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REAL-TIME RISK / PORTFOLIO MARGIN

A cloud-based solution that calculates real-time risk, Portfolio Margin and Reg-T including equities, options and futures

Every trading desk, hedge fund, broker/ dealer or clearing firm, regardless of size, that trades equities and options, should have access to risk management tools to monitor market risk and credit risk. Sterling’s 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 oversight.

WHAT IT IS

A cloud-based solution that calculates real-time risk, portfolio margin based on the OCC methodology and Reg-T for equities, options and futures. This SaaS solution allows users to do instantaneous ad-hoc shocks and requires no hardware or software.

WHAT IT DOES

Uses a sophisticated quantitative methodology to calculate real-time market shocks for a large universe of option contracts which are customizable and support several different types such as; parallel, beta adjusted, and volatility adjusted.

There is a clear need in the marketplace for advanced risk analytics tools that are easy to utilize on a daily basis, cost effective to implement, deploy and use without the need for a large software implementation.

Click Here To Request Additional Information

THE STERLING TRADING TECH SOLUTION:

The STT solution consists of 3 components:

Each of which are abstracted – thus only the components required by the user can be deployed.

SRE: STERLING RISK ENGINE

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

KEY FEATURES:

DELIVERY METHODS:

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:

SOPHISTICATED ANALYTICS & CUTTING EDGE TECHNOLOGY:

Combining the power of big data and sophisticated quantitative modelling techniques, Sterling RSQ products are built using a unique “mesh” based algorithm that allows it to calculate real time options volatility, theoretical values and greeks extremely fast using stock hardware with little specialized code.

This breakthrough in options pricing analytics allows the implementation a large set of market shocks and calculate them continuously for the entire market in real time without the use of specialized hardware stacks and software.

Contact us to learn how quickly and cost effectively your Real Time Risk & Margin Solution can be deployed.

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