Canadian exchange TMX will provide pre-trade risk solutions to equity trading clients, it revealed Thursday.
The TMX Pre-Trade Risk Management Solution has been designed to let traders cut down on costs associated with implementing their own trade risk systems.
Robert Fotheringham, senior vice president, trading for TMX, said the new system would give traders more options for managing risk.
“We are offering a low latency and functionally rich solution to assist participants in managing the risks associated with electronic trading and to help comply with the upcoming regulatory and financial risk management obligations mandated by regulators.
“Our flexible solution also enables participants to leverage the economies of scale of an exchange-hosted solution to manage order flow, market access, and risk across the whole market,” Fotheringham said.
The system, developed by trading technology firm Mantara and managed and hosted by TMX, will let brokers offer clients real-time risk controls across all Canadian equity marketplaces.
The system will also allow for customisation at the firm, trader or client level.
Earlier this month, the Maple Group, a consortium of a dozen Canadian financial institutions, was given the go-ahead by TMX to complete a takeover of the Canadian exchange group.