Nasdaq OMX has teamed up with Corvil to enhance its TradeGuard risk management suite with RiskWrapper, a solution designed to provide additional protection against risk by monitoring trades at the network level and comparing them to those in the risk system to identify any abnormal activity and alert users to anomalies.
RiskWrapper provides tight integration between the TradeGuard and Corvil platforms with Corvil’s streaming analytics platform extracting and decoding trade-related data from the network and passing it to TradeGuard for analysis and presentation to users. The solution is available immediately and will be marketed to both Nasdaq OMX and Corvil customers as an additional layer of risk monitoring. The companies note particular interest in RiskWrapper from large banks and hedge funds, with a couple of early adopters working on proof of concept projects.
Donal Byrne, CEO of Corvil, explains that risk and monitoring systems typically check only data they know about, which means rogue processes in trading may not be identified. This can be avoided by tapping into the network, where all trading traffic can be seen and any unusual activity on a trading platform can be identified. He says: “Integrating risk data based on network data with existing sources of risk analytics is emerging as a best practice. The integration between Corvil and TradeGuard will provide customers with an accurate view of trading across venue sessions and protocols.”
Stacie Swanstrom, senior vice president and head of Access Services at Nasdaq OMX, adds: “There have been a number of regulatory infractions by firms that have not monitored risk adequately and many firms are nervous about what they can’t see. By partnering with Corvil, we can provide our clients with protection against portfolio and market risk.”
For Corvil, the partnership with Nasdaq OMX on RiskWrapper is its first since the July introduction of Corvil Giga, an upgraded release of the company’s network performance monitoring solution that added streaming analytics, big data adapters and auto data discovery to deliver a streaming analytics platform designed for real-time operational intelligence and big data integration.
For Nasdaq OMX, the partnership adds an additional risk management module to the TradeGuard platform it brought to market in January 2014. TradeGuard is powered by the company’s RiskXposure risk management engine and is a modular suite of risk management solutions built out from the FTEN enterprise risk management platform that Nasdaq OMX acquired in 2010.