New version of QUIK KillSwitch module (MOEX FX) allows managing risk when SMA-connection is used at the Moscow Exchange FX market

This summer the Moscow Exchange has suggested its brokers using a new model for client connection to trading at the FX market – Sponsored Market Access (http://www.moex.com/a3171). As for technology, a client connects to trading at the market directly through dedicated identifiers (SMA-identifiers), and the access is provided until exchange risk requirements are not breached and a primary broker is active (“external monitoring” is kept). Brokers’ activity is confirmed by sending regular messages from their identifiers (master-identifiers) – hard bits.

This is the technological solution that ARQA Technologies developers used in the new version of QUIK KillSwitch (MOEX FX) module to organize risk management for such operations at a broker’s side.

QUIK plays a role of the risk server with a lot of risk models and flexible risk parameters in use. In risk management MOEX FX market operations are processed along with the whole range of other operations of the client. Risk server does not affect the latency of the client’s application – the last is connected to the exchange trading system directly. After every transaction executed via SMA-connection the server sends a signal to QUIK KillSwitch module if to continue or to stop sending hard bits to the exchange trading system.

One of the advantages of the suggested way of client operations’ control is that a broker can stop trading from client’s application by hand, if it is necessary due to risk management or compliance requirements, and when criteria for automated stop is not provided.

ARQA Technologies offers free trial use of the new version of QUIK KillSwitch (MOEX FX) module to their clients.