Deutsche Bank is to begin offering its clients low-latency sponsored access to Nasdaq OMX's Nordic exchanges in Stockholm, Helsinki, Copenhagen and Reykjavik, using the exchange group's new pre-trade risk management service.
Sponsored access enables buy-side firms and other investors to trade directly on Nasdaq OMX Nordic using a broker's ID. According to Nasdaq OMX, the service will offer costs savings to for both buy- and sell-side firms as its members would avoid the cost of integrating and connecting their client's order flow to their systems.
Deutsche Bank will be the first member to use the new pre-trade risk management service, which is designed to mitigate market risk by monitoring all orders submitted to the Nasdaq OMX Nordic exchanges.
“A key benefit of our sponsored access offering is the ultra-low latency available via our co-location services,” said Bjorn Sibbern, senior vice president, Nasdaq OMX transaction services Nordic.
Nasdaq OMX also recently launched a new trading platform for its Nordic equity and fixed-income derivatives markets, based on its Genium INET multi-asset trading and clearing system, in October 2010. Sibbern added that the launch of the INET trading system and the release of the firm's risk management tool had contributed to increased demand for sponsored access from buy-side users.