A regulated, operationally flexible and fiscally efficient Luxembourg investment vehicle for institutional, professional and sophisticated investors.
SILSociedad de Inversión Libre. Spanish regulated investment company structure similar to a hedge fund.
SOC 1Service Organization Control 1. A report on controls at a service organization relevant to user entities' internal control over financial reporting.
SOPStandard Operating Procedure. A set of step-by-step instructions compiled by an organization to help workers carry out routine operations.
Sortino RatioA variation of the Sharpe ratio that differentiates harmful volatility from total overall volatility by using the asset's standard deviation of negative returns.
VaRValue at Risk. A measure of the risk of loss for investments, representing the maximum potential loss over a specific time period at a given confidence level.
VegaA measure of the sensitivity of an option's price to changes in the volatility of the underlying asset.

12.2 Detailed Team Biographies

Joaquín Béjar, CTO/CIO & Co-Founder

Professional Background

Joaquín brings over 20 years of experience spanning traditional finance and cryptocurrency markets. His career has been defined by a unique combination of deep technical expertise and sophisticated financial knowledge, allowing him to bridge the gap between quantitative trading strategies and cutting-edge technology implementation.

Professional Experience

Joaquín has worked with leading firms in both traditional finance and cryptocurrency markets, contributing expertise across multiple domains:

  • Trading Technology & Infrastructure

    • Development of high-performance, low-latency trading systems
    • Implementation of exchange connectivity solutions across global markets
    • Design of resilient infrastructure for 24/7 trading operations

  • Quantitative Research & Strategy Development

    • Creation of statistical arbitrage and market-making strategies
    • Development of options pricing and volatility models
    • Design of systematic trading frameworks with machine learning components

  • Risk Management & Analytics

    • Implementation of real-time risk monitoring systems
    • Development of comprehensive backtesting environments
    • Creation of portfolio analytics and performance attribution tools

Notable Organizations

His career spans roles at respected institutions including Deutsche Bank, Flow Traders, and specialized cryptocurrency trading firms, where he has consistently bridged the gap between quantitative finance and technology implementation.

Education

  • BSc in Computer Science, Universidad Pontificia de Salamanca
  • BSc in Mathematics, The Open University, UK
  • MSc in Artificial Intelligence, Universidad Politécnica de Valencia
  • Currently pursuing BSc in Finance, London School of Economics (expected completion 2027)

Publications & Research

  • "Missing values imputation based on Random Forests Regression" (European Commission, 2018)

Technical Skills

  • Programming Languages: Rust, Go, Python, C++
  • Infrastructure: AWS, Azure, GCP, Kubernetes
  • Trading Systems: FIX Protocol, Exchange APIs, Order Management Systems
  • Quantitative Methods: Statistical Modeling, Machine Learning, Reinforcement Learning

[Partner Name], CEO & Co-Founder

Detailed biography to be added

12.3 Policies, SOPs & Compliance Manuals

Risk Management Policy (Summary)

Capital Delta employs a comprehensive risk management framework designed to identify, measure, monitor, and control risks across all aspects of our operations. Our risk management policy is built on the following principles:

  1. Risk Identification: Systematic processes to identify all relevant risks, including market risk, operational risk, liquidity risk, and counterparty risk.

  2. Risk Measurement: Quantitative and qualitative methods to assess risk exposure, including VaR, stress testing, scenario analysis, and sensitivity metrics.

  3. Risk Limits: Clearly defined risk limits at portfolio, strategy, and position levels, with automated enforcement mechanisms.

  4. Monitoring & Reporting: Real-time monitoring of risk exposures with regular reporting to management and oversight bodies.

  5. Governance Structure: Defined roles and responsibilities for risk management, including independent risk committee oversight.

