iSAM Securities Accelerates Radar Development with Four New Risk Management Features

Exposure Monitor, Hedge Alerts, LP Reconciliation and Book Switch Impact extend Radar across the broker risk-management process, from identifying emerging exposure to reviewing the financial impact of execution decisions.

iSAM Securities has expanded its Radar risk-management platform with four new capabilities introduced in rapid succession: Exposure Monitor, Hedge Alerts, LP Reconciliation Book Switch Impact.

The releases broaden the information available to broker risk and dealing teams at different points in the decision-making process. They help teams see where exposure is building, uncover how their traders act outside of their brokerage, and retrospectively assess the financial effect of moving clients between execution profiles. These new tools sit on top of Radar’s highly configurable alerting, so brokers can receive real-time alerts on unprofitable clients across all their trading platforms, accounts and risk books.

Exposure Monitor

Exposure Monitor gives dealing and risk teams a consolidated, real-time view of open symbol exposure across trading platforms. Brokers can configure business-wide limits for each symbol and see whether exposure is within limits, approaching a warning threshold or already in breach.

Warning and breach alerts can be sent to the broker’s preferred communication channels when defined thresholds are reached. Teams can then drill into an individual symbol to identify the logins contributing the largest notional exposure, connecting the overall position with the accounts behind it.

Hedge Alerts

Hedge Alerts extends Radar’s Network Alerts by identifying when the same underlying trader is running materially offsetting positions across related accounts. This includes accounts held at one brokerage and accounts spread across several brokers in the Radar Network.

Radar uses a proprietary clustering methodology to group related accounts into a single view of the underlying trader. More than 1,500 cross-broker hedged accounts are identified within the Radar Network each month. The feature helps brokers identify activity associated with swap abuse, bonus abuse or negative balance protection abuse.

Book Switch Impact & LP Reconciliation

Radar’s new LP Reconciliation feature ensures real-time tracking and reconciliation of exposure between a broker’s bridge, LPs & trading platforms. When a broker switches one or more clients between books, the new LP Reconciliation feature automatically recalculates their total open exposure and sends an immediate alert if a break is identified. The feature breaks down exposure differences by symbol and LP, informing a risk team of the correcting order(s) required immediately.

After an execution profile change, the new Book Switch Impact Feature in Radar lets brokers review the financial effect of the change. This helps risk teams consider whether a client should remain A-Booked or be reviewed for a move back to B-Book. Radar detects profile changes and presents a historical timeline showing when each profile was active, covering parameters such as A-Book and B-Book routing, spreads or markups, time delays and book depletion.

At the centre of the feature is PnL A, an estimate of the PnL the broker could have generated if the client’s risk had been retained rather than hedged externally. This makes the opportunity cost of an A-Book decision visible and helps teams identify when a hedge may no longer be paying off.

One connected risk-management process

Together, the four releases cover a broader part of a broker's risk-management process. Exposure Monitor highlights where exposure is building. Hedge Alerts shows when related accounts are offsetting positions across a brokerage or the wider Radar Network. Book Switch Impact then helps teams review the financial effect of the execution decision taken.

“Radar’s development is being driven by the decisions brokers need to make every day,” Dennis Weissert, Chief Commercial Officer of Apex

“These releases give teams a clearer view of where risk is building, what sits behind it and whether the action they have taken remains the right one.”

The releases build on Radar’s existing alerting, analytics and investigative capabilities, including Trader Details, Aftermath, Flow Explorer, Peer Analytics and Network Alerts. As the platform continues to develop, its focus remains on giving brokers earlier visibility of risk and clearer information for the decisions that follow.

iSAM Securities (USA) Inc.

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Find out more about iSAM SEcurities technology offering here - iSAM Securities Radar