PRODUCTS & SOLUTIONS / GUIDE
Pre-trade risk control checks constraints before an order is sent. Manager of Managers, or MOM, arrangements involve multiple investment managers, making account hierarchies and aggregate risk relevant to joint controls. Annhoo describes hardware pre-trade risk and MOM products; institutions should validate specific rules against their own workflows.
Risk owners, MOM platform teams, trading developers and compliance staff at securities firms, futures firms and private fund managers operating in China.
KEY CONSIDERATION
Pre-trade checks commonly address capital, positions, price and order frequency. Each rule needs an account scope, calculation definition and rejection reason. Prepare normal and boundary-case orders, then review when rules take effect and how parameters change. Hardware implementation describes how checks execute; the coverage of those checks must still be verified against the institution’s business requirements.
KEY CONSIDERATION
In arrangements with multiple managers and account levels, a strategy passing its own checks does not establish that aggregate exposure remains within limits. Define how limits are allocated, reserved and released, and how concurrent orders use shared state. Follow submissions, fills, cancellations and rejections across the order lifecycle to verify consistent risk calculations at each account level.
KEY CONSIDERATION
Risk acceptance tests should include delayed reports, duplicate messages, disconnections and restart recovery. Check that available limits and positions remain consistent. Define order handling when state is unreliable, permissions for manual intervention and required records. Linking check results, rule versions and order events provides evidence for later review and incident diagnosis.
FAQ
Single-strategy checks focus on that strategy’s constraints. MOM joint risk control also considers limit allocation and aggregate risk across managers, strategies and accounts. Define account hierarchies, concurrent reservations and state aggregation so local checks do not overlook overall limits.
No. Hardware describes the execution method. Institutions still need to define applicable rules, access controls, intervention procedures and record requirements. Business, risk and compliance teams should jointly validate rule coverage and operational behavior.
Limits and positions change with fills, cancellations and rejections as well as order submission. Delayed or duplicate reports can distort state. Validate lifecycle state updates, protection against duplicate processing and recovery from exceptions.