Trade Execution SOP (Outline)

  1. Pre-Trade Analysis

    • Strategy selection criteria
    • Position sizing methodology
    • Risk parameter verification

  2. Order Generation

    • Signal validation process
    • Order type selection guidelines
    • Execution timing considerations

  3. Execution Workflow

    • Smart order routing logic
    • Venue selection criteria
    • Slippage management techniques

  4. Post-Trade Analysis

    • Execution quality assessment
    • Transaction cost analysis
    • Performance attribution

  5. Documentation & Recordkeeping

    • Trade logging requirements
    • Audit trail maintenance
    • Regulatory reporting obligations

Compliance Manual (Key Components)

  • Regulatory Framework: Overview of applicable regulations and requirements
  • Code of Ethics: Standards of conduct for all employees
  • Personal Trading Policy: Rules governing employee trading activities
  • Anti-Money Laundering Procedures: KYC and transaction monitoring processes
  • Conflicts of Interest Policy: Identification and management of potential conflicts
  • Business Continuity Plan: Procedures for maintaining operations during disruptions
  • Cybersecurity Protocol: Measures to protect sensitive information and systems
  • Recordkeeping Requirements: Document retention policies and procedures

12.4 Sample Legal/Offer Documents

Private Placement Memorandum (PPM) - Template Structure

  1. Executive Summary

    • Fund overview and investment objectives
    • Management team background
    • Summary of terms

  2. Investment Strategy

    • Detailed description of investment approach
    • Target markets and instruments
    • Risk management framework

  3. Fund Terms

    • Legal structure and domicile
    • Management and performance fees
    • Subscription and redemption terms
    • Minimum investment requirements

  4. Risk Factors

    • Market risks
    • Strategy-specific risks
    • Operational risks
    • Regulatory and legal risks

  5. Management & Governance

    • Investment manager information
    • Key personnel biographies
    • Service providers
    • Governance structure

  6. Tax Considerations

    • Overview of tax implications for investors
    • Reporting requirements

  7. Legal & Regulatory Information

    • Regulatory status
    • Applicable laws and regulations
    • Investor eligibility requirements

Limited Partnership Agreement (LPA) - Key Provisions

  • Partnership Structure: Formation, purpose, and term
  • Capital Contributions: Procedures for capital calls and contributions
  • Allocation of Profits and Losses: Distribution waterfall and carried interest
  • Management Rights and Responsibilities: GP authority and limitations
  • Limited Partner Rights: Voting rights and information access
  • Transfers and Withdrawals: Restrictions and procedures
  • Dissolution and Liquidation: Termination events and winding up
  • Amendments: Process for modifying the agreement

Risk Disclosure Statement - Core Elements

  • General Investment Risks: Market volatility, liquidity constraints, leverage effects
  • Strategy-Specific Risks: Options trading risks, model risks, technology risks
  • Operational Risks: Counterparty risks, service provider risks, cybersecurity risks
  • Regulatory Risks: Changes in regulations, compliance requirements, tax law changes
  • Conflicts of Interest: Potential conflicts and mitigation measures
  • No Guarantee of Returns: Disclaimer regarding investment performance
  • Investor Suitability: Appropriateness for different investor types

12.5 References and Resources

Regulatory Frameworks

ESG and Sustainability

Quantitative Trading and Risk Management

  • Options Trading:

    • Hull, J. C. (2018). Options, Futures, and Other Derivatives. Pearson.
    • Natenberg, S. (2015). Option Volatility and Pricing: Advanced Trading Strategies and Techniques. McGraw-Hill Education.

  • Risk Management:

    • Jorion, P. (2011). Financial Risk Manager Handbook. Wiley.
    • Alexander, C. (2008). Market Risk Analysis, Volume IV: Value at Risk Models. Wiley.

  • Machine Learning in Finance:

    • De Prado, M. L. (2018). Advances in Financial Machine Learning. Wiley.
    • Dixon, M. F., Halperin, I., & Bilokon, P. (2020). Machine Learning in Finance: From Theory to Practice. Springer.

Industry Associations and Networks