VertexFX Risk Management Auto Clearing Bridge Version (2)

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This is a User manual of how to use VertexFX Risk Management Auto Clearing Bridge Version (2) to cover your Vertex positions with another vertex account automatically, either One-One Covering or Rule Based Covering. And your covered positions will reflect on your Floating Status screen via your cover account.

Requirements:
• VertexFX BackOffice System.
• Real account on VertexFX System (where your customer's positions will cover).
• Coverage account opened on your system so you can manage covering via Floating status screen.
• Accounts on your system (so your customers will open positions to be covered)
• You have to install Microsoft .Net FrameWork 1.1.


When opening the system you will have the following view as it shows in Figure 1.
The menus consist of File, options, view and help menus; in file menu you will have "Exit" to logout from the system. To login go to options -> login.

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Figure1 showing the system window

• The upper part is the chatting list witch shows the pending chats (waiting for the second party "Client" to accept or reject these chats).
• The lower part is the log for your orders, and it will show you:


- The date and the time for the orders.
- Order Accepted or rejected.
- Account number.
- Symbol.
- Amount.
- Buy or Sell.
- It will show close if the type of the order is liquidation.
- The price requested from your Clients.
- The price of this symbol on the other side (Coverage Client).
- Show the associated symbols, when associate new symbol.
- Show Client (Coverage account number) and BO account number when changing the account number.

Covering options:
The Bridge checks the prices of the other side (Client Side) depending on the covering options you have set.
You can set your covering options either by click on the "Covering Options" http://www.hybrid-solutions.com/forumdata/bridge/icon.JPG icon on your tolls bar or by click on options -> setting -> set cover options. The following window will appear:

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Figure2 Cover Option

You will see two tabs, the first one for Limit/Stop Orders options and the second one is for Market Orders options; opening any of these two tabs you will have the following three options:
- Always Cover: Cover without checking the client side price (Backoffice will always accept orders).

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Figure3 Always Cover

- Cover with better price: BO will check client side prices (Ask for Buy and Bid for Sell). For Buy positions: if the price is less than BackOffice prices, it will open a new position on Clint side by the same amount of the associated symbol (this position will be on the system chatting screen until Clint accept or reject it, if accepted it will be accepted from BackOffice side otherwise it will be rejected). For Sell positions if price is grater than the BackOffice price, it will open a new position on Client side by the same amount of the associated symbol (this position will be on the system chatting screen until Clint accept or reject it, if it is accepted, it will be accept from BackOffice side otherwise BackOffice will reject it). The following figure will show you this process:

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Figure4 Cover with better price

- Cover with better or equal: BO will check the client side prices (Ask for Buy and Bid for Sell). For Buy positions: if the ask price is less than or equal the BackOffice prices, it will open new position on Clint side by the same amount of the associated symbol (this position will be on the system chatting screen until Clint accept or reject it, if accepted it will be accepted from BackOffice side otherwise it will be rejected). For Sell positions if price is grater than or equal the BackOffice price, it will open new position on Client side by the same amount of the associated symbol (this position will be on the system chatting screen until Clint accept or reject it, if accepted it will be accepted from BackOffice side otherwise it will be rejected). The following figure will show you this process:

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Figure5 Cover with better or equal


In the case that the client accepts the order, an order with the same amount, symbol and type will open on the coverage account on your Backoffice, and it will be reflected on your Floating status.



The same goes for closing orders (Market Orders), if the price pass the formula for buy or sell, a position with the same amount of the associated symbol will be closed and a position by the same amount and symbol will be closed on your coverage account on your backoffice system, if the client accept the order.



Login

You have to fill the dealer and the coverage account access info to login to the bridge system as the following:

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Figure6: login screen

If the checkbox "Save username and password" is checked, next time you will login automatically when you open the system using this info.

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Select Accounts

After login you have to select Client account and BO coverage account.
You can select the client account to cover with by clicking on Select account icon http://www.hybrid-solutions.com/forumdata/bridge/icon1.JPG or by going to options -> tools -> select account, at the same time you can choose the BackOffice coverage account for floating status reflection purposes. The following figure is the account window where you can fill your client and BO accounts.



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Figure7 Select Accounts



Associate Symbols

After login, you have to associate symbols between your Backoffice system and the client system (the account you are using to cover your positions), you can open your association window by either clicking on "Association" icon http://www.hybrid-solutions.com/forumdata/bridge/icon2.JPG or by going to options ->Associate Symbols.
The following figure is showing you the association window:

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Figure8 Associate Symbols


To associate Symbols, choose the symbol name from the client symbol dropdown list and on the other side chose the symbol you want to associate with on Backoffice system then press add, after that your associated symbols will be shown on the list view.
To delete any symbol just right click and delete as shown in the following figure:

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Figure9 Delete an associated symbol


In order to open the association window you have to be logged in, otherwise a message will appear asking you to login.

