InfoWARE announces full support for NSE Sponsored access phase 1

InfoWARE announces full support for NSE Sponsored access phase 1

Imagine that a company, operating in one of the smaller countries in West Africa wants to raise funds by selling equities, but constrained by the domestic market size, seeks to access a larger market like the Nigeria Stock Exchange. While such cross-border transactions have not been
easy or even possible in some cases in the sub-region, they will soon become much easier, thanks to InfoWARE ERP introduction of Sponsored
Access.

What is “Filtered Sponsored Access”?

Sponsored access is a more direct technical connection that enables a non-member firm (the sponsored participant) to access the NSE without going through the sponsoring broker Order Management System while using the existing member firm [the Sponsoring Broker] name.

In layman terms, sponsored access can be defined as when a non-member entity (i.e., a sponsored participant) gains direct access to market centers
by using the Member Participant ID of a member broker/dealer (i.e., sponsoring brokers), leveraging access infrastructure not owned by the sponsoring broker. For Filtered Sponsored access, Orders placed through sponsored access passes through the
sponsoring broker’s infrastructure before been sent to the exchange with the broker’s pre-trade risk management system running each order through a number of filters. This screening process is designed to ensure that every order complies with the size requirements, credit limits and other criteria established between the NSE and sponsoring brokers, and between sponsoring brokers and their non-member sponsored clients.

The Need for Sponsored Access

Sponsored Access create growth opportunities both for the trading firm and the brokers:

Many non-member trading firms are looking for new market opportunities in market where they currently are not trading. Establishing and maintaining those new market connections, from a regulatory and
compliance standpoint, can be time-consuming and expensive. Broker provided sponsored access offerings let these firms leverage their broker
ability to maintain those connections and get to the market more quickly and easily, while still keeping their latency down. For many smaller firms, cost is an important consideration. Exchange membership requires not only the cost of membership, but the cost of compliance. Brokers play a crucial role here in handling these compliance requirements. Thus, low-latency access coupled with a broker’s ability to handle compliance and regulatory reporting issues becomes a major competitive advantage for brokers and gives smaller firms something they simply do not want to do on their own.

Why InfoWARE Sponsored Access?

Very few vendors can fulfill the full spectrum of capabilities required in a comprehensive managed trading platform. InfoWARE Sponsored Access provides real-time and robust pre-trade risk controls that are easy to apply and amend in relation to trading activities.

InfoWARE Sponsored access also provides transparency into pre-trade risk controls, consistency of service
while maintaining comprehensive client data with full audit trails.

Benefits of Sponsored Access

It provides dramatically faster access to market centers
It provides a platform for small to mid-size brokers to now compete with the larger brokers
From an additional revenue perspective, revenue sharing arrangements between sponsoring brokers and sponsored participants can be beneficial to both parties
Exchange benefit from additional liquidity into their venue to boost volume and revenue

Managing sponsoring member’s access to your ERP requires a careful balance- too much access creates risk and too little slows speed. InfoWARE ERP Filtered sponsored access strikes the right balance by providing ultra-low latency while keeping you in complete control.

Explore the new world of possibilities with InfoWARE ERP!

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