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OTC Product Requirements

Overview

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User Stories

Let’s divide the product in three modules

Pre-Trade

In-Trade

Post-Trade

We’ve two major personas using the platform

Admin (all internal teams)

Client

Note: Below user stories are put considering only spot transactions

Pre-Trade

Trade Inquiry

Client is able to

inquire about the quotes on telegram, web interface etc.

[optional] run pre-trade risk assessments: volatility, price slippage etc.

see the expired quote in case market conditions change quickly

provide feedback in case quote seems too high

Admin is able to

fetch quotes from MM for instant fills (time window, volatility risks included) with symbol, size, side, time window etc.

share the quote with the client (preferably automatic)

able to set dynamic spreads basis volatility

able to see deviation from major exchanges in terms of price impact - it can be a function of liquidity across major exchanges

define pre-trade risks: max trade size per client, high-volatile duration, max price slippage

receive alert on client liveness as soon as client is live on interface - to suggest alternate execution method

kill the quotes presented to the client in case market conditions change too quickly

Inner Workings

Client chooses between Instant Fill and Advanced Execution (TWAP, VWAP, Iceberg Orders)

Client needs quote for the trade (instant fill)

Client tells Asset, Order Size, Side, Instant Fill (Yes or No)

Basis this, Admin requests for quote from Quant Desk using QD’s APIs after entering all the required values with quote ID | REST API

QD acknowledges the quote | REST API response

Quant desk shares the quote with expiry time with quote ID as above | WebSocket Message to CoinDCX

Quote gets shared with the client with quote ID automatically over telegram (TG Bot) or web interface | CoinDCX stores the quote response in the Database and shares the quote with Client on Websocket

Client accepts/rejects the quote [additionally can provide feedback - too high, too less expiry time etc.] | Client hits the API with Quote ID

Market Data: We can continue to stream combined order book data - (sum of) quantity and prices - QD can stream this data

KYC [We’ll do Offline]

Admin is able to

Mark Client as verified | Access control on all Pre-Trade, Trade, Post-Trade APIs until KYC is true

In-Trade

Pricing

Admin is able to

fetch quotes from MM for instant fills (time window, volatility risks included) with symbol, size, side, time window etc.

add spread (margin risk) to it

share the quote with the client (preferably automatic)

Client is able to

receive quote on web interface, telegram etc.

express the interest on the pricing

Inner Workings

Risks include: Settlement Risk, Slippage Risk (time window)

For the sake of simplicity: We don’t model settlement risk at the beginning and carry slippage risk

Slippage risk is covered by QD in the quote - hence we don’t add spread to the quotes

Before sending the quote with client | CoinDCX adds the spread % on top of quote in WS API response to the client

Trade Execution

Admin is able to

run advanced execution for the client

place TWAP order with symbol, size, side, duration, aggression etc.

place VWAP order with symbol, size, side, duration, aggression etc.

place Iceberg order with symbol, total size, visible portion size etc.

define maximum slippage impact, limit price and other additional parameters in the order entry

Inner Workings

client/admin requests any of TWAP, VWAP, POV execution algorithms

client quotes below parameters | REST API with request params

symbol

size

side

duration

completion - yes or no?

limit price

percentage participation - %

maximum slippage impact - if any

CD stores the request params with order Id and hit the QD’s REST API for advanced execution with order Id

Order and Trades Updates

Admin is able to

monitor the progress of the orders on the dashboard: Fill Percentage, progress, status etc.

kill/pause the order with remarks

Client is able to

monitor the progress of the orders on the web interface: Fill Percentage, progress, status etc.

kill/pause the order with remarks

receive notifications on web interface, chat and email regarding order-trade updates

view failed order (in case it happens)and notify admin

Inner Workings

CD receives the Order ID trade fills over Websocket Response from QD

Params

orderId

tradeId

timestamp

symbol

side

original Qty

filled Qty

executed Price

trade# e.g. 1/n, 2/n .. 12/12

CD saves all the trade fills in the database

CD sends the trade fills for Order ID with trades IDs to client over Websocket Response

WS comms can be received either on web interface or telegram

Post-Trade

Orders and Trades History

Admin is able to

track all quotes, orders, trades history within admin interface for each client

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