Chicago-based vendor Connamara Systems has developed a real-time risk-reporting system to help the buyside and sellside evaluate and manage risk across multiple asset classes.
The system, RiskScope, allows hedge funds, prop traders, risk managers and brokers to view their open positions and quantify risk. Jim Downs, chief executive and founder of Connamara, said the system directly receives venue- and asset-class-specific trade reports, normalizes them into a readable format and updates traders’ positions, as well as profit-and-loss statements, constantly. Then traders or risk managers can take steps necessary to mitigate the identified risk.
"We have found a staggering gap in the ability of multi-asset trading market participants to effectively comprehend the risk levels in their books across asset classes and trading venues," Downs said. "As we have seen in today’s volatile markets, risks can develop extremely quickly, especially with the current speed of trading."
RiskScope supports U.S. equities, U.S. equity options, foreign exchange, futures and futures options. It gathers data from venues such as the Chicago Mercantile Exchange, IntercontinentalExchange, Lava Trading and broker-dealers Goldman Sachs and Morgan Stanley.
Downs hopes to expand RiskScope’s ability to evaluate open orders, permitting users to perform pre-trade risk analysis. The program functions on its own or in conjunction with traders’ execution management systems.
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