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Distribution Channel - Overview

Distribution Channel Overview

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Channel Explorer

  • Type - Market Making / Trade Optioning
    • For pricing, Trade Optioning will always publish the price from the broker pool while Market Making has the option to publish an aggregate of the internalisation market and the broker pool
  • Channel Id - set on making the channel
  • Risk control profile - the group of clients for which the distribution channel is being configured.
  • Visible quantity - applies a limit to how much of the quantity available in an instrument is visible to the clients in the channel.
    • E.g. if set to 25, where the normal quantity has been set at 200,000. Clients will only be able to see the prices for the first $5,000,000 of that instrument available.
  • Max pool price - is the maximum distance the pool price can move from the core models TOB price.
  • Throttle limit - controls how many times a price is updated per ms.
  • Broker pool - specifies the pool an order is to be sent if it cannot be internalised.
  • Continuity pool - an optional pool for failover if the main pricing source is currently unavailable.Continuity Pool
  • Internalisation market - the core price market to base prices on and where internalised trades will be sent.
  • Mid source market - the market from which mid will be sourced for mid price checks during internalisation.
  • WSS Mid Source Market - optionally override the market mid that is used for WSS, if the published price becomes too large, WSS will be capped around this mid.
  • Include Liquidity Throttle - toggles whether the global and channel level liquidity reduction should be included in the published price.
  • Price Selectors - allows you to set different models from the pool/internalisation for various instruments. What prices get published on a Distribution Channel?

Wide Spread suppression config

Wide Spread Suppression (WSS) allows different functionality for when spreads distributed out of the chanel become too wide: cap/go indicative/do nothing. This is useful protection against stopping clients out during periods of high volatility.

Wide Spread Suppression

Markup profiles

Optionally allow for adding (positive or negative) markup per timezone and instrument to each side of the published rate, this allows for widening out spreads on a core pricing model without impacting the underlying pricer.

Liquidity reduction profiles

Liquidity reduction profiles allow configuration of liquidity reduction at the channel level, prices distributed from the channel will be widened when liquidity is consumed faster than the published rate, this can either be used in publishing the rate or just execution using the Include Liquidity Throttle toggle in the channel explorer

Liquidity Reduction - Overview

Client connections

This is the maker connection that the prices are published out of, the client subscribes to the marketdata and orders connections

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