Why is Exposure Monitoring important for brokers?
Many brokers operate hybrid business models (a-book, b-book, c-book) in an effort to achieve better business sustainability and consistency in their risk-adjusted performance results under fluctuating market conditions. Also, in order to increase the client-base, many brokers offer multiple different trading platforms to attract a wider audience of clients with different technology needs and preference. Such efforts result in operating complexity and fragmentation of trading data across different platforms, requiring real-time tool for monitoring open positions and net exposure at the level of the underlying markets, instruments and asset classes from one centralized place.
Centroid Risk software includes convenient, real-time exposure monitoring tool suitable for business operations of any complexity.
How does Advanced Exposure Monitoring work?
The system aggregates positions from all the trading platforms used by a broker (longs and shorts from clients’ positions, a-book and c-book positions) and displays the company’s net exposure in real-time at the level of the underlying markets, instruments and asset classes, in one centralized screen:
- Displays true net exposure results on the company’s book, after all a-book and c-book positions, taking into account synonym instruments as well.
- The exposure is displayed in lots, the underlying notional, and in USD notional.
- Displays risk concentrations at the level of client positions, instruments and the underlying exposure.
- A mouse-click on any instrument, displays the list of all the positions on that instrument with comprehensive details about each position.
- One-click Microsoft Excel extract.
Who will benefit from this feature?
CEO, COO, CRO, Risk Managers, Dealing desk, Operations Managers