RISK SOLUTIONS - FAQ
Frequently Asked Questions
1. WHAT IS RISK AND WHY SHOULD I BE WORRIED ABOUT IT?
While it’s true that ‘risk’ can encompass both positive and negative outcomes, when discussing brokerage it usually refers mainly to negative factors. Risks for brokers mainly involve problems like overexposure, unexpected profits for clients on the b-book, regulatory changes, major political and/or economic events leading to volatility and various other events.
The primary role of any risk manager or risk managing team is to reduce the impact of these events. Before a major election, for example, a risk manager might decide to increase the margins required for currencies likely to be affected. Risk management also usually involves offsetting the transactions of clients on the a-book. There are a host of factors to consider but the central goal of managing risk is to prevent losses and optimise revenue.
2. HOW DOES INFLYX MANAGE RISK FOR ITS CLIENTS?
INFLYX’s risk management essentially fills the roles of both a dealing department and a risk managing team in one. This means that INFLYX’s risk managers monitor your clients’ transactions and more generally events in markets, making decisions on how to act where needed.
Where an action is required – such as increasing the margin for an instrument likely to face volatility in the near future – our risk managers contact you explaining the circumstances and recommending steps to be taken. The process is very much collaborative.
3. HOW DO I ONBOARD MY COMPANY?
All you need to do is complete the contact form at the end of this page and INFLYX’s team will contact you. We’re trying to determine your requirements as precisely as possible so that we can meet them to the best of our ability. Then you should fill in some standard informational documents that are a regulatory requirement. After this, your risk manager will explain the straightforward onboarding process: this is handled entirely by us with the full information passed to you. It usually takes a few hours to start after you’ve completed the required documents.
4. HOW TRANSPARENT ARE YOU DEALING AND RISK OPERATIONS?
Transparent in every way possible. You have real-time access to any and every set of relevant data and you can talk to a risk manager at any time you wish 24/5. All of the information used to make decisions can be passed directly to you, so you’re always in the loop and fully understand what is happening at all times.
5. ARE THERE ANY RESTRICTIONS ON THE INSTRUMENTS INVOLVED?
None at all. INFLYX can manage the possible risks involved in any of the symbols we offer: our team has many years of experience managing risk for a range of different institutions, from small brokers to major international banks.
6. CAN I COMBINE RISK MANAGEMENT WITH GENERAL LIQUIDITY SERVICES?
Yes, of course. Indeed, this is something that INFLYX intends, particularly for smaller and newer brokers, because it makes the process of setting up your brokerage much simpler and less stressful than it might be otherwise. For more established brokers as well, though, INFLYX’s services in liquidity and risk are designed to be a complete and fully customisable package, with both of the main aspects of our offering being perfect partners.
6. TO WHAT EXTENT IS RISK MANAGEMENT A COMMUNICATIVE EXERCISE?
This depends on your requirements, but in general communication is a key in successful risk management. This is due to the need to create an effective risk culture within an organisation: every party should understand the goals, concerns and comments of every other party for a genuine and functional risk culture to be developed.
SOLUTIONS TAILORED TO YOUR PROBLEMS
Our state of the art platform and expert market knowledge give us the ability to customize solutions according to your needs.