The document discusses Orc Software's risk management tools for trading firms and banks. It describes how Orc Trading for Risk Management gives firms the ability to understand their total risk exposure through features like accurate market views, exposure to risk sensitivities, scenario analysis, and profit and loss projections. The tool is used by leading trading firms and banks to provide real-time risk insights on exchange traded derivatives. It also provides success stories of how heads of trading and risk at different financial institutions have used Orc Trading for Risk Management to improve their risk management and control.
An Overview of Magic Trader®: A Multi-Dimensional, Multi-Confirmation
Risk Recognition, Risk Assessment, Risk Allocation, Risk Transfer &
Pin-Point Trading System
(R)isk Revolution - Current trends and challenges in Credit & Operational RiskMarkus Krebsz
This was presented as part of a Senior Australian Bankers' Master Class held at GCU London on 19 Sept 2012. Dr. Robert Webb was co-presenting on the UK & European Banking system.
Capital Asset Pricing Model, CAPM Assumptions, Borrowing and Lending Possibilities, Risk-Free Lending, Borrowing Possibilities, The New Efficient Set, Portfolio Choice, Market Portfolio, Characteristics of the Market Portfolio, Capital Market Line, The Separation Theorem, Security Market Line, CAPM’s Expected Return-Beta Relationship, How Accurate Are Beta Estimates?,
An Overview of Magic Trader®: A Multi-Dimensional, Multi-Confirmation
Risk Recognition, Risk Assessment, Risk Allocation, Risk Transfer &
Pin-Point Trading System
(R)isk Revolution - Current trends and challenges in Credit & Operational RiskMarkus Krebsz
This was presented as part of a Senior Australian Bankers' Master Class held at GCU London on 19 Sept 2012. Dr. Robert Webb was co-presenting on the UK & European Banking system.
Capital Asset Pricing Model, CAPM Assumptions, Borrowing and Lending Possibilities, Risk-Free Lending, Borrowing Possibilities, The New Efficient Set, Portfolio Choice, Market Portfolio, Characteristics of the Market Portfolio, Capital Market Line, The Separation Theorem, Security Market Line, CAPM’s Expected Return-Beta Relationship, How Accurate Are Beta Estimates?,
A presentation on the proposed ERM risk evaluation standard by the US Actuarial Standards Board.
Présentation de la norme ERM du Actuarial Standards Board des USA
MODULE 4:
Market Risk (includes asset liability management)
Yield Curve Risk Factor-Domestic and global contexts-handling multiple risk factor-principal component analysis- value at Risk (VAR) – implementation of a VAR system- Additional Risk in fixed income markets-Stress testing- Bank testing.
Asset Pricing and Portfolio Theory
I have presented a unique analysis which showcases the concepts of Aggregate & Aggregate lending and the numerical aspects of CAPM theory
Capital Market Line graphically represents all portfolios with an optimal combination of risk and return.
https://efinancemanagement.com/investment-decisions/capital-market-line
In this workshop, you’ll walk in the shoes of a trader. From behind a trading screen, you’ll enter the market. You\'ll purchase and offer energy products (oil, gas, electricity) and currencies (FX); you’ll buy and sell futures contracts and options.
ANGEL CAPITAL SUMMIT PRESENTATION: Due Diligence: Your Offensive Line, Your Offensive Weapon.
This presentation takes the reader through the due diligence process at a high level and sets expectations around what angel investors should be analyzing and exploring when analyzing a potential angel investment. Specifically, it covers how long should an angel investor spend on due diligence, an efficient due diligence process to quickly weed out unattractive deals and what things are analyzed when performing deep due diligence.
Ryan Goral, Founder of Strategic Equity Partners, www.separtners-llc.com
A presentation on the proposed ERM risk evaluation standard by the US Actuarial Standards Board.
Présentation de la norme ERM du Actuarial Standards Board des USA
MODULE 4:
Market Risk (includes asset liability management)
Yield Curve Risk Factor-Domestic and global contexts-handling multiple risk factor-principal component analysis- value at Risk (VAR) – implementation of a VAR system- Additional Risk in fixed income markets-Stress testing- Bank testing.
