Trading System (TS)

Provides electronic market places and the associated facilities for bringing together purchasers and sellers for the purpose of financial instruments trading.

The Montran Trading System Solution

Montran's multi-currency Trading System is designed to support the trading of fixed income assets (Government, Central Bank and Corporate issued debt instruments), as well as equities; basically any security type supported by Montran's Central Securities Depository (CSD) System.

Montran's Trading System (TS) Solution consists of modules and interfaces designed to offer a complete range of trading functions.

Complete Management of the Core Trading Entities

The Trading System implements the complete management of the following core trading entities:

  • Timetable - Used to control the Trading System daily schedule, it contains timetable events (Start-of-Day … End-of-Day) which can be executed manually or automatically
  • Participants - Entities which enable the management of system parameters for institutions that hold qualifications to directly participate in the Trading System markets
  • Markets - Independent components (operating concurrently) of the Trading System where one or more symbols can be traded according to specific rules:
  • o Market Profile

    o Operations - Create, Modify, Approve, Suspend, Activate, and Remove

    o Business Status - Pre-Open, Open, Pre-Closed, Closed

    o Price Step Schema - Facility to specify the minimum amount that a price of a symbol traded on a market can change

    o Odd Lot Regime - Enables management of contiguous price intervals, specifying the round lot size for each interval

  • Symbols - A financial instrument that has been accepted for trading in the system:
  • o Debt and Equity Symbols are supported; open architecture allows other types to be added

    o Symbol Profile, Corporate Actions

    o Operations - Create, Modify, Approve, Suspend, Activate, and Remove

  • Symbol-Markets - A sub-market of the given market, that includes only the respective symbol. This allows different symbols to be treated differently on the same market, and the same symbol to be treated differently on different markets (in terms of status, price, etc.)
  • Orders - An instruction from a participant to buy or sell a specified quantity of securities on a specified market:
  • o Market Orders

    o Limit Orders

    o Market-to-Limit Orders

    o Iceberg Orders

    o Stop Market Orders

    o Stop Limit Orders

  • Trades - Synchronized sale and purchase of financial instruments registered by the Trading System transaction management module
  • Indices - Statistical measure of the changes in a portfolio of stocks representing a portion of the overall market
  • Circuit Breakers - Measure designed to prevent massive price movements by stopping trading after a symbol or an index has changed by a certain amount
  • Trading Information - Trading Board, Market in Depth, Trade Summary, Symbol Data, Recent Trades, Moving Ticker, etc.
  • Trading Reports - PDF, XLS, CSV formats are available
  • Trading Charts - Standard set of charts which allow system users to analyze market trends, which in turn allows them to make administrative or trading decisions
  • Trading Alerts - Trade cancelled in CSD, Stop-Loss, Circuit Breaker, Market Trading Halt, Symbol-Market Trading Halt, etc.
  • Billing - A module that facilitates the management of charge rates for operations performed in the Trading System

The Interfacing Capabilities

  • Settlement Interface - ISO 15022 based post trade settlement interface with the CSD application (including settlement acknowledgment and cancellation plus rejection reason notification)
  • Data Dissemination Interface - The institution's website, Bloomberg, etc.
  • Other Systems - For the particular needs of each customer

Administrative Control

  • Users - System entities corresponding to persons with different responsibilities in the system
  • Profiles - Allow restricting activities a user can perform
  • Groups - Allow arranging users in collections, which are then used when granting access throughout the system
  • Password Policy - Configurable parameters that enforce the desired level of password strength
  • Calendar - Facility to create/modify calendar entries and defining business days and non-working days
  • Users' Activity - Allows authorized administrators to monitor the activity of users in the system
  • Complete Audit - For both static data changes and user audit trail

Access to Information

The Montran TS System user interface is fully on-line and entirely web-based. Users access the TS functionality and control all aspects of the system using a web-browser, login credentials, and by navigating through the system menu and associated screens.

  • Features
  • Modules
  • Security

Features of the Montran TS

  • Web-based application; users access the system via a standard web browser, no special software needs to be installed client side
  • System data storage: data integrity, data consistency, security and data replication
  • Modular open systems architecture to meet individual customer requirements
  • A multi-currency and multi-lingual system
  • Operational reliability with backup and contingency arrangements
  • Visual, e-mail and audio real time alerts
  • Complete audit trail for system business entities
  • On demand reporting; reports can be generated at any time, using the filtering criteria specified by the user.
  • Comprehensive collection of charts for monitoring and market analysis

TS Core Modules

  • Market Management - The Trading Platform allows the system operator to define any number of market instances by specifying for each a standard set of parameters.
  • Financial Instruments Management - Basically this module allows importing any security that exists in the Central Securities Depository and defining specific trading parameters for it, thus making it available for trading in the Trading System.
  • Order Management - Where all the orders are created, modified, suspended, activated or cancelled.
  • Order Matching Engine - Once active, an order is placed in the Order Book. There, the order matching engine continually tries to pair orders from the buy and sell side, taking into account the set of trading rules, and create trades.
  • Trading Information - Has a distinct importance as it enables traders to have a complete dynamic view of the market, which in turn allows them to make decisions.
  • Routing - Enables the Trading System to send and receive messages from other systems.
  • Reporting - Reports and charts can be generated on demand, at any time, and they are generated using the filtering criteria specified by the user.
  • Billing - Facilitates the management of charge rates for operations performed in the Trading System.
  • External Interfaces - Most important interface is with the Central Security Depository. The Trading System is also able to disseminate market data to 3rd party systems. Other interfaces can be implemented on demand.

Security

Montran's Trading System uses the best data protection standards and confidentiality practices in the industry. Data access security is provided through both digital signature and encryption based on Public Key Technology. For any sensitive operation, a four or even six-eye approval policy is enforced. System functions access is restricted by configuring user profiles. The system supports integration with an LDAP server as a Centralized User Repository. Additional security and control over user credentials is achieved with smart cards. Access is done over secured networks.


Architecture
  • Based on open systems architecture
  • A standard browser based "thin client" user interface
  • Server application components written in Java and running in an enterprise environment, Java EE 5.0 application server
  • Interoperability through the use of standardized Java API (JDBC, JMS, JTA, JCA), Interface adapters, and SOA integration
  • Runs on any platform supporting Java™, including: Windows, UNIX, Linux, AIX, Mainframes
  • Uses any JDBC compliant RDBMS, including MS SQL, Oracle, Sybase, etc