Nasdaq has announced a series of enhancements to its widely-used risk technology platform, which helps the banking and broker-dealer community manage liquidity and market risk. The upgrades aim to assist firms in navigating extreme market conditions by providing a live view of risk across proprietary and client trading portfolios, along with detailed analytics to support real-time decision-making.
The latest major release of the Nasdaq Risk Platform now includes fixed income securities such as Government Bonds, Corporate Bonds, and Convertible Bonds. This addition offers users a consolidated view of risk across a wide range of asset classes, including Fixed Income, Equities and Equity Options, Exchange Traded Derivatives, and Foreign Exchange. The platform also significantly enhances multi-factor and intraday stress testing tools capable of isolating and managing specific risks within large and complex scenario sets.
Roland Chai, Executive Vice President and Head of Marketplace Technology at Nasdaq, commented: “The extreme volatility in recent weeks has demonstrated the consequences of firms not understanding their intra-day liquidity and market risk. We’ve seen a significant increase in demand from banks and broker-dealers who recognise the importance of being able to distill, analyse, interpret, and act on signals in a genuinely live environment.”
Magnus Haglind, Senior Vice President and Head of Products for Marketplace Technology at Nasdaq, added: “Many firms still rely on receiving end-of-day pricing and margin calls, leaving them exposed to significant intraday volatility and the risk of a liquidity crunch. This threat is only going to increase as we move into a higher interest rate environment with even greater risk embedded in bond and derivative portfolios. Nasdaq Risk Platform provides firms with a consolidated and real-time view of risk across asset-classes, exchanges and CCPs and brings wider benefits in the form of more efficient collateral management, which can help unlock liquidity and boost returns.”
Other notable enhancements include the addition of the Kafka open-source distributed streaming system to feed live risk analytics, and the full incorporation of Nasdaq Derivatives Pricing into the platform. The integration enables firms to conduct P&L, Value at Risk (VaR), and stress testing calculations on option portfolios using recalibrated intraday volatility surfaces.
The Nasdaq Risk Platform, a key growth area for Nasdaq’s Marketplace Technology business, has increased its customer base by 50% over the past 12 months. Built in the cloud and deployed via SaaS, the platform can rapidly scale during periods of high market volatility and is developed and maintained by Nasdaq with the same high standards and levels of monitoring and support applied to its own marketplaces.
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