Lime Brokerage , a provider of ultra low-latency, ultra high-throughput trading technologies and high-volume agency brokerage services, announced this week launch of LimeDirect, an innovative risk management solution that “breaks” the microsecond barrier for pre-trade risk control. Results to date have yielded a benchmark average of less than 250 nanoseconds of added latency.
LimeDirect is a unique hybrid of Lime Brokerage hardware and software. Introducing near-zero latency, it provides an elegant pre-trade risk solution specifically designed to satisfy the direct and exclusive control requirements of the SEC Market Access Rule (15c3-5).
LimeDirect enables clients to use their existing market drivers, manage market connectivity, and add new order types at will (upon approval of the sponsoring broker), and new protocols with very little delay. LimeDirect is part of a comprehensive, but fully customizable solution wherein clients may choose to use Lime’s market drivers for some markets, and their own drivers (LimeDirect) where they are most concerned about latency and control.
LimeDirect offers “near frictionless trading by allowing the client to control the market drivers and network,’’ the brokerage unit of Wedbush said. In October, Ullink said it lowered the time it takes for its pre-trade risk check system to work to two millionths of a second.
The global provider of low latency connections and trading services said it achieved the two-microsecond speed with its UL IRIS+ risk management appliance, which uses floating point gate array technology. The speed was achieve working with the OUCH communications protocol, widely used in options markets.
In July, Bank of America Merrill Lynch introduced a trading platform that executes orders wire-to-wire in fewer than10 millionths of a second. The system, called BofAML Express, includes pre-trade risk checks.
The focus on speed of pre-trade risk controls has heightened since the Securities and Exchange Commission’s ban on unfiltered or “naked” access to markets, electronically, took effect in July. The 15c3-5 market access rule is designed to protect brokers who allow customers to send orders directly to trading venues using their market participation clearance IDs.
“We developed LimeDirect to end the discussion on latency and to provide a robust risk management solution where clients didn’t have to trade speed for compliance,” said Jeff Bell, CEO of Lime.
@HaydenARichards Associate Publisher and Commercial Director @Timizzer. New Media Explorer. Business Development and Sales. Passionate about Social media,Tech, Digital Engagement, Capital Markets and the digital revolution of Media. http://www.scoop.it/u/hayden-richards
Pingback: Wedbush Acquires Lime Brokerage | Wall Street Stocks