Credit risk management
Manage credit limits in real-time across asset classes and streamline the process of managing legal agreements, using our documentation service.
Effectively monitor credit limits and increase credit transparency
Manage pre- and post-trade credit checks, and monitor credit utilization across Equities, FX, IRS and CDS. Meet transparency and limit monitoring requirements in an evolving regulatory environment. Achieve complete lifecycle management for legal documents, available for multiple legal agreement types and multi-party approval.
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Monitor credit exposure, reduce risk and manage limits in one repository
Check credit for orders and trades pre- or post- execution and reduce risk with automatically set kill switches. Receive credit alerts when limits are breached, and manage legal agreements and hold limits governing relationships. Reduce overallocation to execution venues while maximizing trading activity by dynamically rebalancing limits.
A post-trade community of thousands of counterparties, all on one network
Features and benefits
FX prime brokerage
Control the credit amount allocated to clients from one credit-checking tool. Prime brokerage limit management can be centralized and viewed in one interface.
Pre-trade limit checking enables participants trading OTC derivatives and their clearing brokers to comply with pre-trade credit requirement before entering into trades. Pre-clearing limit checking enables clearing brokers to credit check and approve their clients’ OTC equity trade flow for clearing.
Kill switches and rebalancer
Kill switches allow credit providers to disable clients from trading on execution venues in real time. Our Kill switch reconciliation tool is an ‘add-on’ to the kill switch service which allows customers to reconcile and raise breaks in kill codes between CreditLink and ECNs. The rebalancer tool enables credit providers to reduce the over-allocation of credit by dynamically rebalancing available credit across trading venues.
Market participants are given fully visibility over credit use, making trade credit risk more transparent.
More transparency for credit risk
We have flexible solutions for meeting regulatory requirements for transparency and limit monitoring.
Our credit services enable credit providers to dynamically distribute credit in real time to where the client trades, reducing credit overallocation. Pre-and post-trade alerts notify market participants where credit limits may be breached.
Credit providers can disable client’s trading activity on ECNs at the flick of a switch using our limit service. Switches can be set to apply automatically where clients exceed their allocated credit limits, significantly reducing risk in the FX markets. Additionally, our kill switch reconciliation tool allows credit providers to reconcile kill codes between CreditLink platform and ECNs.
Credit providers can distribute limits dynamically to reduce the overallocation sent to individual venues while maximizing trading. This technology recognizes offsetting trades across venues, to free additional client credit.
Having addressed common documentation industry challenges, our documentation service is comprised of three core components: flexible document creation across multiple legal agreement types, multi-party negotiation for faster time to market delivery, and complete lifecycle management.
How it works
Documentation service (DNM)
DNM streamlines creating, monitoring, amending and terminating legal agreements. Designation notices hold limits governing the relationships and enable tri-party relationships between FXPB, dealers and client.
LimitHub connects to all regulated venues and CCPs, and performs OTC Clearing pre- and post-trade limit checking, which solves the fragmentation issue as all limit checks are centrally performed.
Recently launched Equity Limithub enables clearing brokers to approve clients’ OTC equity trade flow for clearing. The new limit monitoring service allows more clients that currently settle their trades bilaterally to join Traiana’s CCP network.
Prime and executing brokers manage clients’ credit exposure through overall limits and ‘liquidity limits’ for FX products, including real-time monitoring with position calculation and utilization management.
Kill switches and rebalancer
Kill switches, the kill switch reconciliation tool and rebalancer provide active limit management, allowing prime brokers to stop clients from trading, and dynamically or manually distribute limits across executing venues.
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