With this shift, both exchanges and brokers must conform to the new paradigm by applying high-speed pre-trade risk controls and monitoring that function across a mesh of counterparties and facilities. Leveraging its proven low-latency risk solution, Mantara has designed and implemented a framework to address these challenges with near-zero impact on trade latency.
The CHiPS pre-trade risk layer is deployed at each co-location facility with a central ‘instance’ of CHiPS that aggregates all trading activity from each deployment. The combined information is then disseminated back to all sites for synchronization of the total trading exposures between sites setting limits for enforcement at each co-location.
Regardless of whether instances are sponsored by exchanges or brokers, or purchased by high-frequency trading firms for use across multiple brokers and exchanges, CHiPS instances work in tandem enabling each participant to see and manage the relevant information. Each trading entity (exchange, broker, buy-side) can see and manage the pertinent information and apply appropriate thresholds and limits to each firm, desk, user, and account—all in real time.
the United States
SOURCE Mantara, Inc.