Protecting the Futures Markets

How to Clear a Trade

Clearing involves a number of protections that take place instantaneously from the time an order is placed to the time it is settled. And by enabling traders to submit their orders through a central clearing function, the process enables the market to run more smoothly and efficiently.

The market protections of an electronic trade

Futures exchanges process millions of trades each day. With so many orders coming at once, you need a lot of checkpoints to make sure everything goes smoothly.

Here’s a look at a few of the risk protections that every order must pass in order to make it through an electronic trading engine. These protections help maintain the integrity of the overall futures market.

The Journey

Order Placed
Credit Controls
Maximum Order Quantity
Price Banding
Central Limit Order book
Single Market Data Feed
Markey & Stop Order Protection Points
Stop Price Logic
Velocity Logic
Trade is Complete