Risk technology for modern brokerages.
A technology layer for brokerage risk operations: decide how each client's flow is handled, see the exposure it creates, and act before it turns into a loss.
The hybrid model
What is a hybrid A-book and B-book model?
A hybrid model means a broker hedges some client flow with liquidity providers (A-book) and internalises the rest (B-book). The split is decided per client, group, symbol or order size, so the broker's net exposure stays inside its limits while profitable, toxic flow is passed to the market.
Running a hybrid book well takes three things: clear routing rules, a live view of the exposure each decision creates, and early warning when a client's behaviour changes. Fellow Data puts all three on one risk desk.
The routing rules, exposure engine and client profiling behind it are described on the risk management software page.
Capabilities
Built for brokerage risk operations.
Everything a dealing and risk team needs to watch, in one place.
Client exposure
Exposure by client, account and group, after routing.
Symbol exposure
Your net position in every instrument across the whole book.
Net exposure
What the broker actually carries after internalisation and hedging.
Long and short exposure
Both sides of the book, not just the net figure.
Margin monitoring
Accounts approaching margin call and stop-out levels.
P&L monitoring
Client and broker P&L by symbol, group and period.
Risk limits
Exposure, instrument, concentration, loss and volume limits.
Dealer monitoring
Oversight of dealing-desk actions and manual overrides.
Account monitoring
Unusual activity on individual trading accounts.
Abnormal activity alerts
Alerts when trading patterns differ from a client's normal behaviour.
Liquidity monitoring
Liquidity provider spreads and conditions that affect hedging.
Risk reporting
Daily, exposure, client-flow and exception reports.
API integration
Connections to approved platforms and data sources.
Integration
How Fellow Data fits into your infrastructure.
Fellow Data can be designed to connect to approved trading platforms, APIs, databases and proprietary infrastructure, subject to technical assessment.
01
Trading platform
Client orders, positions and accounts on your existing platform.
02
Data and API layer
Approved connections that bring the data in and send decisions back.
03
Fellow Data risk engine
Routing rules, client profiles and limits applied to every order.
04
Risk analytics
Exposure, hedge ratio, P&L and margin calculated across the book.
05
Alerts, dashboard and reports
What your dealing team sees, and what management receives.
Integration options vary by deployment. Contact our team to discuss your infrastructure.
Questions
Questions brokers ask.
What is A-book and B-book?
A-book is when a broker passes a client's order to a liquidity provider, so the market risk sits outside the firm. B-book is when the broker keeps the order in-house and takes the other side, carrying the risk itself. Many brokers combine both in a hybrid model.
What is toxic flow?
Toxic flow is client trading that is consistently profitable at the broker's expense, often because the client trades faster or with better information than the broker's pricing. Brokers usually route toxic flow to A-book so that it is hedged rather than internalised.
What is a partial hedge?
A partial hedge passes only part of an order or position to the market and keeps the rest in-house. Brokers use it for groups such as VIP clients, or when exposure on a symbol is close to its limit.
How do brokers manage net exposure?
By watching net open exposure per symbol after internalisation, setting limits for each symbol and for the whole book, and hedging with liquidity providers when a limit is reached. Fellow Data shows exposure, hedge ratio and limit status together, and can alert the desk or run an approved auto-hedge when a limit is breached.
Which trading platforms does Fellow Data work with?
Integration options vary by deployment. Fellow Data can be designed to connect to approved trading platforms, APIs, databases and proprietary infrastructure, subject to technical assessment. Contact us with details of your setup.
Keep exploring.
Risk management technology
Route client orders to A-book or B-book by rules, watch net exposure per symbol, profile toxic clients and enforce risk limits with Fellow Data's risk software.
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Inside Fellow Data: data ingestion, quantitative risk analytics, AI reasoning, agent orchestration, a policy engine and audit logs, connected through APIs.
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Run your book with clear rules.
Show us how your brokerage routes and hedges today. We will show you what Fellow Data can make visible.