Tullett Prebon teams up with Quaternion for derivatives risk analytics

Firms partner with New York’s Columbia University for derivatives risk analytics project.

Tullett Prebon Information has announced a partnership with risk management firm, Quaternion, to launch an open source code derivatives risk project.

The project is in collaboration with New York’s Columbia University and provides transparent risk calculations across derivatives exposures.

All three parties have invited finance professionals to test, improve and develop the open source code at Columbia University’s FinTech lab, as part of the project.

Donal Gallagher, chief executive officer at Quaternion, explained standardising risk models is a significant challenge for the industry due to mounting derivative regulatory requirements over the past decade.

Frank Desmond, chief executive officer at Tullett Prebon Information, added that Quaternion’s open source risk framework “is of huge value to the academic community, facilitating research into the fundamental drivers of financial markets.”

“Our data, Quaternion’s innovative approach and Columbia University’s research will provide the financial markets with more clarity on risk,” he said.