BlackSwan Financial Platform
Avoid the black swans
BlackSwan helps you avoid extreme events through sophisticated quantitative risk metrics and accurate distributions. Its built-in market risk module is constantly evolving and back-tested to ensure it remains relevant to prevailing market risks. It provides for a number of risk metrics such as value-at-risk, volatility, expected shortfall and tracking error. It also includes a range of built-in risk-related analyses, including metric analysis, allocation analysis, volatility analysis and Monte Carlo models.
BlackSwan Financial Platform enables you to provide a more personalized solution for your clients with different risk appetites. It also allows you to obtain more precise results by dropping the assumption of asset return normality.
It provides you with a new approach to maximize returns and minimize losses during extreme market conditions. It uses a mathematical model to find the allocation, within a portfolio of financial assets, that maximizes the investor's expected return while minimizing his maximum loss. It helps maximize return during normal market conditions, minimize losses during extreme crashes, and maximize the gains during extreme rallies.
- Improves on the classical mean-variance solution by taking possible extreme events into consideration
- Maximizes the expected return for a fixed volatility while also minimizing the expected shortfall or also maximizing the expected windfall
- Results in a considerable gain in Expected Shortfall/Expected Windfall (ES/EW) for a modest loss in Expected Return (E[R])
- Provides greater diversification capabilities and can be used as an efficient risk management tool
- Allows users to match a client’s risk appetite with different solutions (for example, Shortfall Optimize Portfolio (SOP) for risk-averse clients or Windfall Optimize Portfolio (WOP) for risk-taking clients) in addition to the efficient frontier (EF) used for clients who do not care about extreme risks
Web Enabled Dashboard:
BlackSwan Financial Platform is also a user-friendly, web-enabled dashboard for client-facing finance professionals such as relationship managers, third-party asset managers, and family offices, and their clients.
Web Enabled Access:
- Manage and restrict both employee and client access over the web as needed
- Provide web access with the highest encryption and latest security protocols
- Short time to market: rapid implementation
- Easy configuration: set-up is done through tables. No code and scripts are required
- Flexible workflow settings: orders routing is flexible. Orders are routed from one department to the other with different authorization levels with pre-trade checks
- All financial instruments coverage: any type of financial instrument including structured products and derivatives
- Compliance and investment restrictions: online checks with warning or blocking messages, pre-trade or post trade reporting and alert to compliance officers
- Audit: full audit trail of changes
- Reporting: integrated report generator
- Intelligent Rules and Conditions engine: set-up any type of commission, any workflow, any fee schedule, any tax regulation using flexible tables
- Implement at your pace: rollout BlackSwan in phases or by replacing entirely your system in one-go