FTEN received a patent for its technology, which provides real-time cross-market risk management and surveillance for electronically traded securities. The firm’s approach to monitoring trading activity across exchanges, ECNs and alternative trading systems (ATSs) occurs through aggregation, normalization and analysis of real-time ‘drop copies.’
The U.S. Patent & Trademark Office awarded United States Patent No. 7,778,915 for FTEN’s “Financial Data Processing System,” effective Aug. 17, 2010, according to the firm’s release.
FTEN originally filed and published the patent in 2003, and through use of the technology, FTEN said it’s become one of the world’s largest processors of real-time securities risk management trading each day. FTEN provides real-time risk management and surveillance for up to 17 billion executed shares of U.S. equities, accounting for $150 billion in risk calculations per day.
In yesterday’s release, Ted Myerson, CEO of FTEN, said: “Through its innovative technology, FTEN allows market participants to accomplish real-time cross-market risk management without having to change how and who they do business with today.”
According to Myerson’s comments in the release, market participants can leverage FTEN's secure data cloud to achieve real-time cross-market risk management for electronic trading. “It is our hope that regulators will also consider similar secure data cloud approaches to achieve broader systemic risk management objectives of increased transparency, accountability and control."
FTEN has publically commented to the U.S. Securities and Exchange Commission (SEC) that the company’s technology could be used to monitor the markets for systemic risk and provide cross-market visibility. FTEN says it’s method is an alternative to processing trades through a “common trunk system” to attain cross market visibility or limiting trading to a single exchange which is required by exchange-based risk systems.
The patent was received by FTEN as the industry awaits a decision by the SEC regarding sponsored access, naked access and other trading practices. The SEC’s Rule 15c3-5 could mandate real-time cross-market risk management requirements, which would effectively ban broker-dealers from providing unfiltered market access to an exchange, ECN or alternative trading system (ATS).
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio