Already in use as ASX's integrated Clearing House risk management system since 2008, Razor will now be used to calculate routine daily margins for clearing participants with respect to unsettled cash market transactions.
Jeff Olsson, Group Executive Technology, ASX, said, "ASX's expanded use of Razor's proven technology for the introduction of cash market margining, further strengthens ASX's existing robust risk controls that operate for the benefit of our participants and the market as a whole."
Speed of performance was a significant factor in ASX's decision to use Razor margin to deliver the mission-critical intraday margin requirements to clearing participants. By also upgrading to the latest version of Razor, ASX will benefit from a significant improvement in performance without any change in infrastructure.
Andrew Wood, Group Chief Executive Officer, Razor Risk Technologies, said, "We are particularly delighted that Razor's proven global exchange risk management technology has been selected to enhance risk controls within ASX, with benefits for the broader Australian market. With the ASX also moving to our latest release of Razor 3.0, we look forward to continuing to deliver technology risk solutions reflective of business needs and international best practice."