Traiana, the leading provider of post trade solutions, announces today that it has expanded its Harmony CreditLink initiative with the addition of real-time limit monitoring and a Killswitch capability for exchange traded derivatives.
With the enhanced CreditLink solution, Futures Commission Merchants (FCMs) can enforce trading limits globally and monitor for compliance with limits in real-time. If limits are breached, trading can be halted in very low latency. CME and NYSE Liffe are the first exchanges connected, with further exchanges in the on-boarding process.
CreditLink's real-time integration to exchange APIs enables customers and their clearing firms to identify limit breaches, modify credit lines and terminate trading activity, cancelling any open orders.
Originally launched in June 2011 for over-the-counter foreign exchange trading, CreditLink has proved a robust and effective solution for customers. Now monitoring risk in real-time across foreign exchange (FX) and exchange traded derivatives, the integrated Killswitch has been activated multiple times in response to technical failures, distressed firms and limit breaches, resulting in reduced risk of losses by customers, counterparties and their clearing firms.
The increase in high frequency and algorithmic trading in the exchange traded market has made the provision of adequate controls and real-time risk capability critically important to clearing brokers, high frequency traders, firms providing direct market and sponsored access as well as regulators.
Andrew Coyne, CEO, Traiana, said: "Following the successful introduction of a Killswitch in the FX market it was a natural next step to extend it to the exchange traded derivatives market, specifically for direct market access (DMA) and sponsored access trading. With CME Group and NYSE Liffe on board, this initiative is poised to reduce risk and strengthen the resilience of exchange traded markets."