Numerix, and TMX Group’s technology business, TMX Technology Solutions have announced a collaborative partner agreement.
TMX Group’s Razor Risk technology, an enterprise risk management (ERM) product, will leverage Numerix’s library of industry standard, market tested risk and pricing models within its solutions for credit risk, market risk and economic capital management. The agreement will see additional support provided to clients with highly complex derivatives, and enable accurate risk management across the enterprise.
Numerix commented that global financial regulations continue to drive demand for advanced risk functionality - mandating significant requirements under Basel and Solvency II for aggregate risk analysis, credit value adjustment (CVA) calculation, collateral and economic capital management as well as principles for financial management infrastructure (PFMI) and legally segregated, operationally commingled (LSOC) requirements.
The two partners added that they see a valuable market opportunity to work with variety of stakeholders within a single firm, providing a holistic solution for ERM.
“Financial institutions continue to face challenges as the pace of risk management continues to accelerate. In today’s market, clearing houses, stock exchanges, brokerages and banks must comply with evolving regulatory requirements while learning to manage shifting market conditions globally,” said Steven O’Hanlon, chief executive officer (CEO) and president of Numerix.
“With the proliferation of risk and regulatory change, firms require the ability to manage multiple-risks across asset classes. The market now demands an integrated analysis of market, credit and liquidity risk within a single application,” said Richard Simon, vice president of TMX Technology Solutions.