Home » Code » Transaction Protocols, Hyannis Port Research, REDI

Transaction Protocols, Hyannis Port Research, REDI

Corvil, Corvil Full Decode Library, here. Corvil supplies software/hardware latency profiling tools targeted at various Transaction and MarketData protocols. Just scanning the list I don’t see many dark pools, but the important Equity/ Futures/ Equity Options protocols are listed here:

NYSE Euronext: ArcaDirect 4.x 2011; CCG Fix Version 5.2 26Jan12; UTP UTPDirect (CCG Binary)  Version 1.13 1Feb13; SigmaX Fix 4.2 Version 2.1 3Jan13.

Nasdaq OMX:  OUCH Version 4.2 25Feb13; RASH Version 1.1 2May2013.

BATS: BOE BYX Exchange US Equities Version 1.9.2 10Dec 13.

Interesting Strike Technologies Market Decoders are included. Any generic gateway will need to support FIX although not nec. in the fast path.

Hyannis Port Research, Real-Time Risk and Market Access, here. See also Tabb Forum, Turbocharged Risk Controls for High-Speed Markets, here.

Q: Is Riskbot primarily about managing pre-trade regulatory risk arising from the market access rule? Or does it address operational risks as well?

Dar NazemRiskbot meets the requirements of the Market Access Rule without significant impact on latency. But Riskbot goes further, providing comfort on important aspects of operational risks. It’s worth recalling why the SEC adopted MAR in 2010 — they sought to end a practice in which some broker-dealers out there had given clients unfiltered direct access – so-called “naked access” – to exchanges and other trading venues. Unfiltered access posed risks that erroneous trades could flood into a market, and that traders could without warning breach their credit or capital thresholds. In adopting MAR, the SEC prohibited unfiltered access and required brokers offering direct market access to have robust risk management tools, systems and monitoring in place that can head off problem trades.

Q: What impact did MAR have on the systematic trading community?

Nazem: MAR triggered a significant investment across the industry in managing the risks of systematic trading, but the regulations put the primary burden on brokers. Traders looked to work with a direct access broker with verifiably robust risk management capabilities. But clients deploying low-latency strategies also worried about the impact of the risk controls on execution speed. Any increase in latency could impact the strategies’ success. So the challenge became to achieve an extremely rigorous level of risk control without impairing latency.

Q: So Riskbot goes beyond pre-trade order checks?

Nazem: Yes, Riskbot not only meets standard requirements needed to comply with MAR, Hyannis Port Research went further, building in a robust set of checks and calculations that give risk managers more comfort on operational risk.

REDI, website, here. The one platform across asset classes is a big deal.

  • Our leading edge technology makes trading simpler. With one platform to execute across asset classes and counterparties globally, REDIPlus delivers innovation and the ability to trade seamlessly. Our sophisticated trading tools across single stocks, derivatives, global portfolios and spread trading, coupled with our integration capabilities across portfolio and order management systems provide a comprehensive trading solution. Our robust, redundant technology and focus on client service will give you a superior trading experience.
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