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An example of RHA (Minisystems) Ltd. custom programming

A major component of Reuters D2000-1

RHA (Minisystems) Ltd was a member of the team at Richards Computer Products which developed the dealing room part of the Reuters Dealing 2000-1 system. The picture shows a foreign currency dealer's screen.  The component written by Roger Abbott of RHA (Minisystems) Ltd extracts the details of the deal from the free conversation text. The picture comes from the Reuters Web Site, to see the original page Click Here.

The upper area with the black background shows the conversation the dealer held with his counterparty. The lower area with a white background is the Ticket, which records the details of the deal done. In the old days the deals were done by telephone and the ticket was a piece of paper written out by hand. It was given by the dealer to the "Back Office", which is responsible for organising the payments. With D2000-1 the ticket is generated automatically from the conversation text and is transmitted electronically to the back office. The dealers converse in shorthand. The table below shows what the conversation in the top panel means.

Who says what What it means
Dealer says SPOT THB 10 Please quote prices for buying and selling 10 million US dollars against Thai Baht ,for delivery on the spot date, which is 2 working days in the future
Counterparty says 16 26 I sell Baht at 25.216 per dollar, but when I am buying Baht the rate is 25.226 per dollar. The "Big Figure" of 25.2 is assumed to be known by all the players in the market
Dealer says I BUY 10 I buy 10 million dollars. He could also have said just BUY, or AT 26, it would have meant the same thing
Counterparty says MY THB TO BANGKOK BANK, BANGKOK This is where the dealer's bank must pay the Baht the dealer has sold
Dealer says MY USD TO CHASE, NYC Pay my dollars into my account at Chase Manhattan Bank, New York City
Counterpart says TO CONFIRM AT 25.226 I SELL 10 MIO USD The dealer has made the deal, the counterparty now confirms that he agrees with the details
Dealer says VAL 26AUG96 The currencies will be exchanged on 26 August 1996

In this example the conversation is generated automatically. Dealers typing by hand would not write so much, especially when the market is moving fast. The conversation would probably go more like this

# BAHT 10
     16 26

USUAL DETS is short for USUAL DETAILS, meaning the payment instructions. D2000-1 can extract the full details from this conversation too, and many other variations. It also handles other types of deal such as deposits, swaps and FRA deals. Roger Abbott was responsible for the conversation analysis code.

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