R3 Analytics recently released an extensive update to its institutional grade risk-management system. The cloud-based software seamlessly integrates with MetaTrader servers and offers Forex brokers customisable B-Book optimisation strategies and risk-management tools, deep analytical insights into trading accounts, and easy access to business and sales intelligence aggregated from brokers’ trade servers.
R3’s update expands upon its leading-edge Risk Indexing System by providing MetaTrader Forex brokers’ greater flexibility with their B-Book management. Risk Managers can model their B-Book exposure from a selection of optimised risk aversion strategies and fine tune parameters, such as tolerable drawdowns and risk per client, to match their firm’s risk preferences. Models are optimised to substantially reduce equity exposure and VaR, while maximising daily ROE. The result is a low volatility return structure that doesn’t experience the volatility or deep troughs of traditional B-Book management strategies.
Following the events of the unpegging of the Swiss franc in January, and the losses absorbed by non-dealing desk brokers who were previously viewed as less risky than their market maker counterparts, has spawned increased interest among firms for hybrid A/B-Book models. As such, the R3 Analytics upgrade fits timely into this trend.
In addition, R3’s update introduces SiBi, a sales and business intelligence module that provides aggregated data of broking activity including commission/spread earned, account funding, trading volume and performance ranking to augment marketing initiatives. Combined with the ability to scrutinize risks on the account level, R3 gives Risk Managers using MetaTrader a comprehensive risk management suite that provides a 360° view of exposure.
Commenting on their public release, Liam O’Brien, R3 Analytics’ Managing Director states, “R3 is committed to the long-term prosperity of our clients. In lieu of the recent uncapping of the Swiss franc and the ramifications that followed, it is not enough for us to simply provide clients risk visualisation and management tools and leave them to their own devices. We offer our specialist risk management strategies and services to foreign exchange brokers so that their risk-return profiles are fully optimised and they know their exposure to anomalous drawdowns.”