Embedded hardware based system which provides real-time pre-trade risk assessments for multiple parties and method thereof
AssigneeFixnetix Ltd.
InventorsPaul Ellis, Alasdair Moore, Hugh Hughes, Matt Dangerfield
Life of this patent
Estimating the term…
Abstract
A risk assessment system and method are provided that may be implemented as an embedded hardware based system and method that provide real-time pre-trade risk assessments for multiple parties, in addition to real-time market data and trading connectivity to a variety of liquidity venues. The liquidity venues may include regulated exchanges, ECNs and other financial institutions listing securities, options, futures, commodities, foreign exchange and other financial instruments.
Claims20
An embedded risk assessment system, comprising:
- a printed circuit board;
- and
- one or more programmable logic devices installed on the printed circuit board in electronic communication with each other, the one or more programmable logic devices comprising one or more personality modules, wherein
- the one or more personality modules are configured to collectively perform pre-trade risk assessment for a client,
- the one or more personality modules comprise a client personality module,
- the client personality module comprises a set of risk criteria for the client and is configured to forward a trade order for the client to a liquidity venue if the trade order satisfies the set of risk criteria, and
- the client personality module updates a risk profile of the client in real-time without reliance on order acknowledgements from the liquidity venue, wherein the updates to the risk profile are performed based on an assumption that all orders transmitted to the liquidity venue are completed even if order acknowledgements have not yet been received for the orders from the liquidity venue.
A method for providing risk assessment, comprising:
- providing a printed circuit board having one or more programmable logic devices installed on the printed circuit board and electrically connected to each other, wherein
- the one or more programmable logic devices comprise one or more personality modules, and
- the one or more personality modules comprise a client personality module comprising a set of risk criteria for a client;
- performing a pre-trade risk assessment for the client based on the one or more personality modules;
- forwarding a first trade order for the client to a liquidity venue if the first trade order satisfies the set of risk criteria for the client stored in the client personality module;
- and
- updating a risk profile of the client in real-time without reliance on an order acknowledgement from the liquidity venue based on an assumption that the first trade order forwarded to the liquidity venue is completed even without receiving an order acknowledgement from the liquidity venue.
An embedded risk assessment system, comprising:
- a printed circuit board;
- and
- a first programmable logic device installed on the printed circuit board comprising a client personality module associated with a client of a broker having a membership at a liquidity venue, wherein
- the client personality module is configured to update a risk profile of the client in real-time without reliance on order acknowledgements from the liquidity venue, and further wherein the updates to the risk profile are performed based on an assumption that all orders transmitted to the liquidity venue are completed even if order acknowledgements have not yet been received for the orders from the liquidity venue.
Dependencies are inferred from the claim text.