Articles

  • Connecting the Spine to the Brain: DTCC Limit Notifications To improve risk controls, different systems across the industry need to start working together. Last month, the DTCC announced a real-time limit monitoring system to alert brokers if they approach pre-set capital limits.Could this help to standardize risk limit notifications across all participants? And, can we connect the spine to the hands and the feet of the ...
  • Market Access and Knight Violation In 45 minutes, Knight Capital unintentionally acquired a $3.5 billion net long position in 80 stocks and $3.15 billion net short position in 74 stocks. An algo, not able to ‘read’ the accumulated fills, kept sending orders to market. Knight’s proprietary trading systems were not tied into the firm’s overall credi thresholds. Read More
  • Broker Dealers to Comply with Canada’s Regs on Automated Trading Risk Controls
  • Knight Impact for Buy Side The SEC Enforcement Order against Knight calls for Brokers to institute fully automated ‘lock downs’, prohibiting orders from entering the market if risk thresholds are reached.Called ‘kill switches’, are you aware of the conditions that could trigger a lock down and how it would affect yourorders and position? Read More
  • A question of control Automated Trader 2014 In striking a balance between speed and safety, frms that have direct market access must confront a daunting set of challenges. In the aftermath of the Knight Capital trading disaster, there is also increasing talk of regulators deciding for those frms what’s appropriate. Adam Cox reports on how the industry is re-evaluating pre-trade risk controls. Read ...
  • SEC vs. Knight: Alarms, Codes and Lock-Down Modes for the Market Access Rule In October the SEC issued a $12 million penalty to Knight Capital for its failure to prevent a rogue algorithm from unleashing erroneous trades on the market. But lost in the media coverage of the settlement was the clarity to the Market Access Rule provided by the SEC’s enforcement action, including to the definition of ...
  • Don’t be killed your brokers’ market access kill switches The SEC Enforcement Order against Knight Capital calls for Brokers to institute fully automated ‘lock downs’, prohibiting orders from entering the market if risk thresholds are reached. Called ‘kill switches’, are you aware of the conditions that could trigger a lock down and how it would affect your orders and position? December 2, 2013 New York, NY www.hedgeweek.com Implementing ...
  • Connecting the Spine to the Brain DTCC Limit Notifications To improve risk controls, different systems across the industry need to start working together. December 20, 2013 New York, NY www.wallstreetandtech.com Last month, the DTCC announced a real-time limit monitoring system to alert brokers if they approach pre-set capital limits. Could this help to standardize risk limit notifications across all participants? And, can we connect the spine to the ...
  • SEC Charges Against Wedbush Securites Raise Issues With Direct Risk Controls The regulator accused Wedbush of violating the Market Access Rule by allowing customers to set their own risk controls on proprietary and third-party platforms. June 11, 2014 New York, NY www.wallstreetandtech.com Last week, the Securities and Exchange Commission filed charges against Los Angeles-based Wedbush Securities for violating the market access rule, signaling that brokers must directly take charge of ...

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