Reset

Risk mitigation services

A sophisticated and bespoke risk mitigation solution, RESET is the most advanced matching engine on the market.

Advanced risk mitigation services

For more than 20 years, RESET has delivered innovative solutions for the challenges of managing basis risk in trading portfolios. We focus on the second order risks that result from the structure of the instruments traded or the accumulation of imbalanced exposures over time. Our specialists have direct trading experience in multiple markets, allowing us to help you solve the wide variety of needs beyond simply accessing a very deep—and network efficient—global liquidity pool.

Innovative optimization techniques

Based upon strong sector expertise and extensive client engagement we have developed a state-of-the-art matching engine which allows traders to execute FRA and SPS deals in order to help reduce their fixing or strike risk. Traders can choose the matching criteria and restrictions that determine the combination of offsetting trades. Our expert risk specialists can also develop bespoke matching solutions where needed.

Matching capabilities

Our matching engine allows you to reduce risk for your OTC derivatives portfolios.

FRA/SPS matching

Mitigate fixing risk in interest rate swap portfolios with new FRA/SPS deals, all at pre-determined mid-market levels. Trades are executed overnight to access a global liquidity pool. Results are market neutral with no outright risk and in major currencies any curve risk offset with three month IMM hedges.

FRA/SPS

CHF
CZK
DKK
EUR

HUF
ILS
NOK
PLN

GBP
RUB
SEK
USD

AUD
CAD
CNY NDIRS
HKD

JPY
KRW
MXN

MYR NDIRS

NZD
SGD
THB

ZAR

Matching for non-deliverable forwards

Offset your fixing risk in non-deliverable forward portfolios. Generate notional neutral, multilateral switches that adhere to pre-defined criteria at a preset mid-market curve.

NDF

ARS
BRL
CLP
CNY

COP
IDR
INR
KRW

MYR
PEN
PHP
RUB

TWD

Inflation matching

Matching runs held in all inflation products based on monthly fixes out 10 years. Results are market neutral with no outright risk and are executed at pre-determined mid-market levels.

INF

EUR FR CPI
EUR HICPXT

GBP UK RPI
USD US CPI

Basis swap matching

Offset term basis risk with new basis trades, either outright, with duration neutral spreads or butterflies out 50 years. Trades are executed overnight and at pre-determined mid-market levels.

BASIS SWAPS

EUR
GBP
JPY

USD

Option matching

Anonymously pool liquidity to mitigate the Net Open Strike Risk in your portfolios. Reduce strike risk ahead of expiries while maintaining control over your resulting risk profile, using an extensive range of pre-trade controls. Trade sessions are completed in less than two hours with clients receiving a gamma neutral and delta-hedged package of trades.

OPT

EUR/USD
GBP/USD
USD/CNH

USD/JPY

Features and benefits

Maximize liquidity

Trades executed overnight to maximize liquidity.

Market neutral

All results are market neutral with no outright risk.

Curve risk offset

In major currencies, curve risk offset with 3m IMM hedges.

Accurate midmarket curve

All trades executed at RESET’s mid-market curve that is published in advance.

More control

Traders control matching criteria and restrictions.

Orders submitted online

Submit orders via secure online platform, the RESET Portal.

How it works

1

Portfolio spreadsheet sent

Run opened in RESET portal and portfolio spreadsheet is sent to customers.

2

Traders submit their matching positions

Traders fill in their positions, matching options and credit limits, then submit to RESET before cut-off. 

3

Reset evaluates the positions

Using our proprietary algorithm and multi-year risk management expertise, RESET matches positions.

4

Trade results sent

Reset sends trade results back to participants and confirmations are sent to the back office.

Contact a Reset expert

We’re here to help you configure our services to work for you.

Need technical support? Contact us

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