Position Limits are complicated.
There are no shortcuts.
K3 Limits has you covered for exchange, MiFID 2, and Dodd-Frank.
Building your own limits solution?
Atlas is the only automated source of reference data for global trading compliance reference data.
Machines, not people gather data. Which means you are always up to date and alerted for changes.
Spot Limits, Levels, Spot Start Dates, Expiration Dates, Exchange Published Deltas and other key data is all maintained in Atlas and accessible through a clean published REST API.
Did you know that all limit regimes require options to be “delta-ized.” That means the option value is multiplied by the option delta to calculate a futures equivalent position.
Sometimes Brokers and FCMs also calculate deltas. However, these are not the official values to use and small differences in values can have an outsized impact on positions.
K3 Limits uses the official exchange deltas published daily.
For most spread trades limits requires an adjustment to two different products, because the spread trade includes two opposing legs (one long and one short). For example, a Jun HH v Jun GD.
But not all spread trades are for the same pricing period. Some products spread both products and months.
It’s easy to miss, but just one thing that K3 handles seamlessly.
Did you know that the positions for some products actually diminish during the pricing period?
Sometimes it’s straightforward and linear, and sometimes it’s not.
In other cases, the limit itself can also deprecate as products approach spot.
K3 handles these curveballs for you.
Tired of getting outdated limits from your provider? Tired of incorrect spot start dates? Atlas is the only solution that feeds data directly from the exchanges. Alerts are programmatically set to alert your team of any changes immediately.
Limits, Spot Starts, Exchange Published Deltas and key information is all maintained in Atlas’ data store and accessible through a clean published REST API.
Further to the very successful legal and operations focused webinars we completed with Katten Muchin Rosenman LLP on MiFID II limits and transaction reporting BroadPeak will now be holding a webinar on how technology solves these challenges. The presenters will give best practices for meeting these regulatory challenges efficiently with technology and also give a live demo of K3 for Position Limits and Transaction Reporting. The webinar will last one hour and time will be reserved for Q&A. You can find more information on K3 Position Limits Here.