Lupo Deploys Rival Risk System for Risk Management

Rival Systems announced that Lupo Holdings has selected the Rival Risk platform to manage its futures, equities and options trading business.

Lupo, which manages multiple trading groups, is using Rival Risk extensively for real-time enterprise risk management, advanced market scenario analysis and optimization of its cross-margining capabilities.

Brian Kelly, Lupo Holdings Risk Manager, said: We back a broad range of trading groups specializing in multiple products, and we need to run risk scenarios across our futures and equities businesses. Now we can manage all of our needs from one user-friendly platform instead of running two different risk systems. The drill-down effects on Rival Risk are amazing, with more categories than Ive ever seen on a risk platform, including the ability to handle Lupos significant inventory by strike, which is remarkable. We can drill down as deep as we want – by product category, symbol, expiration, all the way down to the individual instruments, and we can customize a wide range of risk scenarios and inputs exactly as we desire. The platform gives us full confidence that were seeing our entire risk exposure at any given time.

Kelly said that Lupo used to encounter price lags when analyzing cross-margin accounts with other platforms, but Rival Risk has vastly improved the process for the firm.

He said: This platform is more resilient in real-time calculations than anything weve seen before. Weve experienced no glitches, and we can use Rival Risks synthetic price calculations when there isnt a market for an illiquid product so we have an accurate view of our enterprise position at all times. The end-of-day settlement report Rival sends matches the next-day reports we get from our clearing firm so now we know where we stand much sooner. We even have real-time option Greeks readily available and easily discernible. The support is also outstanding.

Rival Systems CEO Robert DArco said: Its very gratifying when clients tell us that weve solved significant problems for them and delivered vital solutions customized to their needs. Were thankful for the opportunity to work with Lupo as we continue to build the innovative features firms need to effectively manage their business. As more proprietary trading firms adopt Rival Risk, were quickly becoming the gold standard in the industry.

In December, Rival Risk won the 2016 award for Best New Technology Product – Risk Management at the annual FOW International Awards. Launched last fall, Rival Risk is the first real-time, fully hosted, HTML-5 based risk platform to bring enterprise risk management capabilities across trading platforms and clearing firms.