Risk Controls

OpenBondX is designed to address all aspects of SEC RULE 15c3-5 (Market Access Rule). These controls are configured at the account, user, and entity levels and customized to thresholds agreed upon by subscriber, their prime brokers, OBX, and its clearing firm

Credit controls SEC RULE 15c3-5(c)(1)(i)

Fat finger checks on price/size SEC RULE 15c3-5(c)(1)(ii)

The value of a proposed order is compared to a mutually agreed upon pre-configured limit of maximum single-order notional value.

Duplicate order check SEC RULE 15c3-5(c)(1)(iii)

Order initiators are required to confirm that they are aware that an existing order in the same issue is currently open. This check is not performed for accounts categorized as market makers.

Preventing the entry of orders for securities that customer is restricted from trading SEC RULE 15c3-5(c)(2)(ii)

Customers and prime brokers can have an issue added to their restricted list (defined by CUSIP)

Restrict System access to authorized parties SEC RULE 15c3-5(c)(2)(iii)

Immediate post-trade execution reports SEC RULE 15c3-5(c)(2)(iv)

The OBX System has access controls requiring a user name and password. Role-based access entitles users to access an OBX-defined set of accounts. The System supports two types of roles - "trader" which permits the placement and management of orders, and "view only" for non-trade desk and compliance or supervisory personnel. Both roles permit the user to view all orders and order-status changes real time.

Other OBX Order Validations

The System will also validate the issue and issuer's status; and allow or disallow trading based upon the coupon type (fixed, floating, zero, other); and whether the issue is convertible or callable. Self-match prevention is automatically enabled at the account level and for the same user if trading in multiple accounts.