The automation of complex electronic trading strategies in a volatile marketplace increasingly demands a rational set of pre-trade and intra-day risk controls to protect the interests of the buy side client, the broker and the integrity of the market.

Brokers that receive electronic orders from a client assume significant trading and regulatory obligations once an order is accepted. The objective of applying electronic order risk controls is to prevent situations where a client, the broker and/or the market can be adversely impacted by flawed electronic orders.

Neither party should entirely rely on their counterparty to implement comprehensive risk controls. It should be expected that both the buy side and sell side will implement appropriate risk controls on their outbound orders.

Questions to be answered include: 

• What is the incentive for the buy-side to invest in in-house pre-trade controls versus relying solely on the broker?


• Why would the buy-side willingly introduce additional latency when doing nothing is clearly the lowest latency option?


• What is an appropriate level of control?
  
  

Featured Speaker:

Richard Bentley, Vice President, Capital Markets, Progress Software Dr. Richard Bentley has been with Progress Software since 2005, following 5 years with Complex Event Processing vendor Apama, where he ran both Product Management and Professional Services. He has been instrumental in the development of the Progress Capital Markets business, building the Capital Markets Pre-Sales, Professional Services and Industry Solutions teams.