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Pre-trade risk management

System and Risk Administration (SARA)

Risk management of exchange-traded derivatives is based on the need to apply controls against both trading activity, via pre-defined limits implemented on a pre-trade basis, and by restricting access to specific securities through permission. These controls are managed via Patsystems' System and Risk Administration (SARA) module.

The SARA front-end ensures that traders operate according to parameters specified by the risk administrators, who, in turn, are able to access all the information necessary to maintain control of the trading community they are responsible for managing. Key features of SARA include: 

  • Position limits
  • Order type limitation
  • Exchange management limitation
  • Cash limits
  • Initial and variation margins
  • Currency conversion
  • External fills
  • Ability to cancel live orders 
  • Simple buying power display

Define Risk Limits & Other Risk Parameters 

SARA is used to control a customer’s entitlements and limits. User permissions are defined via SARA, which specify the order types a user can apply, as well as the products they can access. Additionally, risk limits are defined within SARA along with appropriate threshold values for issuing alerts. System configuration is also controlled through SARA, including system currency settings and password controls. SARA allows the administrator to monitor the system state, for example, the operating state of specific exchanges, as well as defining the set of order types available for a given exchange. Accounts can be created and trading activity monitored, as well as the risk status of all active accounts. Standard reports on Users, Risk Limits in place and contracts available for trading per exchange are also available within SARA.

The SARA application provides you with the ability to set individual SARA management rights to separate groups within your infrastructure, allowing the individual administrators to manage their own segment of users.