Abstract and Introduction:
The author has deployed a range of Risk Management solutions, and EGAR’s is one of the most comprehensive solutions he has seen in his career. EGAR’s NoCode platform allows you to organize effective risk control of an organization’s investment activities by calculating and setting both post-trade limits. This document describes the main technological and functional advantages of the platform.
Immense Speed That Works as Fast as You
The technology stack of the platform includes Elastic Search, and all the data that is necessary for calculating risk metrics is placed in RAM, allowing you to achieve high calculation speed.
Harness Big Data Power
EGAR’s NoCode Risk Management Solution allows you to work with large amounts of data. Elastic Search provides high-speed search and processing of information; to accomplish this, when the relevance of the data decreases, the system provides archiving mechanisms. This allows you to reduce the amount of data present in the system by generating balance transactions, as well as uploading outdated and irrelevant information from memory to archived storage.
Scale with Ease
The ability to run the platform and its components in Docker provides easy scalability and independence from the operating systems used and the underlying software.
Segment Transactions with Filters
For limits definition the system implements the ability to set filters, i.e. Boolean algebra conditions that determine which operations should fall under the specified limit. The filter constructor supports two opera- tion modes: one that does not require programming skills from the user, and the more advanced one that allows you to define expressions in the MVEL language.
Turnkey Limits and Risk Metrics
Alongside the NoCode platform, EGAR has developed out-of-the-box risk control functionality that significantly reduces the implementation time. Immediately after installation, EGAR NoCode already contains specific tools for Risk Management, such as limits (with a large number of settings and parameters), transactions (an operation that is subject to control), directories (with an already entered set of directories to reflect many different types of objects in them), a tree based limit list, and an algorithm for calculating risk metrics (with an available library of at least 15 predefined algorithms; the total number of predefined algorithms depends on the delivery). The main logic of the system is built upon the combination of these concepts: limit definition / setting, limit indicators calculation, monitoring of limit statuses and transaction authorization statuses, saving historical data, and presenting information to the user. The set of limits available after installation is provided in the section “NoCode Standard Risk Metrics Set” of the solution guide.
Deep Customization to Match and Automate your Specific Risk Management Procedures
EGAR’s NoCode platform has a wide range of customization options to fit the organization’s requirements. In most cases, the use of NoCode/ LowCode approach is enough to change the functionality and implement improvements. These changes can be done by citizen developers.
This approach became possible because the platform remembers and keeps track of the versions with all changes made by the users; the changes are confirmed using the principle of “4, 6, 8 … eyes” with the help of business processes. Regular platform customization options include:
- Business processes implemented in the system (for more information, see the next item).
- Data model. The changes to the data model in the NoCodeWorks platform are done via the user inter-
face, without the need to modify the database. After describing the changes, the system will automatically find the most appropriate place to store data, publish an API for working with new fields and directories, and adjust the user interface.
- Algorithms for calculating risk metrics (limits). The modification of the algorithms is carried out in the LowCode mode: the scripts for calculating indicators are written with Groovy language and can connect to third-party JNI-libraries.
- Algorithms for calculating the overall platform metrics. The modification of these algorithms is also done in LowCode mode: with C# or Python. When using Python, a wide range of mathematical and financial libraries, such as QuantLib, becomes available to the user. Using this tool, EGAR has implemented the Monte Carlo Simulation of the VaR indicator for a wide range of financial instruments, including structured products.
- File-based templates to mass import limits with all properties including the algorithms
- Integration flows with external systems. The platform integration module is based on the open-source
Apache Camel framework, which contains more than 300 ready- to-use adapters for connecting to various data sources (databases, files, brokers and message queues, APIs, gateways, etc.). EGAR has developed more than 10 additional adapters to popular financial services (Bloomberg, NSD, Interfax, etc.).
- Maker-cheker-complaint data structure modification with the possibility of approving them using the “4, 6, 8… eyes” principle.
But how does this all translate to actual system operation? These technological advantages allow EGAR to offer various functional advantages that we will cover in the next section.
- Seamless Integration with External Systems
If an external system uses Restful APIs, you can integrate with it directly through the Business Process Man- ager as you draw the workflow. For some of the more complex integrations that we face in our field, the Apache Camel framework is provided.
- Deeper Enrichment and Reconciliation for Incoming Data
The platform allows you not only to enrich, verify and reconcile incoming data, but also to act as an intermediate link in the transmission of information.
Recycle and Reuse Previously Built Algorithms and Libraries (Including Limits and Pricing Models)
If there are new data sources, parameters, or other input data, the system allows you to change or configure existing algorithms with minimal modifications.
Distribute Market Data by Sets of Quotes (“Ratesets”)
The EGAR NoCode platform allows you to receive and store quotes from different sources with different characteristics for a single financial instrument.
Create Custom Sets of Market Data and Analytics
Based on the original information (i.e. obtained from external sources) and using a certain algorithm the system makes a set of quotes according to the requirements of the organization. To accomplish this task, the user can use such techniques as prioritizing sources based on the depth of data storage, as well as a full range of computational models, including interpolation, extrapolation, recursive filters, etc.
- Control Data Integrity Throughout Business Process Execution
Depending on the requirements of the organization, the availability of the necessary data can be monitored both at the start of the process and during its execution. The second option is most likely to be used in business processes that imply an additional enrichment of data after its
EGAR NoCode has proven to be more than capable for Risk Systems—it has changed the paradigm of Risk Management IT. This disruption inspired the author to forgo client-side IT and join the team responsible for building such a powerful platform. We welcome you to try it for yourself and learn about the future of Risk Management with us.
The author can be reached through firstname.lastname@example.org, with subject line beginning with “ATTN- Leonid C.”. The author looks forward to speaking about his experience and what you can expect upon embracing NoCode.