Message-level integration enables the rapid communication of trading limits between the exchange and brokers.
March 2, 2015
New York, Montreal
Succession Systems announces certification by the Montreal Options Exchange (“MX”) to integrate and implement a new suite of direct pre-trade risk controls offered by the exchange and integrated and supported by the Succession TripleCHECK system. The risk controls are part of a new Exchange offering, called Pre-Trade Validation (PTV) using the SAIL protocol. This enables the automated communication of credit and trading limits in real-time between the exchange and trading broker.
Participants can evolve their current systems with standard message-level integration to set real-time trading limits that will be enforced by the Exchange.
Integration of the new trading controls into risk and compliance systems allows exchange participants to set, modify and monitor limits in real time. The Pre-Trade Validation functionality (PTV) can set credit limits, maximum order quantity, at the account level or by instrument groups, to better manage credit and position risk. Succession Systems built a GUI specifically designed to support the PTV functionality as well as the message protocol. The system provides supplemental functionality for firms to view and manage PTV messaging with expandable capabilities to consolidate trading activity across third-party and proprietary systems.
“High speed, interconnected markets, require a high speed, interconnected approach to risk and compliance management,” commented Anthony Masso, CEO Succession Systems. “Establishing a risk fabric across exchanges, brokers and clearing firms enables brokers to facilitate more complex cross asset trading flow” concluded Masso.
The trading risk controls, initiated by the use of the Pre-Trade Validation system, are in production across all listed Options and Futures at the Montreal Options Exchange.
SUCCESSION SYSTEMS – http://www.successionsystems.com/
Succession Systems is a global provider of compliance, trading risk management, and market access solutions. PTV support is available as a stand-alone application or as an integrated component in the TripleCHECK™ platform. TripleCHECK™ offers a fully automated pre-trade validation, real-time trade surveillance and post-trade compliance reporting set of solutions. Risk management controls can be deployed across asset classes in Canada, US and Europe. The solution allows firms to view and consolidate the trading activity across third-party and proprietary systems. TripleCHECK is used for automated surveillance, limit enforcement and the ability to meet compliance obligations. (For more information please email [email protected])