BT and Lime Brokerage today are announcing a one-stop solution for broker-dealers that will quickly and easily facilitate pre-trade risk controls.
Available immediately to members of the BT Radianz community, the service helps users comply with the U.S. Securities and Exchange Commission (SEC) Rule 15c3-5 and its July 14 implementation deadline. Broker-dealers not already connected to the BT Radianz cloud can easily place an order for service access to employ this solution.
The SEC's "Risk Management Controls for Brokers or Dealers with Market Access" (Rule 15c3-5) requires brokers and dealers to have risk controls in place before providing their customers with access to the market. All broker-dealer order flow, electronic or otherwise, will need to go through pre-trade risk management systems and processes; otherwise, the organisation may be considered non-compliant and subject to possible fines.
BT, a leading provider of network-centric services to the global financial community, provides high-performance, reliable and secure access for more than 15,000 customer locations to over 400 service providers through its BT Radianz cloud. Lime Brokerage is an agency broker and innovative provider of high-speed trading, data and risk technologies to the professional and institutional trading communities.
Lime will provide members of the BT Radianz community with an ultra-low latency and SEC-compliant risk control solution, without the significant costs and resources required to implement such systems on their own. Lime's comprehensive, leading-edge solution provides all inline pre-trade checks in less than 10 microseconds, including reasonableness checks, throughput limits, buying power, open order exposure, long sale and easy-to-borrow/locates, among others. The BT Radianz Managed Infrastructure can deliver round-trip communication with the Lime platform measured in as little as single-digit milliseconds depending on `where the customer's trading infrastructure is located. The service is engineered to fulfil the SEC's "direct and exclusive control mandate" for market access provaaccess providers and help users be compliant with the SEC ruling.
Lime Brokerage, a long-time advocate of mandatory pre-trade risk controls, began designing its co-located market access risk systems in March 2009, with introduction to clients last spring. Its pre-trade co-location risk engine, named "LimeInside," has won industry accolades, including the "Cutting Edge IT Initiative" from the 2010 American Financial Technology Awards.
José Antonio Martinez, managing director, Radianz & Payments, BT Global Services, explained: "The hurdles facing our customers today are very different from just two or three years ago, and meeting new regulatory demands in a timely and cost-efficient manner can be a significant technology challenge. We are proud to be able to work with Lime Brokerage, well-known as a financial technology innovator in the U.S., to provide an integrated solution to the fast-approaching naked access ban."
John Jacobs, director of operations in Lime Brokerage said: "We designed this pre-trade risk solution not just for ourselves, but with all brokers and dealers in mind - from large firms to mid-tier and smaller organisations. And we developed this innovative service with BT to address what brokers and dealers have been asking for - a cost-efficient, ultra-low latency and easy-to-implement process to comply with the SEC's ruling."