Risk Controls

TRAFiX provides an optional pre-trade Risk Management System to its EMS/OMS clients which allows permissioned users the ability to control account, trader, destination & overall firm limits in real-time, including all 15c3-5 required checks. This interface empowers administrators intraday access to add and/or modify risk limits, turn on/off trading ability, update easy-to-borrow locate information, and much more; as well as the ability to configure proactive alert notifications to inform user(s) of approaching limits. Risk Audit files will be sent to the appropriate users each day to show all relevant Risk Management actions.

  • SEC Rule 15c3-5 compliant
  • Pre-trade, post-trade and EOD risk controls
  • Real-time risk synchronization
  • Low latency solution within 10 us
  • Equity and Options
  • Firm, Account(s), User configuration

To learn more about our products or to request a demo, please contact (646) 779-3480 | sales@trafix.com

Checks Description
Financial Control Aggregation TRAFiX Information Protocol enables high speed sharing of financial and position information providing scalability and to ensure that risk parameters are assessed on a aggregate basis
Buying Power Validation across defined "buying power group" or group of accounts
Fat Finger Checks Max Price, Max Quantity, Max Notional Value Limits. Additional controls and layers can be configured at an account level or trading destination
New Order Rate/Throuput Limit Continuous and separate burst rate limits, configurable at a firm or per account basis. Configurable action if rate is breached (notify-only, reject, or disable trading)
Easy to Borrow & Locate Validation Validates that only short-sale orders with appropriate locates are routed out to destination for execution. Validation is dependent upon configuration at client or clearing-type DVP or Margin
Order Marking Validation Configurable to validate or automatically mark the client orders for Reg SHO compliance. Validation will reject inappropriately marked orders, auto-mark will adjust the sell order to long/short as appropriate
Allowed Products Prevents trading in specific asset classes, symbols, and other factors configurable on a per client basis
Restricted List Prohibits trading in a list of securities defined by broker-dealer and end-user
Access Controls TRAFiX OMS restricts access by IP validation, account, username, and password
Boundary Price Validation Orders can be evaluated against current market price and can be rejected if limit prices varies more than pre-defined % away from prevailing market
FIX Drop Copy Configurable drop copy messages or echo messages to capture order related events
EOD RMS Recap EOD Review of days's trading activity to determine if a day-trading call or breach has occurred

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