Pre Trade Risk Management

Complying with Rule 15c3-5 in sub-microsecond

The Securities and Exchange Commission Rule 15c3-5 – Risk Management Controls for Brokers or Dealers with Market Access mandates that broker-dealers implement risk management controls and supervisory procedures to ensure compliance with all regulatory requirements in connection with market access. While these measures will help to provide protection to the markets, the additional thresholds built into the execution process have the potential of creating unwanted latency for high frequency traders.

Globalvest implemented pre-trade risk validation who meet the outlined regulatory criteria contained within Rule 15c3-5 but the rules have been uniquely coded to minimize latency.
All risk and compliance checks are made prior to sending data to market without incurring any measurable latency.

Risk Management Controls

Any order that violates the limit will be rejected by GlobalVest’s risk manager system and a message with the reason for rejection will be sent to the client system. Filters are configurable and can be updated intraday. As a firm focused on offering an optimal solution, additional checks can be customized or added as per trader specifications. Risk management controls include, but are not limited to, the following:
  • Maximum Notional Value
  • Net Notional Value
  • Maximum Loss Limit
  • Maximum Share Quantity
  • Per Order Notional Value
  • Per Order Share Quantity
  • Per Symbol Checks (Order/Quantity)
  • Maximum Number of Orders Per Second
  • Maximum Dollar Amount Per Second
  • Short Sale Check / Easy to Borrow List
  • Portfolio Net Market Exposure Check
  • Portfolio Concentration Exposure Check
  • Cancel Open Orders Features


To allow Managers at participating brokers and customers to monitor trading activity, we offer the Risk Manager application that can be used to most effectively manage the portfolio’s risk. This sophisticated platform displays Position Details, Notional Values, Shares Trades, Open orders vs Executed Orders, Portfolio Net Market Exposure and Concentration Exposure details.


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