Risk Management “Follows the Sun”

Global cloud providers, such as Amazon, Google, and Microsoft, have demonstrated the power of the standard APIs to deliver global functionality, which is a lesson not lost on Wall Street.

“We see the desire to break up silos and make the trading experience, and the underlying technology, seamless across regions,” Anthony Amicangioli, founder and CEO of HPR, told Markets Media. “The future is a global architecture where everything has the same look and feel whatever the region. The way you interface or connect your APIs becomes normalized so that it is not done one way in New York and another way in London.”

To address the trend, HPR has released CRM-X, the latest component of the vendor’s real-time risk-management portfolio of its Central Risk Manager application and a variety of gateways, which all are based on service-oriented architecture.

“It is designed to be the parent in a hierarchy where you would run multiple CRMs under the CRM-X,” he said. “CRM-X becomes a global management system that interconnects with the CRMs as subsystems.”

Whereas HPR’s CRM collects and distributes real-time risk and surveillance information for individual regions, typically defined by a single currency, CRM-X can receive drop copies from those regional subsystems and provide a view of a single trading entity based on a 24-hour trading cycle, which lets firms “follow the sun” and leverage cross-regional margin accounts globally, according to company officials.

Users accessing the CRM and CRM-X applications can select between the regional or global views, which have the same look and feel.

Of the many functions within global trading organizations, Amicangioli predicts that surveillance will be the first to migrate to global platforms.

“Not only will they use the CRM-X monitoring and display in real time, but also pull data from it to provide wholistic back-end reporting and real-time surveillance,” he added.

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