High-frequency trading – a discussion of relevant issues - Xetra
High-frequency trading – a discussion of relevant issues - Xetra
High-frequency trading – a discussion of relevant issues - Xetra
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<strong>High</strong>-<strong>frequency</strong> <strong>trading</strong> <strong>–</strong> a <strong>discussion</strong> <strong>of</strong> <strong>relevant</strong> <strong>issues</strong> May 2013Real-time risk and position information facilitate highly efficient riskmanagement6Real-time risk managementIllustrationDescriptionTradingParticipant• Real-time information on positions and resultingmargin requirements is calculated and distributedthroughout the <strong>trading</strong> day to Trading Participantsand Clearing Members.CentralCounterparty6ClearingMember• Intra-day margining is an important feature <strong>of</strong> the riskmanagement framework. It reduces the counterpartycredit risk <strong>of</strong> the CCP because the intra-day margincall allows the CCP to quickly respond to increasedprice volatility or the growing positions <strong>of</strong> ClearingMembers.Exchange(Eurex Exchange/<strong>Xetra</strong>)53
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