In addition to allowing General Clearing Members (GCM) to monitor client transactions, the service enables member firms to monitor their own order flow, including the Sponsored Access and Direct Market Access (DMA) clients.
Nasdaq OMX Nordic Equities senior vice president and head Lauri Rosendahl said that Genium INET PRM tool allows members to monitor new market access models, such as sponsored access and DMA, with effective risk management controls.
"The purpose of effective PRM is to preserve the cost and liquidity benefits of electronic trading, while providing an efficient tool for mitigating the possible risks," Rosendahl added.
Focusing on highly automated trading flows with minimal latency impact, the FTEN technology based service support the monitoring of market integrity and enables real-time validation of orders prior to allowing them into the matching engine.
Featuring functionalities such as different price and order size checks, maximum order rate per second checks and daily accumulated quantity checks, Genium INET PRM helps the member to comply with the ESMA guidelines for pre-trade risk controls.
