VertexFX Risk Management Bridge
Posted by Yousef Ibrahim on 14 September 2011 03:16 PM
Hybrid Solutions believes that risk management option is not a dividable part of a full Forex Trading solution, so the development cycle started to develop one of the best risk management solutions for Market makers and liquidity providers.
You do not need to worry any more from your customers daily risk performance, or even your risk manager's efficiency, just through the risk, or a part of it, and be at the safe side.
With VertexFX Risk Management Bridges, this is all possible and more, you will be able to make a onetime configuration, and it will do the rest for you.
VertexFX Risk Management Bridge is software to connect VertexFX software together, for clearing purposes, with the ability to connect to some global exchanges after some certain customizations, using FIX protocol in order to work in an STP (Straight Through Processing) model rather than OTC (Over The Counter) one.
With the One-to-One and Rule Based coverage options, you can manage your risk to cover everything with Zero Risk, but lower profit, or to cover a share and leave some risk for having more profitable investment, this tuning you can do at the VertexFX Risk Management Bridges to make your business the most perfect to perform.
Why to use VertexFX Risk Management Bridge
You will need to use VertexFX Risk Management Bridges while your business is growing, risk grows whenever the business grows. VertexFX Risk Management bridges help your business reach the high stakes with no or less risk, while holding some risk is one of the main key features for some creative businesses. VertexFX Risk management bridges allows this creativity window, also if you like risk and want to hold some, you can use the VertexFX Risk Management Bridge, on the rule based option to tune the risk as you need.
From the structure of the VertexFX Risk Management bridges working, you can see that you are safe and profiting most of the time, either at the One-to-One clearing strategy, or using the Rule Based clearing option; the bridge will select the best deal for you from the list of liquidity providers you have. With multiple clearing strategies (One-To-One, and Rule Based), symbol based parameters sittings, best deal selection, multiplied liquidity provider connectivity, deal waiting timer, multiple rules for one symbol, FIX connectivity, you will not think twice before using the VertexFX Risk Management Bridge.
How to use the VertexFX Risk Management Bridge
When a new order reaches bridge chatting, bridge will check coverage clients and get the best Vertex coverage client depending on the prices (the client has the minimum price for buy orders and the maximum price for sell orders) and using the same criteria to get the best FIX coverage client, then it will get the best from these both clients (liquidity providers).
These new features working on One-to-One and Rule Based covering using bridge conditions (Market -> cover with better price, cover with better or equal price and always cover, Limit -> cover with better price , cover with better or equal price and always cover.
The main feature in this version is that you can cover with FIX clients and you can filter clients to have the best one.
Login screen has new look now, since we can connect to infinite number of clients, our login screen has clients list.
Now you can add clients by right click on the list view in the login screen and click add new client (you can add new Vertex client and add new FIX client).
By right click on any client on the list you can (connect, disconnect, edit client info and you can add and delete clients). Symbols association is per client now because every client has its own different symbols associated with BO symbols.
When you right click on a client -> associate symbols you will have client association window for the selected client. This window allows you to delete and add symbols for a particular client.
Bridge will only check for clients associate the order symbol (for example if the order is for EUR/USD and client1 does not associate this symbol, then client1 will not be in the bridge calculations to cover, the time client1 associate this symbol it will be included).
Options screen has new look as you can see in figure 6, the first tab allows you to set coverage market and limit options for one-to-one clearing and you have the check box (always cover on liquidation it will cover regardless of the option you have checked).
Rule based coverage option tab show the list of symbols, since you can set rules per symbol. Symbols rule attributes shown in this list (clearing type, rules count, last coverage time and percent).
You can right click on any record, edit or add new rule for the symbol, and you can edit rule type.
Configuration tab allows you to set the waiting time to cover (set the period of time to cover the received order), and allows you to select the BO coverage account (which is a must in order to reflect all covered positions at the liquidity provider side into this BO account for the net floating status screen calculations).
The following is an example of how the bridge handles new order (order opened by one of the BackOffice accounts):
First of all, you have to connect bridge clients and enable chatting. The Status bar shows the number of connected Vertex and FIX clients.
Then you have to associate symbols for all of the connected clients:
-bridgeclient1->EUR/USD-bridgeclient2->”EUR/USD and USD/CHF
Now bridge will handle any position opened by one of the BackOffice accounts for example: if a new buy position USD/CHF of amount 1 lot opened by one of the BackOffice accounts requested at 1.0337.
Bridge will go on the following procedure:
On our case, there is only one client associate USD/CHF (BridgeClient2), the position covered by client BridgeClient2 and accepted at 1.0337.
Let us create a new buy position EUR/USE of amount 1. (Note that EUR/USD associated on the 3 connected clients).
Using the same procedure, bridge will filter Vertex and FIX client’s prices and cover on the best client depending on the price.
VertexFX new bridge is reading online and instantly the market data from ASE through their private data protocol and using the API. Besides, it can reflect trades to their side using the FIX protocol. Having that setup, the broker can have multi-liquidity providers to his VertexFX platform for both FOREX and local stocks and each product can be reflected to his associated exchange or bank online. Read more about VertexFX Bridge.