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

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 system (SRM).

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, Chief Product Officer 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 analysis,” he added.

The Sterling Risk & Margin System provides advanced analytics as a RaaS (Risk-as-a-Service) solution utilizing sophisticated quantitative and big data 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 capability to add and handle firm-specific house rules.

Adding cryptocurrencies and foreign exchange (FX) to the platform’s existing support of global equity, 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 of FX spot, forward and swap trades and positions, in any currency pair
  • Support of crypto including crypto priced in any currency
  • Risk aggregated by currency or digital asset, derived by extracting net exposure by currency across all pairs and non-USD equity and crypto trades
  • Ability to view balances by fiat currency and crypto
  • Risk shocks analytics based on fixed percentage moves and standard deviation moves
  • VaR analytics for multi asset-portfolios including equities, fiat and crypto

The Sterling Risk & Margin System has seen continuous adoption by clearing firms, hedge funds, broker dealers and proprietary trading groups who can not only monitor risk using a GUI but can pull data into their downstream systems via an API.

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

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