Credits checking is a priority for all trading organistions to ensure limits are not exceeded. Anvil Software has developed real-time credit checking functionality for the Anvil Repo and Securities Finance Trading System (ARTS). Real-time credit updates in ARTS means busy traders don’t lose any time checking limits – and trades aren’t done that will break limits.
Credit checking in ARTS means:
·Traders can perform "what if" analysis to find out if a trade would break any limits if executed.
·Traders and the credit department know when a credit limit is exceeded as soon as a trade is entered. Traders are the presented with a Limit Exceeded Screen, which can be over-ridden with a unique authorisation code from the person who sanctioned the breach.
·A full audit report is produced, tracking exceeded credit limits.
·Limits (and checking) are done on a global basis, and there are several configurable limit type options.
Malcolm Clark, Director and Strategist at Anvil says: "Real-time credit checking is key to any trading entity particularly those who deal in large volumes and have global operations. Speed is also a factor. Deals can be lost while on the phone trying to determine your limits and current exposure if you don’t have ARTS and the real-time credit process. ARTS handles portfolio trades, such as money fill repos or basket securities lending trades: the credit exposure of each piece is summed to give a single exposure for the portfolio trade."