Post-Trade Risk Analytics

Post-Trade Risk Analytics (PTRA) is an interactive, web-based platform that gives users a dynamic, global, and quantified representation of post-trade risk exposure.

PTRA builds on Thomas Murray’s risk assessments and post-trade expertise across global markets to provide an indication of the degree of asset safety risk to which a portfolio is exposed. The customised dashboards give an indication, at a point in time, of how c.500 TM rated entities relate to an investment portfolio.

Why is Asset Safety Risk important?

Assets under custody may be lost, or their return delayed, due to the operational or financial failure of a post-trade counterparty or capital market infrastructure. Events such as Lehman Brothers, Madoff and MF Global have highlighted the importance of asset recoverability and portability. Fines imposed by regulators on asset managers and banks are indicative proof that there can be deficiencies in the way assets are held, impacting the recoverability of assets under adverse conditions.

How does PTRA Monitor Asset Safety?

PTRA is based on proprietary TMDS Risk Assessments; the tool draws from the following four risk modules that impact asset safety:

  1. Global Custodian Risk
  2. Direct risks you are exposed to as a consequence of your arrangements with a global custodian bank.

  3. Sub-Custodian Bank Risk
  4. Indirect risks you are exposed to as a consequence of your global custodian’s arrangements with its network of sub-custodian banks.

  5. Financial Market Infrastructure Risk
  6. Indirect risks that you are exposed to as a consequence of the infrastructures (CSDs) involved in the safekeeping, custody and administration of your assets.

  7. Country Risk
  8. Risks that stem from natural and man-made factors that could directly, or indirectly, result in a loss of the principal value of assets.

How does PTRA work?

PTRA extracts the markets of investment from a portfolio to identify the relevant Country and FMI risk components, the Global Custodian is then selected and the underlying network of Sub-Custodian banks is automatically uploaded into the platform. The post-trade risk exposure is then calculated based on the value of assets under custody in each market and the respective TM risk assessments of the underlying risk components.

Product Features

Identify and compare risks in your post-trade network

Clients can utilise the full range of interactive data visualisation to adjust the analysis to their requirements in a series of dynamic online dashboards. Users can view and compare post-trade risk exposures by relevant risk category.

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Users can alter portfolio data and dynamically customise the analysis by selecting different Global Custodians or changing and comparing markets and entities. Key risk indicators are displayed in tooltips when users hover over dashboard elements.

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Analyse future or alternative investment scenarios

The scenario analysis dashboards allow users to create scenarios for in depth analysis of how their post-trade risk exposures have or will change over time across post-trade risk categories. This tool enables the user to evaluate the risks posed by adding or removing a market and/or investment to their portfolio.

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If you would like to purchase this service, or find out more about it, please contact Luis Nino on +44 (0) 20 8600 2300.