Risk Management

ProTrader is powerful trading software for retail and institutional brokerages. Orders received from clients can be routed to a choice of destinations, which can be internal (local orders) or external: exchanges, ECNs, brokers, market makers, or banks. A destination can be defined for each user (or user group) depending on order volume criteria and other factors.

A-Book: Order Routing

ProTrader trading platform facilitates sending orders to external systems to hedge risks and make profits on commissions.

External order routing enables ProTrader to be integrated with other trading platforms (liquidity providers): ECNs, exchanges, banks, and brokers, that can also serve as external feeds from which ProTrader receives quotes. ProTrader trading platform currently supports 20+ major external liquidity providers such as: Integral, Currenex, JPMorgan, NeoNet, DGCX, Patsystems, FFastFill, MBTrading, IQFeed, etc.

ProTrader is able to provide a route from one ProTrader server to another and thus build a sub-brokerage configuration.

ProTrader is equipped with a best price aggregation tool, called Smart Route. Smart Route receives data from several external feeds simultaneously. The system then compares incoming data (trades, bid/ask, volume, etc.), chooses the best price from those on offer among the offers from all the liquidity providers, and creates quotes. Smart Route makes it possible to integrate different routes together and extract the best quotes from each. The best price aggregator is able to work with both protocols (Level 1 and Level 2).

B-Book: Dealing Desk

Some companies prefer to bear full trading risks on their own side (Market Making), basically keeping all orders locally, rather than routing them to a third party. ProTrader is equipped with a three-level risk management tool.

I. Simple settings for each user (or user group) allow mapping different kinds of orders, depending on the amount and instrument, to different destinations which can be external routes (STP, A-book) or local (B-book). This solution is simple and useful for most customers.

II. ProTrader trading platform contains a very flexible Risk Management engine based on a scripting language. It allows creation of rules for order routing and execution. This is a professional way to automate any dealing strategy which brokers require.

III. Risk management with manual dealing means the broker can confirm or refuse users' trading requests manually. It is not very efficient to control all trades manually but is usually used for the most critical accounts or instruments, or trading during certain time periods.