Omega ATS, a Canada-based trading system, is offering Canadian brokers pre-trade risk checks to help them comply with newly enacted sponsored-access rules.
The alternative trading system is providing the risk checking software via its technology provider, Orbixa Technologies, as a joint effort. Orbixa provides the technology and Omega the network.
Canadian regulators have passed amendments to rule NI23-103 requiring all electronically traded broker-routed orders to pass through risk checks to prevent errors. These rules go into effect March 1.
“As the regulatory deadline for pre-trade risk quickly approaches, many dealers are feeling the crunch,” said Brian Crew, Omega’s president and chief executive. “We wanted to be able to leverage our existing connectivity and offer our subscribers a low-latency, low-cost, pre-trade risk solution.”
The order goes from a broker’s OMS to Orbixa and then through the risk checking software. Then the order goes to its final destination over the Omega network, which could be Omega or another venue.
The turnkey system is hosted by Orbixa and is compatible with any order management system or automated trading engine. It will go live on March 1, the day the rule goes into effect.