Asset Pricing and Portfolio Theory
I have presented a unique analysis which showcases the concepts of Aggregate & Aggregate lending and the numerical aspects of CAPM theory
Capital Market Line graphically represents all portfolios with an optimal combination of risk and return.
https://efinancemanagement.com/investment-decisions/capital-market-line
In this workshop, you’ll walk in the shoes of a trader. From behind a trading screen, you’ll enter the market. You\'ll purchase and offer energy products (oil, gas, electricity) and currencies (FX); you’ll buy and sell futures contracts and options.
ANGEL CAPITAL SUMMIT PRESENTATION: Due Diligence: Your Offensive Line, Your Offensive Weapon.
This presentation takes the reader through the due diligence process at a high level and sets expectations around what angel investors should be analyzing and exploring when analyzing a potential angel investment. Specifically, it covers how long should an angel investor spend on due diligence, an efficient due diligence process to quickly weed out unattractive deals and what things are analyzed when performing deep due diligence.
Ryan Goral, Founder of Strategic Equity Partners, www.separtners-llc.com
Each disaster is an opportunity to add to the “global book of knowledge” on occurrences, consequences, and disaster risk reduction measures. 2014--2020 is a good time for a global surge in educational, technical, health care, and political capacity building in all five pillars of community disaster resilience. All past disasters demonstrate the urgency of becoming disaster resilient. Premise: a disaster on the same scale should never happen twice in a community. Presentation courtesy of Dr. Walter Hays, Global Alliance for Disaster Reduction
WHAT IS HAPPENING? AIRLINES ON RED ALERT AFTER VOLCANIC ERUPTION IN ICELAND. After a week of seismic activity rattled the uninhabited area 200 miles (320 kilometers) east of the capital of Reykjavik with thou-sands of earthquakes, Iceland's Bardarbunga volcano began erupting Saturday (Aug. 23rd) under the country's largest glacier. An Iceland volcanologist said it was not clear when, or if, the eruption would melt through the ice — which is between 100 and 400 meters (330 feet and 1,300 feet) thick — and send steam and ash into the air. On Saturday, Icelandic authorities declared a no-fly zone of 100 nautical miles by 140 nautical miles around the eruption, but did not shut the country's airspace. An eruption at the Katla volcano could be disastrous, both for Iceland and other nations. Presentation courtesy of Dr. Walter Hays, Global Alliance for Disaster Reduction
Earthquakes are dynamic laboratories for learning and catalysts for building capacity for disaster-intelligent & disaster-resilient communities. Presentation courtesy of Dr Walter Hays, Global Alliance for Disaster Reduction
Every day the civilians of Syria are paying the price as the crisis deepens. Ordinary men, women and children continue to be caught up in the violence and have few alternatives as to where to seek refuge. On 4 December, nine children and a teacher were reportedly killed when a school in Wafideen, north-east of Damascus, was hit by mortar fire. On 26 November, ten children were killed in Deir al Asafir, east of Damascus, as bombs hit a playground. The UN continues to call for respect of international humanitarian law to protect civilians in conflict. Many children have been unable to attend school for the past 18 months, due to on-going violence and insecurity. School attendance is very low in some governorates. In Aleppo for example, where fighting has been relentless over recent months, an estimated 14 per cent of children are able to go to school, according to the Minister of Education. Children who have been internally displaced are most at risk of dropping out or missing school. School enrolment among children in collective shelters varies and many children are reported to have dropped out due to insecurity and complications related to displacement
NGEN - Niagara College - City of St. Catharines - City of Niagara Falls Enter...Neil Thornton HBA, MA
A full room of small business leaders and innovators wanting to know more about social media for business and growing sales. No theory, mostly hands on application. Here is the presentation as requested.
