Risk Management as a Service (RMaaS)

DTCC Risk Management as a Service (RMaaS) leverages DTCC’s risk management capabilities to deliver firm-specific aggregated data to monitor risk exposure.

DTCC CLEARING SERVICES

Processing over $2.15 quadrillion in transactions per year and over 100 million transactions per day, DTCC is the primary U.S. infrastructure for clearing, settlement and asset servicing. From this central vantage point, we capture and optimize data from our processing engines and data repositories to deliver powerful business intelligence and insights back to our clients.

As a user-owned and governed utility, DTCC is uniquely positioned to develop innovative industry solutions to help our clients with challenges related to risk management, capital adequacy, liquidity and market transparency.

SERVICE OVERVIEW

DTCC Risk Management as a Service (RMaaS) leverages DTCC’s risk management capabilities to deliver firm-specific aggregated data to monitor risk exposure. These services allow clients greater insight into their current and historical positions, helping firms efficiently analyze and manage risk and liquidity across many functions and activities including trade planning and execution, monitoring and surveillance, and regulatory compliance.

DTCC’s RMaaS also benefits users and workflows in the areas of recovery and resolution planning, margin utilization, operational risk and cost allocation.

This service is available through the Risk Client Portal, which allows users to view and download historical risk data, including clearing fund requirements, and create their own “what-if” portfolio and conduct market risk analyses. In addition to the Risk Client Portal, RMaaS is also available to clients via the API Marketplace1, which offers a flexible delivery method to provide risk data.

BENEFITS

Intraday Risk Monitoring

RMaaS enables clients to more effectively monitor and manage intraday risk exposure. As a result of delivering timely data and analytics, members can better anticipate potential intraday margin calls and manage cash positions. The service intends to provide increased transparency, which enables firms to monitor and analyze the same intra-day risk exposure data as DTCC’s own Financial Risk Management department.

VaR Attribution and Forecasting

The next-generation Value at Risk (VaR) Calculator delivers improved transparency into the volatility charge with CUSIP-level position details to identify key drivers and diversification offsets with frequent intraday portfolio updates. The VaR Calculator allows a simulated volatility forecast to help with more efficient capital planning and overnight cash utilization.

Firms can use the VaR Calculator to submit hypothetical portfolios and retrieve a detailed breakdown of the simulated volatility charge from DTCC’s risk engines. For enhanced pre-trade planning, firms can assess the marginal impact of a large block trade to a portfolio VaR by seamlessly adding a position and comparing the results. Additionally, firms can quickly check the simulated volatility of a portfolio in the evening to forecast volatility charges for the next morning.

Settlement Insights

The Risk Client Portal includes a business intelligence dashboard to display top level information with respect to DTC’s risk controls, collateral positions, and settlement data. The dashboard delivers enhanced capabilities to monitor intraday settlement blockage trends and dynamic visualizations of historical settlement throughput. Providing this capability allows members to quickly compare recent historical data to determine the proportion of made, dropped, or reclaimed transactions versus industry totals to assess operational settlement performance. The service also gives members the ability to track the value and volume of pending transactions due to collateral monitor or net debit cap risk controls throughout the settlement cycle, and easily pinpoint the counterparties involved in these pending transactions. In addition, the service also allows a historical look back at intraday patterns of the value and volume of transactions pending Receiver Authorized Delivery (RAD) controls with your top counterparties.

HOW IT WORKS

  • Data, including start of day (SOD) and intraday positions, clearing fund requirements and risk analytics results across multiple risk types, are sourced from the common data stores of DTCC’s clearing agency subsidiaries.
  • The data feeds into DTCC’s Risk Data Processing Hub, where analytics processing, data aggregation and appropriate entitlements are applied.
  • Data is delivered directly to the client through an API or accessed via the Risk Client Portal.

1Application Programming Interfaces (APIs) make it easier to access information, provide greater levels of flexibility, and a superior client experience. APIs provide a seamless way for clients to access DTCC services and data from which they derive critical business insights. The API marketplace (developer.dtcc.com) provides the ability for clients to discover DTCC APIs and for the developer community to publish DTCC APIs in a governed manner.

For More Information

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