All of the positions for symbols which are not associated will be rejected automatically.

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Cover with better or equal example:

First of all you have to set your coverage option, on this example we will set the market orders option to be cover with better or equal.


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Figure10 Set covers option for the market order to be Cover with better price

New buy position EUR/USD of amount 0.1 lot opened by one of the BackOffice accounts requested at 1.4925 as shown on the following figure

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Figure11 new order from one of the BackOffice accounts

This order will be on the pending orders till the client (coverage client) accept or reject the order opened with him automatically with the same amount of the associated symbol.

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Figure12 pending orders

While this order is in the pending orders it will be on the bridge chatting screen.

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Figure13 An order waiting for the client acceptance or rejection

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Figure14 chatting screen on the other side, Client shows the order opened automatically by the bridge

Client side accepted the new order, and then our accepted order will be logged as the following:

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Figure15 log for the accepted order showing time and date for order acceptance, order id,
account, amount, symbol, type, requested price from BackOffice and accepted price on the client side

New order will be opened by the same client price and amount on the BackOffice side coverage account, for reflection on the floating status.

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Figure16 new order (BackOffice coverage account)

Finally, the bridge opens new position on the client side.

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Figure17 new order by the same amount and with associated symbol opened automatically on client side(BackOffice coverage account)

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You can switch chatting on or off by going to options -> press on chatting (if it is checked, it is on), chatting will be off by default when you login.

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Figure18 Switch chatting on and off

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Clearing Type


You can select the clearing type for every BackOffice symbol, either one-to-one or Rule Based.
To set the clearing type for AUD/USD (for example), you have to open the Symbol management screen by click on the Symbol Management icon or by going to
options -> Symbol management, symbol management window will appear as shown in figure 19, then right click on the symbol you want to change its clearing type (AUD/USD at this example), Coverage type window with two options (One-to-One and Rule Based) will appear as shown in figure 20, then you have to select Symbol clearing type and click ok. We will select Rule Based Clearing on our example.

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Figure19 Symbol Management Screen

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Figure20 Coverage type screen

Clearing Type field for AUD/USD will change from One TO One to Rule Based (All symbols clearing type is One To One by default) as shown in figure 21, which means that AUD/USD Covering depends on its Rules (we will see the way of creating and editing rules).

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Figure21 Clearing Type field for a specific symbol

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Manage Rules

To add a new rule for a specific symbol you have to right click on the symbol from Symbol Manager Screen -> clearing rule, a window will appear as shown in figure 22, using this window you can add new rule and set the condition parameters, and you can delete any existing rule.

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Figure22: Clearing Rule Screen

We will add a new rule for EUR/USD using the following parameters: Net Amount should be less than or equal 20, to add this rule you should select Net Amount from the first field, select less than or equal from the second field and select and write 20 on the third filed then press add, you will have the new rule on the rules list view as shown in figure 23.


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Figure23: Add new clearing rule.


Let us add another rule with the following parameters: Net/PL should be greater than10, to do that you should select Net/PL from the first field and select "<" form the second field and write 10 on the third field as shown in figure 24.

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Figure24: Add new clearing rule


Using the same screen you can set the condition parameters (Coverage time period, all or any Condition and percentage), once you click on the submit button, the condition will work for your symbol. Let us set condition with 1 minute period of time, "any condition" and 10% percent as shown in figure 25.

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Figure25: Set condition for many rules.


You can set your condition using so many different rules for each symbol, at the same time you can set the coverage type for each symbol.

You can monitor Net Amount and Net/PL values for every symbol from floating status screen. To show floating status screen on your bridge go to view -> floating status.


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Figure26: Floating Status Screen.


In the case of "all conditions", the system should pass all of the conditions in order to cover Net Amount percentage (Coverage amount in this case depends on the net amount value in every period of time). In the case of "Any Condition", if the system passed any condition, it will cover the net amount percentage every period of time.

In the previous example, let us change the AUD/USD condition parameters to be "Any Condition", "Cover every 1 minute" and "10%" of percentage, when you click submit, the system will start checking using the new parameters, the time any condition achieved, system will start count for the period of time to cover by the Net amount percentage value on the coverage account.


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Figure27: change condition to any condition.


As you can see in figure 26 Net Amount for AUD/USD is 67.6, after 1 minute the system will cover 10% of 67.6 witch is 6.8 lots, then the new value for Net Amount after covering is 67.6 – 6.8 = 60.8 (See the new value after coverage on figure 30, on the clearing rule screen you will have the last coverage time as shown in figure 29.



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Figure29: condition achievement



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Figure30: floating status changed