Approved Rialto's Trading ATS (Alternative Trading System)

Behind the scenes of the alternative trading system (ATS) by Rialto Markets is Pittsburgh-based software developer Velocity Works.

Velocity Works began working closely with Rialto Markets on their vision to create a fixed income trading application to solve the market liquidity issues for institutional investors. This required significant UI/UIX designs, custom development, big data integration and analysis and multiple additional third party integrations. This includes using data science and machine learning to recommend to institutional investors new or modified trades with the objective of increasing liquidity within the marketplace.

A little over a year into the fixed income trading application development, Rialto Markets pivoted their business model from fixed income training to digital security trading. Rialto wanted Velocity Works to create the first ever SEC-compliant and regulated digital security Alternate Trading System (ATS), and they wanted the first deployment within nine weeks.

As with any regulated industry, the primary challenge was navigating through the regulatory approval process for a new product type. This required Velocity Works’ expertise in meeting the compliance, procedural and technical requirements necessary to gain regulatory approval. Velocity Works was able to leverage their valuable experience in implementing solutions in highly-regulated environments such as financial services and healthcare industries.

To achieve the fast paced timeline, Velocity Works mapped out the product development roadmap and focused on prioritization, reuse, and rapid execution in order to deploy software features quickly and efficiently. Meanwhile, the solution architecture was chosen specifically to support delivering features as quickly as possible while maintaining the highest quality. Once rapid planning was completed, Velocity Works rapidly pivoted the development team from fixed income to the new digital security ATS. Through diligent planning and execution, Velocity Works successfully met the required delivery on-time and on-budget. 

This ATS will be a secondary exchange for the trading of blockchain-based digital securities. It will allow issuers to raise capital through listing of digital securities and provides the exchange for institutional investors, broker dealers, firms, etc. to buy and sell these digital securities. The ATS meets all the rules and regulations, in particular those regarding anti-money laundering (AML) legislation, the know your customer (KYC) regulatory requirement, custody, and compliance.