Thomson Reuters Matching launches net credit calculation and trading controls to enable banks to manage operational risks and set more effective credit lines to meet their needs
Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, has announced to prime broker banks the launch of new risk controls and net credit functionality for users of Thomson Reuters Matching. These will enable banks to set and gauge credit against their trading counterparties, and prime brokers against their end clients, creating greater efficiencies and the optimal use of credit on the Matching platform.
The new net credit functionality of Thomson Reuters Matching enables banks to set effective credit limits for their clients and counterparties that reduce risk and support current trading styles and requirements. Currently, banks can set only gross credit limits that do not represent the true credit risk.
“Every business is prioritizing the need to make its money work smarter,” said Phil Weisberg, global head of FX, Thomson Reuters. “With net credit, banks can benefit right away from more efficient credit usage and draw down. These changes allow them to continue to trade with confidence at a time when firms and the markets where they operate are focusing on operational risk and controls. That is good news for banks and for their end clients.”
The new functionality provides further safeguards for banks and their clients: Maximum Order Size protects against erroneous large trades; Maximum Open Orders limits the number of resting orders (and so the maximum exposure) a client can have in the market at any one time from open orders; and further controls configure which currencies a counterparty can trade with the bank. Prime broker banks will now also have an enhanced programmatic kill switch to terminate trading of any of their clients.
These new features have been beta-tested with a small number of prime broker banks during August and September, including J.P. Morgan and Citi.
Following the successful beta tests these features are available now to all prime broker banks and will be available shortly to all Thomson Reuters Matching clients.