ADP/Securities Industry Software (SIS) has released Trading Power, an application that determines an investor's available cash for purchases and withdrawals while simultaneously running a real-time margin analysis on every transaction.
ADP/SIS developed the product in alliance with Oregon-based discount brokerage firm Bidwell & Company. The vendor says Trading Power's calculations are designed to help firms assess and manage risks associated with fast-paced trading decisions.
The application produces values that represent the available funds that an investor can buy and withdraw, as well as the amount that can be applied to new commitments without incurring a new cash debit or a maintenance, house and initial call.
In addition, users can control how the calculations are performed and firms can specify whether funds available in margin and cash accounts should be combined, or whether to add money market balances to the calculations.
Bidwell & Company says the system has a real-time capability that factors in all the relevant variables, and produces a current number designed to facilitate both online trading and risk management.
David Swift, general manager, ADP/SIS, adds: "With more Web-based trading applications and the requirement for more stringent credit standards, this type of computing power must be in place to reduce risk - at both the firm and investor levels."
ADP/SIS says the real-time values produced by the application can be accessed from many of its systems, including its broker desktop tool Posse, as well as Web-based trading sites.