About the Client
Our client is a leading proprietary trading firm and trading on their own account and risk, they maintain a continuous market presence on many major exchanges around the world. They are market leaders in finance and are regulated by the Swiss regulator FINMA by a Securities Dealer license and by the Dutch regulator AFM through their MiFid II license.
As a proprietary trading firm, our client adds liquidity to the global financial system and focuses on price differences between related products. By offering liquidity on various platforms, they contribute to the way financial markets operate and to the stability of the system. Our client specializes in arbitrage strategies.
The Core Problem
Our client is trading in multiple segments of the trade market including ETFs. At the moment, traders used to trade ETFs through a banking partner ABN AMRO. To put ETFs orders in the market through the banking partner, they used to send the order instructions to the banking partner through email and SMS which was highly error prone, time consuming and no real time order updates.
To structure and automate sending of order instructions to the banking partner client wanted to build a web based platform through which they can securely exchange the instructions and order updates with the banking partner.
Jalan Technologies’ Collaboration
Through a mutual reference, Jalan Technologies’ started conversation with the client to understand their pain points in day to day trading activities. Within a few discussions, Jalan Technologies identified one potential problem and started building the web based solution for the client.
Jalan Technologies collaborated with the client to build a web based platform through which they can securely exchange the instructions and order updates with the banking partner.
In order to make the instruction and updates exchange more faster and secure, Jalan Technologies implemented its own FIX engine which communicated with the bank’s FIX engine over highly secured FIX protocol. At a high level, a trader can simply login to the web based application. They need to enter an ETF product they want to trade, quantity and side (buy/sell) and simply send the instructions to the banking partner. Our system also allows traders to track their active order status in real time with a timeline.
The web interface would have only single login credentials and all the traders would use the same credentials. Since this application involves a high risk of financial transactions we have made sure to protect the application on various levels. In order to protect the client server communication, and encrypt every bit of information, both the front end and the back end have been layered upon with SSL. The application is also MFA enabled to protect its data at various levels. As the users of the applications are very limited, the passwords for them are made highly complex.
Tech Stack
- Server Processing – Node
- Interface – React
- Order Data Persistence – MongoDB
- FIX Protocols to exchange messages between FIX engines
Results
With the help of our web based application, Our client’s team members are able to now directly place their ETF order using our application to market through the banking partner. It automates the order creation and cancelling part hence saving a lot of time and effort of the client.
The client can check the detailed status of any order, the dashboard basically provides a timeline of all different status from order creation, approval and order confirmation. Clients can cancel any order by checking its real time state and all the cancelling logs are also available to the client.
If any Order is rejected by the bank, clients have all the realtime details available to them and can place order again after modifying necessary details. Since there is a FIX connection between the client and the bank, all the transferred data is secure.
