Making Risk Transparent
Together with stock exchanges and clearing houses we develop applications for more efficient management of risk. That boosts our clients’ technological capacity and contributes to a safer financial system.
Clearing the Way to Stability
After the financial crisis of 2007-08, governments strove to mitigate the systemic risks in capital markets. They required standardised derivates to be cleared through central counterparties. Given our experience with risk management in financial markets we were the partner of choice for several exchanges in that evolution. Together we built complex applications including clearing mechanisms to analyse and offset default risks of trading partners.
Get the Counterparty Started
The financial crisis of 2007-08 spurred governments to lift certain financial service organisations to new prominence: central counterparty clearinghouses (CCPs).
These organisations enhance transparency, prevent market abuse and reduce systemic risks in the derivatives markets. They improve the functioning of stock exchanges by placing themselves between buyer and seller of any asset to assume their respective default risks.
The challenge for clearing houses arose from a considerable increase in the volume of positions to be cleared and in more complex and less standardised products.
With our experience in capital markets, and in particular in risk management of the growing derivatives trade, we were the chosen partner to guide clients, such as Eurex Clearing, a subsidiary of Deutsche Börse, through this evolutionary process.
Check on All Trades
CCPs are highly regulated and supervised entities, aiming for sound, prudent and transparent risk management.
Together with our clients we explored different quantitative risk frameworks. These allow to build the required tailor-made risk analytics and scale the business.
We used our skills in handling large volumes of real-time data, in data processing and in analytics to develop applications that perform tasks such as offsetting the default risks of different trades.
Here we worked both in Eurozone countries and in other currency areas such as the United Kingdom.
Another business in which we cooperated with a leading European stock exchange is the foundation of its data store with a two-fold task: First, we cooperated to set up the shop.
We applied our expertise in data processing to lay the infrastructural groundwork. That provided the exchange with a new digital channel of distribution to sell data to its own customers.
In a second step, we jointly stacked the shelves of the shop. Specifically, we used our analytics-skills to enhance the quality of the information in the exchange’s data repository.
For instance, we built algorithms to predict risk parameters for different markets. Having such refined products in the shelves of its data shop, the exchange could sell sophisticated and individually retrievable historic market data.
Selected Clients & Partners
Deutsche Börse Group
London Clearing House
How to Get in Touch
Do reach out to our regional experts who will be glad to assist you or put you in touch with our specialists.