PRODUCT DESCRIPTION

Risk Management
Gateway™ Direct

Hedge funds, proprietary traders and other high frequency traders demand speed and direct
access to market liquidity. Sell-side firms and their prime brokerage operations need to
manage the risk exposure of the directly connected client traders they sponsor, without
impeding their business models and trading strategies.
NYSE Technologies’ Risk Management Gateway™ (RMG™) Direct has been designed to meet
the growing performance demands of the high frequency trading community, while giving
sell-side sponsors a comprehensive picture of their clients’ risk profiles.

Customer Challenges Solution Benefits

In today’s competitive marketplace, brokers
need to offer compelling service solutions
to retain and expand client business.
Meeting the growing demands of high
Hosted Sponsored frequency traders, while ensuring
appropriate risk controls are in place, is
Access Gateway with stretching resource-strapped sell sides.
In-Time Risk Filtering Protecting Order Flow
With competition intense, sell side firms
must protect client business by meeting
high frequency traders’ demands for
FAST FACTS fastest possible market access while
What is it? maintaining robust risk controls over
A hosted low-latency execution gateway client activity.
that protects broker order flow while
Broad Market Access
applying in-time risk controls. In their search for investment performance,
high frequency traders are requiring
Who is it for?
low-latency access to a broadening range of
Sell-side sponsors of high frequency exchange and alternative trading platforms
trading firms. – and are looking to their prime brokers to
What does it provide? facilitate.
Infrastructure Challenge
Fast market access with robust client-side
risk controls. Establishing and maintaining a proximity-
hosted infrastructure for high frequency
trading access is a non-trivial exercise, made
more challenging by intense
scrutiny of IT budgets in today’s economic
environment.
RMG™ Direct gives broker-sponsored
participants the connectivity and
technology needed for high-performance,
pre-trade risk-filtered access to market
centers. NYSE Technologies manages the
trading infrastructure and participants’
connectivity, leaving sponsoring brokers to
monitor and control their clients’ risk limits,
via a real-time, web-based GUI or API, and
devote more time to client relationships.
High Performance Access
RMG™ Direct’s proximity-hosted execution
gateway and low-latency connectivity
via the state-of-the-art Secure Financial
Transaction Infrastructure® (SFTI®)
guarantees fast access to NYSE Euronext
markets and global exchanges.
In-time Risk Controls
Industry-standard risk controls and
filters achieve compliance while meeting
clients’ performance goals and privacy
requirements. In-time application of
risk controls ensures that latency and
performance are unaffected.
Hosted Solution
RMG™ Direct’s proximity-hosted model
means there is no broker-side technology
build-out or capital expenditure, and allows
for rapid client deployment.
 PRODUCT DESCRIPTION

Risk Management
Gateway™ Direct

Performance
RMG™ Direct leverages a high-speed backbone network to support global electronic trading,
using direct network connections to market centers to minimize order latency. RMG™ Direct
can process 1,000 inbound messages per second while only adding microseconds of latency
between the participant and the market. RMG™ Direct’s combination of high-speed network About NYSE Technologies
and state-of-the-art gateway technologies, meets the demands of high frequency traders.
NYSE Technologies provides high-
performance global trading platforms,
through innovative market-leading software,
Risk Filters
market data and a low-latency secure
RMG™ Direct provides a wide range of risk filters to meet the compliance requirements of networked community. Together, our
the sponsoring broker. The risk interface allows for the broker to apply risk measures on the flexible and scalable products and services
participants order flow while not affecting latency or violating the privacy many participants deliver robust, integrated solutions for all
require. RMG™ Direct provides ‘fat finger’, cumulative and other risk checks via a highly market participants from single traders to
configurable interface to filter order flow to the market. exchanges. From a single provider, these
can be offered as fully deployed, hosted,
Infrastructure managed or on-demand services.
RMG™ Direct is a hosted solution providing the technology for brokers to support and expand
their electronic trading capabilities. As such, RMG™ Direct infrastructure has been designed Find Out More
not to compromise speed or throughput. It is deployed on best-of-class servers as well Email: NYSE-Technologies-Sales@nyx.com
deployed at strategic data centers to minimize latency to the matching engine. or Visit: www.nyse.com/technologies

User Interface
Brokers can actively oversee and manage risk filters in real-time via a web-based interface.
The tool allows brokers to dynamically configure, update intra-day and monitor a risk profile
for each client. As well, RMG™ Direct provides a configurable echo session to integrate with
third-party systems.

Copyright 2009 NYSE Technologies Inc. All rights reserved. All other product and company names and marks mentioned in this document are the property of their respective owners and are mentioned for identification purposes only. Measurements are
based upon independent tests; results may vary. NYSE Technologies does not guaranty any savings, level of performance or reduction in risk. Customers are responsible for independently evaluating their exposure with respect to any financial transaction.

www.nyx.com
©2009 NYSE Euronext
All Rights Reserved

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