TMX Risk Management Services

Pre-trade risk management services for Canadian equity markets

TMX Risk Management Services (RMS), supported by the advanced risk technology of ULLINK, has been designed to meet the regulatory and risk management challenges facing the equities trading community. RMS provides a robust suite of pre-trade risk controls and features to assist brokers in achieving compliance with the current complex Canadian regulatory environment, while operating within demanding performance and latency constraints. RMS allows users to apply a variety of risk checks, trading limits, and controls to their order flow, and offers real-time monitoring of overall committed capital, open order exposure and intraday market risk exposure across all major Canadian equity venues.

Key Features

  • Real-time, comprehensive pre-trade risk controls, reporting and surveillance
  • Market access and aggregate risk monitoring across all major Canadian venues
  • Low-latency infrastructure and hosting
  • Customizable, dynamic GUI to manage risk profiles and order flow
  • Connectivity solution allows one-stop access to all TMX equity marketplaces
  • Fully-hosted and managed solution located within the TMX Co-Location Facility

Risk Management Services Infrastructure

  • Low latency, real time hierarchical risk controls with connectivity to all major Canadian venues
  • Hierarchical design: Broker > Desk/DMA client > Account
  • Configurable order and position centric risk controls
  • Real-time aggregate position monitoring
  • Intraday addition, modification and removal of Accounts
  • Aggregates trading activity on all major Canadian equity marketplaces for complete holistic view of risk exposure
  • Powerful front-end GUI to monitor, adjust and manage risk limits and parameters, and view and control order flow
  • Monitor threshold alerts, adjust risk profiles and terminate market access – all in real-time for single and multiple marketplaces trading activities.

Connectivity Services

  • Low latency single point of entry for all TMX equity marketplaces (TSX, TSX Venture Exchange and TSX Alpha Exchange), using TMX standard FIX 4.2 order entry protocol
  • Eliminates the need to maintain separate connections for each TMX marketplace or marketplace segment
  • Robust and configurable Cancel-on-Disconnect capability

Graphical User Interface (GUI)

With the RMS GUI, customers can actively monitor positions, manage order flow and set trading limits in real-time. The RMS GUI provides a fully-configurable display of aggregated trading activity across Canadian equity venues.

The TMX RMS GUI allows the following:

Risk Managers:

  • Risk Managers can dynamically set and modify their suite of risk parameters at the Broker, DMA Client and Account levels. Equipped with automated alerts and controls provided by the GUI, Risk Managers can block trading activity and cancel open orders, if required.

Brokers:

  • Brokers that sponsor market access for their clients have direct and exclusive control of the setting and adjustment of risk management and supervisory controls to order flow within their own sponsoring firm.

The comprehensive visibility, insight and control delivered by the RMS GUI provides the broker with the flexibility to better manage the risks associated with electronic trading, manage capital more efficiently, and safeguard against excess leverage.

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