QUIK KillSwitch solutions for risk management via SMA connections on Moscow Exchange markets

In December 2017 Moscow Exchange provided trading participants’ clients including non-residents with a technology of sponsored access to stock market — Sponsored Market Access (SMA) — to simplify execution of trading operations on the Russian security market. The SMA technology became available on FX market in 2015, and its implementation on derivative market is planned in 2018.

With this technology, a client gets access to direct market trading by means of dedicated identifiers, and such connection holds until access is confirmed by the trade participant providing the service (until broker’s own access is valid) and risk requirements of the exchange are not breached.

ARQA Technologies provides a solution to control operations of such clients on behalf of broker in online mode — QUIK KillSwitch Module.

This includes:

• QUIK as risk server with various risk control models and flexible selection of risk parameters,
• risk management for all operations of the client (not only on MOEX markets),
• no impact of risk server on latency of client’s application which is directly connected to the exchange trading system.

The additional advantage of the above approach to client operations’ control is that it allows the broker to stop client’s trading manually, e.g. in case of additional risks that don’t trigger automated stop.

With questions on terms of use and testing, please contact Sales and Marketing at ARQA Technologies: +7-383 219 16 19, sales@arqatech.com.