Commodities Trading Engine

With the ever-increasing competition along with the ever-increasing volumes of business in the Commodities industry, automation is becoming the key to success. Management of diverse nature of commodities coupled with the diverse nature of risk profile of customers has become a challenging task. Commodities Trading Engine (CTE) is a suite of products that provides a comprehensive solution to meet this challenge on a day-to-day basis. The modular architecture of this solution makes it extremely flexible and scalable for managing large volume transactions across multiple commodity exchanges and multiple types of commodities in different currencies.

The business logic of CTE is exhaustively parameterized so that the user can customize the logic to accommodate the users business requirements. It comes with an extensive set of API's required for connecting the same to any exchange system, electronic payment gateways and clearing houses. Thus the entire operation of commodities trading can be automated by deploying CTE.

The CTE suite consists of following major components

Matching Engine

• Authenticate Members and Surveillance/Back Office Administrators.
• Receive Bids and Offers
• Receive and process modify and cancel request for pending or partially executed orders
• Match Trades
• Generate Order and Trade Confirmations
• Generate the top n bids and offers
• Generate broadcast messages for order confirmation/rejections, price information (best bids and offers) and trade confirmations.
  

Client Front End Interface
The Client interface is an elegant user-friendly interface. The interface allows user to monitor Bids and Offer on a real-time basis and to participate in the trading online. The interface comprises of four key components.

• Market Watch
• Order Form
• Ticker
• Report Viewer

Back Office Interface
This interface allows the Exchange Administrator to initialize the commodity trading engine before a trading session with the required data-store such as Member Positions, rates etc. Once this information is imported in the commodity-trading engine, it will permit members to login and participate in the trading session. The Back Office Interface will initialize the commodity trading for starting the trading session.

Once the commodity trading session is over, the commodity-trading engine will export the required information to the exchange back-office. These would include the Order and Trade Log information, final positions of members. Once this data-export is over the commodity trading engine's cycle is over till it is initialized for the next commodity trading session.

Surveillance and Administration Client (SAC)
The surveillance terminal will allow market operations department to monitor activity over the trading session and perform surveillance and administration activities on the commodity-trading engine. The commodity-trading engine the surveillance terminal can monitor has authenticated once the surveillance administrator

• Real-time price information on the best bids and offers.
• Open positions of all or specific member [Commodity-wise or all]
• Open positions for a Commodity [Member-wise, consolidated]
  Activity (Top Traded …etc)
• Block a member from Buying, Selling or both for a particular commodity or all commodities
• Block buying, selling or both for a particular commodity across all members
• Add / Modify / Delete Client from the commodity trading engine database and perform all administrative activities on the users, such as changing passwords, disabling members for trading etc. This will be detailed on receiving the requirement specifications from the client.
• Broadcast information and messages to members.
• Any other features as requested by the client while carrying out the system study

Feed Broadcaster
The Feed Broadcaster receives broadcast information from the commodity trading engine and the Surveillance terminals. When order and trade confirmations happen within the commodity-trading engine, this information is passed to the broadcast generator. This in turn structures the message for transmission and passes it to the Ticker Plant for distribution. Similarly when trade confirmations are generated within the trading engine, broadcast messages are generated. The content of the broadcast can be listed as below.

• Best Bids and Offers
• Order confirmations and rejection messages
• Trade Confirmations
• Broadcast messages by the surveillance
• Depth of the Order Book