Committed to Managing Market and Trading Risk
In a free market economy prices are determined by supply and demand. In Turkey, privatization has been gradually increasing and the governments implement policies to provide such a free market. In addition, free capital flows between countries are encouraged and applicable restrictions are being abolished with new legislation. As a result of such developments towards a free market economy almost every company in the country is becoming more sensitive to global economic fluctuations.
TurkDEX is committed to providing the financial instruments that help these individuals and institutions manage market and trading risk. The firm has both strategic and economic responsibilities to establish TurkDEX as an efficient and successful platform for managing risk.
To meet its goals, TurkDEX is developing a dynamic and efficient futures and options market that is well integrated with current monetary and capital markets. A major component of this strategy is to establish a comprehensive trading platform for members and investors for trading derivatives instruments.
Facing Challenges to Deliver a Solid Platform
As TurkDEX sought to establish itself as a strong derivatives exchange and trading platform, the firm faced three specific challenges. First, TurkDEX needed to maintain a fair and honest trading environment that protects investors and helps sustain corporate credibility. Secondly, it also needed to provide a highly competitive trading platform similar to other derivatives exchanges and over-the-counter (OTC) markets. Lastly, TurkDEX needed to integrate with international markets to become a truly global exchange. This final challenge was a critical cornerstone to TurkDEX’s overall strategy. To establish TurkDEX as a strong competitive offering for derivatives trading, the firm required an effective surveillance solution to swiftly detect and act upon market abuse attempts.
Sybase CEP Powers High-speed Surveillance Applications
The TurkDEX trading surveillance system would need to be an integral part of the TurkDEX trading platform to detect abusive trading patterns at high-speed market rates. TurkDEX turned to complex event processing (CEP) software as the most effective platform to speed the development and deployment of their surveillance applications. After an extensive evaluation of CEP platforms, TurkDEX choose Sybase CEP (formerly Coral8) as the cornerstone of its surveillance application.
The Sybase CEP engine has powerful SQL-like Continuous Computation Language (CCL) offering a rapid, adaptable means to develop applications. It also provided the advanced pattern matching functionality which is the most flexible means to define and monitor the required trading patterns. The solution provides an easy means to integrate myriad data sources required in the applications. Finally, the dynamic, configurable deployment model the Sybase CEP server offers means TurkDEX can easily deploy and interconnect new patterns and application functionality. In addition, the open availability of the Developer Edition and flexible Sybase licensing model made it easy for TurkDEX to adopt the product.
Delivering Powerful Benefits
The needs of TurkDEX management and the market regulator created an extremely tight schedule to complete the surveillance application. Using Sybase CEP, the TurkDEX team delivered the surveillance application on-time with all functionality requested. According to Abdullah Akoglu, lead development engineer at TurkDEX, “We would not have been able to deliver the project on-time with the tight schedules involved if we had not chosen to use Sybase CEP.”
Through the new surveillance applications, TurkDEX is experiencing many benefits. The effective real-time monitoring provides a simplified surveillance mechanism through pattern detection that identifies market abnormalities. Utilizing the CEP-driven surveillance application creates a reliable, secure trading environment. With derivative market investments and trading volumes increasing, TurkDEX actually reduced the operational cost of its surveillance and trade monitoring. With Sybase CEP, TurkDEX has met the firm’s stated objective of creating a fair and honest trading environment, providing a rapid growth vehicle for the exchange.