Implementing RMS
The RMS is responsible for assessing and managing the risks associated with trading activities. An effective RMS ensures that the trading activities align with the firm’s risk tolerance and comply with regulatory requirements. It provides the real-time monitoring of risk metrics, performs pre-trade risk checks, and conducts post-trade analysis.
The RMS is designed as a modular system, allowing for scalability and ease of maintenance. It is integrated with the OMS and the EMS to receive and process order and position data. The RMS also connects to the messaging hub to ingest and preprocess market data for the cases where it needs to calculate exposures and current prices.
It also comprises several components, each responsible for a specific function:
