European clearing house LCH.Clearnet is implementing risk management technology supplied by Sydney-based IT&e Limited.
LCH.Clearnet has signed a licence agreement for its Razor product and will implement the technology to meet risk management requirements as the central counterparty for trades executed on the London Stock Exchange, Euronext.liffe, ICE, LME, Endex, virt-x, Nyse Euronext, Powernext and Nodal exchanges, says the vendor.
Razor will provide LCH.Clearnet with overnight and intra-day risk management. The clearing house will also use Razor for risk measurement and stress testing.
Commenting on the deal, Richard Bennett, head, Emea, IT&e, says: "It is a clear demonstration of the market entering a new cycle, whereby the world's leading financial institutions have started to act on the need to update risk systems to meet higher expectations around what constitutes best practice in risk management."
The Australian Stock Exchange implemented Razor at its clearing house in 2006.