NASDAQ OMX (NASDAQ:NDAQ) announced it has launched a new Pre-Trade Risk Management (PRM) service, Genium INET PRM, to its Nordic derivatives customers. Genium INET PRM facilitates real-time pre-trade protection to mitigate erroneous orders and transactions. Through the service, member firms that trade derivatives on the NASDAQ OMX Genium INET platform are able to monitor their own order flow, including their Sponsored Access and Direct Market Access (DMA) clients. The service also allows for General Clearing Members (GCM) to monitor client transactions.
“The purpose of effective PRM is to preserve the cost and liquidity benefits of electronic trading, while providing an efficient tool for mitigating the possible risks,” said Lauri Rosendahl, Senior Vice President and Head of Nordic Equities at NASDAQ OMX. “Genium INET PRM is an essential tool for members to monitor new market access models, such as sponsored access and DMA, with effective risk management controls.”
Genium INET PRM is designed to support the monitoring of market integrity and enables real-time validation of orders prior to allowing them into the matching engine. The system focuses on highly automated trading flows and has minimal latency impact. Genium INET PRM is based on the market-leading FTEN technology and is an efficient tool for the member to become compliant with the ESMA Guidelines for pre-trade risk controls. Functionalities within Genium INET PRM include different price and order size checks, maximum order rate per second checks and daily accumulated quantity checks.