Two technology vendors, GlobalRisk and Interactive Data, are collaborating on a project to help the Commodity Futures Trading Commission improve its ability to assess and monitor market risk exposures in real time. The CFTC will use software from GlobalRisk to run stress tests and analytics on market data provided by IDC, giving the agency an improved ability to calculate intra-day risk exposure metrics for listed futures and options.
“When GlobalRisk was awarded this contract, I knew that a project of this scope would require our best real-time risk management software paired with high-quality market data. We found our answer with Interactive Data,” said Steven Probst, chief executive officer and president of GlobalRisk. “We are very pleased to have been chosen to assist the futures industry as it seeks to advance real-time risk management to new levels of real-time transparency,” he added.
GlobalRisk provides risk management software for trading firms, brokers and clearing firms in derivatives markets. Its software works by capturing real-time price and transaction data, combining that with positional data and other data, and then performing stress tests to examine the potential impact of various market moves and volatility shifts on portfolio values. The software also can generate risk alerts based on a number of parameters, including the dollar value of portfolio risk, profit and loss measures, option Greeks, and trade and position quantities.
