Risk Management: What Makes Us Outstanding?

 

With the maturity and development of e-trading technology in the financial industry, e-trading risk management has become an important part of institutions engaged in the management of financial trading.

The risk management of e-trading has rapidly matured over the past decade. However, risk frameworks are often disconnected, siloed and inefficient across the lines of defence. E-trading businesses remain open to the risk of operational incidents, disorderly markets, and regulatory scrutiny.

Fortex now takes you through the risk management of e-trading.

E-trading risk management refers to the management measures used in the process of assessing risk, controlling risk exposure, and monitoring risk in the process of e-trading in the financial industry.

E-trading risk management, which can be either qualitative or quantitative, is divided into four different types.

Operational Risk: The risk of losses caused by flawed or failed processes, policies, systems or events that disrupt business operations. Employee errors, criminal activity such as fraud, and physical events are among the factors that can trigger operational risk.

Market Risk: Market risk is the risk of losses in positions arising from movements in market variables like prices and volatility. Common market risks include equity risk, currency risk, commodity risk, margin risk, holding period risk, basis spread risk, etc.

Credit Risk: It is the risk of default on debt, which may arise from a borrower’s failure to make required payments, including loss of principal and interest, interruption of cash flow and increased collection costs.

Reputational Risk: It is also known as Reputation Risk and it is the loss of social capital, market share or financial capital arising from damage to an organization’s reputation.

Fortex’s e-trading platform provides institutional clients with a comprehensive range of risk management services to help financial institutions operate safely in highly regulated capital markets, including:

Pre-determined Risk Parameters

  • Access to multiple counterparties
  • Backup quotes stream
  • Pre-define trade abnormality
  • Order routing rules
  • Trade limits
  • Tiered margin rules
  • Role-based admin rights

Real-time Monitoring

  • Liquidity Condition
  • Order execution
  • Real-time quote maker
  • System runtime monitor
  • Position management
  • LP risk control
  • Multidimensional real-time database
  • Intelligent reporting back office
  • MT4/5 Dashboard

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About Fortex

Founded in 1997, Fortex Technologies aims to revolutionize trading with its powerful, neutral, multi-asset trading platform focused on the FX, equities, and crypto markets. Fortex’s XForce solution, ECN, MT4/5 bridges, infrastructure hosting and more are used by regional banks, hedge funds, asset managers, broker dealers and professional traders around the world to enhance liquidity access, improve execution workflows and support sophisticated trading strategies.