Sterling Trading Tech Adds FX and Crypto Asset Classes to its SRM

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

Ravi Jain

“We are excited to respond to client and market demand by adding crypto and FX to our sophisticated risk and margin system,” said Ravi Jain, director of products 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 analytics,” he added.

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

The 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 internal company-specific rules .

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

Specific functionalities related to the new asset classes include:

  • Support for spot, forward and swap currency trades and positions, in any currency pair
  • Crypto support, including crypto priced in any currency
  • Aggregate risk per currency or digital asset, derived from extracting net exposure per currency across all non-USD cryptocurrency and equity pairs and transactions
  • Ability to view balances by fiat currency and crypto
  • Risk shock analysis 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 been continuously adopted by proprietary clearing firms, hedge funds, broker-dealers, and trading groups who can not only monitor risk using a GUI, but also pull data into their downstream systems via an API.

Earlier this year, Sterling Trading Tech announced the appointment of industry veteran Jeff Marston as CTO and enhancements to its OMS system with cutting-edge features including fractional share support and a new risk-based rules engine, offering brokers and their traders unprecedented power and flexibility.

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