In a ‘done-away’ clearing model, managing credit across multiple execution venues creates fragmentation: market participants require ‘real-time’ certainty of clearing acceptance without locking up bilateral credit lines in static silos.
OSTTRA LimitHub functions as a centralised risk gateway, unifying credit enforcement across venues, Clearing Members (including Futures Commission Merchants (FCMs), Agent Clearing Members (ACMs), and CCPs.
In this brief explainer video, we show how OSTTRA LimitHub orchestrates pre-trade credit verification and CCP submission:
By validating risk prior to execution, LimitHub provides certainty of clearing across three distinct trading protocols:
Central Limit Order Books
(CLOB — Push Model):
To meet ultra-low latency demands, LimitHub dynamically allocates defined ‘carve-out’ credit limits directly to venue order books for instantaneous local checks. As trades execute and route to the CCP, OSTTRA simultaneously recalculates and pushes updated credit availability back to the venue.
Request for Quote
(RFQ /Ping Model):
For dealer-to-client workflows, orders ping LimitHub for automated verification, completing ‘real-time’ limit checks prior to match. Validated orders execute with pre-clearing acceptance before automated CCP submission.
Voice & Hybrid Workflows:
Automated pre-trade credit checking extends seamlessly to voice-negotiated transactions. Following execution, one of the possible workflow options is that trade details integrate into OSTTRA’s middleware for matching, CCP submission, and final clearing confirmation.
If you have any further questions about any of the workflows, please contact our team at info@osttra.com