Categories: Direct Market Access and Sponsored Access

RULEMATCH provides non-participants with the ability to use the trading platform via Direct Market Access (DMA) or Sponsored Access (SA). Banks and securities firms can extend this opportunity to their non-participant clients, enabling them to trade on RULEMATCH via their existing banking system connection (Direct Market Access) or their own technical connection (Sponsored Access). In both scenarios, sponsoring participants maintain complete visibility into their clients’ trades and positions. Responsibility for clearing always remains with the sponsoring participant.

Direct Market Access (DMA) enables participants’ clients to access the RULEMATCH trading venue through their intermediary bank or security firm. With DMA, traders have more control over the trading process as they can send orders to the venue and receive real-time executions via the existing infrastructure of their sponsoring participant.

This option is particularly popular among professional trading clients who use their own order management systems (OMS) or execution management systems (EMS) to execute large volumes of orders in a quick and efficient manner.

DMA clients typically use the same FIX gateway as the participant, and all trading activities are recorded in a segregated account within the participant’s account structure. For smaller trading firms with limited resources, DMA can be a cost-effective solution to establish a connection to the RULEMATCH trading venue.

The Sponsored Access (SA) service provides market participants’ clients with a direct technical connection to the RULEMATCH trading venue through their own gateway, such as FIX or OUCH, enabling them to transmit orders electronically and directly without routing them through the participant’s internal electronic trading systems.

This setup is ideal for high frequency traders and hedge funds executing low latency strategies. SA traders have control over the trading process, including the ability to send orders and receive real-time market data. However, the Sponsoring participant is ultimately responsible for ensuring compliance with regulatory requirements and risk management protocols.

RULEMATCH offers a range of Pre- and At-Trade Risk Management Controls to allow Sponsoring participants to effectively manage the order flow of their SA clients. The associated risk management parameters can be maintained through a graphical user interface. Sponsoring participants can further manage risk by activating a “Kill-Switch”, which cancels all outstanding orders of the sponsored clients and prevents new order entries.