US-based trading technology provider Mantara has released CHiPS, a risk solution aimed at high-frequency traders that are currently enabling unfiltered direct market access trading.
The new offering is designed to add risk controls to new and existing unfiltered and filtered trading systems, with the aim of minimising exposure and providing greater transparency on client trading activities, with a minimum impact on latency.
Based on Mantara's ultra-low latency expressway platform, CHiPS (Comprehensive High-frequency Patrol System) builds on Mantara's RiskMaster risk functionality, adding a thin application layer between a firm's trading strategy and the exchange, allowing for direct market access with broker-controlled pre-trade risk.
The CHiPS application can be installed on existing client hardware or integrated into systems via an additional gateway. With CHiPS, sponsoring brokers can monitor trades with threshold alerts, adjust risk profiles and terminate order flow in real time. The offering can also be implemented and remain disabled until US regulator the Securities and Exchange Commission's proposed Sponsored Access Rule 15c3-5 takes effect, enabling sponsored brokers to flip the switch on at the appropriate time.
“We are committed to remain at the forefront of issues facing our clients and providing solutions that immediately respond to the challenges they encounter in today's rapidy evolving trading environment,” said Michael Chin, Mantara's CEO. “The CHiPS implementation underscores this commitment and addresses the issues most pressing to those that provide direct market access connectivity to their constituents.”