DTCC Launches Early Warning Tool to Curb Risk

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The DTCC announces an early warning tool for unusual trading activity.

Still pending regulatory approval from the Securities and Exchange Commission (SEC), the tool is designed to work as an early warning system, which would send breach messages if a firm's trading activity exceeds the pre-set levels or established trading limits.

"DTCC continues to work in collaboration with the industry to identify ways to help strengthen critical market infrastructure by developing tools to better manage trading activity across the equity markets," says Andrew Gray, managing director, core business management at the DTCC. "DTCC Limit Monitoring offers a holistic view of broker-to-broker trading cleared from exchanges and SROs."

NSCC members will be able to input trading alert criteria, specifically identifying trading limits based on the net-notional value for trading activity of their clients and for their own trading desks. The DTCC will phase in the project over the course of the next few months, with full functionality and e-mail alerts expected in early 2014.

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