Complete MIFID II proof pre-trade risk protection with order level control of trading.
As the leader in trading and data technology for the financial industry, Nasdaq has developed a Pre-Trade Risk Management service that provides customers of its Nordic Equity Derivatives and Commodities marketplaces a Pre-Trade Risk Management solution that virtually adds no latency. Nasdaq is pleased to announce a cost efficient way to take control and reduce risk - Genium INET Pre Trade Risk Management system (PRM). PRM is a solution that ensures market integrity, is compliant with the ESMA Guidelines and focuses on highly automated trading flows. The functionality has minimal latency impact with a mix of pre- and post-trade controls and it also facilitates sponsored access, GCM/NCM relationship and low-latency DMA.
Fat Finger Price Check
Fat Finger Price Checks compares price instructions on incoming orders against a reference price.
This functionality (Order Price Limit) is separate from PRM and is set market wide for all participants by the exchange. Fat Finger Price Checks compares price instructions on incoming orders against a reference price. If the order deviate more than an order book configured parameter, the order will be rejected before it can execute.
Provides user ability check order volumes and rates.
Max Order Quantity Check Max Order Quantity Checks provide users the ability to check order volume against a pre-set value.
Daily Accumulated Quantity Checks Accumulates quantity counters throughout the current trading day. Once volume hits the maximum configured value, new orders sent will be rejected. Multiple accumulation checks are available.
Maximum Order Rate Per Second Checks Set limits on allowed orders/sec rates on a per Pre-Trade Limits Group basis.
Safeguards and Notifications
Disconnect Safeguard and Email notifications.
Disconnect Safeguard If the sponsor loses its connection, associated sponsored clients are blocked in the same way as if a limit is breached.
PRM E-Mail Notifications PRM sends notifications when limits are breached or warning levels are reached.
The PRM Administration interface is easy to use.
The administration interface provides direct control of your PRM account configuration, including the ability to perform emergency actions.
Key Benefits with PRM
PRM adds no latency to order execution for high frequency trading and algo trading.
Facilitates Sponsored Access
Maintain control over trade flow for clients with sponsored access to trading.
Quick & Easy Implementation
PRM is a plug-n-play solution that is easy to implement. Set up your risk management from the Nordic Workstation and you are ready to go!