At the start of the day before trading begins, Portfolio Managers (PM’s) analyse the room available for derivatives across their portfolio. This critical check helps each PM gain an understanding of their market positions, develop their trading strategy and set a focus for the day. Despite being a near universal task, this fundamental bearing is often missing an accurate and timely input from the Compliance team due to the different inputs required and the complexity of portfolios that hold positions traded on various exchanges around the globe.
FundApps’ Position Limits service helps clients seamlessly bridge this gap by automating the feed of information between Compliance Managers and Traders with Room-In-A-Name (RIAN), showing how much can be traded (“Room”) in a contract (“Name”) before reaching the position limit imposed by the exchange.
Screenshot of the Room-In-A-Name functionality in our automated Position Limits service
With the data available in the service, FundApps provides clients daily insight into current positions, upcoming exchange limits, contract months and a full breakdown at individual instrument level. Even in complex cases where there may be two or more different instruments (e.g. a mini and a full-sized future) that are aggregated together in the result, users do not need to spend hours undertaking disaggregation calculations.
Carol Cardoso, Product Manager for FundApps Position Limits commented: “this powerful new feature, which connects Portfolio Managers with Compliance teams is surprisingly unique on the market when it comes to Position Limit monitoring solutions. Our report will not only speed up daily processes for our clients but will give your front office powerful information to start off the day! As the Rolling Stones once famously quipped, ‘you can't always get what you want; but if you try sometimes, you just might find; you get what you need'.”
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