RISK & MARGIN

Sterling Risk & Margin

Sophisticated cloud-based risk analytics & margin calculations that are easy to use, cost-effective to implement and quick to deploy via GUI or API.

The Sterling Risk & Margin System allows firms to monitor client Reg T, portfolio margin and custom house policy requirements in real-time. View advanced post-execution risk analytics for US and global equities, options and futures.

Detailed Margin Calculations

• US RegT maintenance including full options spread pairing logic
• Intraday and EOD TIMS based Portfolio Margin
• Day Trading margin calculations
• Custom House Policy based on TIMS or Risk based with addons
• Enhanced margin rate settings
• Margin and house policy calculations available via API
More

Rich Risk Analytics Capabilities

• Risk scenarios based on percentage, standard deviation and beta adjusted shocks
• Implied volatility shocks for options
• VaR and CVaR based on underlying and IV shocks
• Futures risk based standard deviation
• Concentration risk and Liquidity calculations
• Options Expiration Analysis including Horizon risk and Pin Risk
• Multiple greek and risk views both graphical and tabular
• Sector, Industry, country and currency risk
More

Modern Technology Stack

• Risk Analytics-as-a-Service
• Real time position updates using FIX or Rest API
• React Web based GUI
• Extensive Rest API for requesting margin, risk and expiration data
• Scalable, high performance architecture
• Sophisticated quantitative methods enable large number of options risk calculations continuously
More

Comprehensive Asset Coverage

• Equity (stocks, ETF, warrants, preferred etc.) for US and all global markets
• Equity options US and global markets
• Equity Futures: US and global equity futures, including single stock and index futures and options on futures
• US commodity futures and options
• Supports Foreign Exchange spot and forwards and crypto positions
• Basic fixed income support for US treasuries, corporate bonds and converts

Our Technology

Robust, real time, post trade market risk and regulatory margin haircut calculation system. The Sterling Risk Engine is completely API accessible as well as web-based, delivered and built on a full-featured, flexible and modern GUI.

Detailed Margin Calculations

• The SRM calculates End of day regulatory 4210 margin for RegT maintenance, Customer Portfolio Margin and risk based haircuts
• Intraday customer portfolio margin based on the OCC TIMS methodology
• Intraday, Real-Time RegT maintenance requirement
• Optimized universal spread method logic for complex option portfolios
• Custom House policies based on multiple risk factors including risk shocks, concentration and liquidity add-ons and VaR

• House policy can be applied to PM accounts for a Finra approved policy
• House policy can be based on TIMS with addons or purely risk shock based
• Self-manage house policy parameters in real-time, no development time or cost to adjust
• Day trading margin calculation with high water mark for RegT and PM accounts calculated intraday.
• Margin rates can be set independently for stocks as well as for options at the symbol level and overridden for specific accounts

Details of Risk Analytics

Technology Stack Details

Standard implementation is completely SaaS based with no need for clients to install any hardware or software on premises.

• All market data sources, analytical data and reference data is included in the service without the need for clients to provide their own data services
• API’s are all industry standard Rest API in a JSON message format
• API’s well documented with UAT available for testing
• Standard delivery includes a full features Web based GUI using React, the features of which can be controlled via a user managed permissions
• Data can be downloaded into multiple formats and automation of data files is available
• Sophisticated ETL layers enables us to support many client-provided file formats
• Trade updates using standard FIX execution drops or position updates using the Rest API or any combination of them
• All servers are housed in professional data centers at Equinix in Seacaucus and Chicago
• Full redundancy on market data and calculation servers
• Alternative implementation using a hybrid approach of public or client provided cloud infrastructure available