The BM&F version of the XBroker system was created in 1998 to supervise Brokerage and Repayment Operations accomplished among brokers. The distinguishing aspect of this system is in the parameterization of features according to the broker’s business profile at BM&F.
The different kinds of requests made by users of brokers with distinctive businesses and different views impelled the system to absorb an expressive volume of parameterizations that allows the master user to define a more adequate profile to business characterizations, such as rural commodities, titles, brokerage or repayment.
The integration of allotment modules through integration files with other clients and brokers enabled us to reach the willingly efficiency by cutting out fax and double digitations.
Highlight: In the version for BM&F, the XBroker counts on an efficient overtime specification screen that automates and adds to the efficiency of the broker’s operational process by cutting out re-specification errors (end of day letter) and softening the risk of the operations.
The XBroker nowadays system was the first software developed by Extol in 1996. The System, whose first purpose was trading, is now a complete Order Management System - OMS for broker’s desks at Bovespa and BM&F, providing the management of business accomplished either by internal operators, or by external clients via Internet or, still, negotiation platforms FIX.
This system, which went through a severe codification control, including recursive tests and database stress tests, is prepared to handle an operational volume equivalent to the total negotiated at Bovespa and earned in 5 minutes.
The main function of this system is to carry out the follow-up – in real time – of the businesses that are fulfilled in the trading room, by operating the meeting between the orders and the accomplished businesses. It grants the desk, as well as the Back Office, operational control enough to cut out operational risks, to integrate with other systems and to provide accurate information in reports or Excel spreadsheet.
The PLD version of the XBroker system, created in 2001, was developed to comply with the demands of Managers and Treasury that own Patrimonial Titles at BM&F, in the PLD category.
PLD Treasury Version
The system was specifically projected to comply with PLD demands and follow up, in real time, the accomplished businesses at BM&F trading room, by operating the meeting between carried out orders and businesses. It allows the back office to have a bigger control, by softening operational risks and replacing the already used spreadsheets to comply with the operations.
PLD Asset Version
The System enables the manager to do the allotment of the funds by sending specifications, via attachment file, directly to BM&F. In real time, the Manager complies with the businesses he/she did at the BM&F trading room, and operates the meeting between the orders and the executed businesses. By so doing, it softens operational risks and replaces the already used spreadsheets to comply with operations in different institutions.
The trading project of managers’ assets had its start thanks to an expressive custody administrator who realized Internet could become an excellent communication link between his clients (managers) and custody administration.
The difficulty was in assuring managers - geographically spread all over Brazil - to devise an electronic link capable of integrating the trade screen related to the accomplished businesses carried out by means of their portfolio assets, in real time.
It is important to bring to mind that for the custody Back Office to process the calculation of fund quotes of these managers, it depends on the daily turnover due to the strategy of the administrator, who manages all daily investments and discharges, and also decides on buying and selling assets, titles and financial commodities.
For the custodian to offer a safe and efficient administrative service of assets and liabilities, the portfolios must be daily updated and, for that matter, the Internet was found to be an excellent low cost communication means for its establishment, once it is destitute of geographical barriers.
This way, the custodian was able to succeed in reaching the aim of adding to the number of administrated portfolios by doing it without LP’s physical installation and by keeping an additional cost for each new manager/client.
As for the technological point of view, the custodian took the Internet potential into consideration to interpret and implement the trade screen as well as to nominate an exclusive Extol analysts’ team to develop this site.
OMS terminology – meaning Order Management System – is widely used all over the world to refer to systems that aim at the management of orders received by traders or sale desks and that will be send out for trading room executions.
It would be incorrect to say that OMS is an order execution system, once this kind of work is done by the buying and selling systems, world-widely known as DMA (direct market access). Extol DMA is named XTrade.
Extol OMS system was developed to help Bovespa and BM&F desk operators who need to manage orders sent by their clients. The system provides data recording of operational limits allowed to each client by order and daily, as well as the follow-up of accomplished businesses in real time.
By means of the OMS, the desk operator opens up a communication channel with each of his/her clients, making it possible to send complementary messages, such as orally or through-correspondence accomplished businesses.
The OMS may function as a DMA for the broker’s desk operator, therefore enabling the opening up of a buying or selling order, which will be automatically routed to Banespa.
OMS is a flexible and efficient management tool that can also be used to manage Bovespa and BM&F businesses through Stock Market Gates 300/310/400/500/510, which are connected to the Engine in order to fulfill Internet or via Fax (FIX) demands.
OMS is an essential part of the Engine system and enables the management of all businesses accomplished in this router.
To fulfill the demands of clients who day after day operate electronically via Internet, Extol has developed the XTrade system, which enables the opening up and sending out of electronic orders to Bovespa brokers through the Home Broker Institutional.
The system offered by the Brokers can be installed in the client’s computer via Internet, making it possible for the user to receive quotations in real time, check book offerings, and electronically operate or sell Bovespa assets.
XTrade was designed to operate any kind of assets by means of a connection made through the Engine router system of Extol orders and messages, which is installed in the Broker.
For the Managers/Asset the XTrade module is provided with a distribution screen of all accomplished businesses (allotment) which allows the sending out of committees’ specifications directly to the Broker, therefore cutting out operational error risks and double digitations when a fax is sent out.
In the Stockbroker, Extol OMS system (Order Management System) opens up a management screen that allows the operator to follow up all businesses accomplished by the Engine router, as well as businesses accomplished by clients via Internet or via FIX protocol.
The Engine system was projected by Extol to enable the sending out and the receiving of business messages via WEB, according to the STP (Straight Through Processing) concept. Still during the creation phase and software design the project assumption was to devise enough flexibility to translate different types of protocols and database accesses. The first stage of this project was to implement a layer (framework) of database and communication connections with different protocols, such as XML, text, and so on.
As soon as the first stage was developed the Extol team implemented the Bovespa asset components for electronic negotiation, known as Gate 500. To make a via Internet negotiation tool available Extol developed the XTrade.
The Engine is a powerful order router devised to establish the exchange of different types of negotiation protocols which can be implemented according to the financial market demands. The use of this tool depends exclusively on the users’ creativity as to observe the negotiation potential allowed by this technology.
We sincerely believe that several sectors will be able to profit from this type of tool. Following are some examples:
Bovespa Assets Negotiation
BM&F Assets Negotiation
Rural Commodities Negotiation
Public and Private Securities (fixed income)
For STP applications we emphasize the use of the Engine for messages in FIX Protocol which enables people to router asset negotiations by means of international webs, such as Bloomberg, Marcopolo, Tradeware, Tradescreen, etc … that is, all platforms that make use of the FIX protocol.