Page updated: 2011-06-14

Pre-trade Risk Management (PRM)

In today’s marketplaces there is an increased focus on risk management and specifically on pre-trade risk management in relation to new market access models such as Sponsored Access.

At the same time speed of response and latency are getting more and more important, especially when algorithmic and program trading methodologies form the base of customers business.

As the leader in trading and data technology for the financial industry, NASDAQ OMX has developed a Pre-Trade Risk Management service that provides customers of its Nordic marketplaces a Pre-Trade Risk Management solution that virtually adds no latency.

PRM

NASDAQ OMX Nordic's Pre-Trade Risk Management (PRM) provides member firms with the ability to facilitate pre-trade protection on both FIX/OUCH. Using PRM, firms can have order level control of their trading activity and the trading activity of their clients and customers including prevention of potentially erroneous transactions without any measurable latency.

Key benefits

PRM Administration Interface via Nordic Workstation

The interface allows PRM customers to:

• View and amend the PRM Account limits per currency for all checks 
• Intraday only emergency block/unblock of order entry for a PRM Account
• Cancellation of all open orders for a PRM Account.
• Unlock a PRM Account that has breached the limit for an accumulated value on a currency
• Manage list of Restricted Symbol List per PRM Account. Including manual upload of a file.

The interface allows Members to update their PRM limits intraday and/or for the next trading day.

Read more about PRM Administration Interface »

For more information about PRM please refer to the:

NASDAQ OMX Nordic PRM Service Guide (Updated 2011-06-14)

Product Presentation (Updated 2010-11-03).

Configuration guide for Fat Finger Checks (Updated 2011-06-14)

Order PRM by submitting the PRM Order Form