March 1, 2014

NASDAQ Launches Trade System

By John D'Antona Jr.

Nasdaq now has integrated its pre- and post-trade risk management into a single platform.

The platform, dubbed TradeGuard, has bundled the multiple risk management services into a single system, making it easier for the buyside to use.

TradeGuard is a full-service risk management suite that allows customers to pick and choose from a broad product suite for a range of trade support, from building a custom risk solution to simply filling in gaps in a current solution. In addition to the current enterprise and Nasdaq OMX exchange risk tools available, the new suite also features monitoring for new markets and asset classes, improved gateways and supplemental risk monitoring systems, according to Nasdaq claims.

TradeGuard is an expansion of the enterprise risk management platform formerly known as FTEN.

TradeGuard's new suite features three innovative products.

First is RiskWay, a software-based trade-control gateway for trading equities that allows customers to access multiple markets with latency below 10 microseconds and includes added risk controls provided by all products within the TradeGuard suite.

Second is External Gateway Manager, an intermediary solution that allows any third-party gateways to be controlled by the TradeGuard RX engine to manage risk with pre-trade controls for protection against trading that violates preset limits.

Third is Risk Wrapper. This new feature is a post-trade and front-end tool designed to measure risk at the network level by capturing traffic directly and comparing the trading activity against all network traffic to identify any abnormal activity.

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