FlexTrade said that the FlexOPT-RM offers real-time risk and stress analysis allowing traders to analyze risk by portfolios, sectors, traders, accounts or any level of aggregation/hierarchy.
The features of the FlexOPT-RM include: open architecture with API interface to integrate valuation models, volatilities and interest rates; graphic analysis and review of P&L; the capability to analyze the entire portfolio; defined stress tests in terms of spot and volatility shifts and the ability for traders to review the impact.
The FlexOPT-RM has also the capability to drill down to specific stress scenarios or graphically review a range of stress scenarios; and testing of possible scenarios.
According to the company, the FlexOPT-OMM platform provides user interface for configuring an order strategy with a pricing engine that can be fully customized by the trader and loaded into the system as a dynamic module.
With this solution, positions can be grouped and viewed at various levels, and a hierarchy of risk limits to ensure that the trader can manage risk in real-time. The risk limits can be specified for position quantities, as well as Greeks such as Delta, Gamma and Vega.
The primary features of the FlexOPT-OMM solution include the ability to load option chains based on underlying symbol, expiry date and strike price; ability to preload a portfolio from the prior day, carryover of previous positions; customizable pricing model and hedging strategy; customizable volatility model with GUI to manage volatility curves; and a ‘test’ mode to check orders without submitting to an exchange.
FlexOPT-OMM’s features also include: flexible rules to replace orders; adjustable reinstatement logic to replenish orders that have been filled; customized selection of underlying instruments; ability to select the underlying instrument on the basis of liquidity; risk limits for positions and Greeks, at contract, strike, expiry and underlying level; hypothetical scenarios to plot P&L based on variations in underlying price, volatility and Greeks.
