The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Reuters’ New JRisk On Demand Offering Packages Broad Coverage of Evaluations, Terms and Conditions

Share article

Reuters’ new JRisk On Demand, a tailored risk management solution for hedge funds developed by the Applied Networks unit that it acquired last year, not only delivers real-time risk management tools directly to individual managers’ desktops, but aims to provide “enormous” cost benefits to clients through access to Reuters reference and terms and conditions data. 

The release of JRisk On Demand coincides with the increase in frequency of updates of the bond instrument evaluations available via the Reuters DataScope Select platform. The addition of several intraday valuations is aimed at meeting the needs of more regular portfolio valuations than the traditional end of day calculation. 

Similarly, a growing appetite for risk and increased volume of trades means that increasingly hedge funds need access to real-time risk positions rather than rely on end-of-day calculations. As such, JRisk On Demand provides what Reuters says is “true multi-asset-class coverage” that brings together real-time risk management functions on a single platform. 

According to Nigel Cheetham, product manager for JRisk on Demand at Reuters, “if a manager has bonds in their portfolio, all the terms and conditions for, say, credit default swaps (CDSs) and other instruments, will all make use of Reuters’ reference data.”

He adds: “Obviously, things like coupon rates, maturity dates, exercise dates, strike prices, etc … all come directly through Reuters data. The idea here is that all the clients would really need to do in order to identify what they are trading, is to track it with the security identifiers – CUSIPs, ISINs or RIC codes.” 

By inputting any of these identifiers into the JRisk On Demand platform, users are able to pull down all the relevant terms and conditions data from the Reuters database. This, Cheetham says, could translate into significant cost savings for users currently subscribing to third party data services to meet their terms and conditions requirements.

Risk management is now vital to hedge funds as they trade an ever broader set of instruments across all asset classes. JRisk On Demand can be accessed globally via a standard web-browser interface, allowing users to view detailed intra-day risk measures as well as profit and loss and position information.

The product is hosted in partnership with GlobeOp Risk Services using Reuters JRisk technology, which can be swiftly deployed with what Reuters describes as “minimal upfront investment” and the ability to work across any IT infrastructure.

To meet the growing demand of intraday valuations, Reuters has added 4 p.m., New York and London time, the valuations for interest-rate swaps, CDSs and loans CDSs available via Reuters DataScope Select, in addition to its regular 6 p.m. local time valuation.

According to Reuters, “delivering prices at 4 p.m. and 6 p.m. New York time (and 4 p.m. and 6 p.m. London time), Reuters provides large sell side and buy side customers with the range and depth of consistent data needed to promote STP throughout the front and back offices and ensure accountability and compliance to investors and regulators alike.” By offering the additional time slot, Reuters believes it will give clients longer lead times to act on the data received.

CDS evaluations are based on credit curves that are updated by 4 p.m. London time and at 3 p.m./4 p.m. New York time. This will enable clients to value their deals faster and before end of day. The Reuters evaluation team works with a range of broker/dealers to obtain instrument quotes and up-to-date credit movements. IRS evaluations are based derived from swap rates obtained from Reuters’ dealer contribution network.

The CDS and IRS valuations are delivered via Reuters’ hosted DataScope Select platform. The system allows customers to create custom terms and conditions on the platform, allowing them access to data when they need it.

Related content

WEBINAR

Upcoming Webinar: The post-Brexit UK sanctions regime – how to stay safe and compliant

Date: 11 March 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes When the Brexit transition period came to an end on 31 December 2020, a new sanctions regime was introduced in the UK under legislation set out in the Sanctions and Anti-Money Laundering Act 2018 (aka the Sanctions Act). The...

BLOG

Why Is Now the Time for the Financial Markets to Focus on Collaboration Compliance?

By Phil Fry, VP of Financial Compliance Product Strategy at Verint. The seismic impact of the pandemic has seen many banks and financial institutions ramp up their use of next-generation communication solutions, to assist their employees to work from home and alternative locations. During lockdowns, trades and client orders, that were traditionally executed at corporate sites, moved...

EVENT

TradingTech Summit London

The TradingTech Summit in London brings together European senior-level decision makers in trading technology, electronic execution and trading architecture to discuss how firms can use high performance technologies to optimise trading in the new regulatory environment.

GUIDE

RegTech Suppliers Guide 2020/2021

Welcome to the second edition of A-Team Group’s RegTech Suppliers Guide, an essential aid for financial institutions sourcing innovative solutions to improve their regulatory response, and a showcase for encumbent and new RegTech vendors with offerings designed to match market demand. Available free of charge and based on an industry-wide survey, the guide provides a...