GreySpark - The Best Practices in Pre-Trade Risk Controls 2016
The Best Practices in Pre-Trade Risk Controls 2016 assesses the ongoing challenges that increasingly complex electronic execution systems pose to the healthy functioning of capital markets. In 2016, the capital markets industry is undergoing rapid change as the use of Sell-side hybrid agency/principal trading models for fixed income and FX markets grows. It has therefore become necessary to establish a series of best practices for Sell-side capital markets agency and principal flow businesses to utilise when designing and implementing pre-trade risk controls.
GreySpark Partners has additionally identified a drastic industry shift in the standardisation of access to the infrastructure and e-trading technology used across multiple different trading venues. Consistent operational and governing processes that prevent against risk in the form of human or technological error must be established to further combat risk. This report provides Buy-side and Sell-side market-makers with the awareness and know-how necessary to remain a step ahead of market competitors and regulators in the attempt to develop a string of pre-trade risk controls.