Georges Bory, managing director and co-founder of Quartet FS, explores the recent advances in risk calculations.
The speed and pace of the world’s capital markets
has increased exponentially over the last decades, with the
decline of the open outcry system and the automation of trading
and execution. This acceleration of market activity and trading
has generated increased volatility, creating new opportunities
for traders, but also heightening risks.
As market participants explore ways of turning split-second
market fluctuations to their advantage, they are also finding
that they must instigate robust risk analysis models capable of
managing complex risk parameters on the fly.
As pressure increases from regulators and shareholders, stung
by the failure of banks and traders in the recent past to
manage their agreed appetite thresholds, risk profiles must now
be reviewed and adapted continually to keep pace with the
fast-moving market, where trading decisions can significantly
alter exposures in a millisecond. To be accurate and efficient,
this calls for risk management tools that provide a
consolidated and timely overview of risk and price positions
based on the most up-to-date data, such as currencies and
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |