Sterling Trading Tech (STT), a specialist in technology solutions for real-time risk management and margin calculations for equities, equity options, futures, and options on futures, has released a custom house policy builder in the Sterling Risk & Margin product line.
This new application provides advanced analytics as RaaS (Risk-as-a-Service) utilising quantitative and big data techniques.
The new custom house policy builder functionality allows users to construct and manage their own risk or margin policy using any combination of risk measures, including multiple price and volatility scenarios, an OCC TIMS estimate with various add-ons and VaR (Value at Risk). This functionality replaces the need for hard-coded policies and allows users to create, edit and manage multiple policies from the feature-rich builder as well as Sterling’s extensive API library.
“Clients often need to adjust their custom house policies. We saw a need in the marketplace for them to be able to self-manage them when required versus having to request a scope of work and development request to implement the requested changes,” states STT Managing Director of Business Development, Andrew Actman. “We’re thrilled to be the first in the industry to build this, it will cut significant time and costs for firms.”
Additional risk add-ons include concentration, liquidity, market cap and stock price-based adjustments. The custom house policy functionality can also be utilised for ad-hoc custom risk metrics to assess risk and margin impacts in volatile markets along with exchange standard methodologies.
“This is a highly sophisticated piece of technology that offers flexible functionality allowing the inclusion and combination of almost any risk factor or offsetting logic,” says Ravi Jain, STT Director of Risk & Derivatives. “This application allows firms to quickly update their risk policies.”