RQD* Clearing, a next-generation correspondent clearing provider, today announced its official launch, bringing to market an advanced suite of clearing, custody and execution solutions for broker-dealers servicing retail, institutional and active traders, as well as foreign financial institutions and proprietary trading firms. The firm offers the industry’s first platform built entirely on cloud-native, real-time technology, enabling RQD to introduce enhancements, mitigate emerging cybersecurity threats and implement and scale client solutions quickly and efficiently.
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RQD was spun out of an established market maker with roots in the options market. As a result, the firm brings a deep understanding of risk and technology, as well as the challenges that legacy clearing technologies and business models cause for broker-dealers. RQD’s platform has been live for six months, with multiple broker-dealers currently clearing through it.
“As we like to say, RQD is bringing the change to the clearing industry that is required,” said Michael Sanocki, CEO of RQD. “For two years, our team has worked incredibly hard behind the scenes building our cloud-native platform. We’re extremely excited to exit stealth mode today and officially launch our company.”
The RQD platform supports U.S. equities, options and ETFs, and has three main components – clearing, custody and execution services – all of which are accessible by advanced API. The clearing and custody solutions are fully hosted on Microsoft Azure, eliminating the need for any on-premise infrastructure. Both are highly scalable, offer real-time trade reporting through a web-based GUI and enable automated, paperless account opening. The colocated execution services include smart order routing, an advanced suite of algorithms and ultra-low-latency direct market access (DMA).
“We understand all too well the challenges that outdated technology, rigid business models and potentially insecure systems can present to the broker-dealer community,” said Craig Reilly, Chief Revenue Officer at RQD. “The feedback from production clients on our technology platform and overall approach has been extremely encouraging, and we look forward to working with a broader segment of the industry to help alleviate some of their longstanding frustrations and risk concerns.”
RQD* Clearing, LLC is registered with the SEC, is a member of FINRA, OCC, DTC and NSCC and has exchange memberships at all major U.S. equities and options market centers.
According to Michael Mollemans, Research Principal at Chartis Research, “Innovation is key to meeting the challenges in today’s rapidly evolving capital markets, but the clearing space has not kept pace. RQD is among a new crop of providers coming to market with a virtualized technology stack, within a cloud-native infrastructure, that can more easily integrate and interoperate for maximum flexibility and scalability. By allowing brokers to be freed from monolithic legacy systems, they are in a better position to meet the demands of their clients and stay ahead of the consolidation lifecycle. We’ve heard from many brokers advocating for this type of model for some time now, so it’ll be interesting to watch RQD’s progress unfold.”
Source: RQD
