Software for brokers, markets, and investors

Risk Management

Our FinanceGear product can be used for both pre-trade as well as post-execution risk management.

Pre-Trade Risk Management

Pre-trade risk management allows a broker or bank to enforce trading limits and to limit losses before they happen. Our pre-trade risk engine is capable of computing the worst-case impact of any proposed order - for any instrument type including derivatives.

In the case of derivatives, the worst-case scenario is computed by calculating margins for proposed trades in real-time. If margin in the worst scenario exceeds a given limit, the trade is rejected. This way, a derivatives broker can ensure that a clients stays within pre-established limits, no matter what.

Margin calculations are supported for several derivatives markets, including MEFF, Eurex, Euronext, and CME.

Post-Execution Risk Management

Once a trade is made, FinanceGear keeps tracking the risk. The FinanceGear engine computes value at risk (VaR) and profit and loss (PnL) in real time. Risk measures can be aggregated across portfolios such that it is possible to compute global risk and return.

FinanceGear offers full, integrated back testing: risk measures can be contrasted with actual PnLs in the past. This allows the risk manager to evaluate the effectiveness of VaR.