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Table of Contents 1. Idea – Mobility Solution Framework for Derivatives Trading

1.1 Executive Summary

1.2 Users

1.3 Problem Statement

1.4 High Level Business Requirements

1.5 Relevance to Customer’s Business

1.6 Data Sources

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1. Idea – Mobility Solution Framework for Derivatives Trading 1.1 Executive Summary

The mobility solution framework for derivatives trading will enable the user to trade in option , futures and swaps through a mobile phone app. The use of mobile phones is all pervasive and enables the user to perform their activities on the move. From a capital markets perspective , traders trade in derivative instrument and mobile framework for derivatives trading will provide an additional channel for placing their orders as soon as they hear the information about the securities.

1.2 Users

● Traders ● Investors ● Broker/Dealers

1.3 Problem Statement

From the capital markets perspective , a lot of traders buy/sell derivative instruments frequently .The opportunity exists to fulfil this need where a trader can trade in derivative instruments through a mobile phone by connecting to an trading and risk management application. The trader should be able to trade in options , futures and swaps by implementing strategies in these derivative instruments through the mobile phone interface and application.

The benefits is the ease of use for trading in these derivatives and creating an additional channel for trading.

1.4 High Level Business Requirements

● The solution is a mobile framework having mobile screens which will facilitate and enable the user to trade in options , futures and swaps from mobile phones.

● The trader should be able to trade in options , futures and swaps and strategies relating to these financial instruments .

● The mobile application would provide the trader with standard templates or generators which he can use to create and capture a deal.

● It would interface with market data for the pricing and also enable him to arrive at the details of the deal.

● The mobile app should also be able to interface with the reference data i.e securities and client information.

Example of business requirements only for options – A type of derivative. A typical list of functionality include


1. Order Entry for single orders ( options )

2. Order Entry for spread ( multileg ) orders ( stocks , options )

3. Order book display with dynamic updates of status changes

4. Fill display when an order is executed

5. Positions display with streaming price and P&L updates

6. Watchlists with streaming price updates

7. Option Chain display with streaming price updates

8. Option Spread quote display with streaming price updates

9. Account display with streaming balance updates

10. Streaming Price Charts with both historical and intraday timeframes

11. News stories selectable by security symbol

12. Notification of order fills when application is not running

Order Entry for single orders (, options)

New Order Order Entry Ticket

Capture Action , Capture Quantity , Select Order Type , Capture Price , Capture Order details specific to type of order

Y

Save Order Save order details Y Order Capture Confirm Order

Confirm order capture

Order Details Display Display Order Details Y Type of single orders Cater for different type of single orders Y

Order Entry for spread (multileg) orders ( options)

New Order Order Entry Ticket for Spread

Capture Expiration date , Capture Strike , Capture Type , Capture Width , Capture Wingspan

Y

Add Legs Capture Action , Capture Quantity , Display Strike/ Expiration , Add additional call/put/equity legs

Y

Display Market data Display Mark/Change/Bid/Ask Y

Save Order Save order details Y Order Capture Create Order

Confirm order capture


Order Details Display Display Order Details Y Type of option spreads Cater for 15 different type of spreads Y

Order book display with dynamic updates of status changes

Menu List of orders , Cancel All , Cancel Day Orders , Send All orders

Y

Order Fields Display Display order book fields Symbol , Status , Fills , Description , Market , Time , Account , ID

Y

Filter Filter by date Y Order Details List Order details Symbol ,

Description Y

Order Status History List Status History Time , Status Y

Dynamic Status Update Update order book with execution/fill details

Y

Edit Order Details Cancel/Modify/Hold/Copy Orders Y

Display Order details Y Fill display when an order is executed

Filled Order Details Display Filled Order Details Status , Time of execution , Partly / Completely Filled , Quantity , Price

Y

Positions display with streaming price and P&L updates

Column locker , Menu , Position , Expander icon , Expander icon within the strategy

Y

Performance Thumbnail panel Day Mkt Gain , Day OpenMkt Gain , Day Closed Mkt Gain , YTD Mkt Gain , YTD Open Mkt Gain , YTD Closed Mkt Gain

Y

What If analysis Thumbnail panel Market move (%) , Volatility move (%) points , Time elapse (days) , Calculate Calculation logic , Whatif Profit/ Loss

Y

Quote All components of a quote Last , Change , Change (%) , Bid , Ask , Size , Volume , Open , High , Low , Close

Y

Time & Sales Time , Price , Size , Exchange Y Totals Y


Watchlists with streaming price updates

Menu Edit watchlist , select columns , turn sorting off , add watchlist , delete watchlist

Y

New watchlist New watchlist , default watchlist Y

Expander icon Y

Symbol lookup Y

Option Chain display with streaming price updates

Option Chain Type drop down

Single options , Type of standard option spread

Y

Wingspan Click inside the box and type desired wingspan , Click the drop down arrow and click one of the default settings. The Wingspan is adjustable when any of the following are selected: Butterfly , Condor , Iron Condor , Iron Butterfly Vertical Spreads

Y

Number of Strikes , Near , Ascending/Descending , Menu , Expiration Month Section Label , Expiration month / time until expiration , Dynamic Strike Bar , Short Dated Expiration , Column Headers

Y

Option Spread quote display with streaming price updates

Quote All components: Last , Change , % Change , Volume , High , Low , Bid Ask , Bid Size , Ask Size , Open Close

Y

Price and Volatility Chart 3 days , 5 days , 1 month , 3 month , 1 year , open , high , low , close

Y


News Streaming news, checkbox for twitter Y

Fundamental report card All data about the underlying stock company as on previous business day Size , Mkt Cap , Sector , Industry , beta , Volume Abt the company , Company financials , Earnings track record , How expensive is the stock , Dividend payout Analyst outlook , Significant events , Related stocks

Y

Account Y

Account display with streaming balance updates

Live account value Stock value long Stock value short Option value long Option value short Mutual fund value Bond value

Y

Cash on deposit , Cash available to withdraw , Equity requirement , Option requirement , Equity percentage , Cash buying power , Margin buying power , Margin buying power , Day trading buying power , Today's market gain , YTD market gain

Y

Expander icon Net outstanding calls Y Account Value Dropdown

Graph by asset class Graph chart by symbol

Y

Drawings Y


Streaming Price Charts with both historical and intraday timeframes

Menu

Studies , Range , Frequency Y

Display

Select Features earnings , dividends , splits , Select additional charts – Volume , Volatility

Y

Streaming Price Charts Menu Zoom in , Cursor , Style , Volume Charts , Volatility – Historical and Implied

Y

New Stories selected by security symbol

Menu Configure News Subscribe to custom feeds , featured feeds , Help

Y

Search Search by symbol Y News feeds display Display news feeds Y

Notification of order fills when the application is not running

Alert if order gets filled Sms Y

e mail

The functionality which we will develop within 36 hours is only the order entry screen for Options – Plain Vanilla and Strategies

1.5 Relevance to Customer’s Business

● Helps traders / broker –dealers to trade in options , futures and swaps from mobile phones ● Provides an alternative channel for the customer to trade in derivatives. ● Ease out bottlenecks in the trade life cycle related to deal capture ● Instant market data and information which we lead to quicker turn around and decision making


1.6 Data Sources

● Market Data ( option information – price of underlying , volatility etc ) ● Reference data ( data about securities , counterparty data )


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