Setting limits on trading is the goal of a new service offered by EGAR

Thursday, May 22, 2003

NEW YORK (HedgeWorld.com)-Setting limits on trading is the goal of a new service offered by EGAR Technology Inc., a company that made its name with options analysis.

EGAR Limits Server is a real-time system that can gather, compile and report on data concerning the trading operations of various desks within a prime broker or a large hedge fund, said Ravi Jain, chief executive of EGAR.

The system is designed to consolidate trading information from a variety of data sources. “It’s not specific to a (particular) trading platform. It’s a separate application that can sit on top of a variety of trading systems,” Mr. Jain said.

Limits can be set across various criteria, such as trader, desk or product. Multiple risk calculations are offered in the system, as well. When a limit is reached, that information can be conveyed via a pop-up window, an electronic message and, in some cases, blocking of additional trades, he said.

Though the system was designed with trading banks in mind-Alfa Bank, Moscow, has installed the system-prime brokerages and large hedge funds with multiple trading strategies would also be good candidates for using the system, Mr. Jain said.

EGAR first made waves with its iVolatility.com options analysis tool and later added more options-related products and a risk management system.

PBarr@HedgeWorld.com