Newsletter Q1, 2013

The ITS Trading Workstations Newsletter is published every quarter by ITS & ITS Online.

 

As always, please feel free to call our Operations & Support Team at support@itsys.ca or 416-233-3961x0 at any time if you have any questions about our workstations.

 

New features Available in ITS TraderLite / TraderLite GUI

 

Application Programming Interface (API) for External Algorithms

An application programming interface is now available with ITS Trading Workstations. This API can be used by an external system (such as an algorithm) to both request market data and send order-entry through the workstation.

 

Cyborg Trading Systems is in the final stages of certification with this API and will soon offer their algorithms for our workstation clients.

 

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NBCN Certification

The ITS Trading Workstations have been certified with the TSX Lava SOR to allow trading through the National Bank Correspondent Network (NBCN).

 

We’re pleased to announce that ITS and NBCN are working together so that brokers who trade through NBCN may use the ITS SOR, workstation(s) and its embedded OrderGuard pre-trade risk management by May 31st, 2013.  As previously announced ITS’s aggressive cost structure will save every organization using this type of solution.

 

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Order Manager
The ITS Trading Workstations now have an OrderManager Screen allowing users to display positions based on selected account types.

 

Order Manager

 

ITS OrderGuard Pre-Trade Inspection

The ITS OrderGuard Inspection Engine provides pre-trade inspection for order flow through ITS/ITS Online systems. The ITS OrderGuard inspection engine is being embedded into all existing ITS SORs (including workstations using the ITS SOR) and will be available to ITS SOR customers AT NO ADDITIONAL COST.

 

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SME Implementation

ITS Trading Workstations have been updated with changes in preparation for the implementation of the Short-Marking Exempt ("SME") tag.  As of April 1, 2013, all marketplaces will reject “short exempt” orders or “short sale” orders also marked with “SME”.

 

Impact of “SME” designation for traders

  • As described in IIROC Notice 12-0079, orders would be marked as “SME” if the order is from an account that is: the account of a person with market making, odd lot and other marketplace trading obligations in respect of a security for which that person has obligations (“Marketplace Trading Obligations”) as described in IIROC Notice 11-0251
  • A person with Marketplace Trading Obligations should only designate buy or sell orders for securities for which that person has responsibility as “short-marking exempt”, including those orders where the person is knowingly taking a directional position
  • Marketplaces will add the “SME” marker to all trades automatically executed to fulfill a person’s Marketplace Trading Obligations (e.g. odd lots)
  • Orders for securities for which the person does not have Marketplace Trading Obligations should not be designated as “short-marking exempt”. An order for the short sale of such a security should be designated as a “short sale”

 

Based on our conversations with IIROC, this change requires that all Registered Traders who are designated as “Market Makers” on specific symbols must include the “SME” tag on all orders for the symbols which they have “market-making” obligations. Traders who enter orders from accounts intended to result in a daily net zero position should also be including the “SME” tag for those accounts.

Overview of Changes to ITS Trading Workstations (TraderLite, TraderLiteGUI) for “SME” designation

 

To facilitate the new “SME” designation, the Preferences >> Options settings of the ITS Trading Workstations will include the ability for traders to designate both symbols and accounts which require the “SME” designation to be included on EVERY ORDER for that symbol or account. In addition, the option of adding “SME” to any order will be available through the order entry screen.

 

Designating “SME” symbols

 

The option to add a symbol which requires the “SME” designation will be as shown below. Note the option to “Enable SME” is included in this option.

 

SME symbols

 

Designating “SME” accounts

 

The option to add an account which requires the “SME” designation will be as shown below.

 

SEM accounts

 

Adding “SME” to an individual order

 

The ability to add the “SME” tag to an individual order will also be available through order-entry.  

 

It will be toggled on order entry by pressing <SHIFT>X (toggles between “EXEMPT” and “SME”) on the TraderLite OrderEntry screen

 

SME order

 

OR by selecting the “SME” box in the lower left-hand corner of the floating order entry screen as shown below.

 

SME box

 

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Answers to Frequently Asked Questions about ITS Trading Workstations

 

Our operations team has compiled a list of their most frequently asked questions and provided the answers on our website http://www.itsys.ca/newsletter1.html. Please feel free to call our Operations & Support team at 416-233-3961x0 if you need more information about any of these answers.

 

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