Sudden price gap movements during extreme or anticipated market events, such as at the market opening or during major news times, may cause significant impact on the P&L performance of broker. For this reason, it is vital for the brokers to have an ability to effectively forecast the risk/revenue consequences of various market gap scenarios on its exposure, in advance.

Centroid Risk software includes a revolutionary Stress Testing Engine that is specifically designed to help brokers predict the impact on total company performance, in case of sudden price gap scenarios for either a selection of instruments or for the entire portfolio.

The Stress Testing Engine uses a big-data technology, producing the results based on a real aggregated data of the broker. Regardless of the business size or the number of trading platforms used by a broker, the Stress Testing Engine offers a simple way to forecast the impact of anticipated market gap situations on total company performance, quickly, in a matter of seconds! It forecasts client’s negative balances, triggered orders (take profit, stop loss, buy limit, buy stop, sell limit, sell stop, and margin stop out), company P&L and net exposure, based on a pre-set simulated Price Gap percentage movement from the current market prices on the selected instruments. The forecast result displays two possible outcomes for the same Price Gap scenario – in favor and against the company, relative to the current net exposure results on the selected instruments.

CEO, COO, CRO, Risk Managers, Dealing desk, Operations Managers

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