Traiana Expands Risk Management Solution for Exchange Traded Derivatives

Traiana, the leading provider of post trade solutions, announces today that it has expanded its Harmony CreditLink initiative with the addition of real-time limit monitoring and a Killswitch capability for Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term traded derivatives. With the enhanced CreditLink solution, Futures Commission Merchants (FCMs) can enforce trading limits globally and monitor for compliance with limits in real-time. If limits are breached, trading can be halted in very low latency. CME and NYSE Liffe are the first exchanges connected, with further exchanges in the on-boarding process.

CreditLink’s real-time integration to exchange APIs enables customers and their Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term firms to identify limit breaches, modify credit lines and terminate trading activity, cancelling any open orders.

Originally launched in June 2011 for over-the-counter foreign exchange trading, CreditLink has proved a robust and effective solution for customers. Now monitoring risk in real-time across foreign exchange (FX) and exchange traded derivatives, the integrated Killswitch has been activated multiple times in response to technical failures, distressed firms and limit breaches, resulting in reduced risk of losses by customers, counterparties and their clearing firms.

The increase in high frequency and algorithmic trading in the exchange traded market has made the provision of adequate controls and real-time risk capability critically important to clearing brokers, high frequency traders, firms providing direct market and sponsored access as well as regulators.

Andrew Coyne, CEO, Traiana, said: “Following the successful introduction of a Killswitch in the FX market it was a natural next step to extend it to the exchange traded derivatives market, specifically for direct market access (DMA) and sponsored access trading. With CME Group and NYSE Liffe on board, this initiative is poised to reduce risk and strengthen the resilience of exchange traded markets.”