ConvergEx Group, the trading technology provider, has added market access control abilities to its LiquidPoint offering for its complete product line, including its floor broker workstations.
The addition is intended as a response to the market access principles set out in US regulator the Securities and Exchange Commission (SEC) rule 15c3-5, which bans “naked access” in which clients use a broker ID to access the market without pre-trade risk controls. ConvergEx rolled out its new offering the day the rule went into effect.
The new market access control window allows for the management of limits for access controls, both per order and for aggregated activity. The product uses LiquidPoint’s BLAZE technology and includes features that allow users to set limits for each market access control, limits for user specified accounts and users with supervisory authority to override the limit that has rejected a particular order.
In addition to setting limits for market access controls, the window also serves as a tool to monitor aggregated order activity and associated warning limits. Filters may be added to the window to allow users to view records that have an actual value that exceeds a set limit, that have a predictive value that exceeds a set limit, or for options, equity or futures measures.
The data can be sorted and filtered on the fly. However, each user will need to determine what abilities and systems it needs to comply with the SEC rule. Customers can also use a linked database for auditing.
This month, ConvergEx Group changed the name of NorthPoint Trading Partners, its prime brokerage division, to ConvergEx Prime Services. The firm had acquired NorthPoint in 2009 to offer small- and medium-sized hedge funds access to a full range of boutique prime brokerage services.