LumRisk, a Geneva based risk aggregating service provider, has gone live with the managed service version of Markit EDM. The enterprise data management solution improves LumRisk’s hedge fund and alternative risk premia (ARP) platform, allowing data analysis and risk monitoring services to be scaled up.
LumRisk considered several enterprise data management solutions before selecting Markit EDM on the strength of a proof of concept, the software’s proven track record and the managed option that allows the company to use a service with a mutualised overhead that can deliver rapidly and reduce the cost of supporting an in-house solution. The service went live in under six months.
Alejandro Bonilla, head of LumRisk, says: “LumRisk’s rapid expansion and increased coverage of an extensive range of complex instruments and securities requires reliable, proven technology and stable business partners. Markit EDM will help meet the goal of providing our sophisticated clients with state-of-the-art risk reporting across not just their ARP investments, but also their entire investment portfolio.”
The company is using Markit EDM for client onboarding, loading key reference data into the ARP platform and managing large amounts of position and security master data. The platform aggregates information from internal and external data providers, allowing users to view and model the fundamental risk characteristics of clients’ consolidated portfolios, based on accurate risk modelling of the underlying instruments.
Spiros Giannaros, managing director at Markit EDM, says 40% to 50% of new customers are using the managed service rather than the in-house installed solution and expects managed service numbers to tick up. While the company hasn’t directly targeted services organisations with Markit EDM, it says this area of the business is growing too, with 15 large administrators using Markit EDM to provide data services to customers and three hosted risk and portfolio management platforms using the solution.
Looking forward, Markit EDM is looking at regulatory solutions based on its managed service. The initial focus is on Markets in Financial Instruments II (MiFID II) with a proof of concept managing client data required for regulatory reporting at a large bank.