Sterling Trading Tech (STT) provides a comprehensive solution that continuously calculates risk values for equity and equity options markets as well as Risk based haircut calculations for Portfolio Margin accounts.
Deployed as a SaaS model, the solution eliminates the need for users to build their own valuation engines, users can access real time calculations via easy to use API’s – reducing cost, complexity and overhead and providing improved risk management and over sight.
The STT solution consists of three components:
STE: Sterling Trade Engine
SRE: The Sterling Risk Engine
SRM: Sterling Risk Monitor
each of which are abstracted – thus only the components required by the user can be deployed.
The Sterling Risk Engine (SRE) uses a sophisticated quantitative methodology to calculate real-time market shocks for a large universe of option contracts including equity options and options on futures. These shocks can be customizable and support several different types such as parallel and volatility-adjusted. The server calculates theoretical values and greeks at each shock level.
Built as an abstracted service, the SaaS model allows SRE to be independent of a user’s trading platform, broker and clearing firm. Thus it offers flexibility, security and quick, low cost implementation and integration.
The Sterling Risk Engine (SRE) also calculates all the Options Clearing Corp (OCC) TIMS methodology shocks. Coupled with a Portfolio Margin aggregator to calculate Risk based haircuts (RBH) and Customer Portfolio margin (CPM), the SRE provides intraday portfolio margin estimates for any OCC supported portfolio.
Once again, deploying a SaaS model enables quick and low cost implementation and integration. A user simply sends their positions in the form of a message to the SRE’s PM API and almost instantaneously receives a results message with the PM calculations with complete details of the OCC shocked values
The service operates in “Request/response” mode or “Continuous Update” mode.
Request/Response is the preferred mode for SRE, in which a user can send the positions in a portfolio, in the form of a simple message format and receives a response back with both the total margin requirement as well as line by line details for each position.
SRE offers ability to request the shocks for a given options contract or subscribe to a continuous feed of theo value and greeks.
From a technology set up perspective, we offer two distinct services:
In both cases the message formats are simple to understand and parse and thus the implementation into a user environment and GUI is quite quick.