Sterling Trading Tech (STT), a capital markets technology solutions provider, has added FX and Crypto asset classes to its Risk and Margin (SRM) system.
“We are excited to meet client and market demand by adding crypto and FX to our sophisticated risk and margin system,” said Ravi Jain, chief product officer at Sterling Trading Tech.
“The addition of these asset classes expands the functionality of our offering. Sterling is committed to delivering innovative solutions across multiple asset classes to help our clients perform real-time pre-trade and post-trade analysis,” he added.
The Sterling Risk & Margin system provides advanced analytics as a RaaS (Risk-as-a-Service) solution using sophisticated quantitative and big data techniques to manage risk and monitor margin in real time.
The SRM calculates risk scenarios, stress tests, portfolio margin, risk-based haircuts, maintenance margin, and value-at-risk (VaR) for each account, with the ability to add and manage company-specific internal rules.
The addition of cryptocurrencies and foreign exchange (FX) to the platform’s existing support of global equity markets, equity options and equity futures for risk calculations provides a new level of coverage multi-asset risks for clients.
Specific features related to new asset classes include:
- Support for spot, forward and swap FX trades and positions in any currency pair
- Crypto support including crypto in any currency
- Aggregate risk per currency or digital asset, derived from extracting net exposure per currency across all non-USD equity and crypto pairs and trades
- Ability to view balances by fiat and crypto currency
- Risk shock analysis based on fixed percentage moves and standard deviation moves
- VaR analysis for multi-asset portfolios including stocks, fiat and crypto
The Sterling Risk & Margin system has been continuously adopted by clearing houses, hedge funds, brokers and proprietary trading groups who can not only monitor risk using a graphical interface, but also extract data into their downstream systems via an API.
Earlier this year, Sterling Trading Tech announced the appointment of industry veteran Jeff Marston as Chief Technology Officer and enhancements to its OMS system with state-of-the-art features including support for split shares and a new risk-based rules engine, giving brokers and their traders unprecedented power and flexibility.