Compared to the traditional market making model, VPBS beliefs in Hybrid Risk Management. A mature risk management strategy allows the brokerage to minimize the risk and maximize their potential gains at the same time. Our team comes from all around the world, bringing the real and true complete risk solution to the market.
In our opinion on risk management, we belief:
24 hours dealing desk monitoring, perfect if a complete automated hedging system is in place.
Never interfere or manipulate trades, rather to focus on “how to hedge” to diversify your risk to the market.
Put close monitoring on your cash flow and adopt strict measurement to evaluate your risk tolerance level from time to time, in order to define the optimum risk strategy.
Keep close attention to big market news and make risk hypothesis in a regular basis. Make changes on trading condition if necessary.
Equip with solid knowledge and relationship with liquidity provider, in order to avoid anything unexpected to occur.
Centroid Risk System
VPBS is pound to be an official partner of Centroid, bringing the top-notch system to the Asia market. Headquartered in Dubai, Centroid carries more than 10 years of experience in the risk territory. Centroid is supporting more than 35 brokerage in the world with their world class risk solution.
Centroid Risk System is built based on the requirement of tier 1 global brokerage in the world. , It helps brokerage firm to maximize profit while maintaining a fair and transparent environment at the same time. Risk can be always controlled below the tolerance level as well. We highly believe a fair trading environment is the key to long term success to a brokerage business.
Below are the unique advantages of Centroid Risk System:
Live Automated A/B/C Book hedging system
Var big data analysis
A Book monitoring
Via Centroid Risk, You are able to define more than 20 client risk profile, and create trigger Book change trigger action automatically. You can also define risk level based on the risk profile to further categorize the risk level of your customers.
Real-time Value at Risk (with 95% & 99% confidence intervals) computing at portfolio level, asset class level, and per instrument based on 15 years historical simulation method
VaR analysis (Highest VaR, Lowest VaR, Average VaR for 5 days and 22 days trailing)
A-Book positions reconciliation, trading volume (in lots & notional), STP volume (Size and % of overall volume), open interest with liquidity providers, A-Book P/L (in pips and USD), revenue per contract per instrument for A-Book, and average markup per instrument
A-Book execution analysis, average slippage per instrument per trade size bracket (5 trade size brackets)
Large slippage analysis, alerts for orders exceeding a predefined acceptable slippage limit
Real-time daily closed positions and limit orders
Positions and orders excel extract
Revolutionary real-time portfolio stress-test engine for price gap scenario using preset price percent move for either a selection of instruments or all instruments
It forecasts client’s negative balances, company P/L, company net positions, triggered orders (take profit, stop loss, buy limit, buy stop, sell limit, sell stop, and margin stop out) per instrument and for the portfolio. The forecast is performed on two cases for the same price gap percentage move (in favor and against the company pre-gap net position for each instrument)
VP Business Solutions offers in house risk management outsourcing to our client. Our team comes from different continents with years of experience in the industry. We bring in global insight and adopt it to your local business, offering one of the most competitive risk management outsourcing solution in the market.
In additional to our risk experience, we have deep relations with the major liquidity providers all over the world, bringing you the first hand insight of what the market is happening, to assist you to adopt the right strategy at the ever changing industrial landscape.
You are NOT required to purchase additional risk solution by choosing VPBS Risk outsourcing services. Our team has in depth experience in mastering the majority of bridge system in the market. We are able to adopt the use of your bridge immediately without any learning curve.
A rough guideline on VPBS Risk Outsourcing procedures
1) A kick-off call to understand your needs and goals, in order to define the necessary functions and parameters for your risk startegy.
2) We would then build an aggregated bridge to synchronize data across your trading system (eg. MT4/MT5/ cTrader) for preparation.
3) Bridge testing, to make sure everything functions normal.
4) Start handover the right of control.
5) Our customer can monitor our performance anytime and communicate with us if they need any further modification. In additional to this, we would deliver a detailed monthly report for our customer to understand what has been gone through during the previous month.