Regulatory and supervisory control mapping¶
This document is an engineering mapping, not legal advice. Applicability depends on the firm, account, instruments, venue and jurisdiction.
United States market access¶
SEC Rule 15c3-5 requires relevant broker-dealers with market access to maintain documented controls designed to limit financial exposure and prevent erroneous or non-compliant orders. ASRQuant provides software primitives that may support, but do not independently satisfy, these obligations:
| Control objective | ASRQuant mechanism |
|---|---|
| Pre-set capital or credit scope | deployment certificate maximum capital; max_capital; buying-power check |
| Erroneous size control | max_order_notional; max_position_notional; position-weight and leverage limits |
| Erroneous price control | max_price_deviation_bps price collar |
| Duplicate-order prevention | client-order ID tracking and broker lookup |
| Restricted instruments | symbol allowlist and denylist |
| Authorized access | signed certificate, environment arm, broker credentials |
| Immediate execution records | broker receipts and tamper-evident audit events |
| Regular review | readiness evidence, short-lived certificate and change ticket |
The broker-dealer remains responsible for its legal obligations and the effectiveness of controls.
European algorithmic trading¶
MiFID II Article 17 requires investment firms engaged in algorithmic trading to have resilient systems, capacity, thresholds and limits, erroneous-order prevention, monitoring, testing and business-continuity arrangements. ASRQuant contributes:
- deterministic pre-trade thresholds;
- fail-closed broker health checks;
- persistent kill switch;
- durable audit trail;
- recovery and rollback evidence gates;
- broker-paper testing evidence;
- reconciliation;
- monitoring and alerting requirements.
A deployed system must also address the full applicable MiFID II, RTS 6, DORA, market-abuse and venue-rule obligations with qualified legal and compliance professionals.
Supervisory practices¶
FINRA guidance emphasizes holistic risk assessment, controlled software development, testing, system validation, surveillance and supervision. The ASRQuant readiness gate requires these practices to be evidenced before live authorization.
Non-goals¶
ASRQuant does not provide:
- regulatory registration;
- legal opinions;
- broker-dealer supervision;
- market-abuse surveillance across all venues;
- best-execution determination;
- transaction reporting;
- books-and-records compliance certification;
- exchange certification;
- HFT co-location or deterministic low-latency guarantees.