TT Launches Pre-Trade Portfolio Risk Functionality

Trading Technologies International (TT) has launched a pre-trade portfolio risk tool on its platform, bringing, the firm says, new protections for sell-side clients and new trading opportunities for end users.

With this functionality, TT says firms can now manage risk more effectively by capturing a client’s worst-case margin position at a given time and use the value to determine whether there is sufficient buying power before an order is sent to the market. It adds that it also applies the same calculations employed by clearing houses, giving FCMs the ability to more comprehensively manage client exposure.

The new tool also supports a variety of exchange risk protocols, including SPAN, PRISMA, value-at-risk (VAR) and other custom models, across more than 20 major derivatives exchanges. It directly leverages risk parameter files supplied by the exchange to reflect the most up-to-date values and can be managed at any account level in the TT platform.

“This is a significant step forward in managing risk that will allow a wider range of users to benefit from the trading features available on the TT platform,” says Alun Green, EVP managing director, futures & options for TT. “Users will easily be able to see how much margin has been consumed by their existing portfolio and how much buying power remains for trading.”