RiskWrapper Solution Provides Network Level Risk Protection
The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) and its Global Access Services business today announced it will partner with Corvil, the IT data analytics company for business in the NowTM, to enhance TradeGuard, a full-service risk management suite offering a range of tools to help firms protect against risk in today's complex trading landscape. The TradeGuard platform's RiskWrapper solution will now give clients added protection for risk by monitoring trades at the network level and comparing to trades in the risk system for protection against unwanted activity.
"By partnering with Corvil, we're able to provide our clients with protection against portfolio and market risk," said Stacie Swanstrom, Senior Vice President and Head of Access Services, a division of the Global Trading and Market Services business line at NASDAQ OMX. "With market services like TradeGuard, we look to support the financial services community by facilitating our customers' growth and alpha generation."
RiskWrapper is an agnostic, leading at-trade solution designed to measure risk at the network level by capturing traffic directly and comparing to what is seen in the risk system to identify abnormal activity and alert the users to the anomalies. The partnership centers on the integration of Corvil's streaming analytics platform. This approach, coupled with TradeGuard's extensive set of post- and at-trade risk checks, allows clients to gain added protection to their current risk system, as well as take advantage of new checks and data around their trading activity.
"Corvil's partnership with NASDAQ OMX will provide joint customers with protection and insight into trading activity and risk," said Donal Byrne, CEO of Corvil. "Integrating risk data based on network data with existing sources of risk analytics is emerging as a best practice, and the integration between Corvil and TradeGuard will provide customers with a highly accurate view of trading across venue sessions and protocols."
Monitoring trading activity directly from network data provides several advantages. By monitoring network connections right at the entry/exit point of an exchange or firm, users are assured of a more complete record of trading activity. Because data is captured directly off the network, the need to connect additional servers to client or venue trading platforms is eliminated. As a result, risk can be measured without adding latency and firms can continue to use internal risk applications with RiskWrapper acting as a comprehensive monitor of trading activity.
RiskWrapper is one of three innovative solutions on the TradeGuard platform, which also features improved gateways and risk monitoring systems. RiskWay is a software based, trade control gateway for trading equities that allows customers to access multiple markets with sub- 10 microseconds of latency and added risk controls provided by all solutions within the TradeGuard suite. External Gateway Manager (EGM) is an intermediary solution that allows any third party gateways to be controlled by the TradeGuard RX engine to manage risk with pre-trade controls for protection against trading that violates pre-set limits. RiskXposure (RX), a leading risk management engine, will still serve as the central backbone of the TradeGuard platform.