Trading technology provider InfoReach has added configurable, real-time risk checks to its electronic trading platform to help desks protect against trading risk across markets, at multiple levels.
The new functionality is embedded within the InfoReach Trade Management and HiFREQ multi-broker trading systems, letting teams monitor and control risk to firm-specific requirements across asset classes.
The risk limits can cover orders originated manually, algorithmically, via API or FIX. Pre-defined risk checks trigger alerts, letting users adjust trades or block the release of non-compliant orders. Variables which can be used to set limits include users, categories, instrument, position, unit and destination (broker desk, algo and direct market access).
InfoReach says the new controls let firms spot and act upon situations where counterparties or the wider market could be adversely impacted by an intended order. For instance, the controls can prevent fat-finger mistakes, check for duplicate, stale or runaway orders, and flag orders which exceed a broker’s own internal risk thresholds or those of a buy-side client.
“These automated risk controls make it possible for our buy- and sell-side clients to quickly and seamlessly apply a hierarchy of safeguards and oversight to all their electronic trading across asset classes,” said Allen Zaydlin, CEO of InfoReach. “We’re empowering them to identify risk as well as arrest or control it on a real-time basis.”