QUIK KillSwitch — ‘RISQ solutions’ for sophisticated pre-trade control of sponsored access to LSE spot market

ARQA Technologies have come up with a module for online risk control of sponsored access trading at the spot market of LSE. Now brokers may use advanced risk management functionality of RISQ solutions for a wide scope of trading operations of clients having sponsored access to LSE spot market.

The original KillSwitch as developed by the LSE is used to stop order flow from a client with a sponsored access to the spot market of LSE. The KillSwitch is triggered by a loss of the drop copy connection which happens whenever parameters defined by his broker as risky are reached.

The module that has been named QUIK KillSwitch builds on the technology used by the Exchange and leverages RISQ solutions to allow the broker employing it to engage more complex risk checks for its “sponsored access” clients. Such risk checks are carried out by the RISQ server and may involve dynamic revaluation of buying power for trading various instruments and portfolio margining for optimized collateral.

Risk managers at the broker side and clients themselves may also use special screen applications developed by ARQA Technologies to visualize relevant risk parameters.

The module has been certified by LSE for joint use with the Exchange risk control system and is available for free testing.