City Fund Management monitor several front end electronic trading platforms as used by our experienced traders who have been selected over a period of time on a qualitative and quantitative basis.
We believe that by utilizing these electronic platforms, we are able to effectively and efficiently monitor intraday positional and P+L risk in a completely transparent manner. The risk levels will have been previously defined at portfolio level by the Investment Management Committee.
As each trader may receive allocations from several portfolios, cfm manage the intraday fluctuations at trader level based on their individual combined FUM.
Each of our platforms has its own inherent methods of risk control. That said, there is a common theme running through each model which cfm monitor and control based on pre trade risk and order management.
In order to instigate a trade in a particular contract, cfm Risk Management must pre set an individual contract limit within the relevant front end platform. Based on the individual traders style, this can be from as little as 1 lot per contract month for directional based models to as much as 10,000 lots for spread based models. In addition to these individual contract limits, we are able to set total contract / open position limits. These are relevant to directional traders to prevent them exceeding predetermined lot sizes and to spread traders to prevent individual contract months becoming single valuation pin risk. The limits outlined above, whilst set at Investment Management Committee level, can be amended or even cancelled by cfm management intraday based on trader performance, market conditions or Portfolio adjustment. cfm has direct access to limit control screens on our preferred trade platform where we can adjust lot sizes directly. On other platforms, where this facility is not offered or available to us directly, we have direct phone contact to the Clearer or platform provider on the understanding that as Risk Managers we can instruct adjustments at any time.
This essentially gives cfm the ability to instantly stop an individual trader from trading if necessary.
Additional restrictions can be imposed depending on the platform. These will include intraday margin limits to prevent total position risk exceeding that prescribed, P+L stop loss warnings which prevent traders increasing positions but allow trades to reduce positions and available equity limitations to prevent excessive working orders.
PDF Download :::::::: ELECTRONIC TRADING
We believe that by utilizing these electronic platforms, we are able to effectively and efficiently monitor intraday positional and P+L risk in a completely transparent manner. The risk levels will have been previously defined at portfolio level by the Investment Management Committee.
As each trader may receive allocations from several portfolios, cfm manage the intraday fluctuations at trader level based on their individual combined FUM.
Each of our platforms has its own inherent methods of risk control. That said, there is a common theme running through each model which cfm monitor and control based on pre trade risk and order management.
In order to instigate a trade in a particular contract, cfm Risk Management must pre set an individual contract limit within the relevant front end platform. Based on the individual traders style, this can be from as little as 1 lot per contract month for directional based models to as much as 10,000 lots for spread based models. In addition to these individual contract limits, we are able to set total contract / open position limits. These are relevant to directional traders to prevent them exceeding predetermined lot sizes and to spread traders to prevent individual contract months becoming single valuation pin risk. The limits outlined above, whilst set at Investment Management Committee level, can be amended or even cancelled by cfm management intraday based on trader performance, market conditions or Portfolio adjustment. cfm has direct access to limit control screens on our preferred trade platform where we can adjust lot sizes directly. On other platforms, where this facility is not offered or available to us directly, we have direct phone contact to the Clearer or platform provider on the understanding that as Risk Managers we can instruct adjustments at any time.
This essentially gives cfm the ability to instantly stop an individual trader from trading if necessary.
Additional restrictions can be imposed depending on the platform. These will include intraday margin limits to prevent total position risk exceeding that prescribed, P+L stop loss warnings which prevent traders increasing positions but allow trades to reduce positions and available equity limitations to prevent excessive working orders.
PDF Download :::::::: ELECTRONIC TRADING