Institutional Grade Risk Management Solutions
for Foreign Exchange Brokers and Banks

Today's growing Foreign Exchange markets are creating new opportunities, but also new
challenges. There is now much higher demand for risk management, transparency, compliance,
and reporting. In order to protect their interests and the interests of key counterparties, brokers
and banks must be able to effectively manage risk.

R3 Analytics can help. Our integrated analytics engine tracks risk through advanced account
indexing and real time A/B/C Book monitoring. This cost-efficient service can help you effectively
identify, quantify, and manage your risk exposures.

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Multiple views of risk in a comprehensive
risk optimisation system

Our proprietary risk analysis, indexing and optimisation system provides effective
risk management strategies for dealing desk or hybrid STP/ECN brokers.

The Indexing
System

R 3 quantifies the probability of future risk by taking into
account the most important measurements of risk including
VaR, Maximum Drawdowns, Heavy Tail Risk, and Alpha Stable Distributions. This system also detects whether risky trading strategies like scalping, Martingale, and trend following are
being used and builds that information into optimised
risk management strategies.

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Strategy Optimisation

By processing all your accounts daily or in real-time, the analytics engine efficiently sorts your accounts into defined risk bands. Accounts in lower risk bands are associated with lower risk to the firm while accounts associated with high risk bands represent higher risk to the firm and are rigorously managed for strategy optimisation. Furthermore, each strategy can be optimised based on the firm's risk preferences. This categorical approach to A/B Book management outperforms conventional metrics.

Monitor

Risk modelling, monitoring and management
for superior control over risk

To meet the demands for greater transparency, risk management and reporting, R3 provides a system that is capable of:

  • Consolidating your books across multiple trade servers into a single view
  • Calculating the VaR of individual accounts or across a book of accounts
  • Conducting risk stress testing, shock testing and stress limit monitoring
  • Modelling historical and future risk expectancies

This comprehensive risk management suite allows you to not only generate reports of risk exposures, but also optimises your risk models granting greater control over your risk management.

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Cloud hosting

Easy integration through
cloud hosting

As a cloud hosted software solution, R3 seamlessly integrates itself with your broking configuration via leading trade servers, such as MetaTrader.

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Multilayered

Multilayered risk analytics engine

At the core of R3 is a, multilayered algorithmic engine built upon a foundation of institutional grade
asset management risk, return and probability metrics.

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Performs in depth account balance, deposit/withdrawal patterns, account longevity, commission, leverage, exposures, margin utilisation, volume and activity analysis.

General Measures

Generates industry standard return metrics to build a return profile including rolling VADI, total profit/loss outcomes, profit factors, return volatility, floating return and return expectancy analysis.

Return Measures

Quantifies risk by evaluating actual and possible outcomes including stress events. These tools are critical for identifying risks such as downside risk, overleveraging, drawdown biases, fat tail strategies and negatively skewed return distributions.

Risk Measures

Analyses the performance of an account by assessing returns relative to each unit of risk undertaken. Such adjusted measures allow you to determine if accounts are above or below optimal risk levels.

Risk-Adjusted Measures

Tracking of individual accounts allows for comprehensive analysis of trading measures pertaining to performance. These measures include consecutive days profit/loss, profit factor, Martingale usage ratio, trade frequency, trade duration, optimal exit ratio and contribution to optimised strategies.

Trade Measures

BIG DATA OVERLAY

Utilising the latest decision tree learning algorithms, our proprietary big data overlay scans and monitors large quantities of data, across tens of thousands of accounts, to identify dominant behavioural trading patterns. The system then constructs models that predict the value of target variables based on several input variables, thereby providing statistical insights into possible outcomes.

Solution

Business Solutions

R3 Analytics can also connect you with leading
business solutions for brokers:

  • Bridges
  • FIX Connection
  • Liquidity Providers
  • Outsourced Risk Book Management
  • Order Routing Management
Outsourced Risk Book Management Desk

Outsourced Risk Management Desk

Utilising our leading-edge technologies and expertise, R3 Analytics offers a service where we manage your firm's risk book, allowing you the freedom to focus your efforts on your core businesses.

Clients of this service benefit from the best return for risk in the industry. Our proprietary technology allows us to construct and optimise complex custom A/B/C Books and route trade orders according to their designated risk allocations. This affords our clients the advantage of reducing costs associated with implementing and maintaining the technology required to execute such a robust A/B/C Book management system.

In addition, clients benefit from:

  • Complete access to the R3 Risk Analytics suite
  • Full P/L Transparency
  • Opportunities to reduce overall exposure through bespoke risk sharing solutions

R3 Analytics is committed to ensuring it acts with uncompromising integrity at all times. Contact us for further information.

FX Data Lab

FX Data Lab

FX Data Lab is the data science division of R3 Analytics that employs computer science, modelling, statistics, analytics, and mathematics using automated methods that analyse data and extract trading insights and intelligence.

At its core, FX Data Lab uses automated methods to analyse massive volumes of data by combining varying degrees of statistics, applied mathematics, data visualization, computer programming, data mining, machine learning and database engineering.

Through this analysis, FX Data Lab gains new insights and discoveries. These valuable insights can reveal previously unseen trading trends, sentiments and intelligence that can be applied for better, faster and more effective decision making. Contact us for further information.

FX Data Lab

Institutional Liquidity

R3 Analytics can offer you competitive custom tailored streams sourced from bank and non-bank liquidity. Connection options include FIX, MT4 bridge and an institutional GUI.

Our clients range from MT4 brokers to large hedge funds. Contact us for further information.

Outsourced Risk Book Management Desk

About R3 Analytics

At R³ Analytics, we believe that prudent risk management is vital to achieving a firm’s financial goals in the most efficient and accurate way possible. Further, advances in computing technology have seen the emergence of more sophisticated and integrated risk systems that can be of benefit to foreign exchange brokers.

In an effort to provide an effective risk management solution to the constantly evolving foreign exchange broking industry, R3 Analytics has used this view to develop our multilayered risk analytics engine so that our clients may experience greater operational solidarity and efficient growth of their bottom line.

R3 Analytics was developed by an in house team of Quantitative Mathematicians and Programmers. In 2013, we were nominated by Forex Magnates for most innovative Financial Product across the globe. We are an independent company that puts the needs of our clients above all other goals.

Careers

Careers

Interested in a career with R3 Analytics? We are always searching for talented people to join our team.

Developers

Ideal candidates that we lookout for will have:

  • A keen mind for algorithmic problem solving
  • Passion for elegant and efficient code

Contact Us

R3 Analytics

Address
Level 2, 11 York Street
Sydney NSW 2000
Australia

Email
solutions@r3analytics.com

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