Structured Credit Trading

A Fully Integrated Trading Platform
RiskVal’s credit solution is a fully integrated front to back trading system.  The solution can be delivered either through the ready-to-use SaaS architecture (RVCredit), or physically installed in client’s premise (Credit-Enterprise).  This allows for clients to choose the delivery model that is right for the organization. The SaaS model is turnkey and can be very economical for organizations.  Credit Enterprise is often used as a replacement for an in house built system or used side by side with traditional trading systems that do not have the same level of credit analytics.

The solution is integrated with Markit's CDS, LCDS, Credit Index, Index Tranche, RED, Loan, and real-time Quote data for the credit data foundation, as well as an advanced corporate action management function to handle various types of corporate events.

Unlike traditional trading platforms that only provide the trade blotter and trade processing framework, RiskVal’s credit solution also provides a large set of trading analytics and risk management functions to enable trading desks to fully leverage the solution. Below are the highlights of the key trading analytical functions:

    Deal Pricer

      •   Prices TV, Accrue, ATM spread, and spread DV01 for the below products:
          • Single Name CDS, Index, Tranche, Index Option
          • PO Tranche, PO Bespoke
          • Bespoke, NTD
      •   Each pricer can also trigger risk report calculations:
          • Single name risk report
          • Scenario risk report
          • Interest rate risk report
          • Corr01 risk report (for tranche and bespoke deals)
      •   Traders can share the saved deals with other traders for valuation.

    Single Name vs Corporate bond basis trading analysis

    Index NAV and basis analysis

    Tranche analysis

      • Index and Tranche arbitrage analysis
      • Tranche analysis
      • Equity tranche analysis

    Bespoke management

      • Management tool to construct bespoke deals
      • Valuation and statistical functions for bespoke analysis

 

Advanced SaaS Architecture

RVCredit is designed based on the multi-tiered SaaS (Software as a Service) architecture.  RiskVal hosts servers (Web Server, Database, and Compute Farm) in secure and high performance data centers. Traders only need to run a light weight client application to receive the full power of RVCredit functions. RVCredit is a ready-to-use solution, highly deployable and transportable whenever traders switch locations or hardware. RVCredit normally takes less than 10 minutes to install.   SaaS is a very fast, efficient and economical way to deliver software applications.

Communications between the client side applications and RiskVal servers are based on the Secured Sockets Layer (SSL) for data encryption, which is the industry standard security measure for highly sensitive data transmission.

Trade Blotter for Trade Entry and Valuation

The RiskVal Credit solution provides trade blotter functionality which is far more than just traditional trade entry functions for booking and Straight-Through-Processing (STP) integration. RV Credit also offers live valuation and P/L functions that allow traders to monitor the P/L of  all new trades.  Below are the credit products which are currently covered:

      • Credit main and sub Indices (CDX and iTraxx)
      • Index Options
      • Single names (CDS, LCDS) spread and up-front
      • LCDX, LCDS and Loan
      • Tranches CDO (standard, PO), hybrid CDO(Main+XO)
      • Swap, Treasury
      • NTD CDO, bespoke CDO
      • FX

Straight-Through-Processing (STP) Trade Processing

RVCredit  is integrated with Markit’s MTP/DTCC  service for trade confirmation and settlement process.  RVCredit’s trade processing supports the “cancel”, “correction, “unwind”, and “novation” events to handle complex trade activities. Furthermore, RVCredit provides a Trade Activity Monitor to report the trade status throughout the trade processing cycle such that the trader or middle office can take action if there are any issues with trade processing.

Advanced features of the RVCredit ’s trade processing include support for entire trade strategies and sub-strategies for “cancel”, “correction, “unwind”, and “novation."  For every trade,  RVFI provides a robust  trade import/export API to integrate with client’s in-house back-office book/record systems.