What is Chronicle MarketGateKeeper?
Chronicle’s MarketGateKeeper manages the trading system’s interface to the outside world, enabling full and direct client control of outgoing orders. Extensible Smart Order Routing features enable routing of orders to the market having the best price.
The MarketGateKeeper’s primary purpose is to provide clients with a robust set of tools for ensuring that outbound orders are completely under control. Even the most well-tested algorithmic trading systems can demonstrate unexpected and potentially harmful behaviour in periods of unforeseen market volatility. Under these circumstances, the MarketGateKeeper kicks in, enabling firms to have confidence in their bottom line, and ensuring that financial losses are capped. The MarketGateKeeper can be configured appropriately to each client’s own risk appetite.
MarketGateKeeper and Regulatory Compliance
Recent regulatory developments, such as MiFID II, have emphasised the requirement for firms to demonstrate control over their algorithmic trading activity. The MarketGateKeeper module offers multi-level configurable firewall rules, with full control of outgoing order parameters, and integrates with alerting functionality for notifications of firewall breaches. This is enabled by the module’s order state management functionality, providing validation of orders received from other sources. Acceptance or rejection of orders is based on configurable parameters such as order frequency, the number of orders in the market, the total size of orders (in total or by hedger only).
The MarketGateKeeper also provides “kill switch” functionality, at either the firewall level or a full “circuit breaker” that can immediately terminate all orders. The module is fully extensible, with the ability for clients to build out custom firewall rules in order to support variations in local regulatory requirements.
Why Choose Chronicle MarketGateKeeper?
- Asset class-agnostic.
- Assured risk management, tailored to each client’s own risk appetite.
- Enables clients to demonstrate compliance with regulatory requirements around algorithmic trading.
- Enables clients to leverage Chronicle’s trademark distributed, low latency capabilities high-performance Java (with microsecond per message latency, and a throughput of 100k messages per second).
- Clients can integrate the MarketGateKeeper with their own Order Management Systems for management of orders from multiple sources (e.g. both auto-hedging and client-generated orders), or they can send orders to Chronicle’s own MarketGateway.
- When used in conjunction with other modules and components, promotes rapid prototyping and deployment of pricing and trading solutions.
- Integrate the MarketGateKeeper with Chronicle’s Hedger and MarketGateway modules for seamless, fully controlled auto-hedging, order management, market connectivity and execution.
How it works?
The MarketGateKeeper is built on the Chronicle software stack, which itself is designed to provide a flexible, reliable and low-latency framework. Notable features include:
High availability and resilience
Configurable failover and resilience support are central to the module’s architecture.
Input and output queues are built on the Chronicle Queue technology, providing persistent, resilient and high-performance inter-process communication.
The ability to take advantage of the many features provided by the Chronicle software stack, such as built-in monitoring and alerting, and replication*.
*Replication, in this instance, refers to the copying of data over the network via TCP/IP, usually done for failover, and/or to create a safe copy of the information on another host server or in another data centre.
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