Wed Jun 13, 2018
In the wake of the ESMA ruling to reduce leverage and particularly to limit customer risk, many brokers are correctly becoming aware of potential problems with regard to meeting their capital adequacy requirements post 01 Aug. This is because their ICAAP will need to be re written (and adhered to) in order to reflect these changes.
This means that 125k STP brokers are faced with a dilemma : Either substantially increase their capitalization to conform with their ICAAP or upgrade their license to become a full scope 730k market maker firm.
Recently we’ve spoken with many brokers looking to upgrade their license seeking assistance from Forexware regarding our risk management tools. In order to upgrade a license the broker must prove that it can meet enhanced risk management requirements. Forexware provides risk management solutions that enable brokers to meet these stipulations. Our “Full Dealer” package offers solutions that reduce market, counterparty and liquidity risk. These tools will give brokers dynamic risk profiles across multiple platforms and liquidity streams. This is a statutory requirement of the regulator so that CRR and PRR can be immediately calculated. Our reporting tools provide full transparency which end user clients appreciate and regulators demand.
Although these requirements are paramount to brokers looking to upgrade, Forexware suite of risk tools will also assist brokers from the former category.
Contact [email protected] for further information and assistance.