Trading

Risk and Controls

Pre Trade Risk Control

The DGCX trading platform offers 6 trading protection limits (TPE), against which all orders entered into the market are checked, and which are rejected if they fail the necessary validation steps. Orders that are matched in the system are validated against further trading protection limits and are flagged if they fail to meet the necessary validation steps.

Static validation

Turnover:

This limit checks the total tumover value of each of the orders being placed. And if the value is greater than the limit set the order will get rejected.

Volume:

The volume limit checks the quantity of each of the orders being placed, And if the quantity is greater than the limit set, the order will get rejected.

% better than the opposite side:

This TPL checks the percentage difference between the price of the order being placed and the best price on the opposite side. The percentage difference between the two prices shouldn't be more than the set limit. The price should be ≤ Best ask * (1+% better than opposite side)

For a Buy Order: The price should be ≤ Best ask * (1+% better than opposite side)

For a Sell Order: The price should be ≥ Best Bid * (1-% better than opposite side)

Note that if the order book is empty on the opposite side this validation is not undertaken.

Note this validation is not undertaken for spread order books as negative prices and 0 is allowed in those order books.

% worse than same side:

the order being placed and the best price on the same side. The percentage difference between the two prices shouldn't be more than the set limit.

For a Buy Order: The price should be ≥ Best Bid* (1-% worse than same side)

For a Sell Order:The price should be ≤ Best As* (1+% worse than same side)

Note that if the order book is empty on the same side this validation is not undertaken.

Note this validation is not undertaken for spread order books as negative prices and 0 is allowed in those order books.

Aggregated validation

Max open order volume:

The total value of live orders should be less than or equal to this limit. Once this limit is reached, new orders will be rejected or if a new order is being placed where the aggregate of the quantity of all live orders will exceed the limit, then the order is rejected.

Max open order turnover:

The total value of live orders should be less than or equal to this limit. Once this limit is reached, new orders will be rejected or if a new order is being placed where the aggregate of all value of all live orders will exceed the limit, then the order is rejected.

At Trade level

Netted trade position turnover:

This gives an alert to both trading user and trading super user when the net turnover of open positions exceeds the limit given. The trade is marked as (Trading Protection Limit = TRADE_TURNOVER).

Netted trade position volume:

This gives an alert to both trading user and trading super user when the net quantity of open positions exceeds the given limit. The trade is marked as (Trading Protection Limit = TRADE_TURNOVER)

Price Limits

Daily Price Range, No Cancellation Range and Mandatory Cancellation Range

Daily price range (DPR): Is the maximum price range limit wherein orders can be placed. DPR rangelimit is based on previous day's Settlement Price. DPR could be widened depending on intraday volatility (no limitations on how many times it could be widened).

No Cancellation Range (NCR): Trades that are executed at prices that fall outside of the (NCR), may be cancelled upon request of the Member, and subject to the consent of the counterparty(ies).

Mandatory Cancellation Range (MCR): Mandatory Cancellation Range (MCR): Transactions with prices that fall outside the (MCR) are invalidated by DGCX. DGCX allows Members to request that transactions be invalidated where an error in execution has occurred and DGCX will also invalidate transactions where the price of a transaction falls outside of the Mandatory Cancellation Range (MCR) as detailed below.

*Further details are also available under notice: TRDG-2018-041 - Amendments to Trade Bust Policy

Contract Group
Contract Code
Contract Name
DPR(in tickets or %)
NCR(in tickets or %)
MCR(in tickets or %)
FX Currency Futures
DAUD
Australian Dollar / US Dollar Futures
1.50%
0.50%
1%
FX Currency Futures
DCAD
Canadian Dollar / US Dollar Futures
1.50%
0.50%
1%
FX Currency Futures
DCHF
Swiss Franc / US Dollar Futures
1.50%
0.50%
1%
FX Currency Futures
DEUR
Euro / US Dollar Futures
1.50%
0.50%
1%
FX Currency Futures
DGBP
Pound Sterling / US Dollar Futures
1.50%
0.50%
1%
FX Currency Futures
DINR
Indian Rupee / US Dollar Futures
1.50%
0.50%
1%
FX Currency Futures
DINIRI
Indian Rupee "Quanto"
1.50%
0.50%
1%
FX Currency Futures
DINRM
Indian Rupee Mini / Us Dollar Futures
1.50%
0.50%
1%
FX Currency Futures
DJPY
Japanese Yen / US Dollar Futures
1.50%
0.50%
1%
FX Currency Futures
DUSDNCH
US Dollar / Chinese Yaun
1.50%
0.50%
1%
FX Currency Futures
DUSDZAR
US Dollar / South African Rand Futures
1.50%
0.50%
1%
FX Currency Futures
DINRW
Indian Rupee / US Weekly Futures
1.50%
0.50%
1%
FX Currency Futures
DPKR
Pakistani Rupee / US Dollar
1.50%
0.50%
1%
FX Currency Futures
DILS
Israel Shekel / US Dollar
1.50%
0.50%
1%
FX Currency Futures
DINRO
Indian Rupee / US Options
500
50
100
FX Currency Futures
DG
Gold Futures
500
170
330
FX Currency Futures
DGSG
Spot Gold Shariah Comolaint
500
170
330
FX Currency Futures
DPG
Physical Gold Futures
12000
4000
8000
FX Currency Futures
DSG
Daily Spot Gold
12000
4000
8000
FX Currency Futures
DIG
Indian Gold "Quanto"
1200
400
800
FX Currency Futures
DGFC
Daily Gold Futures Contract
5000
1700
3300
FX Currency Futures
DS
Silver Futures
300
100
200
FX Currency Futures
DBRC
Brent Crude Oil Futures
400
130
260
FX Currency Futures
DWTI
WTI Crude Oil Futures
400
130
260
FX Currency Futures
DWTIM
Mini WTI Crude Oil Futures
400
130
260
FX Currency Futures
DCU
Copper Futures
300
100
200
FX Currency Futures
All US SSF
10%
3.33%
6.67%
FX Currency Futures
All Indian SSF
10%
3.33%
6.67%
FX Currency Futures
SPFAUD
AUD/ US Dollar Rolling Futures
1.50%
0.50%
1%
FX Currency Futures
SPFEUR
EUR / US Dollar Rolling Futures
1.50%
0.50%
1%
FX Currency Futures
SPFGBP
GBP / US Dollar Rolling Futures
1.50%
0.50%
1%