Chanakya
Overview
Chanakya is a powerful decision support system meant
to aid investors in detecting investment opportunities.
The software detects opportunities to make riskless
profits between the spot market and the derivatives
market either by deploying money or deploying
securities. The software affords the user the
flexibility of choosing his brokerage costs,
financing costs and the minimum returns he is
interested in getting.
A
host of other features like Portfolio analysis, Speculative
alerts, Market watch, Implied volatility calculations
and graphical displays of Implied volatility
make it a comprehensive
decision support software for derivatives trading.
Features
Chanakya
provides the following features:

Realtime detection of arbitrage opportunities between
the spot and futures market and the spot and options
market.

The user can select the minimum rate of return that
interests him, both in case of deploying of funds
and deploying of securities. He can also select the
securities he has in hand to deploy in the market.

The user can input his transaction costs in the spot
and derivatives market as well as his cost of financing.

A thorough explanation of how each of the opportunities
can be encashed can be viewed by simply clicking on
the displayed opportunity.

The user can view the Bid and Ask price of the underlying
and the Bid and Ask price of all the derivative contracts
based on the underlying on a single screen.

The software does realtime calculation and displays
implied volatility for all contracts based on the
underlyings.

The software gives a Summary Statement of the Market
View of Volatility for each underlying for all three
months based on the `Tightest BidOffer pair' and `AttheMoneyStrikes'
method.

The software gives a graphical representation of the
price and implied volatility for all contracts based
on the underlying.

The user can construct his portfolio and analyse its
performance in realtime. The software gives the expected
profit from the portfolio, calculates and displays
the Greeks and plots the payoff profile and the profit
versus volatility diagrams for each underlying.

Using the speculative alerts the user can construct
complex mathematical expressions using a variety of
functions on the contracts in conjunction with arithmetic
and logical operators. The software alerts the enduser
whenever the criteria specified in the speculative
alert is fulfilled.
Benefits

Realtime detection of opportunities for making riskless
returns, thus saving on manpower and cost.

Complex mathematical calculations and graphical representation
of various parameters can be done in realtime.

The user can observe the Bid and Ask prices as well
as the volatilities of the Bid and Ask prices of all
the contracts on a given underlying in a wellarranged
format which is easier to understand and grasp.
Applications
The
ability of the system to handle and process data in
realtime and to throw out investment opportunities
makes it an ideal system for securities broking houses
and financial institutions who are interested in trading
in both equity and derivatives markets.
Clients
Kotak Securities Ltd.
Coimbatore Capital (P) Ltd.
Geojit Securities Ltd.
DSP Merrill Lynch Ltd.
ICICI Bank Ltd.
