A form of direct market access (DMA) that is characterized by highest level of independence, i.e., access does not require that the order is disclosed to sell-side firms that provide the access. Naked access allows a client’s proprietary systems to be co-located at the venue through the broker’s membership, and trades are processed through the broker’s clearing account.
Naked access helps clients avoid pre-trade checks and only post-trade monitoring is required.
Naked access is also known as sponsored access.
