HKEX implements Nasdaq’s risk management tech for cash and derivatives

Latest technology deal extends partnership between HKEX and Nasdaq with addition of real-time risk management.

Hong Kong Exchanges and Clearing (HKEX) will implement real-time risk management technology from Nasdaq across all of its cash and derivatives markets.

The real-time risk management technology, which is deployed via the Nasdaq Financial Framework, provides central clearing counterparties (CCPs) with more efficient operations and compliance for regulatory requirements.

“Nasdaq’s real-time risk solution supports several of the world’s largest and most systemically important financial institutions to help capture and manage risk across their markets,” said Magnus Haglind, senior vice president, head of product management, Market Technology, Nasdaq.

He added that the solution will provide HKEX with a single point-of-entry for risk management across all of its markets, “which will bolster efficiency and provide flexibility to quickly adopt to new and upcoming market initiatives”.

The deal is the latest between both exchange operators and extends the technology partnership both have upheld since 1994. HKEX has previously deployed Nasdaq’s SMARTS market surveillance technology and upgraded its derivatives trading and clearing technology with the US exchange operator.

“We are delighted to be partnering with Nasdaq in deploying its highly regarded risk management technology for our cash and derivatives markets,” Richard Leung, chief technology officer at HKEX, commented. “We have enjoyed a long and fruitful partnership with Nasdaq and we look forward to its continued support as we introduce this new technology.”

Last month, Nasdaq confirmed that it made a bid to acquire Swedish exchange and clearing technology provider Cinnober in a deal worth $190 million. Nasdaq made an all-cash offer to shareholders of Cinnober to strengthen its market technology business, which serves a range of capital markets participants.

Stockholm-based Cinnober was established in 1998 and has diversified its technology product-base since its inception through a number of acquisitions of its own, including the purchase of market surveillance technology provider Ancoa in May last year.