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Spoofing, Surveillance and Supervision

Jay Biondo, Product Manager - Surveillance at Trading Technologies, co-authored an article along with James Lundy and Nicholas Wendland, both of Drinker Biddle & Reath LLP, reviewing the CFTC's regulations and expanding efforts, 21st century surveillance and supervision, as well as strategic recommendations.

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May 4, 2012

Risk Checks Hit Nano Redline

By John D'Antona Jr.

Redline Trading Solutions, a provider of high-speed trading products for high-frequency traders, is offering brokers pre-trade risk check software that performs in less than one microsecond.

The new service, dubbed Redline Pre-Trade Risk Solution, performs risk checks in the 400 to 900 nanosecond range, depending on the broker's risk check configuration. Utilizing a web-based interface, the software enables customers to set a wide range of order-level and position-level risk checks that ensure compliance and protection prior to execution, according to Mark Skalabrin, chief executive at Redline.

Brokers must provide risk checking to the buyside orders in accordance with the Securities and Exchange Commission's Market Access Rule 15c3-5.

"The risk checks include the basic fat finger checks, as well as portfolio checks in terms of orders, current positions and prices," Skalabrin said.

He added that the risk checking program includes a live data feed that allows the software to update the portfolio in real-time.

Redline Pre-Trade Risk Solution is now in service with several brokers, including one bulge firm and several mid-tier brokers. Redline would not disclose names.

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