Which statement best describes Sponsored Access?

Which statement best describes Sponsored Access?

• A. It allows sponsors' clients to submit market orders via the OTI.
• B. It provides direct access to the SIX trading system for sponsored clients and requires risk management; users may submit limit orders but not market orders via the OTI.
• C. It bypasses the sponsor's member ID requirements.
• D. It is available to all clients without sponsorship.

Answer: (B)

Sponsored Access lets a client trade on the SIX system through a sponsor’s membership, with the sponsor responsible for risk controls and oversight. The key idea is that the client gains direct access, but this access is tightly managed: pre-trade risk checks, monitoring, and other controls are in place, and the order flow through the OTI is limited to limit orders rather than market orders. This combination protects the market and the sponsor from uncontrolled trading while still enabling fast, direct access for sponsored clients. That’s why the description that emphasizes direct access to the trading system for sponsored clients plus mandatory risk management and the ability to submit only limit orders via the OTI is the best fit. The other statements don’t align with how sponsored access works: market orders are typically restricted through this pathway to maintain risk controls, it does not bypass the sponsor’s member ID requirements, and access isn’t open to all clients without sponsorship.

Sponsored Access lets a client trade on the SIX system through a sponsor’s membership, with the sponsor responsible for risk controls and oversight. The key idea is that the client gains direct access, but this access is tightly managed: pre-trade risk checks, monitoring, and other controls are in place, and the order flow through the OTI is limited to limit orders rather than market orders. This combination protects the market and the sponsor from uncontrolled trading while still enabling fast, direct access for sponsored clients.

That’s why the description that emphasizes direct access to the trading system for sponsored clients plus mandatory risk management and the ability to submit only limit orders via the OTI is the best fit. The other statements don’t align with how sponsored access works: market orders are typically restricted through this pathway to maintain risk controls, it does not bypass the sponsor’s member ID requirements, and access isn’t open to all clients without sponsorship.