Risk Management Calculations & Control Workflow Applied to Electronic Trading Products by Investment Banks

Wednesday, January 31, 2018 - 4:30pm to 6:00pm
New York, NY 10027
United States

Columbia Data Science Institute Industry Innovation Seminars

Presented by Neal Goldstein, Managing Director JP Morgan – Global Head of Connectivity Solutions

1. Overview of equities electronic trading products with an emphasis on where risk management controls are applied
a. Client Connectivity & Market Access
b. Order Management Systems
c. Clearing and Settlement

2. High Level Financial Risk Management Overview
a. Objectives
b. Agency Trading Risk
c. Principal Trading Risk
d. Credit/Clearing Risk
e. Operational Risk

3. Counter party exposure
a. Client Counter-Party Considerations
b. Credit Relationship & Leveraged Financing
c. Margin calculations
d. Client and Firm Obligations

4. Regulatory control obligations around market access
a. Exchange membership obligations
b. FINRA 15c3-5 Market Access Rule

5.Risk Management and Control Workflow
a. Pre-trade single order risk calculations
b. Post-Trade Portfolio Risk calculations
c. Portfolio Stress Testing
d. Examples of asynchronous portfolio level calculations
e. Buying Power and Margin
f. Kill switches g. Centralized risk limit management workflow

6. Risk Management and Control Product Overview
a. Client Specific Controls
b. Client Agnostic Controls

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