Hyannis Port Research: Risk Management at Warp Speed
September 13, 2017  CIOReview

The brassy clang of the trading floor bell brings life to yet another action-packed day at the heart of America’s financial industry—Wall Street. As the trading day commences, over 100 million electronic orders from market makers and quantitative hedge funds race through Hyannis Port Research’s (HPR) risk management system—Riskbot®. In less than half a microsecond, Riskbot® verifies forty-seven pre-trade risk dimensions,  reventing erroneous trade orders from being transmitted to various stock exchanges.

Nevertheless, there’s a caveat: The cost of a major misstep here would be dire for HPR, their clients (mostly global bulge-bracket  anks) or their end users (the funds). HPR protects daily aggregate client value exceeding 10 billion dollars. With absolute precision, the HPR support team monitors risk parameters and numerous system metrics on their operations center screens. As the trading day comes to an end, the figures look impressive: half of one billion shares traded on HPR equipment, representing approximately 12 percent of the entire U.S. stock market. Another  successful day for the HPR team.