Patsystems Risk Alert

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Risk Alert is Patsystems’ pre-trade risk management tool. Risk Alert aims to do the following:

  • Deliver a consistent, comprehensive, trading platform-independent, pre-trade risk management procedure, covering volume limits, loss limits and cash margin analysis;
  • Low latency risk controls on a portfolio basis across multiple asset classes including CFDs, Cash FX, Cash Equities and Cash Bonds. Receive an order and return a decision in just 1 - 2 milliseconds;
  • Seamless integration with existing technology and with standard message formats, such as FIX;
  • Enhance a client's service offering, by supplying tools to monitor and manage risk behavior consistently across all trading platforms;
  • Support for real-time cash margin adjustments, based on post-trade cash margining through Patsystems Risk Informer system.

Cash margin limits are defined exclusively on an account-specific basis. In turn, alert thresholds can be defined in terms of the amount of cash consumed. This means that, for example, maintenance margin requirements can be specified in terms of a threshold on cash consumption, with alerts generated whenever the threshold is reached.

Trader-specific limits are defined in terms of clip limits i.e. maximum order size. This limit can be applied on either a generic basis, across all orders, or can be made specific by specifiying an instrument group for the limit.

References