Wedbush Securities’ New York-based agency broker business Lime Brokerage is seeking to capture market data feeds from international and emerging markets to support an effort to market its low-latency risk management tools outside the US, officials say.
Currently, the broker provides two hardware-enabled risk solutions—LimeDirect, which performs pre-trade risk checks with latency of around 200 nanoseconds, and LimeInside, which also performs pre-trade risk, though with slightly higher latency—both of which were developed entirely in-house by the firm.
“We are interested in developing our risk systems for more international markets… and in having our technology lead us into other markets,” says Lime chief executive Jeff Bell. “But to do that, we need international market data,” to support development of the tools to work with datafeeds from other markets, he adds.
LimeDirect and LimeInside are both compliant with the Securities and Exchange Commission’s Rule 15c3-5 Market Access Rule, though Bell says that if a particular market or region does not require the same level of pre-trade checks—for example, if it does not require the system to maintain and check trades against a restricted securities list—then Lime could strip out some of the products’ capabilities to make them run even faster.
Bell says the risk tools should be of value to US-based and international clearing firms, broker dealers, and market access providers, as well as for regional exchanges. “The people using this are fast traders—we want them to demand our products because they use them in the US and are comfortable with them there,” he says. “So we are starting by targeting existing clients… and based on client demand, we will prioritize where we do the work first.”
Separately, Lime last week announced the appointment of electronic trading veteran Tony Huck as managing director of business development. Huck was previously a senior executive at Citadel Securities, prior to which he was a managing director and head of equity execution services at RBS Securities, and held senior electronic trading roles at ITG and Nomura.
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