NasdaqOMX and Corvil have upped the protection ante for traders who use their recently released TradeGuard risk management system.
Now TradeGuard platform’s features RiskWrapper – a solution that gives clients added protection for risk by monitoring trades at the network level and comparing to trades in the risk system for protection against unwanted activity.
“By partnering with Corvil, we’re able to provide our clients with protection against portfolio and market risk,” said Stacie Swanstrom, head of access services, a division of the global trading and market services business line at NasdaqOMX. “With market services like TradeGuard, we look to support the financial services community by facilitating our customers’ growth and alpha generation.”
RiskWrapper is an agnostic, at-trade solution designed to measure risk at the network level by capturing traffic directly and comparing to what is seen in the risk system to identify abnormal activity and alert the users to the anomalies. The partnership centers on the integration of Corvil’s streaming analytics platform. This approach, coupled with TradeGuard’s extensive set of post- and at-trade risk checks, allows clients to gain added protection to their current risk system, as well as take advantage of new checks and data around their trading activity.
Monitoring trading activity directly from network data provides several advantages, according to Swanstrom. By monitoring network connections right at the entry/exit point of an exchange or firm, users are assured of a more complete record of trading activity. Because data is captured directly off the network, the need to connect additional servers to client or venue trading platforms is eliminated. As a result, risk can be measured without adding latency and firms can continue to use internal risk applications with RiskWrapper acting as a comprehensive monitor of trading activity.
RiskWrapper is available to all TradeGuard users as an add-on module or to non-users as well – with Nasdaq linking it up to a firm’s own risk management system or protocols.
Announced in January, Nasdaq’s TradeGuard system has bundled the multiple risk management services into a single system making it easier for the buyside to use.
TradeGuard is a full-service risk management suite that allows customers to pick and choose from a broad product suite for a range of trade support, from building a custom risk solution to simply filling in gaps in a current solution. In addition to the current enterprise and Nasdaq OMX exchange risk tools available, the new suite also features monitoring for new markets and asset classes, improved gateways, and supplemental risk monitoring systems.
TradeGuard is an expansion of the enterprise risk management platform formerly known as FTEN.
