Real-Time Risk Aggregation and Monitoring
Financial trading firms have significant exposure to market and counterparty risk. While many firms invest in tools to manage market risk, tools for managing credit risk tend to be less sophisticated. What’s more, current market conditions have revealed the limitations of both types of tools. The information they provide is often delayed and fragmented. They also don’t provide a real-time consolidated view of the entire trading operation. In this time of volatile markets and heightened risk, the limitations of existing systems are forcing firms to look for new tools that can give them the control and continuous, immediate insight that they need.
Features & Benefits
Sybase Event Stream Processor (ESP) from Sybase powers a wide range of trading applications. Customers choose Sybase for the combination of rapid development and deployment and high performance. The benefits include:
- Real-Time, Continuous Monitoring, Analysis, and Alerts: With real-time aggregation and valuation using live market prices, there’s no need to wait for overnight consolidation and batch computations. Data is always current and always available.
- Enterprise-wide Visibility: Consolidation across systems, asset classes, departments, and geographies helps you avoid a fragmented view of multiple disparate trading systems.
- Roll-up and Drill-down: Aggregate data along any number of dimensions. View data at any level, and drill down all the way to individual transactions.
- Limit Management in Real Time: Set risk-weighted, rule-based, non-linear limits at multiple levels of the data hierarchy and flag exposures in real time when limits are reached or exceeded. You can change limit hierarchies in real-time without any restart or overnight run.
- Pre-Trade Approval: Automatically check an incoming order to confirm sufficient “limit capacity” by comparing current positions against limits before approving, denying, or restricting the order.
- Monitor Trading Patterns in Real Time: Generate alerts or impose restrictions when pre-defined patterns occur.
Works with Existing Risk Management Systems
A Sybase Real-Time Risk solution complements rather than replaces existing risk management
systems. It provides a real-time view of aggregation positions and exposures, with continuous mark-to-market using live prices and the ability to monitor current positions against limits across multiple dimensions.
The Sybase system can accept data in native formats from a number of different systems, normalizing and
cleansing/validating the data within the Sybase consolidation engine. The Sybase server can accept live data streams from other systems — either directly or via a message bus — and can load data from databases and files for systems that can’t produce live output streams. Sybase also offers a variety of connectors for integration. If you can extract data from an existing system, Sybase can consolidate that data.
Sybase ESP Provides Continuous Computation
Sybase ESP is event-driven technology that processes data as quickly as it arrives. Unlike a relational database that first stores data and then runs queries to analyze it, the Sybase dataflow architecture passes the data through the data model, continuously updating all views and checking all rules to deliver immediate insight and enable instantaneous response. With scalability for very high message rates, Sybase ESP can accommodate live market prices as well as heavy order and trade volume.
Sybase RAP provides the ability to collect large data sets in a single analytics store with continuous real-time data loading. Sybase ESP and RAP together provide a single integrated real-time data analysis platform that is not limited to departmental deployments but that can scale to meet the needs of the largest enterprises.