Introducing Hedge Alerts: Radar's Network Alerts just got sharper
If a trader on the Radar Network is attempting swap abuse, bonus abuse or negative balance protection abuse, brokers will now be alerted as part of Radar’s Network Alerts Report.
Introducing Hedge Alerts, providing brokers with a clear view of when the same underlying trader is running offsetting positions across multiple accounts, whether those accounts sit at their brokerage or across several in the Radar Network.
Using proprietary clustering methodology, Radar groups related accounts across the Radar Network into a single view of the underlying trader, giving brokers context that single-broker analysis simply can’t provide. Over 1,500 cross-broker hedged accounts are being identified across the Radar Network each month.
Radar already provides Sharp Alerts, which identify clusters of related accounts exhibiting high-frequency trading associated with PnL extraction from brokers. Hedge Alerts now add a second layer of network intelligence, identifying when related accounts are materially hedged against one another.
New: Hedge Alerts
Hedge Alerts identify clusters where the same underlying trader has significant offsetting exposure across multiple accounts. For example, a trader may hold a long position at one broker and an offsetting short position elsewhere. Viewed individually, either account may appear unremarkable. Viewed together, the relationship becomes clear.
Cross-account hedging happens in two ways:
- Cross-broker hedging - where related accounts hold opposing positions at different brokers.
- Single-broker hedging - where the same trader operates several accounts at one broker and hedges those accounts against one another.
Radar evaluates the degree to which positions within a cluster offset one another and applies a minimum gross-position threshold before generating an alert.
The minimum-position requirement is important. It prevents brokers from being overwhelmed by small or incidental hedges and keeps the report focused on economically significant hedged positions.
Where a meaningful hedge is identified, the relevant accounts are added to the Network Alerts Report, and an alert is delivered directly into the broker's communication channels.
Hedge alerts complement existing Sharp Alerts
Radar's existing Sharp Alerts continue to identify clusters whose high-frequency trading behaviour is associated with adverse broker PnL. Together with Hedge Alerts, brokers now have a broad view of the trading entity behind each individual trader.
A clearer workflow for Network Alerts
Alongside Hedge Alerts, Radar has introduced a new workflow to make it easier for brokers to review and manage Network Alerts.
Sharp and Hedge Alerts are now separated into Unmitigated and Mitigated sections, allowing dealing and risk teams to distinguish immediately between newly identified activity and clusters that have already been reviewed or acted upon.
The report also provides a more comprehensive view of each flagged account and the wider cluster to which it belongs, helping brokers understand:
- which accounts are clustered together;
- whether the cluster spans multiple brokers;
- the cluster-level PnL impact from that trader, across the Radar Network;
- when the cluster was identified;
- whether the broker’s dealing team have dealt with the risk & marked the accounts ‘mitigated’.
This ensures Network Alerts can be actively worked through, rather than a noisy stream of notifications.
The whole picture in one workflow
With Hedge Alerts, clearer alert information and a simple mitigated/unmitigated workflow, Radar Network Alerts gives brokers a clear view of the underlying trader and their activity across the wider FX and CFD industry.
Book a Radar demo to uncover the hedged and sharp clusters already on your book.
iSAM Securities (USA) Inc.
