Hedge fund administrator GlobeOp has joined forces with risk management application providers Application Networks to launch an ASP-based service designed to provide hedge fund mangers with trading and risk management services. The company describes it as “a significant move to increase accountability, meet market demand and fortify the control structure for hedge funds.”
The service combines GlobeOp’s fund administration capabilities with Application Networks’ JRisk trading and risk management applications. GoRisk will offer hedge fund managers sensitivity and scenario analysis, stress testing, Value-at-Risk (VAR) and limit monitoring, as well as supply traders with pre-trade analytics, sensitivity and “what-if” analyses. The service will support fixed income, credit and equity derivatives, mortgages, foreign exchange and hybrids, and includes access to all the necessary reference and market data from various third-party vendors as well as pricing models and analytics.
“GlobeOp has an established history of providing ASP risk management systems for hedge funds, and the launch of GoRisk significantly builds on this expertise to provide a powerful infrastructure to manage risk and increase fund accountability,” says Vernon Barback, president and chief operating officer of GFS, the risk management subsidiary of GlobeOp. “This platform integrates and addresses the specific needs of the buy-side community, providing an advanced real-time view of risk across all asset classes as an easy to deploy ASP.”
Evrard Van Hertsen, chief executive officer of Application Networks, says his company is experiencing increasing interest and demand from hedge funds for its tools. “Through GoRisk, GlobeOp is providing the buy-side community with the same technology and functionality but in an ASP format that ensures rapid deployment and a lower cost of entry, translating to exceptional ROI,” he says.