February 14, 2012

Nasdaq OMX announced today that KDPW CPP, Poland's primary clearing house and central counterparty has selected the exchange operator and technology provider to deliver a risk management and clearing solution for OTC derivatives.

Under the contract, Nasdaq OMX will supply KDPW CCP with its Sentinel Risk Manager product in order to support trade lifecycle and risk management requirements for clearing of OTC-traded instruments.

Sentinel Risk Manager is part of Nasdaq OMX's multi-asset clearing solution for OTC and listed derivatives. This modular suite of products enables the client to license their required functionality while preserving their existing software investment, according to the company's release. The solution provides real time risk management enabling the CCP to protect the integrity of the clearing house and its members, while enabling cross-margin benefits.

Sentinel Risk Manager is compliant with pending European and U.S. legislation for OTC clearing, namely EMIR in Europe and Dodd Frank in the U.S. Currently, both Nasdaq OMX's Nordic clearing house and IDCG in the U.S. have integrated the Sentinel technology within their CPP infrastructure, according to the release.

"It was important to select a solution that easily integrates with KDPW's legacy CCP infrastructure and provides the connectivity and information required by our clearing members," commented Iwona Sroka, President and CEO of KDPW_ CCP in today's release. "NASDAQ OMX's Sentinel solution meets those requirements by providing the trade lifecycle and risk information required by KDPW and its members to clear OTC trades. This, in combination with compliance with international regulation standards, makes it a perfect match for the Polish market."

In a prepared statement, Lars Ottersgard, SVP NASDAQ OMX Market Technology, also stated, "We are pleased to partner with KDPW and look forward to supporting them in implementing a flexible and sustainable OTC risk management solution for the Polish market. Sentinel Risk Manager provides a unique opportunity for CCPs to deploy a sophisticated risk assessment solution that can easily plug into their existing clearing infrastructure and preferred external liquidity sources."

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Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in ...