TT Boosts Trading Safety with Pre-Trade Portfolio Risk Function
Trading Technologies (TT) has introduced a new Pre-Trade Portfolio Risk feature on its TT platform. It strengthens risk controls for sell-side institutions. Also, creates safer, broader trading opportunities for end-users. The tool lets firms assess a trader’s available buying power in real-time before orders are sent to the market.
What Is Pre-Trade Portfolio Risk?
Pre-Trade Portfolio Risk helps firms prevent over-leveraged trades by calculating margin requirements before execution. It checks a client’s portfolio against worst-case market scenarios. It ensures there’s enough collateral to support new orders. Prevents unnecessary risk exposure and improves compliance with internal and exchange-level risk rules.
How it Works?
The feature captures a client’s worst-case margin position at any moment. Then, it compares this value with the client’s available capital to decide if a new trade can proceed. TT uses the same calculation methods as clearing houses. It gives firms high consistency and accuracy in risk assessment. Thus, it ensures tighter control and mirrors real-world post-trade exposure in advance.
Supported Risk Models and Exchanges
The system supports varied exchange risk protocols, including SPAN, PRISMA, value-at-risk (VAR), and custom models. It works across more than 20 leading derivatives exchanges. Also, it uses official risk parameter files directly from the exchanges. It ensures firms use the most current and reliable data.
Benefits for Traders
This update will offer these benefits to traders:
Better Margin Visibility
Traders can see exactly how much margin their current portfolio is using and how much is left before they place a new trade. It helps avoid order rejections and surprises after execution.
Reduced Risk of Over-Leverage
The system checks if there’s enough buying power based on worst-case margin scenarios. It prevents traders from accidentally entering positions they can’t afford in volatile markets.
Faster, More Confident Execution
Traders can act quicker without manually calculating margin impact with built in real-time risk checks. It supports more confident and efficient decision-making during fast market moves.
Alignment With Clearing House Calculations
Traders get a realistic preview of post-trade risk since the tool uses the same margin methods as clearing houses. It helps plan positions with fewer discrepancies between pre-trade and actual margin.
Consistency Across Exchanges
The system supports 20+ major derivatives exchanges using official risk models like SPAN, PRISMA, and VAR. Traders can expect consistent risk treatment across markets.
About Trading Technologies
Trading Technologies provides professional trading software, infrastructure, and data solutions for the global capital markets. It provides a multi-asset trading platform for futures, options, fixed income, foreign exchange (FX), and cryptocurrencies. The company serves markets across various regions, including commodities, energies, fixed income, cryptocurrencies, China, and Brazil.
Summing Up
Pre-Trade Portfolio Risk is a major upgrade to risk management on the TT platform. It empowers brokers and FCMs to manage exposure proactively and safely.
Register your company now and get featured on our homepage!
