About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Cinnober Patents Real-Time Risk Assessment Solution

Subscribe to our newsletter

Swedish trading and risk management technology supplier Cinnober has been granted a US patent for a real-time risk assessment system. The invention allows clearing houses to minimise the discrepancy between the value of the collateral provided by a member as security and the highest probable loss that the portfolio may experience.

This means that for real-time risk calculations, margin requests can be issued immediately, when needed, rather than waiting until the end of the day or for a scheduled run of calculations.

The patent – Risk Assessment US 9,959,574 – was originally filed with the US Patent and Trademark Office in June 2011, and adds to Cinnober’s existing patent for Micro Auction and a pending patent application related to order matching.

The latest invention makes real-time risk assessments in a clearing system, including the calculation of margin requirements on accounts or groups of accounts affected by events, such as new trades or changes to market data. It also nets positions held in a group of accounts when calculating risk and carrying out several risk calculations using multiple risk algorithms, such as Value at Risk and SPAN, to compare the outcome.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: New trends and technologies influencing post-trade digitalisation

While digital transformation of front-office functions at financial institutions is well underway, the back office is lagging, calling on firms to reassess and innovate post-trade processes. The need for change is highlighted by specific issues, including the move towards T+1 settlement and increasing regulatory scrutiny of post-trade processes, as well as broader challenges of legacy...

BLOG

2023 – the Year Liquidity Risk Management Focuses on Collateral Squeeze

Jo Burnham, Risk and Margining SME, OpenGamma. Liquidity Risk Management 2023 is likely to see a real focus on the collateral squeeze. There are many factors that will be making it harder to source the collateral needed to cover margin requirements. The EU pension fund exemption will expire in 2023, meaning they will be subject...

EVENT

TradingTech Briefing New York

TradingTech Insight Briefing New York will explore how trading firms are innovating and leveraging technology as a differentiator in today’s cloud and digital based environment.

GUIDE

Enterprise Data Management, 2009 Edition

This year has truly been a year of change for the data management community. Regulators and industry participants alike have been keenly focused on the importance of data with regards to compliance and risk management considerations. The UK Financial Services Authority’s fining of Barclays for transaction reporting failures as a result of inconsistent underlying reference...