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.

NASDAQ OMX Pre-Trade Risk Management service provides (updated May 02 2012):

• Fat Finger Price Check
• Maximum Order Quantity Check
• Maximum Order Value Check
• Daily Accumulated Values Checks
• Restricted Symbol List Check
• Restricted Market Segment List Check
• FIX Drop on-disconnect safeguard
• Blow-through protection
• Maximum orders per second per order entry port (New)
• Maximum orders per second per symbol (New)
• Detection of repeated order generations per symbol (New)
• Notifications via e-mail for risk limit breaches and warning levels (New)
• FTP site for automated upload of start of day restricted symbol list (New)

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 and documentation about PRM please refer to the new webpage on NASDAQ OMX.com »