Nasdaq unveils new Risk Platform for sell-side and clearing broker communities

By Pavithra R

Nasdaq has unveiled the enhanced Nasdaq Risk Platform, a real-time single point of access risk platform for sell-side and clearing broker communities. The platform minimizes risk and optimizes balance sheet liquidity across global markets & trading environments.

The cloud-based risk platform provides visibility of initial margin, counterparty risk controls and improved risk-adjusted outcomes across asset classes. The platform has an open and flexible risk aggregation framework that allows integration of market data sources and risk models, enabling clients to consolidate multiple asset-specific point solutions for risk management into one single multi-asset solution improving capital and liquidity monitoring across firms. The risk platform provides comprehensive risk management infrastructure tools to help minimize risks in increasingly regulated, latency-sensitive, high-volume and global trading environments. 

The Nasdaq Risk Platform offers a suite of functions, including:

• 24/7 multi-asset coverage across equities, derivatives and commodities venues globally
• Real-time and historical market data services
• Real-time position, exposure, and profit & loss calculations
• Real-time Exchange Margin replication
• Real-time Value-at-risk (VaR), stress testing and scenario analysis for market risk

“When volatility increases, trading behaviors change, and risk management evolves, so we continue to focus on developing technology solutions that help safeguard and uphold the integrity of the capital markets. With the new capabilities built into the Nasdaq Risk Platform, our clients can advance their real-time risk controls and analysis across assets, venues and regions,” said Valerie Bannert-Thurner, SVP and Head of Buy-Side and Sell-Side Business Solutions, Market Technology, Nasdaq.

Nasdaq’s SaaS-delivery model enables scalability, flexible technology upgrades and rapid time to market that further stregthens risk management capabilities for the sell-side and clearing broker communities. The real-time risk parameters allow for fast and effective risk mitigation while protecting the firm’s balance sheet.

“Effective risk management is essential for our diversified operations. We have worked with Nasdaq to develop a powerful real-time multi-asset risk management platform, which will further improve efficiencies within the business,” said Mike Coomber, Chief Risk Officer, Sucden Financial. 

Nasdaq has also announced that Sucden Financial, the global multi-asset execution, clearing and liquidity provider is leveraging Nasdaq’s platform to power its risk management system. 

Established in 1971, Nasdaq is a global technology company serving the capital markets and other industries. According to company data, Nasdaq’s market technology powers 300 of the world’s market infrastructure organizations and market participants, including broker-dealers, clearinghouses, exchanges, central securities depositories and regulators, in over 50 countries with end-to-end, mission-critical technology solutions.