State Street Corp Launches Initial Trifecta of GX Investment Labs

State Street Corporation (STT) has launched GX Investment Labs, its newest initiative and suite of interactive applications, which can be utilized by clients to construct and facilitate their investment process.

Back in October, State Street’s FX Connect, its multi-bank foreign exchange platform was integrated in a partnership with ITG Triton’s execution management system, which targeted a Q1 date for institutional clients.

In particular, GX Investment Labs will encompass three new comprehensive portals, each of which targets a specific area of focus, i.e. dynamic Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term modeling and asset allocation. GX Risk Lab, Liquidity Lab and Portfolio Lab are all slated to be launched throughout 2015, with the prospect of additional labs already in the pipeline.

GX Risk Lab

Risk Lab allows clients to create, analyze and monitor risk indices on a daily basis, utilizing such tools as absorption ratios, centrality, turbulence, volatility and correlation surprises. An added utility to Risk Lab is the ability to measure a portfolio’s intrinsic risk and performance or applied to specific scenarios and markets via customized stress test scenarios, event studies and dynamic filter rules.

GX Liquidity Lab

In addition, Liquidity Lab is a lucid simulation environment that enables investors to estimate the return and risk associated with the ways they trade and allocate liquidity. Moreover, simulations can model regime-switching dynamics, specific rebalancing rules, and potential capital call distributions.

GX Portfolio Lab

Finally, Portfolio Lab constitutes a toolkit that envelops multiple optimization algorithms and risk budgeting tools. Clients can also identify optimal asset allocations given specific preferences and capital market assumptions, control for benchmark-relative risk and non-normal return distributions and analyze within-horizon risk distributions.

According to Will Kinlaw, Senior Managing Director and Head of Research and Investment Strategies at State Street Global Exchange, in a statement on the launch, “Investors need tools that can analyze their portfolios across multiple asset classes, investment regimes, and allocations. GX Investment Labs convert our most widely followed research ideas into practical and interactive tools that help our clients apply them to their portfolios.”