OmegaATS, a Canada-based trading system, is offering The Great North’s sellside a pre-trade risk solution to help firms comply with newly enacted sponsored access rules.
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 alternative trading system is providing the risk checking software via its technology provider and provider Orbixa Technologies. The order goes from the brokers’ OMS to Orbixa and then through the risk checking software. Then the order goes to its final destination, 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, according to Sean Debotte, director of business development at Omega.
The pre-trade risk checks are currently in use with Omega’s European based brokers and fully compliant with all the region’s regulatory requirements,” Debotte said. “Dill is a well tested and reliable pre-trade risk control solution for any Canadian member firm with latency and cost concerns.”
Testing is slated for the next three months and it will go live on March 1.
Although this version has been specifically designed for Canada, the European functionality remains intact, and may act as an international solution for Canadian based brokers doing business overseas, Debotte added.
