Nasdaq’s TradeGuard suite of products offers a real-time, multi-tiered risk solution that integrates pre-, at- and on-trade risk management, including margining. The flexible solution, which is proven and in use by 4 marketplaces today, resides natively within a market’s matching engine. It’s open architecture enables placement of risk checks in whichever location will work best with the market’s business strategy: pre-trade, at the match or post-trade. By setting exchange-wide limits at one of these locations, TradeGuard solutions help market operators to better control their market health by ensuring all market participants are meeting pre-defined parameters. Additionally, risk checks cover cross-asset, cross-market analysis and are designed for low-latency so that member execution speed is not severely impacted.
TradeGuard solutions are suitable for use by clearinghouses, exchanges, inter-dealer brokers and execution venues of all sizes, and seamlessly ties into both Nasdaq trading platforms and third party or propriety trading and clearing solutions.
- Open architecture that allows for different risk checks in different tiers to meet specific business requirements and all relevant use cases
- Pre- and At-trade risk checks reside natively within the matching engine and introduce typically less than 2* microseconds in latency
- On-trade risk infrastructure optionally ties into real-time margining engine for improved capital efficiency
- Pre-trade risk connects into post-trade for additional real time margin checks
- Wide variety of risk checks available for margin checks, daily quantity checks and “fat finger” checks
- Available “hot” redundancy ensures no “failover” is required if one instance experiences an issue
TradeGuard helps markets:
- Minimize latency impact while maximizing protection
- Balance risk management needs related to speed, cost, safety with flexible placement of risk checks
- Optimize capital efficiency through cross-asset margining and a single collateral pool
- Easily integrate using TradeGuard’s open, standards-based interfaces to connect to proprietary, third-party and other Nasdaq solutions
- Leverage proven technology