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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 C$500/monthly fee will apply for a new Drop Copy request.

Each subsequent Drop Copy request will cost C$500/month.

Global Cancel functionality

With one single SAIL message, Participants subscribing to this service can instruct the system to cancel their firm's orders or quotes, according to the granularity level that they have determined.

  • Refer to the SAIL Business Design Guide & SAIL Specifications documentations
  • To obtain documentation: TMX Webstore

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Day orders with "While Connected" functionality are automatically withdrawn from the central order book in the event that the participant's server is disconnected from MX.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 SAIL or FIX cancellation message. These cancelled orders must be resubmitted.

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

  • Refer to the SAIL Business Design Guide & SAIL Specifications documentations
  • To obtain documentation: TMX Webstore

Pre-Trade Risk Control service

This service is intended for risk management departments at both the clearing member level and the Approved or Foreign 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 flow to MX.

This risk management service are provided by:

  1. Via a new simple and convenient Web user interface provided by MX called Pre-Trade Risk Control, which are available on TMX Connect, the single sign-on technology for MX Derivatives Customers.
Pre-Trade Risk Screenshot

More information about TMX Connect can be found here: TMX Derivatives Experience

To get access to TMX Connect, or to request a demo contact: mxconnect@m-x.ca

  1. In the SAIL protocol and Participants wishing to send risk limits and receive PTV dedicated messages must certify to the PTV functions.