Risk Management Tools

The Montréal Exchange offers four risk management tools.

Drop Copy service

Participants subscribing to the Drop Copy feed will receive order and quote (optional) acknowledgments and trade notifications messages. Participants will be able to receive all confirmation messages from a single feed, irrespective of the multiple trading applications that may be used by the firm. Participants will thus be able to recreate their order book and their trades in quasi real time. Participants will also have the option of sending a cancellation message (see Global Cancel functionality below) via the Drop Copy connection.

A monthly fee of C$500 will be charged.

Global Cancel functionality

Participants will be able to send global order or quote cancellation messages. This new functionality will be available on a separate connection type within each order entry channel. With one single message, participants will be able to instruct the system to cancel their firm's orders or quotes, according to the granularity level that they have determined. As mentioned above this new function is available on the Drop Copy service.

While Connected functionality for day orders

Day orders with "While Connected" functionality are automatically withdrawn from the central order book in the event that the participant's server is disconnected from MX. Upon reconnection, participants will receive the standard cancellation message. These cancelled orders will not be recoverable and will have to be resubmitted.

More information is available in the Risk Management Tools technical notice.

Pre-Trade Risk Control service

This service is intended for risk management departments at both the clearing member level as well as the Foreign or Approved Participant (F)AP level. Pre-Trade Risk Control gives clearing members the ability to set specific controls to mitigate exposure to risks from non-clearing member relationships - (F)AP. It also allows participants to set specific and global pre-trade controls on internal and client order flows to MX.

This risk management service is provided in the SAIL protocol and Participants wishing to send risk limits and receive PTV dedicated messages will have to certify to the PTV functions.

Starting in 2019, this service is also available through a new, simple and convenient Web user interface provided by MX.