The Australian Securities Exchange has selected Nasdaq’s Sentinel Risk Manager solution to manage real-time risk across its two clearinghouses. The system is expected to be implemented in five phases over the next two years and will include real-time margin calculation, cross-margining calculations and related customer risk analytics.
“Consolidating our risk technology onto Sentinel’s real-time technology will enable ASX to more ef- ficiently fulfill global risk management best practices and provide risk capital benefits to customers,” said Tim Thurman, the exchange’s chief information officer. “The opportunity to deliver both a cross-margining simulation and optimization service will add significant value to our clearing participants and their clients.”
Sentinel Risk Manager is designed to address the risk management needs of clearinghouses and exchanges across both exchange-traded and overthe-counter products. The system offers real-time risk and margin aggregation and analysis, limit management with real-time alerts of limit breaches, graphic displays of valuation curves, scenario analysis, and connectivity to third-party matching, market data and trade compression providers, including MarkitWire, Thomson Reuters and TriOptima.