Trading Technologies has rolled out a new risk management tool that lets futures commission merchants better monitor client positions before trades hit the market.

The Chicago-based technology firm announced Pre-Trade Portfolio Risk for its TT platform at the FIA IDX conference in London today (Tuesday). The feature calculates a client's worst-case margin requirements in real-time, helping firms decide whether customers have enough buying power to execute trades.

Trading Technologies Adds Pre-Trade Risk Controls to Platform

The tool stands out because it uses the same risk calculations that clearing houses employ. This gives FCMs a more accurate picture of client exposure compared to traditional pre-trade checks that might miss portfolio-level risks.

"This is a significant step forward in managing risk that will allow a wider range of users to benefit from the award-winning trading features available on the TT platform," said Alun Green, executive vice president and managing director of futures and options at Trading Technologies.

"Users will easily be able to see how much margin has been consumed by their existing portfolio and how much buying power remains for trading."

The system works across more than 20 major derivatives exchanges and supports various risk models including SPAN, PRISMA, and value-at-risk calculations. It pulls risk parameter files directly from exchanges to ensure calculations reflect current market conditions.

Two weeks ago, the company also enabled client access to GFO-X, the UK’s regulated and centrally cleared digital asset derivatives exchange, following the platform’s official launch.

Platform Growth

Trading Technologies processed over 2.8 billion derivatives transactions in 2024 on its platform, which serves banks, hedge funds, money managers and other institutional traders. The company has also changed its CEO few months ago when Justin Llewellyn-Jones was appointed as the new leader, replacing Keith Todd.

The new risk feature addresses a common challenge in derivatives trading where firms need to balance client access with prudent risk management. By replicating clearing house methodologies, the tool aims to give FCMs confidence to approve more trades while maintaining appropriate safeguards.

In the meantime, the company has integrated its systems with EBS Market, the central limit order book (CLOB) operated by CME Group. This connection allows users of Trading Technologies' execution management system (EMS) to access trading in spot foreign exchange, precious metals, and non-deliverable forwards (NDFs). EBS Market provides regulated, anonymous, all-to-all trade matching.

Trading Technologies operates as a software-as-a-service provider, offering trading technology across multiple asset classes including futures, options, fixed income, foreign exchange and cryptocurrencies. The company also provides data analytics, compliance tools and post-trade services to institutional clients globally.