Lucia Schmidt

Hey everyone, I'm fairly new to the risk side of things and trying to get my head around how larger firms manage counterparty risk. We've got a setup with multiple legal entities trading with the same major counterparties (think big banks for prime brokerage, or large corporate clients for derivatives).

My question is, how do you typically aggregate that risk? Is it common to have a single, overarching counterparty limit across all legal entities, or do you manage it on a per-entity basis and then roll that up? I'm imagining complexities with netting agreements varying by entity and jurisdiction, but if you don't aggregate, you could inadvertently overexpose the firm as a whole. What's the practical approach for someone building out a framework for this?

I'm keeping a close eye on $USDMXN today. We've seen a bounce off the 17.188 level, which has held firm previously as support; a clear break below that could signal further downside pressure, invalidating my current short-term bullish outlook for a retest of 17.268.