IS Risk Analytics (ISRA), the newly rebranded risk management unit, has unveiled a new solution called PredatorWatch to help brokers be more aware of toxic clients, facilitating their identification by utilizing a client footprint methodology, per an ISRA statement.
PredatorWatch’s aim is to bring to light toxic clients, ultimately helping brokers identify these individuals based on their trading patterns. PredatorWatch utilizes ISRA’s wide-ranging client footprint, which helps develop and maintain a diverse database of IP addresses and trading characteristics.
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The fundamental aim of this service is to isolate and neutralize previously identified toxic strategies, before any significant damage can be done to either a client or broker. PredatorWatch deploys the use of real-time email triggers and alerting tools, while clients can be also informed about potential toxic flow – ISRA will also be advising groups how best to protect their businesses from abusive trading practices.
According to Jeff Wilkins, Managing Director of ISRA, in a statement on the launch: “The ability to identify toxic clients has been a successful feature in our full suite of risk management services, resulting in a strong ROI. We have decided to release it as a separate stand-alone service to help brokers and liquidity providers to avoid significant losses from clients who are manipulating the market.”
“This is an ongoing issue – just recently a number of brokers and liquidity providers suffered significant losses from GBP/NZD activity. ISRA can play a key role in helping our clients to combat such predatory behavior,” he added.