KRM22 Limits Manager is expanding functionality into Automated Actions. Allowing for the logical review of a limit change request to decide how it is moved through the review process for final Approval and implementation.

Limits Manager is now able to examine a limit change request to determine how an individual Limit Update Request is handled. This has two major applications.

  1. Immaterial limit change requests can be processed with limited visibility. Meaning that a small limit change request on a trusted trading account can be implemented with limited or no manual review at all.
  2. Significant limit change requests containing changes to volatile instruments, margin implications, open market considerations, or on less reliable accounts can be driven to a more conservative approval workflow requiring intensive review.

The purpose of this is to relieve risk managers from their inconsequential tasks and allow them to focus on the material decisions that require the most attention.

Talk to us to find out more. 

Users are now able to visualize and investigate trends in risk events through the Event dashboard, one in a series of system dashboards available out of the box.

The System Event Dashboard provides users with the ability to understand how the trend in events both in type and severity has varied across time. Providing a clear indication if risk mitigating actions are having their expected impact. Directly from the dashboard users can understand the root cause, impact and remediation of an event allowing them to take relevant action.

Each user can easily ensure they have the information they require on the dashboard by saving a custom view which can be shared with their team. This results in easy investigation and collaboration.

If a firm has multiple clients of different sizes trading the same product, the original Abnormal Message alert may miss genuine cases. If there is a group of small clients who trade a product in much smaller lots and a group of big clients trading the same product in much larger sizes, the generic alert will continue to fire on the big clients. This alert has been refactored to detect abnormal behavior on Participant/Product level. The old logic has been kept intact with a “Matching Key” parameter added.

Traditionally, customers have been able to trade on either a Request for quote (RFQ) or a Central Limit Order Book (CLOB) based methodology. Each has different characteristics and nuances, which we are now seeing can apply to a single business.

To accommodate these business, we have redesigned the backplane of Market Surveillance to allow customers to store data and run analytic from multiple methodologies in one system. In addition to RFQ and CLOB, other protocols now supported includes Automated Market Maker (AMM) Exchanges and covers Anonymous Trading and Dark Pool techniques.

By avoiding the need for multiple instances, we can now make significant savings for our user base.

The new Insider Trading V3 is now available. Key improvements are:

Smoothed Price move calculation

The new version now handles outliers where one erroneous message with price significantly away from the average causes false triggers to occur. The delta from average is configurable per instance of the alert.

Grouping Trades and Orders

The V3 alert now groups the total value of all partial fills from a single parent order into a single figure which is then compared to the and the Large Value Threshold. When run against orders, the alert will focus only on unexecuted orders to avoid duplicates. This helps reduce false positives and saves time for compliance analysts.

Alert Suppression

Insider Trading now suppresses alerts where the suspicious trades or orders were at a less profitable price. For example, an early day buy of 10 lots at $100 where the instrument closes at $90. The next day sees a news triggered jumps of 10% ($99). The alert will not trigger because the original price was higher than the news triggered jump and so no profit was made. This functionality is optional and can be turned off to track failed insider trading attempts. Additionally, the alert can be run in the sandbox to assess the effect of turning it on or off against known data.

Potential profit calculation

The alert now makes a calculation of potential profit or avoided loss based on the sum of all the fill price and volumes, as well as the price movement in the market. This calculation can then be compared against a customizable value to give an indication of the scale of the insider trading.

Trend Information Available on Risk

Trend information is available on Risks showing users how their level of risk has changed since the last time that the risk was assessed. This is available in registers allowing organizations to easily identify risks that have increased.

Quantification of Events

When logging events users are now able to capture and report on the value lost or the potential loss associated with a given risk event. This allows users to justify their risk assessments and understand the capital they should keep in reserves for a given risk.

Capturing Interdependence of Tasks

Tasks can now be related to different items in your Risk Framework, allowing firms to understand how the tasks in one part of their business impact different business functions.

Related Item Dashboards

As part of the user defined dashboards users are able to create lists of items and the items that are related. An example of this is seeing all the risks and the events related to those risks in one screen. Making it easier for users to create management reports.

Related Item Filtering

As part of the related item lists users are able to filter on a related item. Allowing them to understand for example all risks that are related to a given system.

This month, we have developed two new alerts for our customers in the Fixed Income space: Quote away from Stream and Quote away from Composite.

The Quote away from Stream alert checks if the Dealer quotes a better/worse price to the client’s RFQ compared to the price it was streaming right before.

Similarly, the Quote away from Composite alert checks if the Dealer quotes a better/worse price to the Client’s RFQ compared to the composite price.

These alerts will catch dealers who consistently stream an attractive price to allure clients and subsequently quote a worse price

Find out more about why we released these features in our blog

Workflow focused Home screen

The new Risk Cockpit home screen allows users to easily understand the actions that they need to take when they log in. By completing the recommended actions for which users are responsible they can help their organization ensure their Risk Register is kept up to date.

KRM22 Risk Manager within the TT environment:

KRM22 Risk Manager available to customers on the TT platform. The sophisticated real-time post-trade risk service significantly enhances the risk toolset available through TT’s growing ecosystem for futures commission merchants (FCMs), brokers and traders.

The product’s risk scoring system will help users instantly assess real-time margin and liquidity, creating a new way for futures and options on futures traders to generate alpha under the most volatile market conditions. The offering currently covers margin on existing positions and provides a full range of analytics behind those positions, including the ability to anticipate end-of-day margin

The Risk Cockpit has two new features this month.

Users can add data metric slots on an Adhoc basis, this allows users to track metrics that do not have a regular data update schedule. All past values are saved allowing users to understand the evolution over time.

The Basel II Framework, previously only available in Risks and Controls, is now available in registers. This allows users to understand their Risk & Control registers both by their taxonomy and the Basel II Framework.