Some of our global opportunities to prevent “checkmates” during 2013 and beyond. Presentation courtesy of Dr. Walter Hays, Global Alliance for Disaster Reduction
Deloitte’s risk management philosophy – Risk Intelligence (RI), focuses on maintaining the right balance between risk and reward. Asking the right questions and finding effective answers to them is critical to developing the right risk management capabilities. Most organizations already have a multitude of Enterprise Risk Management (ERM) practices and processes to address risks but the lack of a strategic view to an ERM program, can expose risk management gaps and redundancies and prevent sufficient insight into key risk interdependencies
Corporate trainings provide tomorrow\'s leaders with skills and knowledge required to make an impact in the business world, Well trained managers develop their competence to think strategically, function more efficiently while gearing up to be instrumental in long-term overall business leadership success.
We’re pleased to launch our comprehensive industry wide ‘Risk Training services’ customized as per your organizational needs which covers entire spectrum of functional, professional knowledge building & skills development areas suitable for your workforce capability enhancement leading to deliver high performance business results.
1. ORC TRADING FOR
RISK MANAGEMENT
WHAT IS YOUR TRADING DESK’S TOTAL RISK EXPOSURE?
Know your assets. Understand your liabilities.
Never has there been such pressure on trading firms and banks to get their risk tools right. Extreme
market moves have prompted rigorous assessment of risk, with many firms focused on the basic trading
framework, trading risk sensitivities and scenario analysis. The world’s leading trading firms and banks
increasingly rely on Orc Software’s risk management tools to provide their trading risk insights on ex-
change traded derivatives.
Trading firms must balance their risk in order to be profitable. The key therefore is simple - ensure your
risk is understood, accessible, contained and managed based always on reliable data and solid analytics.
ORC TRADING FOR RISK MANAGEMENT GIVES FIRMS:
• Accurate market views
• Exposure to risk sensitivities
• Pre-trade limit handling
• Scenario analysis
• Profit and loss projections
• Hedging requirements to insure against unwanted market exposure
ORC TRADING
TAKE ADVANTAGE
2. WHO NEEDS ORC TRADING FOR
RISK MANAGEMENT?
CEOS AT PROPRIETARY TRADING HEADS OF TRADING who need HEADS OF RISK who need to be able to
FIRMS who need access to real- improved control over their trading reduce quoting errors across regional
time position overviews so they can group’s risk positions and to be able offices.
implement strategies to reduce to increase profit by adding more
company risk. customers quickly. • When connecting to new markets,
would your regional businesses
• Would you be able to increase • When traders are active on multiple be able to reduce quoting errors
trading activity and maximize markets, would you be better able if they had the ability to see and
profits with a consolidated real- to avoid losses if you had the ability control multi-asset, multi-market
time position and risk view over to run “what if” scenarios and consolidated position portfolios in
your various businesses? automatically hedge portfolios? real-time?
• When controlling numerous risk • Do you run up risky positions due to • Does your company currently
positions from different entities, non-real time, non integrated lose money due to delayed and
could you better avoid losses and position management? non-consolidated risk reporting?
lower risk with the ability to view in
real-time the risk positions of your • Would you be able to increase trad- • Do you currently need too many
regional businesses? ing activity and reduce cost of errors people, cross-region and system,
if you had real-time risk manage- to analyze risk?
• Have you experienced losses ment with safety features / limits?
because you did not react fast Orc Solution → Use Orc Trading for
enough to high risk positions? • Would you be able to add more Risk Management for Integrated
customers in less time if you could real time risk management.
Orc Solution → Use Orc Trading for control their positions and risk in
Risk Management for real-time real-time?
P&L and scalable multi-asset
porfolio structure. Orc Solution → Use Orc Trading for
Risk Management for real time,
multi market risk management;
safety limits and detailed risk More information on
analysis. www.orcsoftware.com
“ Risk is either a trading firm’s main asset or principle liability. As a trader you shouldn’t trade a
market view if you don’t know the calculated, accurate risk. A directional trader, acting on a short-term
decline or rally in an underlying, will be looking for risk associated with market price. For a volatility
trader expecting a decrease in market volatility, the trader will want to sell exposure to that volatility.
But at what risk? And who validated their data?
