Connectivity, integration and risk solutions
Roman Anokhindeputy director on international projects
Contents
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A. Who we are
B. Our view on risk management
C. Risk management system architecture
D. Business case examples:
1. Equities and derivatives portfolio margining
2. FX instruments and equities
3. Integration in FIX infrastructure
2
Front-to-back solutionsfor banks,
broker-dealers and investment
companies
300+ clients,incl.
Connectivity to 30+ venues worldwide
Exceptional focus on trading risk management
Who we are
ARQA Technologies - largest trading software vendor across CIS and Russia
2
OUR VIEW:new business opportunities
New services
Volumes increase
Profitability increase
CONVENTIONAL VIEW:protection
$31.7 mln $100 mln $440 mln
Our view on risk management
Risk management provides business advantages
201220132013
4
Risk management system architecture
Requirements
Multi -asset, -currency and -venue
Position keeping and pre-trade / post-trade control
Risk management models(fat fingers, limits, cash, margin, netting, SPAN, portfolio margining)
Flexibility
Visualization
Ease of integration
5
Risk management system architecture
RISQ solutions
Trading system 1,2..N
Risk calculationand control
Risk-managerRISQ terminal
RISQ server
Client / trader RISQ terminal
Approved transactionsTransactions
EMS / OMS / HFT-Algo
Position and risk parameters monitoring
Margin calls Position closing Alerts set-up
‘What-if’ calculator Position and limits
visualization Alerts set-up ‘View-only’ mode
FIX FIX / API
1. 2.
Market data and drop copy
FIX / API
6
Business case examples
1.Equities and derivatives portfoliomargining
Collateral optimization for arbitrage orhedging between equity and derivatives
Borsa Istanbul(equity)
RISQ serverEMS / OMS / HFT-Algo
Borsa Istanbul(derivatives)
Solution infrastructure
7
Business case examples
1.Equities and derivatives portfoliomargining
Collateral reduction
Trading efficiency increase
Commission income increase
Precise risk-control
Growing client base
Business advantages
8
Business case examples
2.FX instruments and equities
One currency in position – several currencies in trading
LSE(IOB)
FX trading venue(ICAP)
Solution infrastructure
Borsa Istanbul(equity)
RISQ serverEMS / OMS / HFT-Algo
9
Business case examples
2.FX instruments and equities
One currency in position – several currencies in trading
Cross-margining for FX positions
Revenue stream from FX conversion
Business advantages
10
Business case examples
3.Integration in FIX infrastructure
‘Plug-in’ integration results in reduced costs
Trading system 1,2..N
Solution infrastructure
Approved transactions3.
Approved transactions2.
Transactions 1.
EMS / OMS / HFT-Algo
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RISQ server
Business case examples
3.Integration in FIX infrastructure
Same as in Cases 1 and 2
Simplification of the integration process
Business advantages
12
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