Obtaining and digesting the right information when you need it most is everything. Having instant access to the right information allows individuals and teams to understand the current situation, evaluate potential impacts, and develop a course of action (or non-action, for that matter). But, information, and particularly data, can be presented in various manners, so framing data in an easily digestible manner is an important first step in facilitating the soundest analysis, resulting in the best actions to take. Even the subtlest of changes to the way data is delivered can greatly improve the overall success of an individual, team, or even organization.
In derivatives, or more broadly, markets, the “right information” is often an oversimplified phrase. It could mean the “right news sources”, the “right opportunities”, or the “right data”. In the case of post-trade data, information must be presented in a straightforward, consistent, and reliable manner to best inform those making the decisions.
So, what does this all mean from a practical perspective?
At Theorem, we’ve built reporting tools with the flexibility and intelligence to empower users to possess the right information and measure that information however they see fit. For example, our new Balance Breakdown report offers users the ability to select information pertinent to their frame of reference, across cash and collateral, margin, resulting equity, and risk categories, and determine how that data is best presented.
Consider the ways data is used to help determine Value at Risk (“VaR”). A treasury or operations manager may appreciate a portfolio’s VaR in USD to compare against initial margin requirements as a check against clearing broker calculations. Whereas a risk manager may assign more value to VaR as a percentage of Total Account Value at Market to assess a portfolio’s risk profile.
Theorem’s tools are intelligent and can actively highlight relevant or abnormal data and bring it to the user’s immediate attention. For instance:
- If a firm only trades options periodically, they do not need to have Net Option Value consume real estate within their daily report. Rather, Theorem’s tools are smart enough to include Net Option Value in a daily summary only when an options position exists.
- Theorem’s system automatically runs sanity checks to make sure numbers add up, and flags abnormalities (with severity in mind) in the event they do not.
Flexibility and customization are core components of Theorem’s platform. Theorem’s reporting suite of solutions allows for the user to dictate how information is transmitted. For example, a user can log in daily to the online portal to review, set up distribution to activate as soon as broker processing has been completed, or have a summary sent to their inbox daily at set times.
Ultimately, the impact information can have is dependent on its relevancy to the role within a firm and how easily a user can digest it. Fortunately, Theorem’s reporting functionality allows for customization, without any lengthy development needed, to ensure you can deliver the data that is impactful to you and your team.
Simply put, our tools and solutions allow you to get the most out of the data you already possess. Get in touch to learn more about our flexible reporting solutions – we’d be excited to show you firsthand how Theorem caters to unique use cases and individual needs.
Schedule some time with us to discuss this insight further or learn about the ways in which Theorem can help elevate your post-trade processes.
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