ASX to use Nasdaq tech to manage risk across clearing houses
02 July 2015 | 2105 views | 0
Nasdaq (Nasdaq:NDAQ) and the Australian Securities Exchange (ASX) announced today that Nasdaq has been selected to deliver ASX's next generation post-trade risk management solution.
Sentinel Risk Manager will provide a single, real-time risk management system across both ASX clearing houses and all asset classes, including real-time margin calculation and related customer risk analytics. The new risk system will be implemented in five phases over the next two years.
"Consolidating our risk technology onto Sentinel's real-time technology will enable ASX to more efficiently fulfill global risk management best practices and provide risk capital benefits to customers," said Tim Thurman, Chief Information Officer, ASX. "The opportunity to deliver both a cross-margining simulation and optimization service will add significant value to our clearing participants and their clients."
ASX's investment in Sentinel reflects the strategic importance the exchange places on its clearing houses operating to the highest risk management standards, both to meet global regulatory obligations and to provide protection and efficiencies to customers, investors and the wider market. The initiative is part of the technology transformation ASX announced in February 2015, whereby all of its major trading and post-trade platforms will be upgraded over the next three to four years. The investment will ensure Australia's financial market infrastructure remains world-class.
"We are pleased to continue building our long-term relationship with ASX through implementing a flexible and sustainable post-trade risk management solution for the Australian Market," said Lars Ottersgård, Executive Vice President, Market Technology, Nasdaq. "Our solution's high performance architecture enables exchanges to respond to global regulations requiring intraday risk management and increased margin methodology sophistication. We look forward to supporting ASX on this important technology enhancement to its markets."
Nasdaq has provided technology to ASX since 1996. In addition to ASX, its exchange technology, including trading, clearing, CSD and market surveillance systems, is in operation in over 100 marketplaces across USA, Europe, Asia, Australia, Africa and the Middle East.