Rolfe and Nolan today announced the launch of its Risk Array Module (RAM) a companion module to its Margin Direct, Alerts Direct and Margin Engine products. The Risk Array Module enables market participants and risk managers to measure exposure by re-creating SPAN and theoretical values in real-time through the day. The module offers accurate replication of exchange models as well as custom flexing of exchange parameters. Users are able to apply their own worst case and volatility scenarios alongside those of the exchanges.

A more accurate picture of a user’s end-of-day margin figure enables risk and cash to be better managed. Inaccurate prediction of margin calls can result in under or over funding. Overfunding unnecessarily ties up money to cover margin calls. Underfunding can be even more expensive, with funds required at short notice. 

Patrick Liardet, Director of Middle Office Technology at Rolfe & Nolan said: “Recent market volatility has highlighted the need to recalculate risk exposure continuously during the day as underlying prices change. Firms need to predict margin call and working capital figures accurately, as well as monitor credit utilisation and market risk. RAM gives a firm the tools it needs to achieve this."