Q&A: James Sinclair, MarketFactory
On pre-trade risk management and the SNB
Has risk management kept pace with execution in terms of speed?
It's catching up and will be there.
Limit-monitoring mishaps, including those that brought down trading firms and caused prime brokers (PBs) to exit the market, show the market has not always kept pace. The manner of sending credentials to traders and allowing them to trade in the name of a major bank, without a central risk monitor, has not kept up with the times. Limit monitoring can be very decentralised, relying on the executing
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