The Risk-as-a-Service solution supports spot, forward and swap FX trades and positions, in any currency pair, as well as crypto, including crypto in any what currency.
Sterling Trading Tech (STT) has added FX and Crypto asset classes to its industry-leading risk and margin system, providing a new level of multi-asset risk coverage for clients.
The Sterling Risk & Margin System (SRM), which offers advanced analytics as a Risk-as-a-Service (RaaS) solution, already covered global equity, equity options and equity futures markets for risk calculations.
The SRM uses quantitative and big data techniques to manage risk and monitor margin in real time, calculating 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 fintech explained.
FX and Crypto to meet market demand
Sterling Trading Tech has seen its risk and margin system adopted by a growing number of clearing houses, hedge funds, brokers and proprietary trading groups. Customers leverage the Risk-as-a-Service solution to monitor risk using a graphical interface and pull data into their downstream systems via an API.
Ravi Jain, Chief Product Officer at Sterling Trading Tech, commented, “We are excited to meet customer and market demand by adding crypto and FX to our sophisticated risk and margin system. Adding 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.
The Risk and Margin system offers specific features related to new asset classes, including:
- 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 currency and crypto;
- Risk shock analysis based on fixed percentage moves and standard deviation moves;
- VaR analysis for multi-asset portfolios including stocks, fiat and crypto
In June, the company named industry veteran Jeff Marston as chief technology officer, who will manage overall technology strategy, oversee technology investments to help drive business development, and oversee solution development and delivery. technology for customers.
The hire follows recent enhancements STT has made to its OMS, including fractional stock capabilities that are essential for retail and crypto, and a new risk-based rules engine, providing brokers and their traders more power and flexibility.