Series 24: 5.7.1.3. Risk Management Function

Taken from our Series 24 Online Guide

5.7.1.3.  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. 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. T

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