Pre-Trade Risk Management

Pre-Trade Risk Management

Lime Trading Gateway has been designed and implemented to meet the outlined regulatory controls contained within Rule 15c3-5, which include all pre-trade risk validation requirements. All account rules have been uniquely coded to minimize latency. These rules monitor risk associated with buying power, buying power factor, maximum order size, maximum position size, P&L loss thresholds, short checking, odd lot allowances/restrictions and settings to reject all incoming orders. Lime Trading Gateway prides itself on being brutally efficient. Lime Trading Gateway demonstrates that pre-trade risk controls can be implemented without compromising the strategies of even the most latency-sensitive traders.

Lime Risk Management Solutions:

  • Automated pre-trade risk controls
  • Real-time risk synchronization across all Lime trading sites (Secaucus, Carteret, Mahwah)
  • Equities and options including shocked portfolio risks
  • Fully configurable risk settings on a customer and account basis

Multi-Site Risk & Financial Control Aggregation:

Lime Trading Information Protocol (“LTIP”) enables high-speed sharing of financial and position information across multiple co-location trading destinations to ensure that designated risk parameters are assessed on an aggregate basis. Buying Power Validation across defined “buying power

Buying Power:

Validation across defined “buying power group” grouping of accounts Portfolio/TIMS Margin calculation methodology applied for options trading accounts.

Open Order Exposure:

Maximum open order exposure control, a function of remaining buying power.

Fat Finger Checks:

Max Price, Max Quantity, Max Notional Value Limit. Additional second layer Fat finger checks configured at trading destinations that support them.

New Order Rate/Throughput Limit:

Continuous and separate burst rate limits, configurable on a per-client basis. Configurable action if rate is broached (notify-only, reject, or disable trading).

Easy to Borrow & Locate Validation:

Validates that only short-sale orders with appropriate locates are sent out to the markets for execution. Validation is dependent upon account configuration (DVP or margin).

Order Marking Validation:

Configurable to validate or automatically mark the client orders for Reg SHO compliance. Validation will reject inappropriately marked orders; auto-mark will adjust the sell order to long/short as appropriate.

Access Controls:

The Lime Trading System restricts access by IP validation & account, user and password.

FIX Drop Copies:

Configurable FIX drop copy or echo messages to capture order-related events.

Web-Based Trading Portal:

Configurable execution portal where you can track/interact with orders, executions, positions and much more.

Web-Based Risk Monitor:

Tracks various “primitive” metrics for equities. Risk Monitor can build upon the primitive metrics to create user-defined compound metrics.

Compliance:

Various EOD compliance reports to review client activity and integration to third-party compliance software applications.

If you would like information on pricing and connecting to the Lime Trading Gateway,

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