Enhanced Risk Management

Comprehensive understanding of trade desk risk management issues

Trading, risk and valuation teams often work in silos, rather than cooperative groups. This segmentation of functions often contributes to an incomplete understanding of trade book risk. In addition, access to historical data and the performance of “what if scenarios” tend to be one-off issues and not part of daily routines.

Utilizing a centralized service approach, Analytic Space combines market data, pricing models and risk analytics into a readily sharable and consistent set of valuation and risk management tools. Analytic Space helps facilitate a more comprehensive understanding of trade desk risk management issues including:

  • Modeling Bid-Ask spread
  • Bid-Ask spread implications for long term profitability
  • "Unwarehousing" of risk
  • Decomposition of risk and P&L by product type and maturity
  • Dependency between market sensitivities and VaR
  • Assessing maximum potential loss due to model risk and computational limitations
  • Pre-configured and pre-calculated market objects

Find out more about Analytic Space