Fixed Income Trading

An Innovative Real-Time Trading Platform
RiskVal Fixed Income (RVFI) system is a real-time sales / trading system which is uniquely designed to integrate trading analytics with real-time market data for trading desks.   Traders can utilize RVFI for market monitoring, pre-trade analysis, and strategy monetization. 

The advanced features of RVFI include:

    Global Market Monitor

    •   G7 Fixed Income market monitor which covers bonds, swaps, swap spreads, bond futures, ED$ futures, asset swap spreads, volatilities, and curve spreads.
    •   Bond future CTD basis and spot/forward asset swap spread monitor.
    •   Mortgage Agency bond and TBA monitor with performance analysis.
    •   Treasure and Swap curves spread and butterfly monitor.
    •   Intraday vs Historical graphs for curve monitor/analysis.

    Asset swap spread analysis

    • Asset swap spread analysis sheet.
    • Swap Box strategy:
      • Allows traders to monetize various kinds of box strategies such as bond vs bond, bond vs future, future vs future, synthetic and spread lock.
    • Ted Box strategy:
      • Future CTD scenario analysis which allows traders to perform various kinds of yield curve shocks to analyze the basis behavior.
    • Future CTD scenario analysis which allows traders to perform various kinds of yield curve shocks to analyze the basis behavior.

    Curve spread analysis

    • Forward swap matrix analysis.
    • Cross currency forward swap matrix analysis.
    • Condition Trading strategy which allows traders to monetize various kinds of spread and butterfly swaption strategies.
    • Conditional Curve Monitor.
    • Listed option strategy analysis.

    2+ Model Relative Value analysis

    • Live 2+ OAS (Option Adjusted Spread)  monitor for G20 bonds and swaps.
    • Strategy analysis with hedge ratio calculation.
    • 10+ years of 2+ OAS history through our Historical Viewer

     

Advanced SaaS Architecture

RVFI is designed based on the multi-tieried SaaS (Software as a Service) architecture.  RiskVal hosts servers (Web Servers, Database, and Compute Farm) in secure,  high performance data centers. Traders only need to run a light weight client application to receive the full power of RVFI functionality. RVFI is a ready-to-use solution, highly deployable and transportable when switching locations or hardware. RVFI can take less than 10 minutes for client installations. SaaS is considered the most efficient and cost effective way to deliver software applications.

Communication between the client application and servers are based on Secured Sockets Layer (SSL) for data encryption, which is the financial industry standard security measure for highly sensitive data transmitting.

Trade Blotter for Trade Entry and Valuation

RVFI’s trade blotter serves more than just traditional trade entry functions for booking and Straight-Through-Processing (STP) integration.  RVFI also offers live valuation and P/L functions so traders can monitor the P/|L of all new trades.  Below are samples of the fixed income products which are currently covered in RVFI:

      • Treasury bonds, Agency bond, Inflation bonds.
      • Repos, payments, money markets.
      • Bond futures, ED$ future, listed options.
      • Vanilla Swaps, OIS swaps, Basis swaps.
      • Swaptions, cap/floors.
      • FX spot, FX forward, and FX option.

Straight-Through-Processing (STP) Trade Processing

RVFI is fully integrated with MarkIT’s MTP/DTCC and GlobeOp’s GoOTC trade process services for trade confirmation and settlement processing.  RVFI’s trade processing supports the “cancel”, “correction, “unwind”, and “novation” events to handle complex trade activities. Furthermore, RVFI provides a Trade Activity Monitor to report the trade status throughout the trade processing cycle.  This allows for early detection by the front and  middle office of any trade processing issues so they can be corrected immediately.

As an example of the high level of functions provided by RVFI, entire trade strategies and sub strategies are also supported by RVFI’s trade processing, including  “cancel”, “correction, “unwind”, and “novation."  For each trade,  RVFI provides the trade import/export API to integrate with client’s in-house back-office book/record systems.