Broker D's file arrived with two columns swapped. It is held until a person confirms the new layoutBehind the scenesEach broker has its own loader that knows the columns it expects. A file that does not match is held, not guessed, and the analyst sees exactly what moved.What it achievesThe morning numbers never run on a misread file.Could go furtherLearn the new layout once confirmed, so the next file loads on its own..
Today An analyst opens six files at seven and rebuilds cash in a spreadsheet.
Broker B, margin methodology, section 4
4.1 Investment grade bonds: 4% under two years, rising to 9% over ten.
4.2 High yield bonds with five to ten years to maturity: 16% of market value.
4.3 Not-rated bonds: 14% to 24% depending on maturity.
4.4 Where one issuer is more than 10% of the portfolio, add 5 percentage points to that issuer.
Rules the system appliesBehind the scenesA language model reads the broker's methodology and fills a fixed rule table, quoting the clause behind every number. An analyst approves the table once; after that the rules run as plain code.What is automatedReading and structuring the rulebook. When a new edition arrives, the differences are shown clause by clause.In this demoScripted reading; the rule table is real and drives every number that follows.
| under 2y | 2 to 5y | 5 to 10y | over 10y | |
|---|---|---|---|---|
| IG | 4% | 5% | 7% | 9% |
| HY | 10% | 14% | 16% | 21% |
| NR | 14% | 16% | 20% | 24% |
Concentration: over 10% in one issuer, add 5 points
Cash posted over requirement, all brokers
$0m
Required Posted
Broker C is short by $0.5m. Move $1.5m from Broker A, which has $2.4m spare, before ten.Behind the scenesRequirement is worked out from the fund's positions and each broker's rule table, then compared with cash posted. Any shortfall is covered from the broker with the most to spare, with a buffer.AssumptionPositions, cash and rulebooks are invented.What it achievesThe shortfall is fixed before the broker calls, not after.
New trade, 11:20
Buy $6.0m Issuer 17
High yield, 5 to 10y to maturity
Extra margin this trade needs, by brokerBehind the scenesThe trade is added to each broker's book in turn and the requirement worked out again with that broker's rules. At Broker B the fund already holds a lot of Issuer 17, so the concentration add-on applies.What it achievesBooking at Broker A needs $0.30m less margin than the usual choice, cash that stays with the fund.Could go furtherSuggest the broker at the moment of the trade, inside the order system the traders already use.
Book at Broker A: $0.30m less margin than Broker B.
Our figure against each broker's statementBehind the scenesEach morning the broker's statement is loaded and set against the figure the system worked out the night before. Anything more than 5% apart is flagged with the positions that explain the gap.What it achievesDisagreements are found the next morning, with the evidence, instead of at month end.
| Broker | Ours | Theirs | Gap |
|---|---|---|---|
| Broker A | $18.9m | $18.8m | −0.4% |
| Broker B | $12.4m | $12.4m | −0.3% |
| Broker C | $6.5m | $6.5m | +0.3% |
| Broker D | $8.2m | $9.7m | +17.9% |
| Broker E | $9.2m | $9.4m | +1.7% |
| Broker F | $14.6m | $14.8m | +1.7% |
Draft query to Broker DBehind the scenesThe gap traces to not-rated bonds: the statement applies 25% where the rulebook on file says less.What it achievesIt cuts both ways. The broker may have made a mistake, or it may have changed its rules without sending a new rulebook. The system drafts the question; the analyst decides.
Your statement applies 25% to not-rated bonds. Your methodology on file gives a lower figure. Please confirm which applies, or send the current version.
0
broker files loaded, no rebuild by hand
0%
of broker statements within 5%
$0m
less margin posted across 86 trades
0
analyst hours back in the month
Every file, rule, trade and statement is written to one table as it happens. The month is a query on it.AssumptionInvented fund, brokers and positions. Modelled: 3 hours of rebuild each morning cut to 20 minutes, trades a day, the margin each placement saves, and funding at 5.5%.What it achievesThe real figures come from replaying a month of your own broker files through the loaders and rules.
07:00 cash by broker
Interactive demo
Watch it run in 92 seconds, or click through at your own pace. The i buttons show what happens behind the scenes.
That was one day
$16.0m less margin posted in a month
Modelled on an invented fund. A month of your own broker files would give the real figure.