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ISE Boosts Risk Management to Enhance SafeGuards

ISE members can define hard limits for their own FIX connections and those of their sponsored access clients.

The International Securities Exchange has beefed up the risk management tools available to its options exchange members connecting via the FIX (Financial Information Exchange) Protocol. ISE members can now define hard risk management limits for their own connections and their sponsored access customers. These enhancements allow members to define the maximum quantity and the maximum notional value that can be entered on a per order or daily basis. The new risk limits are already available through PrecISE Trade, ISE’s proprietary front-end trading system. Orders that exceed the pre-defined limits will be rejected in both platforms.

"ISE's new risk management limits give our members increased control over the orders that can be sent into the exchange, improving their risk management capabilities," commented Boris Ilyevsky, Managing Director of ISE's options exchange, in the release. "Although the SEC has yet to make a determination on rules for sponsored access, we saw a need to proactively enhance the safeguards available to our member firms to complement existing risk management features for their own orders and for those of sponsored customers," Ilyevsky added in the release.

ISE's risk management tools also include order monitoring via PrecISE, FIX Trade Drop Copy Reports and the recently introduced FIX Order Drop Copy Feed, which allows exchange members to monitor firm and sponsored customer activity in real time. These reports are available for orders routed through PrecISE, FIX and API connections.

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

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