Trading Technologies International (TT) has launched a new pre-trade portfolio risk capability on its platform in a bid to bring new protections to its sell-side clients and facilitate increased trading opportunities for end-users.
Alun Green
Alun Green, EVP managing director, futures and options for TT, said: “This is a significant step forward in managing risk that will allow a wider range of users to benefit from the award-winning trading features available on the TT platform. Users will easily be able to see how much margin has been consumed by their existing portfolio and how much buying power remains for trading.”
The offering replicates the methodology used by clearing houses – namely using the same calculations – aiming to mitigate risk by allowing FCMs to more comprehensively manage client exposure.
The capability supports a variety of exchange risk protocols, including: SPAN, PRISMA, value-at-risk, and other custom models.
It includes more than 20 major derivatives exchanges and directly leverages risk parameter files supplied by the trading venues.
Specifically, the functionality means that firms can now better manage risk by “capturing a client’s worst-case margin position at a given time and use the value to determine whether there is sufficient buying power before an order is sent to the market,” explained the firm.
Trading Technologies’ platform handled more than 2.8 billion derivatives transactions in 2024 and is the most widely used platform globally for futures and options on futures.