Counterparty Risk Assessment

Investment Advisors face an increasingly perilous trading environment. Counterparty trading technology has increased in sophistication, as has the opaqueness of their trading operations. Conflicts-of-interest abound, and enforcement actions have increasingly focused on disclosure problems.

While PLIA by PLATO cannot force counterparties to disclose more information (although in making it easier to disclose, perhaps they will invest the time and effort to improve their disclosures), the platform provides a systematic means of evaluating and scoring counterparty responses.

Investment Advisors have unique and varied criteria in evaluating counterparties, and deserve a platform that can accommodate those requirements. PLIA by PLATO has a set of unique features to enable a state-of-the-art RFI, grading and scorecarding process:

  • Start with industry standard questionnaire templates, which can be fully customised based on individual firm priorities.

  • Set custom weights for each questionnaire section, and for each individual question.

  • Assess counterparty responses in two ways: level of transparency and adherence to best practices, and assign grades.

  • Compare broker grades overall, by section and by question.

  • Immediately identify outlier brokers visually and drilldown to explore concerns.

  • Feed results into existing broker scorecards or create custom scorecards.

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