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Execution Rules - Tuning

See Execution Rule Overview

Execution rules can be fine-tuned in the distribution tab of Compass to alter your execution on criteria such as counterparty, instrument, and LP.

First, under the distribution tab of Compass, select 'Execution Rules'. Select an execution rule, and a list of execution profiles for that particular rule will be shown. By reordering and editing these profiles, we can classify trades by a variety of criteria to ensure they are executed in a specified way.

Example Tuning Scenarios

set symbol x to broker and symbol y internalised

Create a new execution profile, set the criteria to 'Instrument', and set this as symbol x
Set the execution style to 'Broker'
Create a new execution profile. Again set the criteria to instrument, then specify the instrument as symbol y
Set the execution style as 'Internalisation Only'
This will set all trades of symbol x to be brokered, and symbol y to be internalised, for this execution rule
More sophisticated execution styles can be found here - Execution Rules - Execution Styles

Set symbol x to broker A and symbol y to broker B

First, we need to define a liquidity pool to send trades to:

Go to 'Liquidity Pools' under the distribution tab in Compass
Create a new liquidity pool, and specify the instrument as symbol x. Under constituents, add only broker A
To understand the rest of the Liquidity Pool configuration see - Liquidity Pool Configuration

Go back to 'Execution Rules', and add a new execution profile, with criteria 'Instrument', set as symbol x
Set the 'Pool Override' field to the pool you have just created
Repeat for symbol Y and broker B.

Set symbol x to broker A from client A and set symbol y to broker B from client B.

First, we need to define a liquidity pool to send trades to:

Go to 'Liquidity Pools' under the distribution tab in Compass
Create a new liquidity pool, and specify the instrument as symbol x. Under constituents, add only broker A
To understand the rest of the Liquidity Pool configuration, see - Liquidity Pool Configuration

Go back to 'Execution Rules', and add a new execution profile, with criteria 'Instrument', and 'Counterparty'. Set the instrument as symbol x, and the counterparty as client A
Set the 'Pool Override' field to the pool you have just created
Repeat for symbol Y, broker B and client B

Set client A to broker for all symbols and all other clients internalised

Create a new execution profile, set the criteria to 'Counterparty', and set this to client A
Set the execution style to 'Broker'
Select the execution profile at the bottom of the list, labelled in bold, and usually as 'Catch-all'

This profile will dictate execution for trades that don't fit the criteria of earlier execution profiles, and hence acts as a default execution profile

Set the execution style to 'Internalise Only'
Note that the list order (descending) of execution profiles dictates priority

Set client A to broker for all symbols other than symbol x which should be then rejected.

Create a new execution profile, with criteria 'Instrument', and 'Counterparty'. Set the instrument to symbol x, and the counterparty to client A
Set the execution style to 'Reject'
Create a new execution profile, below the execution profile we have just created, with criteria 'Counterparty'.
Set the counterparty to client A, and the execution style to 'Broker'
As the reject profile sits above the broker profile, any trades that come through from client A will be first tested against the reject profile, then, if this profile does not apply (not symbol x), the broker profile will apply, and the trade will be brokered

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