Sterling Trading Tech (STT) has unveiled its first major expansion of sophisticated analytics for its RaaS (Risk-as-a-Service) solution, The Sterling Risk Engine.
The cloud-based, high performance solution calculates intraday, real-time risk-based haircuts and portfolio margin using the OCC’s TIMS methodology, in addition to simulating portfolio risk under user-defined market shocks and volatility shifts.
The Sterling Risk Engine launched in the Spring of 2017 and was the first commercial risk took to utilise sophisticated quantitative and big data techniques to manage risk in real-time for hundreds of portfolios. As the solution is cloud-based, there are no hardware or software requirements allowing brokerages and clearing firms to easily monitor market and credit risk.
“Today, real-time ad-hoc stress tests are a ‘must’ to evaluate and monitor risk at both the group and account levels, and cloud-based solutions offer the optimal delivery platform,” says Ravi Jain (pictured), Director of Risk and Derivatives who built the Sterling Risk Engine in-house and is leading Sterling’s continuous functionality updates and additions. The expanded analytics and the new interface now make it easier for risk managers to monitor and manage risk. New functionalities include full support of futures and options on futures in risk shocks, cross margin calculations, CME SPAN margin calculations, liquidity risk, and detailed risk detail drill down capability by individual portfolio.
“Our clients value relying on us as a partner for their integrated trading platform, risk and compliance and infrastructure needs,” says Andrew Actman, Director of Business Development. “By saving them time and money on their trading technology solutions, they are able to focus on the ever-changing market and maximising their profits and leave the sophisticated trading connectivity us.”
Sterling’s professional trading platforms are available to the global professional trading community for equities, options and futures, and currently touch 5 per cent of the daily US equity volume. STT products are used in over 30 countries to trade international financial markets around the world.
