Reset provides its signature risk mitigation service across a wide range of asset classes, financial products and currencies. We have a generic approach which is consistent across these and illustrated below.
How we operate
How we operate in detail
We provide a preset mid market curve (there is no bid/offer spread) with prices for every potential tradeable point.
These are the prices at which all participants will trade if liquidity and individual matching criteria allow.
The curve is a snapshot of the market determined from observable prices and consensus indications from market participants.
All potential participants receive the prices before executing any trades.
The service allows only market neutral transactions. Every buy must be offset by an equal and opposite sell (approximate risk weighted).
Every trader can individually select from a number of standard matching criteria and restrictions that determine which combinations of offsetting trades can be done from the full set of positions submitted to the service. Each selected criteria or restriction is incorporated into the algorithmic solution.
The service is only run periodically (not daily or live). For example in liquid currencies such as USD it is run weekly every Monday.
Traders submit portfolios during the submission window and execution only occurs once all the data has been collected and the matching algorithm run on the full data set. (often an overnight process).
Each clients identified “solution” (a multilateral contingent package of trades) is executed and processed through market standard infrastructure.