The decisions of the individuals put in place to manage weigh heavily in creating a company’s risk culture
and ultimately its risk profile. Risk analysis is based on pricing and volatility. Firms need reliable and stable
pricing and volatility models that fit the products they trade. Only then can they ensure what they see is
”
correct, current and can always be relied upon.
Is your company at risk?
Risk Fundamentals, Product Management at Orc Software
3. ORC TRADER RISK
TOOLS YOU CAN RELY ON…
BUSINESS LOGIC - Custom pricing and volatility models in FAST, UNMATCHED MARKET ACCESS
Orc Trader via API
• Profit & loss, risk management - External application on top of • Direct market data from 100+ markets
- Risk sensitivities, scenario analysis Orc Protocol feeding Orc Trader globally
and P&L analysis in Orc Trader to protect • Hedging • Indirect market data from quote vendors
against risk exposure and wrong
market views - Calculate volume to hedge based on
overall market exposure
- Ability to upload positions and trades from
PROVEN TECHNICAL PERFORMANCE
alternate systems, in real-time, via the
Orc Protocol RISK CONTROL • Reliable
- P&L assessment to calculate risk
• Access rights and limits • Scalable
required for profit
• Parameter management - Aggregate rights and limits by trader • Stable
- Pricing parameters (vols, dividends etc) • Data validation
in Orc Trader - Ensures correct data is used in risk Orc Trader Risk can be used in combination
- External application on top of analysis
with other Orc Trading applications or as a
Orc Protocol for pricing parameters - Accurately calculate P&L
stand-alone solution.
• Pricing
- Off-the-shelf pricing and volatility models
in Orc Trader
1 View positions and risk
by trader
2 See risk issues and
trends with customized
risk reports
1 2
3 View summary position
& risk information
4 Understand risk impact
of market moves
3
2
4
4. ORC TRADING FOR RISK MANAGEMENT
SUCCESS STORIES
HEAD OF RISK FOR A PROPRIETARY TRADING FIRM HEAD OF TRADING AT A LARGE REGIONAL BANK
A large global proprietary trading firm was using disparate The head of trading found that adding new customers and
trading systems in each of its locations across Europe, North new markets at the speed required was a critical business
America and Asia Pacific. Armed with the task of needing to challenge for the firm. Their internal risk policies did not
know real-time trading risk for the entire European business, allow for easy observation of real-time, associated risk views
the head of trading sought a scalable tool that would provide and they had low control over electronic order flow from
a consolidated view of risk for all their trader activities. He new customers. Orc Trading for Risk Management offered
needed to be able to run analysis reports to detect build-up a scalable solution enabling the firm to add new customers
of risk positions in their portfolio. His preference was for one and markets very quickly. At the same time, the Orc system
solution to meet all requirements. Using Orc Trading for Risk allowed the setting of limits for customers which could be
Management for its complete trading risk solution, the head of changed on-the-fly in case calculated risk viewed in the
trading was able to view trader risk in real-time, set limits for portfolio was too great. The flexible portfolio structure also
individual traders, and create simulated worst case analysis. allowed users to view risk on aggregated levels.
Orc’s open interface allowed the firm to export Orc risk capa-
bilities and build additional proprietary analysis tools on top of
the Orc risk solution.
ORC TRADING More information on
TAKE ADVANTAGE www.orcsoftware.com
Take Advantage Orc is a leading global provider of technology for advanced derivatives
trading and connectivity. Customers include leading banks,
Orc Trading is used by leading financial firms worldwide for enhanced trading and market-making firms, exchanges, brokerage houses,
trading, pricing and risk management on electronically traded derivatives. institutional investors, hedge funds and software vendors.
Orc Trading provides the competitive edge to trade from a single platform,
on any listed instrument, across all asset classes, on 100+ markets. sales@orcsoftware.com
Orc Trading comprises market leading applications including among www.orcsoftware.com
others Orc Trading for Algorithmic Trading, Orc Trading for Arbitrage,
Orc Trading for Market Making, Orc Trading for Risk Management and Amsterdam, Chicago, Frankfurt, Hong Kong, London, Milan,
Orc Trading for Volatility Trading. Moscow, New York, Paris, Stockholm, Sydney, Vienna