rmg presentation poretfolio

8/22/2019 RMG Presentation Poretfolio

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INFORMATION TECHNOLOGY

DEVELOPMENT OFMANAGEMENT GATEWAY (RMG)KARACHI STOCK EXCHANGE

RISK

Presented by:Group Members:Ali Shamsheer

Raheel Baig

Ramzan Ali

Mazhar


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AGENDA

ABOUT RMGRISK CONTROL & FILTERSRMG SOLUTION DESIGNSOLUTION BENEFITS & KEY FEATURESRMG DEVELOPMENT ROAD MAPMEMBER VENUE HOSTED SOLUTION REQUIREMENTSRMG ORDER FLOW SIMULATION


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RISK MANAGEMENT GATEWAY

Risk Management Gateway gives broker participants the connectivity and technology neededfor high-performance, pre-trade risk- filtered access to market. KSE will manage the tradinginfrastructure and participants connectivity, leaving brokers to monitor and control theirclients risk limits, via a real-time, web-based GUI or API.

It offers industry-standard risk controls and filters to achieve compliance while meeting clients

performance goals and privacy requirements.In-timelatency and performance are unaffected. applicationofriskcontrolsensuresthat

Risk Controls and Filters are as follows,

Order Level Management

Aggregate Level Management

Regulatory Level Control

Terminal Level Management


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ORDER LEVEL MANAGEMENT

selected or all clients

selected or all clients

can also be restricted

price, last bid and ask.

Market Orders etc.

NAME DESCRIPTION

Maximum ValueReject order having value over the defined limits provided by broker for

Maximum VolumeReject order having volume over the defined limits provided by broker for

Restrict Symbol and SideConfine the Client to the Symbols that are allowed to, whereas the side

Price ControlAllow only orders that are within defined range, fixed price, last trade

Order TypeClient can be restricted to certain types of orders such as SL orders ,

Symbol Restriction List for Particular Symbol can be restricted for particular order types like market

Order Type orders, contingent orders etc.


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AGGREGATE LEVEL MANAGEMENT

Restrict the total sum of the Clients orders volume in a single Scrip.in a symbol

Restrict the total sum of the Client s orders value in a single Scrip.a symbol

NAME DESCRIPTION

Order Volume Per day Restrict the total sum of the Client Volume in all Symbols

Order Volume Per Day

Order Volume Per day Restrict the total sum of the Client s order volume in a single or all Symbols

in a symbol in One side having a particular side ( Buy or Sell )

Order Value Per day Restrict the total sum of the Client Value in all Symbols

Order Value Per Day in

Order Value Per day in a Restrict the total sum of the Client s order value in a single or all Symbols

symbol in One side having a particular side ( Buy or Sell )Client can be restricted for the usage of Share cash and securities by the

Restrict usage of Share member. Restrictions can be implemented on Value or the percentage of theLimit total deposits of the member. Client can also me restricted not to use the

shared limit at all.

Loss Limits Control Client can be restricted within certain loss limits managed by the broker.

Exposure Limit Client can be restricted for holding certain exposure limit at a time.

Position Limit Client can be restricted for holding certain Net Position limit at a time.


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REGULATORY LEVEL CONTROL

Portfolio

NAME DESCRIPTION

Wash Trade Restrict potential wash trade at Broker side

Restricted Short SellRestrict Symbol Level Short Sell after verification from Client


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TERMINAL LEVEL MANAGEMENT

Member Capital Adequacy.

NAME DESCRIPTION

Client Binding Client can be bound on a particular Terminal

Terminal LimitsTerminal can be allotted a limit from Member Deposits and

Terminal allotment A terminal can be allotted to a particular Client (s).

Symbol Restrictions Terminal can be bound to particular Symbols.

Market Restrictions Terminal can be bound to particular Market.


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SOLUTION BENEFITS & KEY FEATURES

A Member Venue Hosted low-latency execution gateway that protects broker order flow while applying in-time risk controls. Industry-standard risk controls and filters achieve compliance while meeting clients

performance goals and privacy requirements. In-time application of risk controls ensures thatlatency and performance are unaffected.

Fast market access with robust client-side risk controls.

Control Bandwidth flow

Fat finger filters (Order Qty/Val etc)

Single Instance can support multiple clients

Real time Client position monitoring.Brokers can actively oversee and manage risk filters in real-

time via a web-based OR Application interface. The tool allows brokers to dynamically configure,update intra-day and monitor a risk profile for each client

It provides a wide range of risk filters to meet the compliance requirements of the sponsoring

broker. The risk interface allows for the broker to apply risk measures on the clients order flow

while not affecting latency or violating the privacy many participants require.

End of Day reporting (If Require)


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RMG DEVELOPMENT ROAD MAP

It provides in line risk checks.

Pre Trade Risk Management.Evolve trade risk management based on client. Develop Risk User Interface to enhance broker support help desk Develop an Interface to update Client Risk Settings Client Reporting Services (If Require) Provide alert mechanism if Client is breaching his limits. Client Bypass mechanism to skip his limits and route order directly to KSE Develop OPS application to perform admin activities like (Check Client DB Response Time, Reload

RMG with new Data )

Component require to write data in DB or separate Thread itself in RMG Server Separate Component require at Client End for Admin Console/Ops Applciation to fetch Client limits

from his DB (Incase if CLIENT exceeds from his limits or he is unable to work due to any otherreason )


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MEMBER VENUE HOSTED SOLUTION REQUIREMENTS

RMG require establishment and maintaince of strong and dedicated infrastructure at Client Side for highfrequency trading access,high-performance and pre-trade risk-filtered access to market.

RMG require Server Machine with Good enough configuration to run and handle multipleconcurrent users.

Require Database either SQL Server,mySQL or Oracle

Day End Process needs to run on daily basis at Client side to re-populate client limits in

their respective tables on daily basis at the end of the business day.

Connectivity require between Client and KSE over VPN

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