Lance Smith, Imagine Software

Imagine’s RRC delivers trading desk analytics


Imagine Software: Best Risk Management Software Firm – Imagine Software has a 26-year track record for transforming challenges into opportunities for growth and development. Over the past few years, Imagine re-architected its award-winning risk engine and introduced massive parallelisation across a server farm so that it can now handle extremely large, if not limitless, volumes of positions and trades in real time.

“Our new product, Real-Time Risk & Compliance (RRC), was created for FCM’s, prime brokers and large asset managers that require “trading desk analytics” across all of their client positions,” said CEO and Co-Founder of Imagine, Dr Lance Smith (pictured). RRC includes flexible limits monitoring (including VaR), and a full margining module for both exchange margin and house rules. “When coupled with our renowned and unique Imagine Financial Platform (IFP), clients can easily add new analytics, such as stress tests, within a single day, which is a tremendous market advantage,” said Dr Smith.

Imagine’s RRC allows FCM’s, prime brokers, clearing houses and large hedge funds to achieve real-time risk management, limits monitoring and margin calculations across their entire client base. They can also slice across accounts to look for common exposures that could imperil their business.

Imagine has also identified a trend in the buy side towards unified systems that can do both risk management and portfolio management. “We have always provided real-time P&L but have now upgraded that capability to include other features such as “flash NAV” and P&L attribution,” comments Dr Smith,

“We provide real-time factor risk analysis, including tracking error against a benchmark portfolio and shortfall metrics. Our ability to handle massive position sizes and provide the underlying data – including time series of risk factors – has yielded a product that can greatly enhance the capabilities of asset managers and pension funds,” explains Dr Smith.

Dr Smith noted that smaller hedge funds also need a service that can meet their risk management needs, but one that falls within their budgets. “We have now incorporated much of our functionality into “MyImagine,” which delivers real-time portfolios, apps, and reports to the desktop, tablet or phone. While not as fully flexible as our classic offering, MyImagine provides intraday views of risk, as well as impressive EOD reports,” he further notes.

Imagine is fully committed to upholding industry best practices for transparency, clean data and security. Dr Smith says: “Our financial models have been fully documented, complete with bespoke spreadsheets, which successfully replicate system calculations to six or more decimal places. This unprecedented level of transparency enables our users to meet regulatory requirements regarding model validation.” He added that Imagine has also employed AI techniques to scrub massive amounts of historical yield curve data, going back daily for over 12 years, for hundreds of yield curves.

With cybersecurity so critical in the industry, Dr Smith further notes that the firm has ISO 27001 certification and continuously performs security assessments to identify and remove security risks, including risks to the confidentiality, integrity, and availability of its information and that of its clients.

In the coming year, Imagine Software will continue to broaden its offerings for asset managers with new features such as performance attribution, delivered in easy-to-understand, modern dashboards. “We anticipate that we will also have significant demand for our new, but battle-tested RRC for the sell side,” Dr Smith concludes.


Dr Lance Smith

CEO, Imagine Software

As the CEO and co-founder of Imagine Software, Dr Smith sets strategic direction, guides development of Imagine’s award-winning analytics, and lends his expertise to the sales efforts. Dr Smith brings a rare combination of business and academic experience to his role as CEO, with thirty-plus years of direct involvement in trading and risk management practices, mathematical modelling, and system development. Dr Smith has a PhD in mathematics, and is a former Assistant Professor of Mathematics at Columbia University, as well as a former Courant Instructor at the Courant Institute.

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