Difference between Sponsored Access(SA) and Direct Market Access (DMA)

May 29, 2012
 Like in Direct Market Access (DMA), in Sponsored Access (SA), the brokerage firms offer the client with the market participant identification to connect to the exchange.
However, the main difference between DMA and SA are :
  1. In Sponsored Access (SA), the client does not use the infrastructure of broker like it does in case of Direct Market Access(DMA).
  2. In SA, the client does not use the pre-trade risk management as provided by the broker unlike in DMA where the client uses the pre-trade risk management provided by the broker. 

Direct Market Access (DMA)

May 29, 2012

In DMA (Direct Market Access) the orders from the client are not interrupted by the broker and are sent to the exchange directly. The broker’s infrastructure is used for this. The brokers can perform pre-trade analysis for the client orders. Even though that happens before the order gets placed on the market, it does not necessarily need human interruption. Hence, the name DMA.