Ivy Schmerken
Traders Magazine Online News

MiFID II Reaches Across the Pond: Is This the Calm Before the Storm?

Despite the view that MiFID II is a European regulation, US investment managers are experiencing disruption as they align their research payment and execution practices with the influential standard.

Traders Poll

As the SEC Tick Pilot is soon to expire, in your opinion, was it a solid fact finding mission or folly?

Free Site Registration

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.

(c) 2012 Traders Magazine and SourceMedia, Inc. All Rights Reserved.