Multimedia TradeWind Limited

a member of the Lywood David International Group

Multimedia TradeWind Limited's WINDEAL for Spot FX

WINDEAL for Spot FX is a dealing simulation system providing an instructive and entertaining way of learning trading on the Spot Foreign Exchange Market. It also has great potential for initiating trainee dealers, giving them an authentic experience of what Spot dealing is about, and giving others - management, back-office or audit staff - an understanding of spot dealing practice and the opportunities and risks therein. It can additionally be of significant help in assessing potential aptitude for dealing.

WINDEAL for Spot FX simulates all the principal ways of spot dealing interbank, corporate deals, deals through brokers together with transactions through proprietary electronic matching systems. All transactions are effected by means of screen based conversations that may lead to a deal or not - depending on the student's skills in handling typical market contacts. There is a 'What If' facility with which the user may see the effect on profit and loss were a deal to be transacted, or, alternatively, to see what would be the effect of a change in market rates.

figure 3: WINDEAL for Spot FX

figure 3: WINDEAL for Spot FX

WINDEAL for Spot FX keeps track of dealing performance in terms of open exchange position, position against Counterparty limits, profit and loss on dealing (figure 3), and how effectively the trainee operates as a dealer.

It provides various levels of dealing complexity that can be set to match the differing skills of those using it. It also allows control (perhaps best exercised by a Course Supervisor or a trainee's mentor), over the volumes of incoming calls, the proportion of one type of call to another - even the speed of reaction required, so that these may be matched to different skill levels.

A WINDEAL for Spot FX session is based upon a Scenario consisting of a pre-constructed set of News Headlines of world events, and an associated sequence of exchange rates which change throughout the day in response to the events. The rates are created afresh for each session, using a core trend with pre-determined levels reached at certain points of the day as set by the Course Supervisor. These form a control framework within which, dependant on training and activity levels selected, the system generates a random series of calls from other banks, brokers and the corporate dealer - giving a genuine feel of what can happen in the real dealing room. Newsflashes up to the present time appear on a rolling display and may be reviewed at any time. A hint about the effect of the current news item may be obtained (if these have been set up by the training administrator).

Through the Administration function Scenarios can be constructed for any currency pair. Three complete Scenarios (essentially sets of news flashes with controls for generating rates) are provided with the product on purchase. Procedures for writing new scenarios - or changing those supplied - and for changing the permanent system parameters - are provided within an Administration facility with a comprehensive guide (provided in hard copy and as a printable Adobe pdf file) to assist Training Supervisor in the set up and use of the dealing simulation product.

The system also allows temporary session changes of many of the System Parameters. These changes will be active for the current session only, and can be made either at start-up or during a session that has been ‘paused’. Typically, they would be used in mid-session to intensify or relax the pressure of events on an individual student.

A WINDEAL for Spot FX user, sitting at his or her desk, deals in only one currency pair during any session; however, the simulated Market Rates screen not only displays rates for the selected Dealing Currency Pair but also for four other currency pairs chosen for display.

The user can call a number of banks or either of two brokers at will and, at random intervals, these potential counterparties/intermediaries will call the user. All bank, broker and customer names can be amended via the Administration facility - making the market environment created endlessly variable to suit local preferences. Additionally open position limits and bank credit limits are parameterised and controllable by the Training Supervisor via the Administration facilities.

Because trainees and/or supervisors may wish to go back over events of the dealing day to check what happened and why, the system maintains full records of what has happened during a session so that these may be inspected, at any time, on screen or via a word-processing system (A WINDEAL for Spot FX uses Windows Write to display them).

The records include the Blotter (a list of all deals done and which have caused the current open position), a list of deals with each counterparty, the overall positions of all customers (for credit limit control), and graphs showing the days exchange rate trends with news flashes relevant to the time of day able to be reviewed for any point (time) on the graph (figure 4).

To drive home the need for dealers to respect both trading limits and credit limits the system permits monetary fines (reducing P&L figures achieved) to be imposed when parameterised limits are exceeded. These may be set via the Administration function to suit the dealing scenario and Course Supervisor’s overall training objectives.

figure 4: WINDEAL for Spot FX  example of a pre-written rates scenario

figure 4: WINDEAL for Spot FX example of a pre-written rates scenario

Also maintained are the Deals and Performance Log (figure 5). This is a full post-session debriefing report including closing position, P&L and displaying all deals done, the position arising after each and the user's performance indicators (exclamation marks indicating a dealing error by the user) - with information appended varying from time taken to respond to incoming calls to errors made by the trainee.

figure 5: WINDEAL for Spot FX</i>  example of a debriefing report

figure 5: WINDEAL for Spot FX example of a debriefing report

There is also a Conversation Log (a record of the actual "conversations" between user, customers, brokers and the Corporate Dealer - similar to the recording of all conversations in a dealing room for later transaction verification/problem solving). There are also Help Notes on the on-screen functions - an optional feature activated by pressing and holding the right mouse button on an object to obtain information about it.

Further information on the operation and use of WINDEAL for Spot FX is separately available from the company

Lywood David International Limited, Warren Cottage, Melfort Road, Crowborough,
East Sussex, TN6 1QT United Kingdom