A comprehensive risk management solution for a global trading firm, designed by risk management experts from Wall Street and developed by leading experts in AI/ML
EagleAi TradeWatch Modules
This module detects if there are any anomalous orders relative to a typical order sent by a client / trader / desk under the current market conditions. This helps identify and mitigate any gaps in the primary limit control systems mandated by most regulators.
Client Connectivity Risk
A trading firm is not only exposed to risk of anomalies in its own environment but also are exposed to anomalies caused by their client's environment. Many trading firms have faced severe outages running for hours to resolve due to bad orders coming from one of the clients. These outages caused by one client tend to impact other clients of the firm as well. This EagleAi module models the patterns of orders coming from clients in real-time and alerts if there are significant deviations from any of the clients' order flows.
Any trading firm is sensitive to market data feeds and its quality. Even a single anomaly in market data could make a trading firm lose millions of dollars. Sometimes, anomalous movement of a stock could be used as an opportunity by trading firms. This EagleAi module uncovers anomalous market data elements in market data feed in real-time and sends signals if any anomalies were detected. This signals could be used by a firm to handle these anomalies appropriately.
Asset holdings and positions held at a trading firm have a risk exposure that needs to be managed. The value of these positions are sensitive to various factors and market movements. This EagleAi module maps out the sensitivity of a trading account's positions to various quantitative factor models (a la Fama French factors) and various greeks (in case of options). If there are any anomalies detected, it sends a timely alert to the risk managers so that they can investigate further and resolve the issues.
Every year, many firms are getting fined by global financial regulators for millions of dollars for various levels of non-compliance. Firms can have a peace of mind with this EagleAi module as it covers quite an array of global compliance rules for trading, and detects patterns of order flows and maps it to specific compliance rules. If it detects an anomaly in any of these patterns, it sends signals to the compliance manager to investigate further and resolve.
Trade Fraud Risk
It is a serious regulatory violation if a firm does not have enough oversight on trading to prevent fraudulent trading patterns such as Spoofing, Layering, Front Running etc within a trading firm. This EagleAi module detects patterns that looks very suspicious of such fraudulent trading patterns and alerts the risk managers. This module can save millions of dollars of fine usually levied by regulators as well as prevent any reputational damages.
Benefits of EagleAi TradeWatch
1 Self-learning AI Engine
There are no rules in EagleAi to be configured for clients/traders/accounts. EagleAi just needs data to be supplied from any of the sources such as pubsub, database, log files etc.
2 Functionalities and Customization
EagleAi TradeWatch comes loaded with functionalities such as regulatory rules for various global exchanges and common fraudulent trading patterns. Firms can choose to enable/disable functionalities and modules in EagleAi based on their needs
3 Can be used as both a 1st and 2nd Line of Defense tool
EagleAi TradeWatch can be used as both a 1st line of defense tool (as second pair of eyes for 1st line teams) as well as a tool for 2nd line of defense / audit purposes.
4 Services and Support
EagleAi LLC offers consulting and support services to its clients. In addition to this, EagleAi LLC has teamed up with a network of major implementation partners with existing relationships with major firms to deploy and support the product.
5 Very easy deployment
It's easy to deploy EagleAi without any disturbance/integration with existing systems. EagleAi can get data passively from transactional log files or from database or pubsub sources. It's easy to deploy EagleAi in a new environment within a few days.
6 Available in both Cloud and On-prem versions
EagleAi is available both as an on-prem as well as cloud solution on AWS/GCE/Azure.
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EagleAi LLC is a wholly owned subsidiary of Quantel Ai, Inc.