Tradovate, the online futures brokerage firm, has deployed the Eventus Validus platform to provide trade surveillance for its more than 2.5 million orders per month.
Validus was selected by Tradovate to identify patterns or dangerous activity within the order flow, as well as to meet certain operational requirements, such as monitoring and ensuring the proper use of regulatory tags.
Rick Tomsic, Founder and CEO of Tradovate, commented: We love the Validus platform. Its been a great tool for us to help our trade desk identify and drill down into any potential trade irregularities.
The combination of pre-built surveillance procedures, with reports and protocols we can customize based on our needs and client base, is extremely powerful. Validus gives us the ability to dive deeply into any suspicious or unusual order flow activity at a very granular, detailed level, giving us comfort both from a trade desk and compliance standpoint.
Travis Schwab, Chief Executive Officer at Eventus, said: “Firms like Tradovate with extensive retail activity appreciate the ability to rapidly follow up and explore any unusual order flow patterns. This is a great example of how our platform can be used not only by compliance and regulatory teams but by front-office supervisors. We commend the firm for going above and beyond whats required in order to stay ahead of any potential issues and leverage the many capabilities Validus has to offer.”
Terry Nelligan, Trade Desk Manager at Tradovate, added: Eventus does a great job of offering views that make it easy to visualize the market with respect to customer orders. Were able to find suspicious patterns within a single client account or those that may emerge between multiple clients.
“Validus makes it simple, easy, and intuitive, providing a visual representation of activity for the period when an alert is triggered that goes beyond what we would be able to monitor on our own. Eventus does a great job of understanding our goals and then helping us customize the platform to implement that.”
The market surveillance platform first casts a wide net to ensure that all potential or near-miss alerts are considered. Then, a machine learning and robotic process automation go deep into each alert and identify market behavior that could lead to regulatory or reputational consequences.
This multi-step approach to alert classification is easily observed and analyzed on the platform by front-office supervisors that can quickly and efficiently detect problematic behavior.
Eventus caters to tier-1 banks, broker-dealers, futures commission merchants (FCMs), proprietary trading groups, market centers, buy-side institutions, energy and commodity trading firms, and regulators.
Its multi-asset class trade surveillance and market risk solutions can be deployed, customized, and executed across equities, options, futures, foreign exchange (FX), fixed income, and digital asset markets.
Tradovate has recently partnered with FairX to become one of the first brokers to offer futures trading on the exchange.
The futures brokerage firm provides commission-free trades with no market data fees, subscription fees, lifetime license fees, inactivity fees, or platform fees.
The broker intends to cover any exchange and clearing fees on FairX transactions for its clients until the end of 2021.