Trading technology provider SunGard has launched a low-latency, real-time order validation engine, Valdi Order Validator. The platform is designed to help brokers offering sponsored access or direct market access to manage their clients' risk, without significantly affecting trade latency.
The platform provides a centralised view of trading activity, with control over multiple routes and access points, as well as support for co-location at several trading venues and exchanges. It can help broker-dealers and clearing firms prevent potential violations of trading limits and position exposure.
”Naked' access, whereby a client uses a broker's connectivity to place orders directly on trading venues without pre-trade risk controls, was banned in the US in November 2010.
“Regulatory rule changes will affect sponsoring and executing brokers by limiting their ability to delegate controls to other parties, requiring them to provide real-time order-level checking,” said Larry Tabb, founder and CEO at research firm TABB Group.
SunGard's Valdi provides equities, futures, fixed income and options trading solutions on 130 markets worldwide. The firm recently consolidated the Valdi brand by integrating software firm GL Trade's products into the Valdi product line, in January 2011.