Real-Time Risk: The 60-Second Rule

Real-Time Risk: The 60-Second Rule
21 May 2013:

The CFTC’s 60-second rule requires Futures Commission Merchants to accept or reject a trade within 1 minute, meaning they must run analytics against client portfolios in near real time to determine if they exceed some risk threshold. But that represents a dramatic change for FCMs, which typically have run their risk calculations in nightly batches, says Steven Harrison, President and COO of TS Imagine. Harrison and TABB Group partner Alex Tabb discuss the operational and technical challenges to — and benefits of — performing real-time risk analysis, as well as the shortcomings of the 60-second rule itself.

Interviewer Alex Tabb   Source: TABB TV   Categories: Derivatives, Technology, Regulatory, Fixed Income
Topics: Clearing and settlement, Compliance, Futures, IT governance/infrastructure, Regulations, Swaps, Trading technology infrastructure.


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