Nasdaq OMX today launches Genium Risk, a new risk management platform for its Nordic clearing house, Nasdaq OMX Clearing. Genium Risk, a state of the art risk system, provides the clearing house with a real-time risk management solution, including new tools for improved risk monitoring and handling of incidents for derivatives clearing.
In addition, capital efficient risk models for fixed income and equities will optimize the use of member collaterals.
"Our clearing house will have Europe's first risk management system capable of integrating all asset classes, and with the ability to handle both OTC and exchange traded instruments. This further enhances NASDAQ OMX's strong offering in the post trade business." says Hans-Ole Jochumsen, President of NASDAQ OMX Nordic. "Genium Risk is the foundation for growing our clearing business, as well as enabling us to launch risk management products to external clearing houses and members."
NASDAQ OMX's Genium Risk platform meets trading members' increasing needs of advanced technical solutions and capital efficiency as non-exchange traded financial instruments are forced into centralized clearing, in line with new transparency regulations (Dodd-Frank in the US and EMIR, European Markets Infrastructure Regulations, in Europe).
"Our main ambition has been to make Genium Risk as flexible as possible, allowing a high degree of customization", says Fredrik Ekström, Vice President of Risk Management at NASDAQ OMX. "By being able to customize risk models and risk parameters for different types of asset classes and credit risks, the risk measures can be much more accurate."
As a result, the new risk model for fixed income, called CFM (Cash Flow Margin), will enhance substantial capital efficiency to clients of NASDAQ OMX Clearing, whilst improving the risk measurement capabilities.
Today fixed income derivatives and equities derivatives are handled by the Genium Risk platform. In March 2012 the NASDAQ OMX commodity business will migrate to Genium Risk, thus achieving full integration of the Commodity and Financial markets.