iSAM Securities has released Book Switch Impact, a new feature within its Radar platform that enables forex and CFD brokers to measure the financial impact of routing client trades between A-Book (hedged) and B-Book (internalised) execution settings. The tool calculates the opportunity cost of hedging decisions by displaying the profit and loss brokers could have retained by keeping client risk in-house rather than transferring it to liquidity providers.
- Core Functionality: Displays historic timeline of execution profile changes with corresponding broker PnL and LP PnL estimates
- Configurable Parameters: Time delays, spread or markup changes, book depletion, and A-Book/B-Book routing choices
- Key Metric: PnL A – an estimate of profit brokers would have generated by retaining client risk instead of hedging externally
- Integration: Available within the Trader Details view of each client account
The feature addresses a fundamental challenge for risk teams: determining whether moving a client to A-Book protection remains economically sound over time. Book Switch Impact displays one row per execution profile, combining the active profile designation, the broker’s realised PnL, and the PnL an LP would have earned under hedging arrangements in a single view. This structure allows risk managers to assess whether hedging decisions continue to justify their costs or whether clients should revert to B-Book internalisation.
Brokers can use the tool to identify periods when external hedging may no longer be optimal, enabling data-driven decisions about switching clients back to B-Book from A-Book. The platform’s historic timeline functionality reveals when each execution change occurred and the corresponding financial outcomes, making opportunity costs explicit rather than implicit in operational records.
Book Switch Impact is now available to Radar users. iSAM Securities, a US-based fintech firm, provides execution and risk management software for retail forex and derivatives brokers.
