Page 198 - DMGT513_DERIVATIVES_AND_RISK_MANAGEMENT

Unit 14: Management of Derivatives Exposure

Notes
!
Caution It is responsibility of the trading member to maintain adequate control over
persons having access to the firm’s User IDs.
2. Clearing members: Clearing members are members of NSCCL. They carry out risk
management activities and confirmation/inquiry of trades through the trading system.
3. Professional clearing members: A professional clearing members is a clearing member
who is not a trading member. Typically, banks and custodians become professional clearing
members and clear and settle for their trading members.
4. Participants: A participants is a client of trading members like it financial institutions.
These clients may trade through multiple trading members but settle through a single
clearing member.

14.6.2 The Market Watch Window

The following windows are displayed on the trader workstation screen.
1. Title bar

2. Ticker window of futures and options market
3. Ticker window of underlying (capital) market
4. Tool bar

5. Market watch window
6. Inquiry window
7. Snap quote
8. Orders/trade window
9. System message window

As mentioned earlier, the next best way to familiarize oneself with the screen and its various
segments is to actually spend some time studying a live screen. In this section we shall restrict
ourselves to understanding just two segments of the workstation screen, the market watch
window and the inquiry window.

The market watch window is the third window from the top of the screen which is always
visible to the user. The purpose of market watch is to allow continuous monitoring of contracts
or securities that are of specific interest to the user. It displays trading information for contracts
selected by the user. The user also gets broadcast of all the cash market securities on the screen.
This function also will be available if the user selects the relevant securities for display on the
market watch screen. Display of trading information related to cash market securities will be on
“Read only” format, i.e. the dealer can only view the information on cash market but, cannot
trade in them through the system.

!

Caution This is the main window from the dealer’s perspective.
14.6.3 Inquiry Window

The inquiry window enables the user to view information such as Market by Price (MBP),
Previous Trades (PT), Outstanding Orders (OO), Activity log (AL), Snap Quote (SQ), Order

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