LCH.Clearnet Group has selected IT&e’s RAZOR product as its clearing house’s risk management system.
IT&e and LCH.C have signed a RAZOR licence agreement to meet LCH.C’s risk management requirements as the central counterparty for trades executed on the London Stock Exchange, Euronext.liffe, ICE, LME, Endex, virt-x, NYSE-Euronext, Powernext and Nodal exchanges.
LCH.C also offers a broad range of services in relation to the OTC interest rate swap, bond and repo markets.
This significant project provides LCH.C with an overnight and intra-day risk management application at the forefront of industry thinking on the merging of risk engineering and technology. Extensive use will also be made of RAZOR’s risk measurement and stress testing capabilities.
“This is a deal of market significance not only for IT&e but for the international risk software sector as a whole. It is a clear demonstration of the market entering a new cycle, whereby the world’s leading financial institutions have started to act on the need to update risk systems to meet higher expectations around what constitutes best practice in risk management,” says Richard Bennett, Head of the Europe, Middle East and Africa region, IT&e.
“We are extremely pleased to have demonstrated RAZOR’s ability to adapt to the unique risk management needs of the LCH.Clearnet Group an esteemed global financial institution with an enviable reputation as an innovator in the financial marketplace. Following on from our win at the Australian Stock Exchange Clearing House RAZOR has clearly become the clearing house risk system of choice,” adds James Maranis, CEO, IT&e.