K3 for Trading
Position Limits
The Peak Standard for Position Limit Calculations
BroadPeak’s position limits module is your go-to solution for managing the complexities of trading position limits with ease, ensuring compliance across varying exchanges and regulatory regimes.
K3’s connectivity to both C/ETRMs and to exchanges enables accurate measurement of position limits in real time.
Why is it so difficult to cleanly tackle position limits?
Position limits are often denominated in an exchange-defined delta, which likely differs from the definition of delta used internally by your risk team. BroadPeak is able to ensure your compliance by measuring your positions in the same terms as regulators in exchanges.
Position limits are typically categorized differently than your internal trading books. To make them mutually comparable, BroadPeak can convert your book structure to that of the authority that’s setting the limits.
Position limits can differ depending on where you are in the lifecycle of a contract position. BroadPeak is able to handle the highly-complex logic of diminishing contracts.
Spot month limits can differ from limits further out the curve and are difficult to track because of complex calendars utilized by exchanges. BroadPeak gives you the tools to do this efficiently.
K3 streams real-time data, calculating and displaying the results in an intuitive and user-friendly dashboard. Backed by exchange data directly from the cloud, our solution offers interactive visual reports for clear, reliable, timely insights.
Benefits:
Compliance Made Easy:
Measure positions in the same way as regulators and exchanges, ensuring compliance across varying regulatory regimes. This reduces the risk of regulatory breaches and potential fines.
Monitoring and Alerts:
Receive alerts on your position vs. prescribed limits by accessing your data through our web limits interface or editable desktop reports, compatible with any business intelligence tool. Additional reports such as position vs. open interest are also available, leveraging our extensive data set.
Interoperability:
All K3 modules are designed from the outset to work with your existing systems and to integrate with future changes to exchange output.