Fast pre-trade control of transactions in trading infrastructures based on FIX

Experts of ARQA Technologies have improved technical operating parameters of its FIXPreTrade module. This is one of the company’s solutions for real-time pre-trade control of transactions. The solution was originally developed and offered to clients over a year ago. After the implemented optimization the time for pre-trade checks and FIX message processing performed by the module was reduced to less than 35 mcs.

The FIXPreTrade module is the most universal solution for fast pre-trade control of transactions in the line of similar products by ARQA Technologies. This module may be connected to any technological infrastructure of a broker that is based on the FIX protocol.

In the process of trading the module makes a decision to forward or reject a transaction on the basis of the data it receives from the QUIK server. By the moment a transaction is initiated the client’s position has already been evaluated by the QUIK server on the basis of his current purchasing power, market parameters and accounting for the client’s active orders. The QUIK server acts as a risk server in this technological loop.

This solution has flexible settings such as “fat fingers” restrictions for the list of traded securities or a maximum order size and also employs more complex risk control models available in QUIK such as mark-to-market portfolio evaluation (a SPAN-like approach) and proprietary position limitations including the absolute parameters of its components.

The FIXPreTrade module is recommended for use in situations which require pre-trade control for low-latency infrastructures and also for risk management in those external systems that have no inherent functionality of pre-trade control of transactions but support the FIX protocol.

The FIXPreTrade module is available for free testing to clients of ARQA Technologies. All questions concerning the module’s operation may be addressed by telephone +7-383-2191619 or e-mailsales@arqa.ru.