PTRM is a risk management application developed in an integrated way with the trading and clearing platforms to control and monitor the risks involved due to the orders entered and trades executed on BISTECH. With the application, the risk of the orders sent to the system from BISTECH Trading Workstation, FIX and OUCH protocol and the risk of the trades executed are checked. Risk controls can be applied at different stages being before the orders are accepted by the system (pretrade) and after they are accepted (at-trade).
With BISTECH PTRM application,
- risk group checks
- user and account based validations
- account based margin check
may be performed.
Performed risk checks and their results may be tracked with PTRM Graphical User Interface (PTRM GUI).
|Pre-Trade Risk Management*||At Trade Risk Management|
|Maximum Quantity Limits||Position Risk Limits|
|Instrument Limits||Order rate limits|
* Detailed information about all risk limits for each group stated in PTRM user guides.
- Maximum Quantity Limit: This limit is set to define the maximum quantity of an order sending to the matching engine. Maximum quantity limit can be defined in terms of quantity, volume, value of the order at market and/or instrument level. Maxi. Quantity Limit is controlled whilst order entry and amendment.
- Instrument Limits: Users within a defined risk group can only trade at the instruments allowed for that risk group.
- Risk Limits: Risk exposure of users entering order into the system is controlled by risk group checks. The exposure of the users withing the same risk group are calculated together. This combined exposure can be limited according to nine different risk checks.
- Order rate limits: Order rate limit measures the rate of the orders entered into the trading engine from all users of a risk group. Order rate limit check is based on new orders inserted into the book.