Centroid Solutions, a provider of risk management technology solutions for FX brokers, has launched new broker-oriented products centered on the Metatrader 5 trading platform.
The new products were designed to be easily integrated and synchronized with MT5, utilizing data extracted from the trading platform to apply Centroid’s technological prowess to yield actionable risk management suggested practices.
Centroid has focused the development of the new products on the automation of risk management processes, by applying real-time analytics tools to simplify exposure management and assess the risk level of brokers at any given time.
The tools can provide beneficial information that can help brokers to improve their analysis of P/L, across A, B, and C Books.
With FX brokers in mind, the new products were created in a set of four functionality modules. The first category is Centroid 24, which provides advanced risk management features for brokers. Centroid 24 enables the real-time management of risk exposure levels, across various data sets.
More specifically, brokers are able to assess their levels of risk, across a given portfolio, asset class, instrument, specific client accounts, or trade data.
By enabling brokers to analyze the scope of their risk levels, in many different specifications, it provides a more detailed and concise representation of the true risk that a broker faces at any given time.
Centroid 24 also allows for real-time analysis of P/L, which again clarifies the full picture of a broker’s trading activity, for any risk management category – A, B, and C Books.
In addition to granting brokers a detailed analysis of their existing risk exposures, the Centroid 24 product has the capacity to run simulations of the effects of price movements on their risk level and P/L alike.
Furthermore, the system can analyze historical data to induce actionable results of future company performance.
Another important facet of Centroid 24 is its ability to automatically detect and alert brokers of atypical trading activity, thereby allowing for added time and preparation for the reactionary actions to prevent potentially unpermitted activities on behalf of traders.
Additional Modules of New Product
While the Centroid 24 system appears to alleviate a great deal of challenges that brokers are currently facing, the company has added additional features that can help in the risk management process. With brokers in mind, Centroid Solutions has created C-Reporting capabilities for creating both business and regulatory reports.
The automation of such reports both reduces the risk for human error, as well as saves time and manpower by centralizing critical reports that also help brokers adhere to regulatory confinements.
Centroid has also innovated C-Simulation capacity for conducting testing to optimize the hybrid model, which encompasses various functionality and risk management practices.
The system runs a wide range of variables, in an effort to provide brokers with a full-spectrum of potential outcomes, with the aim to use the information to improve decisions and overall results. Finally, the system acts as a connectivity bridge for added liquidity for brokers.
The Shift Toward Metatrader 5
Ziad Aboujeb, Founder and CEO of Centroid Solutions, said in a comment: “We want to empower MetaTrader 5 brokers and help them to enhance their company performance, manage business transparency and ensure regulatory governance. Therefore, we offer a fully-fledged, business-integration technology that supports their efforts in that direction.”
In December of last year, Centroid Solutions went into a merger with Amana Capital and 514 Capital, to become one entity under the name 180 Capital. Through their collaboration, they have been able to swiftly manifest the innovation of their new MT5 risk management products.
Following Metaquotes’ December announcement of the stoppage of sales of Metatrader 4, and the subsequent shift to MT5 as its leading trading platform, many brokers have begun to employ the MT5 platform.
Centroid’s rollout of the new MT5-centered risk management products could potentially provide appealing solutions for many brokers.