Liquidity and technology provider iSAM Securities has launched a new platform that helps dealing desks better manage risk through client classification settings.
Called Surge, the platform is similar to other tools that have been launched over the last couple of years by other providers, like oneZero’s Portfolios.
Surge lets dealing desks analyse client behaviour and execution with liquidity providers.
The result is ultimately that brokers can get a simpler overview of client activity, with the ability to spot abusers being an obvious benefit, and work out the best way to execute trades on the LP level.
On top of that, brokers can see LP performance and structure their hedging activity to be as optimal as possible by looking at stats like order fills, slippage, and spreads.
Surge can also be automated based on pre-defined rules set up by the broker. For example, a broker could configure settings that would automatically profile a client suspected of being a latency arbitrager. If a client met the criteria for that behaviour suggested, they could automatically be moved to delayed order execution.
“From speaking with our broker clients, friends in the industry — and drawing on my personal experience on the desk — it’s clear that the manual inefficiencies of daily workflows and limited access to information are a significant resource and financial drain,” said Dennis Weissert, Chief Commercial Officer at iSAM Apex.
“Even strong teams make mistakes and catch certain risk events too late. While these incidents may not heavily impact main offices, overnight desks face additional pressure. Surge streamlines book management so firms can capture spread revenue with far less manual intervention — giving risk managers peace of mind and providing teams the freedom to pursue new avenues for profit.”
