Markit, a leading, global financial information services company, and Quartet FS, a leading provider of in-memory analytics technology, today announced a new partnership.
As part of this partnership, Markit will licence Quartet FS' ActivePivot within its Markit Analytics platform, which provides financial institutions with risk management, pricing and financial analytics solutions. ActivePivot is an optimised in-memory aggregation engine, providing a high performance view of transactional data. The integration will enhance the way Markit Analytics' customers visualise stochastic risk calculations such as Risk Weighted Assets (RWA), Credit Valuation Adjustment (CVA) and Initial Margin (IM) including pre-trade limit checks across any and all of these measures.
ActivePivot will also aggregate the thousands of vectors generated by the Markit Analytics engine in real-time, leading to sub-second marginal netting node and impact analysis for IM. This will enable customers to calculate margins for cleared and uncleared products in real-time across multiple central counterparties, helping them determine the most efficient trading strategy.
Nigel Cairns, managing director and global head of Markit Analytics and Portfolio Valuations, said: "We are delighted to be partnering with a technology company of the calibre of Quartet FS. We were looking for an incremental aggregation engine that could keep pace with the thousands of required paths generated within Markit Analytics. The ability of the Quartet FS ActivePivot to handle extremely large data volumes in real-time will give our customers a flexible and cost effective way of visualising and analysing their data."
Allen Whipple, co-founder and managing director of Quartet FS, said: "We have been impressed with how quickly the Markit team was able to implement ActivePivot for initial margin and variation margin incorporating multiple methodologies, and swiftly onboard new clients onto the combined offering. The success of the integration underlines how complementary our technologies are and how they are able to deliver compelling value in times of increased regulatory compliance."
ActivePivot is an in-memory analytical database designed to aggregate data streams "on the fly". Going beyond traditional business intelligence or online analytical processing (OLAP) solutions, which are bound by latency, ActivePivot provides real-time business intelligence for immediate decision-making, when and where it is needed.
Markit Analytics provides financial institutions with state-of-the-art, integrated and scalable pricing and risk management solutions to help them calculate capital needs efficiently and optimise balance sheets and return on equity, in line with evolving regulatory requirements under Basel III and Dodd-Frank.