Risk Management & Pre-Trade Control

Risk Management & Pre-Trade Control

dxTrade Risk Management is a module, which can be used for risk management and pre-trade control. The scope includes multiple analysis techniques, customizable risk alerts, and portfolio modeling. All of the above can be applied to an individual or a group of accounts. This module connects to an execution venue via an independent FIX gateway and can be collocated with an exchange.

Key features of dxTrade Risk Management:

  • Automatic centralized order validation
  • Margin calculation based on built-in algorithms standard for US-based and European clearing organizations (SPAN, Reg T, RBM)
  • Portfolio modeling and analysis tools
  • On-the-fly calculation of profit/loss, margin, Greeks, and complex risk indicators
  • Beta weighting and correlation analysis
  • Breakdown of options portfolio into various strategies
  • Customizable risk alerts based on multiple parameters

The pre-trade control features include:

  • Direct FIX gateway-based integration with a trading venue
  • Limitation of the lot size and total daily number of trades/lots traded
  • Setting limitations for individual accounts and account groups
  • Monitoring and analysis of exposure on various asset classes
  • Filtering by books of business and client groups

dxTrade Desk is a risk management tool for brokerage operations. In addition to providing real-time data, this tool enables the team to configure the price feed streamed to the clients, view and manage the difference between the client’s position and that on the broker side, perform advanced position filtering, and retrieve all the necessary user data from a trading platform.

dxTrade Desk runs on Windows, Mac, and Linux workstations, supporting complex multi-monitor configurations. Its widget-based architecture makes possible further expansion of the feature set, customization, and white-labeling.

The following functions are supported by dxTrade Desk:

  • Real-time control of the order issuing and execution of multiple asset classes including equities, equity options, futures, futures options, Forex, and CFDs
  • Manual order issuing/position management on behalf of a client
  • Real-time control of client’s account/portfolio status
  • Real-time exposure monitor (for OTC trading instruments)
  • Automatic/manual risk offset to liquidity providers (for OTC trading instruments)
  • Review and release process for Equities trading
  • All operations available on a single dashboard

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