Eurex Clearing, a Europe-based clearinghouse for securities and derivatives dealings, announced the launch of a new service that enables traders to better control pre-trade risk.
The firm said the Advanced Risk Protection platform allows traders to set pre-trade limits on aggregate risk metrics such as total margin requirements. It also allows members to define their own level of protection and set limits for their non-clearing members, Eurex said.
"A reactive risk management approach is not sufficient to cope with the increasing speed in the trading environment," Thomas Brook, a member of Eurex's executive board said in a statement. "That's why we give our customers the tools they need to proactively set risk limits in advance."
The risk checks are performed in real-time and are based on actual positions using real-time market prices, Eurex added. As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio