Sterling Trading Tech adds FX and crypto asset classes to its SRM

by Arthur · August 18, 2022

Sterling Trading Tech (STT), a provider of capital markets technology solutions, has added FX and Crypto asset classes to its Risk and Margin (SRM) system.

“We are excited to respond to customer and market demand by adding crypto and forex to our sophisticated risk and margin system,” said Ravi Jain, Chief Product Officer at Sterling Trading Tech.

“The addition of these asset classes expands the functionality of our offering. Sterling is committed to pioneering innovative solutions across multiple asset classes to help our clients achieve real-time pre- and post-trade analysis,” he added.

The Sterling Risk & Margin System provides advanced analytics as a Risk-as-a-Service (RaaS) solution that uses sophisticated quantitative and big data techniques to manage risk and monitor margin in real time.

SRM calculates risk scenarios, stress tests, portfolio margin, risk-based haircuts, maintenance margin and Value at Risk (VaR) for each account, with the ability to add and manage firm-specific house rules.

Adding cryptocurrencies and foreign exchange (FX) to the platform’s existing support for global equity, equity option and equity futures markets for risk calculations provides a new level of multi-asset risk coverage.

Specific features associated with the new asset classes include:

Support for FX spot, forward and swap trades and positions, in all currency pairs
Support for crypto including crypto priced in any currency
Risk aggregated by currency or digital asset, derived by extracting net exposure by currency across all pairs and non-USD equity and crypto trades
Ability to view balances by fiat currency and crypto
Risk shock analyzes based on fixed percentage moves and standard deviation moves
VaR analysis for multi-asset portfolios including equities, fiat and crypto

The Sterling Risk & Margin System has seen continuous use by clearing firms, hedge funds, broker-dealers and proprietary trading groups who can not only monitor risk using a GUI, but can pull data into downstream systems via an API.

Earlier this year, Sterling Trading Tech announced the appointment of industry veteran Jeff Marston as Chief Technology Officer and enhancements to its OMS system with ground-breaking features, including support for fractions and a new risk-based rules engine, offering broker-dealers and their dealers. outstanding power and flexibility.