Direct Edge has added EdgeRisk Controls, a pre-trade risk tool for its EDGA and EDGX Exchanges, which facilitates compliance with the US Securities and Exchange (SEC) Market Access Rule 15(c)3-5 for broker-dealers and their clients.
It provides pre-trade protection with real-time, intraday risk checks specified via a web interface. Pre-trade controls are integrated directly into the exchange trading infrastructure, allowing users to control the entry of orders against trading checks on a real-time basis.
The first risk offering from Direct Edge allows users to control the entry of orders against trading checks that include: restriction of specific order types, maximum notional value or size, and price threshold parameters.
"EdgeRisk Controls is in response to an increased demand from Direct Edge Members for comprehensive pre-trade risk tools that do not compromise efficiency," says Bryan Christian, head of sales. "As the industry focuses more on risk management and controlled access to the markets, we believe this service, provides a set of risk management tools that give our members greater confidence and controls in accessing our exchanges."
More from Sell Side Technology
Updating your subscription status
Winner's Announced: Sell-Side Technology Awards 2014
The winners of the 2nd annual Sell-Side Technology Awards 2014 were announced in New York on April 15. These awards recognize the leading technologies and third-party vendors in their area of expertise, through an auditable and transparent methodology. To view the winners across the 24 categories click here.
The over-the-counter (OTC) derivatives market is in the midst of a global regulatory restructure. Authorities in Europe, Asia and the US are currently...
A fast, flexible and reliable investment decision-making process must be based on access to accurate and consistent information throughout an organization....