Series 24: Risk Management Function

Risk Management Function

The ACT system provides certain risk management functions for clearing brokers that wish to utilize them. If it signs a risk management agreement, the clearing broker will be able to scan the trading activities of its corresponding executing brokers and receive an end-of-day summary of all their trading activity for the day. In addition, clearing brokers will receive the following three alerts:

1. 1. That a gross dollar threshold has been reached or exceeded. A gross dollar threshold is the dollar value that a clearing firm is willing to honor for a corresponding executing broker’s trades. The clearing firm is first notified wi