26 July 2014

Horizon unveils pre-trade risk management tech for algo trading

18 February 2014  |  869 views  |  0 Source: Horizon Software

Horizon Software, innovative provider of front end trading solutions, announces today the availability of its new pre-trade risk management system designed for algorithmic trading, in a context of growing demand from regulators to maintain fair, safe and orderly trading markets, and increasing usage of algorithmic trading by exchange members and non-members.

A world-class trading platform with advanced risk management features

"A world-class trading platform such as Horizon Software already had a pre-trade risk management built-in, but this new version reaches unprecedented levels of safety by using several independent factors of control, with minimal latency impact" says Benoit Deckmyn, Product Manager for Connectivity Solutions.

Multi-asset trading solution for all users

This multi-asset solution provides real-time pre-trade protection that will benefit to all categories of users dealing with risk management: proprietary traders, DMA providers, DMA investors. It covers most worldwide cash and derivatives markets regulations all over the world.

Orders sent to any venue are checked against pre-trade risks and a list of misbehavior patternsbefore being allowed. It is possible to configure different price and order size checks, maximum order rate per second checks, and daily-cumulated quantity in cash, delta or vega or amount checks, and market impact such as prices sliding. The feature can be used for example by a brokerage firm to improve pre-trade risk management by closely monitoring the behavior of each of its DMA clients.

Risk management of algorithmic strategies

Algorithmic strategies running in Horizon Software platform are also permanently checked for healthiness, to detect any lag in the processing of events and orders and possible trading side effects. If any problem occurs, circuit breaking measures are taken, such as disconnection from the exchange and massive order cancellation.

Compliant with all recent regulations about high-frequency trading

Horizon Software pre-trade risk management system is an efficient way for the member to become compliant with the ESMA Guidelines for pre-trade risk controls, SEC upcoming regulations, SFC regulation, and is included in all variants of Horizon Software Front-Office Solution.

"Thanks to several years of successful experience in the demanding High Frequency Trading industry, our clients are well prepared to face the challenges brought by compliance linked to algorithmic trading" says Jean-Marc Delfarguiel, Founder and CEO. "We are proud to provide our clients with a new level of pre-trade risk management". 

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