Chris Jones, Director and Head of Risk Management for LCH.Clearnet said; âRazorâs functionality, extremely fast calculation and advanced intraday processing performance, has facilitated our own risk management capabilities and supported us with the successful implementation of one of the first simulation based VaR margining process for a new exchange.â
Richard Bennett, Razor President Europe noted: âWe are very pleased to add another financial institution as prestigious as LCH. Clearnet to the expanding list of live Razor clients. This was an ambitious project, which was started in June 2008, involving high transaction volumes, multiple locations, and sophisticated intraday market risk analytics. Our partnership approach to implementing the Razor solution has been very successful, and we look forward to working together to incorporate new business areas in the next project phase.â
Razor delivers fast and accurate intra-day and end of margin calculation for the new exchange whilst providing LCH.Clearnet with a comprehensive risk software solution to facilitate the risk management of this new market. This includes the capability to calculate historical simulation VaR, sensitivities and stress testing on all member portfolios along with default management processing capability which, combined with a new engine at Nodal Exchange, delivers trade optimisation to market participants.
Nodal Exchange is the first electronic commodities exchange dedicated to offering locational (nodal) products and services to participants in the organised North American electric power markets. LCH.Clearnet will be the Central Counterparty clearing all trades on Nodal Exchange. Clearing trades through LCH.Clearnet will help significantly reduce counterparty risk, increase market quality and liquidity, allow post-trade anonymity, and reduce participantsâ operating costs through the use of multilateral settlement netting.