CHICAGO / LONDON, Nov. 14, 2022 – Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, infrastructure and data solutions, and KRM22 plc (AIM: KRM), the technology and software investment company that focuses on risk management for capital markets, today announced that it is making the KRM22 Risk Manager available to customers on the TT platform. The sophisticated real-time post-trade risk service significantly enhances the risk toolset available through TT’s growing ecosystem for futures commission merchants (FCMs), brokers and traders.
The product’s risk scoring system will help users instantly assess real-time margin and liquidity, creating a new way for futures and options on futures traders to generate alpha under the most volatile market conditions. The offering currently covers margin on existing positions and provides a full range of analytics behind those positions, including the ability to anticipate end-of-day margin. In the first half of next year, TT will add functionality for margin on open orders, giving the brokerage community serving firms and individual traders new tools to manage risk at the time of the trade.
Jason Shaffer, TT EVP Product Management, said: “We continue to execute on our strategy to enhance the value we bring to customers on the TT network. This latest step fulfills the commitment we made earlier this year to bring powerful KRM22 risk tools into our platform.”
KRM22 CEO Stephen Casner said “This specialized risk service, available exclusively on the TT platform, is the culmination of four years of developing the next generation of market risk services on KRM22’s Global Risk Platform. Allowing TT users real-time margin analytics across multiple exchanges with multiple margin methodologies will equip TT users to be prepared to meet the latest challenges facing futures and options traders today and well into the future.”
Traders and risk managers on the TT platform can leverage KRM22 Risk Manager to deliver exchange margin and stress calculations through the click of a button. Users can view start-of-day (SOD) and intraday margin calculations and stress results that update with each position change. SOD and intraday margin calculations include Initial Margin, Maintenance Margin, Net Option Value (NOV), Credit Allowance/Margin Ratio and Margin Risk Score.
The tool also provides full and granular visibility into exchange margin values throughout the day at the commodity code level, giving traders and brokers the ability to determine margin concentration and better understand when they are approaching margin and credit limits, and offering FCMs the capability of setting alerts to trigger on predefined margin and credit limits, along with other risk-reduction tools.
Stress risk calculations provide independent risk checks and include standard deviation formulas and 20% volatility shocks to options positions at each standard deviation point, worst-case maximum loss outcomes and appropriate risk offsets in stress calculations on related instruments as well as a credit allowance/stress ratio and stress risk score.
About Trading Technologies
Trading Technologies (www.tradingtechnologies.com) creates professional trading software, infrastructure and data solutions for a wide variety of users, including proprietary traders, brokers, money managers, Commodity Trading Advisors (CTAs), hedge funds, commercial hedgers and risk managers. In addition to providing access to the world’s major international exchanges and liquidity venues via its TT® trading platform, TT offers domain-specific technology for cryptocurrency trading and machine-learning tools for trade surveillance.
KRM22 is a closed-ended investment company which listed on the London Stock Exchange’s Alternative Investment Market (AIM) on 30 April 2018. The Company has been established with the objective of creating value for its investors through the investment in, and subsequent growth and development of, target companies in the technology and software sector, with a focus on risk management in capital markets. Through its investments and the Global Risk Platform, KRM22 helps capital market companies reduce the cost and complexity of risk management. The Global Risk Platform provides applications to help address firms' market, compliance, operations and technology risk challenges and to manage their entire enterprise risk profile. Capital markets companies partner with KRM22 to optimize risk management systems and processes, improving profitability and expanding opportunities to increase portfolio returns by leveraging risk as alpha. KRM22 plc is listed on AIM, and the Group is headquartered in London, with offices in several of the world's major financial centers. See more about KRM22 at www.KRM22.com.