Nasdaq Risk Platform FAQs

A risk platform provides wide-ranging risk management tools to help users minimize risks in regulated, latency-sensitive, high-volume and global trading environments. With a risk platform like the Nasdaq Risk Platform, you can monitor and manage your aggregate risk exposure across markets, asset classes, regions and accounts in real time.

Leveraging a cloud-based platform enables rapid scaling and real-time performance. A consolidated risk infrastructure can help firms generate efficiencies by removing multiple legacy solutions, minimizing operational risks and focusing on core revenue-generating activities. A SaaS deployment method can shorten customer time-to-market, increase customer return-on-investment (ROI) and ensure a more frequent delivery cycle.

Whenever possible, we like to understand your interests and pain points so that we can highlight the product capabilities and functionality most relevant to your business. At a minimum, you can expect to come away with an understanding of: asset class and market coverage; the risk functionality and exposure that Nasdaq Risk Platform monitors; how limits, alerts and visualizations can be leveraged; and the setup and support model. Demonstrations, however, are an open dialogue and can be used to dive deeper into questions and use cases in which you are interested.

Nasdaq Risk Platform is deployed in Amazon Web Services (AWS) across multiple availability zones and can be made further resilient by leveraging multiple regions.

Typically, Risk Managers, Treasury, Heads of Desks and Senior Management can all benefit from using Nasdaq Risk Platform, which can consume all of your intraday trade flow into the system while also replicating Exchange Margin payable to the relevant exchanges.

Energy Futures and Options

Exchange-Traded Derivatives

• Spreads, options on spreads
• Averaging and eroding futures
• Spreads/options on above
• Freight
• Power
• LME OTC averages, Monthly Average Futures and TAPOs

Equities and Options

Fixed Income Securities:

• Government bonds
• Corporate bonds
• Convertible bonds

Foreign Exchange (FX Spot, Forward and Spot)

Bullion

OTC Lookalikes

Exchange and Clearing House Coverage:

 o 40+ exchanges, including:

• ICE
• CME
• EUREX
• NASDAQOMX
• NODAL
• EEX
• SGX
• MEFF

Real-time risk exposure can be calculated for:

• Profit and Loss
• Concentration and Liquidity
• Equity/Cash
• Market Value
• Net Liquidation Value
• Open Trade Equity and Option Value, Implied Volatilities and Greeks for non-linear instruments
• What-If Capability
• Margin Call calculations
• Margin Calls (incl. Cash Collateral and Credit Lines)
• Filtered HVaR Engine (including Stressed VaR)
• Capital Requirement Calculation
• Open Order Exposure
• Order Checks

              o Duplicate executions

              o Order rates

              o Price collars

              o Restricted List

• Reg SHO/Short Availability
• For all of the above, the system supports:

               o Limit Monitoring and Alerts with Notification Centre

               o Dynamic Aggregation and custom metric support

• Nasdaq Risk Platform supports calculation of Historical Value-at-Risk (HVaR).
• The model used in Nasdaq Risk Platform is a full revaluation model without any approximations. The platform supports both unfiltered or filtered (volatility scaled) Value-at-Risk and Expected Shortfall. Value-at-Risk calculation in Nasdaq Risk Platform consists of three main steps:

               o Calculation of Unit Profit-and-Loss

               o Calculation of Portfolio VaR

               o Calculation of VaR attribution

The service offers customers the ability to set up different types of limits against (but not limited to) the measures outlined in the question directly above referring to VaR support. 

Limits are set up at specified node levels against system-calculated data. Notifications are managed by the Limit Monitor, Notification Centre and Limit Monitoring and Alerts Dashboard. The service allows limits and their thresholds to be configurable.

Complete our Contact Us form and a member from the Nasdaq Risk Platform team will reach out to discuss your needs.

• Real-time visibility – view exposures and Exchange Margin replication as trades are being executed across multiple systems in real time with integrated Initial Margin calculations and limit monitoring combined across asset classes.
• Singular view – one harmonized view of risk, which provides market, counterparty and liquidity risk in one platform to improve and enhance the risk remediation process while providing business insights to senior management and reducing costs.
• Dynamic aggregation functionality – aggregate risk holistically into a single, dynamic, real-time view based on each customer and user’s unique risk policy needs.
• Ease of adoption – cloud-native architecture allows for rapid implementation, reduced time-to-market and optimized performance.
• Scalability – microservice architecture for horizontal scaling of compute enables consistently high performance as volumes and market conditions change, allowing firms to adapt based on market volume and requirements.
• Connectivity – system functionality is exposed via REST APIs, allowing customers and customers’ services to connect and consume Nasdaq Risk Platform services and functionality to enhance external ecosystems and improve operating models.
• Assurance – firms can better anticipate and mitigate risk in real time with Initial Margin What-If calculator, which enables firms to stress test different scenarios and further optimize capital efficiency and maintain regulatory compliance.
• Stability and reliability – backed by Nasdaq’s continuous commitment to research and development and best-in-class information security protocols.
• Software-as-a-Service (SaaS) – Nasdaq deploys new releases to the platform every three weeks using an Agile methodology to advance Nasdaq Risk Platform’s goal for clients to have the most performant and updated functionality without incurring internal costs to upgrade their technology stacks.