PortfolioShop releases prime brokerage exposure monitoring system
29 March 2011 Syosset
Image: Shutterstock
PortfolioShop has announced the release of FixQ BrokerRisk, a prime brokerage exposure monitoring system. According to PortfolioShop, the new system enables prime brokers to forecast their potential client-wide losses due to extreme market moves.
"BrokerRisk allows prime brokerages to put a dollar number on what they may be on the hook for if any of their client accounts lose too much money," said Harvey Sontag, CEO of PortfolioShop. The company says the system provides a series of dynamic reports which examine the effect of simulated market moves on client portfolios down to the individual position.
"The system can pinpoint over-exposed accounts and then isolate and highlight which positions are problematic," Sontag said. The company says this allows prime brokerages to be proactive with regards to risky client positions before they become a liability for the brokerage itself.
PortfolioShop has employed the RiskAPI system, a distributed risk analysis service offered by Portfolio Science, a risk analysis vendor based in New York. The RiskAPI service offers detailed coverage of global markets as well as derivatives, making it possible for FixQ BrokerRisk to generate in-depth exposure analysis on several dimensions. PortfolioShop maintains that given the heightened volatility in the markets, a comprehensive risk analysis system is being increasingly viewed as an essential component needed to operate a prime brokerage.
"Many brokerages have a high number of client accounts and with an even larger number of exposed positions," Sontag said. "This makes it nearly impossible for individuals to manually account for every risky position." He says FixQ BrokerRisk provides a systemic approach to monitoring and avoiding unwanted losses due to client trading activity.
"BrokerRisk allows prime brokerages to put a dollar number on what they may be on the hook for if any of their client accounts lose too much money," said Harvey Sontag, CEO of PortfolioShop. The company says the system provides a series of dynamic reports which examine the effect of simulated market moves on client portfolios down to the individual position.
"The system can pinpoint over-exposed accounts and then isolate and highlight which positions are problematic," Sontag said. The company says this allows prime brokerages to be proactive with regards to risky client positions before they become a liability for the brokerage itself.
PortfolioShop has employed the RiskAPI system, a distributed risk analysis service offered by Portfolio Science, a risk analysis vendor based in New York. The RiskAPI service offers detailed coverage of global markets as well as derivatives, making it possible for FixQ BrokerRisk to generate in-depth exposure analysis on several dimensions. PortfolioShop maintains that given the heightened volatility in the markets, a comprehensive risk analysis system is being increasingly viewed as an essential component needed to operate a prime brokerage.
"Many brokerages have a high number of client accounts and with an even larger number of exposed positions," Sontag said. "This makes it nearly impossible for individuals to manually account for every risky position." He says FixQ BrokerRisk provides a systemic approach to monitoring and avoiding unwanted losses due to client trading activity.
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