In a financial world where volatility has become the norm rather than the exception, effective risk management has never been more crucial. Sterling Trading Tech and eflow Global recently co-hosted a webinar, Post-Trade Market Risk and Surveillance, the second part of the Lines of Defense: A Modern Risk Playbook webinar series.

Ben Parker, Chief Executive Officer and Founder of eflow Global, moderated this webinar featuring Sterling’s Brian Saldeen, Senior Product Manager, Risk and Margin, and eflow Global’s Jonathan Dixon, Head of Surveillance. In this webinar, our experts delivered timely insights into how firms can evolve their pre- and post-trade risk strategies to stay ahead of market turbulence and regulatory demands.

Pre-trade controls: First line of defense

Saldeen opened the discussion by underscoring the importance of robust pre-trade risk controls. While trading desks and firms aim to stop risk before it even touches an account, intelligent pre-trade measures can only go so far. Controls like buying power checks and “fat finger” notional order checks are designed to prevent costly errors, such as a trader accidentally placing a $10 million order instead of $10,000, protecting both clients and the firm from unintended exposure.

Yet, as Saldeen emphasized, not all risks can be foreseen. Market events and sudden swings can reshape an account’s risk profile in seconds, highlighting the limits of pre-trade measures alone. That’s why the next line of defense is so critical.

Post-trade surveillance: Watching for the unseen

Dixon shed light on the vital role of post-trade surveillance. By nature, surveillance must be reactive. He says that you can’t detect the abuse before it happens, but with the right data and behavioral analytics, firms can spot suspicious patterns faster.

Dixon pointed out the challenge of “white noise,” the flood of false positives that overwhelm compliance teams. A smart surveillance system reduces this noise by learning from market data and client behavior, ensuring analysts focus on what matters most: real risks that could lead to regulatory breaches or reputational damage.

Customization is key

A standout theme was that risk management is never one-size-fits-all. Saldeen explained how Sterling’s solutions adapt to each firm’s unique needs, whether retail or institutional. From margin controls that prevent accounts from exceeding buying power to business-specific rules that reject illiquid, high-risk trades before they hit the books, flexibility is at the heart of effective defense.

Bridging the gaps

What truly elevates a firm’s risk playbook is the synergy between pre-trade controls and post-trade surveillance. While pre-trade tools handle the predictable, like fat-finger errors or buying power limits, post-trade surveillance picks up what slips through, such as insider dealing or spoofing, which can only be spotted after suspicious patterns emerge.

As the panelists noted, the next evolution lies in adding proactive layers: using data insights to refine thresholds, adjust alert systems, and catch risks earlier without slowing down trading activity. The future of risk management blends human expertise with smart technology to make compliance teams faster, sharper, and more effective.

Looking ahead

This session was a reminder that risk management is not static; it’s a dynamic discipline that must adapt as markets shift. Firms that embrace flexible, data-driven defenses – from robust pre-trade checks to responsive post-trade surveillance – will be better positioned to protect clients, meet regulatory expectations, and navigate the unexpected.

Our third and final webinar in this series, The Intersection of Pre- and Post-Trade Risk, takes place on Thursday, July 17 at 8:30 am EDT/1:30 pm BST. Click here for further details and registration.