Risk Management is an important yet broad subject. For FX banks, our solutions address the following areas:
- Pricing Risk – we provide controls to ensure that, within your eFX solution, you are able to price to the levels that you want. We provide easy-to-use tools to quickly adjust this as market conditions change. In addition, we use common routines to prevent customers from arbitrage the sales desk against the eFX platform.
- Latency / Position Risk – we continually refine our solutions to accommodate ever-increasing volumes and to cater for volume spikes, so that traders (or downstream black box solutions) are working from true real-time, updated positions.
- Market Risk – The Wallstreet FX solution provides a number of desk-level tools to manage:
- liquidity and funding risk – providing real-time data to ensure that the bank has sufficient liquid resources to meet cash and funding commitments as they become due.
- risk due to movements in rates and volatilities – providing on-demand tools to understand whether specific price movements due to changes in FX rates, interest rates, and volatilities will result in losses.
- Counterparty Risk – Wallstreet FX provides real-time limit monitoring tools to ensure that traders and the credit department are fully aware of potential counterparty concerns, either credit-based or collateral-based, well before they happen to minimize the chance of default.
- Compliance and Operational Risk – providing sufficient operational controls, even in rapidly moving markets along with supporting complex global institutions, to minimize risk of fraudulent activities and to provide transparent real-time information to your own customers.
