IT SOFTWARE, a company specialized in the development of financial trading services and applications, launches Easy Trade Risk Manager (ETRM) a multi-currency, multi-asset, real-time Position Keeping and Risk Management Suite covering most exchange traded instruments, including complex derivatives. After having developed for many years efficient Real Time Calculators embedded in the Easy Trade Platform to support its clients trading activities (On Line, Agency and Primary Brokers), IT Software has reorganized its Risk offer in a new module that is Trading Platform and Back Office independent and benefits from the company’s long experience in the Risk Area.
ETRM aims to satisfy the different needs of Pre, During and Post Trade activity in an Open, Complete and Flexible environment.
“Being Open” is a key element of ETRM suite. In order to satisfy this mandate ETRM was built from the beginning with a rich set of APIs to support easy integration with Trading Platforms/OMS, Exchanges Feeds and Middle/Back office systems. ETRM calculation engines can also be embedded in client proprietary systems to deliver specific tasks. “Complete” coverage of Margin Calculations is insured by a dedicated engine able to support the major Official Margin Calculation methodologies (SPAN, TIMS, …) or Client Proprietary ones. The appropriate algorithm is linked to the type of derivative instrument within client portfolios according to Market definitions and/or the rules qualified
by the Risk Department. ETRM gives Risk Manager the tool to easily create new rules or import them from the IT SOFTWARE development centre and apply them without switching off the system.
ETRM “Flexibility” allows clients to use different sets of Risk Parameters and Trading Limits in pre-trade validation. Rules are organized in risk, operational and monitoring profiles and are associated to accounts and portfolios. Different rules can be defined for different time-frames, margin limits could be lower for example near to the closing of the trading session.
At the heart of ETRM is the pre-trade portfolio margining risk engine, built to deliver realtime calculations on complex portfolios with different assets on different markets and currencies. The engine takes into account not only deals done but calculates also Worst Net Position relative to outstanding orders to give end users a more realistic picture of global position and risk exposure.
ETRM provides functions to support traders, sales and back office operators in advanced what-if simulations.
“With ETRM IT Software clients for the first time can have a really easy to use dashboard to control in Real Time their risks also in volatile market conditions and with multi-asset and multi-market portfolios” said Mirko Marcadella, IT Software managing director, “In today latency-sensitive market ETRM supports effective pre-trade risk control with Worst Net Position, margins and many risk parameters evaluated in near real-time”.