LCH.Clearnet has gone live with software application from Razor Risk Technologies for the North American based Nodal Exchange.
Razor delivers fast and accurate intra-day and end of margin calculation for the new exchange whilst providing LCH.Clearnet with a comprehensive risk software to facilitate the risk management of this new market. This includes the capability to calculate historical simulation VaR, sensitivities and stress testing on all member portfolios along with default management processing capability which, combined with a new engine at Nodal Exchange, delivers trade optimisation to market participants.
Nodal Exchange is the first electronic commodities exchange dedicated to offering locational (nodal) products and services to participants in the organised North American electric power markets.
“Razor’s functionality, extremely fast calculation and advanced intraday processing performance, has facilitated our own risk management capabilities and supported us with the successful implementation of one of the first simulation based VaR margining process for a new exchange,” says Chris Jones, director and head of Risk Management, LCH.Clearnet.
“We are very pleased to add another financial institution as prestigious as LCH.Clearnet to the expanding list of live Razor clients,” says Richard Bennett, president, Razor Europe.
“This was an ambitious project, which was started in June 2008, involving high transaction volumes, multiple locations, and sophisticated intraday market risk analytics. Our partnership approach to implementing the Razor solution has been very successful, and we look forward to working together to incorporate new business areas in the next project phase.”
L.D.