Succession Systems deploys market access risk solution for Newedge US and Canadian regulatory compliance.
Succession Systems has deployed its TripleCheck Market Access Risk Solution to meet Newedge Brokerage’s regulatory requirements for automated trading risk controls in Canada and the US.
Brokers in Canada were given until 31 May to deploy the controls needed to meet the IIROC rules for trading on Canadian exchanges. The rule ensures pre-order entry filters are activated across all trading activity. The rule mandates that brokers manage the trading exposure of its clients in real time. Market Access Risk Solutions must conduct checks at the order (ticket) level and ensure position and credit limits are enforced by aggregating these orders across accounts before entering the market.
New automated trading regulations have been rolling out around the world after the United States authorised 15c35 in July 2011. Prior to the ruling, brokers relied on their overnight back office systems to reconcile the trades and calculate the client positions. Today, the regulations insist these checks be done in real time, before the order is routed to the exchange. This ensures position and credit limits are enforced intra-day.
“Compliance requires the consolidation of real time trading flow across many different trading technologies,” says Anthony Masso (pictured), chief executive of Succession Systems. “A broker may have several different trading systems and a Market Access Risk System must adapt to all the platforms in use by clients.”
The Succession Systems solution, TripleCheck, consolidates, controls and reports on the trade flow emanating from third party trading platforms, direct market access routers, and co-located proprietary servers.
“The TripleCheck platform allows the compliance teams to see every trade – nothing is missed,” says Masso. In addition, real time Market Access Risk Systems should operate at the highest speeds possible to avoid adding delays. “We tune the implementation to scan the orders in nanoseconds.”