The Australian Securities Exchange (ASX) has selected Nasdaq’s Sentinel post-trade risk technology to manage real-time risk across clearinghouses.
Sentinel Risk Manager provides a single system across all ASK clearinghouses and asset classes, including real-time margin calculation and related customer risk analytics.
The investment comes as ASX paces more importance risk management standards. It intends to help clearinghouses to meet global regulation, and to offer better protection and efficiency to customers, investors, and wider market participants. The new risk system will be implemented in five stages over the next two years.
Tim Thurman, chief information officer of ASX, said: "The opportunity to deliver both a cross-margining simulation and optimisation service will add significant value to our clearing participants and their clients."
Nasdaq has provided technology services to ASX for more than 20 years. Executive vice president of Nasdaq Lars Ottersgård said: "Our solution's high performance architecture enables exchanges to respond to global regulations requiring intraday risk management and increased margin methodology sophistication. We look forward to supporting ASX on this important technology enhancement to its markets."
This mandate is part of a larger technology transformation that ASX announced in February. All major trading posts will be upgraded in the next three to four years in an investment designed to make sure Australia’s financial market infrastructure remains competitive.
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