Implementing state-of-the-art real-time risk management for FCM’s and clearing firms.
A few years ago, Societe Generale Prime Services (Societe Generale) started to hunt for a new risk system because “we put risk at the forefront of our policy and wanted to gold plate regulatory requirements. We did this by extending our scope from a product and a client perspective,” explains Didier Livio, Global Head of Prime Services Risk, who sits in New York.
Societe Generale had been using three systems: two external – one for intra-day risk and one for end-of-day risk – as well as another internal system for margin calculations. The bank had to coordinate managing and transferring data between three different systems, which became more demanding as Societe Generale’s clients are increasingly trading across asset classes, globally, and round the clock. “We wanted consistency between intraday and end of day P&L and risk metrics and across asset classes,” said Pascal Marciano, COO of Prime Services Risk.
ED&F Man Capital Markets replaces legacy systems with TS Imagine’s fully-hosted, SaaS solution for high-volume, real-time analytics on cross-asset exchange and OTC trading.
When analysing performance, measuring a portfolio’s actual return answers the “what” and “when” questions –– it tells us what return the portfolio delivered over a specified period of time. While that information is obviously important, the goal of a performance attribution analysis is to go beyond “what” and “when” to explain “how” and “why”.
Managing the risks inherent in their positions, including holding sufficient margin, is absolutely essential for prime brokers. The key question is whether or not they are measuring risks and managing margin effectively and proactively.