Pre-Trade Risk Management - Genium INET


As the leader in trading and data technology for the financial industry, Nasdaq has developed a Pre-Trade Risk Management service that provides customers of its Nordic Equity Derivatives and Commodities marketplaces a Pre-Trade Risk Management solution that virtually adds no latency. Nasdaq is pleased to announce a cost efficient way to take control and reduce risk - Genium INET Pre Trade Risk Management system (PRM). PRM is a solution that ensures market integrity, is compliant with the ESMA Guidelines and focuses on highly automated trading flows. The functionality has minimal latency impact with a mix of pre- and post-trade controls and it also facilitates sponsored access, GCM/NCM relationship and low-latency DMA.

View the videos where Mikael Siewertz, Product Manager Nasdaq, gives an insight to PRM.

(2min 26sec)


Get the Facts
(2min 24sec)

PRM Protection in Brief

  • Fat Finger Price Check
    This functionality (Order Price Limit) is separate from PRM and is set market wide for all participants by the exchange. Fat Finger Price Checks compares price instructions on incoming orders against a reference price. If the order deviate more than an order book configured parameter, the order will be rejected before it can execute.
  • Maximum Order Quantity Check
    Max Order Quantity Checks provide users the ability to check order volume against a pre-set value.
  • Daily Accumulated Quantity Checks
    Accumulates quantity counters throughout the current trading day. Once volume hits the maximum configured value, new orders sent will be rejected. Multiple accumulation checks are available.
  • Maximum Order Rate Per Second Checks
    Set limits on allowed orders/sec rates on a per Pre-Trade Limits Group basis
  • Disconnect Safeguard
    If the sponsor loses its connection, associated sponsored clients are blocked in the same way as if a limit is breached.
  • PRM E-mail Notifications
    PRM sends you notifications when limits are breached or warning levels are reached.
  • PRM Administration Interface
    An easy to use PRM Administration interface, is provided, that provides direct control of your PRM account configuration, including the ability to perform emergency actions.