NETCETA

NETCETA (Net enabled Commodity Electronic Trading Architecture) is a product Cambridge created in 1999. NetCETA is TESA based, end-to-end solution for derivative exchanges - trading, exchange administration and clearing house operations. It is Internet-ready, capable of being accessed through a LAN, direct dial-up and through the Internet cloud. It has Order management, Matching, Risk Management, Market Administration, Settlement and Clearing modules.

NetCETA is an end-to-end solution for derivatives exchanges - trading, exchange administration and clearing house operations. It is Internet-ready, capable of being accessed through a LAN, direct dial-up and through the Internet cloud.

A unique feature of NetCETA is that it integrates Broker front office capabilities along with Exchange Automation thereby enabling a member of an exchange to have n-number of sub traders in remote locations who can place orders on the system and have them Straight Through Processed. The Broker/Member can set the framework for each of his sub-traders separately with parameterizable limits, margin requirements, access controls, audit trails, account self-help etc. This eliminates expensive investment by the brokers in their own front office systems.

In 1999, the first version of NETCETA was implemented for Bombay Oils & Oilseeds Exchange.

Recent clients signed up

Asian CERC IT – for a service bureau to host Bombay Commodities Exchange

FUNCTIONALITY:

• Order Capture and Matching (Trading)
  • Order book formats – Public, Bulk, Small and odd lots
  • Order Types - Market orders, limit orders, stop loss orders, full fill and kill, all or none, partial fill, drip orders
  • Price protection percentage
  • Order validation
  • Matching
  • Trade execution


• Market Administration and Control
  • Exchange administration
  • Circuit filters – day / settlement
  • Broker Limits
  • Commodity contract maintenance
  • Broker order book
  • Public order book
  • Tick size
  • Session management
  • Market announcements


• Risk Management Surveillance
  • Broker exposure limits
  • Margin requirement and management
  • Broker-level open position calculation
  • Calculation of benchmark prices – opening, closing, close-outs
  • Tracking outstanding position of brokers
  • Market Surveillance - Circuit filters, Turnover variation, Abnormal movement in prices and suspension and resumption of contracts


• Clearing and Settlement
  • Pay in Pay out calculation
  • Clearing position calculation
  • Clearing charges
  • Daily clearing rate
  • Delivery order rate
  • Due date rate
  • Warehouse receipt
  • Administration of clearing member activities
  • Apportionment of fees / brokerage

Member Front Office Integration and Registries

• Sub broker – Client Administration
  • Every member can give direct trading access to ‘n’ number of his sub-brokers or clients (parameterizable)
  • Parameterizable Trading limits set by the TCM
  • Online audit trails to track sub-broker activities
  • Parameterized access controls to specific contracts
  • Contract w-se exposure limits to the sub-brokers


• Registries

Customer Benefits

• End-to-end Solution addressing all areas of Exchange Automation and Broker requirements
• Scalability – Scalable from a few hundred transactions to tens of thousands of transactions per day without any expensive re-engineering
• Superior Platform – Applications based on Tandem, the world leading choice of platform and OS for OLTP environments
• Web-enabled front ends for order capture and exchange-broker interfaces

Differentiators

• Browser based access with no client applications - hence no need for expensive workstations. Requires only an ordinary PC and a modem
• Adaptable for order-driven or quote-driven environments
• State-of-the-art risk management functionalities –for the exchange as a whole and for individual broker exposures. Margins enforceable at order level or at trade levels
• Unmatched time-to-market capabilities