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TMX Group Switches to Ullink for Pre-Trade Risk Management

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TMX Group, operator of the Toronto Stock Exchange, is planning to migrate equity trading customers using Mantara pre-trade risk management and connectivity tools to Ullink solutions. TMX has maintained Mantara products since the company filed for Chapter 11 bankruptcy in October last year, but will cease to do so once it is up and running with Ullink trading and connectivity solutions.

Rick Barber, director of product development for equities trading at TMX, explains: “We continued to maintain the Mantara pre-trade risk management service while we looked for a replacement. We selected Ullink as it is a well respected vendor in the US and has fairly mature products that are in use around the world. Ullink is not in the Canadian market, but we had experience of its solutions as some of the company’s customers connect to our markets. Ullink could also deliver in the short timeframe we needed to achieve.”

TMX plans to have Ullink pre-trade risk management and connectivity to TMX equity markets up and running this spring and to have migrated all Mantara users to the Ullink solutions by early summer. The pre-trade risk management system plays into regulation from the Ontario Securities Commission that last year issued a requirement for markets and participants to ensure that risks associated with direct electronic access are appropriately managed.

The TMX solution will allow participants to apply risk checks, trading limits and controls to their order flows and will provide real-time monitoring of overall committed capital, open order exposure and intraday market risk exposure across all major Canadian equity venues. It will also give customers a single point of access to all TMX equity markets.

While equity trading customers are not required to use the TMX pre-trade risk and connectivity tools, Barber says they provide customers with a one-stop-shop and are part of continual improvement of the TMX trading experience. Looking forward, he says TMX will evolve the Ullink solutions when customers want to trade at new destinations and in line with any additional regulation.

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