Options Trading Order/Execution Management System
Derivix-SM is our options trading order/execution management system for sell-side institutions engaged in agency, facilitation and/or proprietary trading in the options markets. The system provides direct access to all options exchanges, fully customizable algorithms and various options trading strategies, such as dispersion trading, volatility trading, vega trading and cross asset trading for quantitative trading, order management and execution management.
Key Features & Benefits
- Configurable multi-asset trading front-end
- In-bound and out-bound FIX gateway interfaces for customer connections, direct market access or execution algos
- Trade directly from the options matrix
- Integrated smart order routing and sweeping
- Floor broker routing
- Client-to-client crossing, client-to-principal crossing and customer facilitation
- Volatility trader – proprietary volatility pegging algo allows users to send orders based on a specified volatility or one tied to the volatility of other products
- Volatility Pairs trading
- Gamma scalping
- Delta hedging
- Vega trading – trade strips of options based on volatility
- Pre- & Post-Trade Risk Analysis
- Users are able to view the real-time pre- and post-trade impact of planned trades directly on the trade ticket
- Staging blotter
- Quickly hedge a partial or full portfolio by loading multiple trades to the staging blotter
- View bid/ask for all working orders and set triggers for manual or automated execution
- Street order blotter
- Easily reload and cancel orders.
- Configurable bump buttons are available to cancel, replace, and modify orders quickly
- Customizable sorting and grouping functionality allows traders to organize their orders and trades
- Customizable trade ticket
- Ticket defaults are easily set for multiple parameters including: broker, algo, size, and account
- Algorithmic behaviors are automatically defaulted based on the selected strategy
- Option level 2 data provided on the ticket if desired
- Easily connects to other FlexTrade solutions or other external TCA systems
Pricing and Analytics
- Extensive Scenario Analysis
- Easily adjust multiple inputs for pricing and analytics. The ability to adjust time, volatility, price, dividends, and interest rates provides comprehensive simulation analysis. These adjustments are applicable on both real and simulated positions, and users can view the information in both a tabular and graphic format.
- Add simulated trades to view the effect on your risk and portfolio
- Proprietary Volatility Time Model
- Customize decay through a minute-by minute valuation of the options. It accounts for nights, weekends, holidays, and user defined events, which provides unparalleled accuracy, particularly around expiration and weekly options.
- Comprehensive Greeks and Advanced Volatility Skew Analysis
- OTC Derivatives Support
- Easily handles OTC and Flex options. Positions can be manually added to an
- Implied and user-defined volatility management for accurate theoretical valuation
- Volatility curve is modeled by the trader and based on the implied volatility account for hypothetical position analysis contracts. The curves are plotted in real-time, and various offsets can be applied visually to change the shape of the curve.
- Fully hosted, out-of-the-box solution that facilitates management of all types of customer orders over their entire life-cycle, including:
- Agency and principal trading
- Order tracking and passing
- Position maintenance
- Compliance reporting
- Complex order stitching and separating
- Delayed reporting and order linking
- Full support of exchange based and manual crossing
- Post trade allocation
- Customizable view of historic trading activity
- Multi-asset configurability
- Scenario Analysis
- Performs full re-valuation for any what-if scenario in real time
- Shock spot, volatility skew, date/time, and other model inputs to instantly view its effects on any size portfolio
- Define your stress tests in terms of spot and volatility shifts and review the impact on your Delta, Gamma, Vega, etc., projected at multiple future dates
- Graphically analyze and review P&L as well Greeks.
- Grouping (Sector and Sub-Account)
- View aggregated risk across accounts, traders, desks, sectors, portfolios or other user-defined segments.
- Grouping views can be changed in real-time.
- Slice and dice your portfolio by underlying, expiration, account, etc., or analyze your entire portfolio.
- P&L Greek Decomposition
- Start of Day P&L is categorized into Delta, Gamma, Theta, Vega, and Rho, and also provides day’s trading P&L.
- Non-trading version available for risk managers who need to monitor risk across multiple asset classes from all traders under their supervision.