BT and Lime Brokerage have unveiled new technology for broker-dealers that will quickly and easily facilitate pre-trade risk controls that comply with the U.S. Securities and Exchange Commission (SEC) Rule 15c3-5 and its July 14 implementation deadline.
The SECs 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, provider of network-centric services to the global financial community, provides access for more than 15,000 customer locations to over 400 service providers through its BT Radianz cloud while 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. Limes 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 customers trading infrastructure is located. The service is engineered to fulfil the SECs direct and exclusive control mandate for market access providers and help users be compliant with the SEC ruling.
(LB)