Banks, hedge funds, asset managers, and corporate treasuries can now access risk analytics using development tools.
LSEG officials say that Open Risk Analytics offering, part of its Post Trade Solutions business, is available via its Models as a Service (MaaS) marketplace, a move intended to expand client access to quantitative risk models.
A hosted service, the Open Risk Analytics offering can be delivered via LSEG’s Analytics application programming interface (API), which “enables firms to access risk analytics through various development tools,” officials say.
The tools include Visual Studio Code and JupyterLab, workflows helped by artificial intelligence (A.I.) via open standards like Model Context Protocol (MCP), and LSEG AI partners, including Microsoft Copilot.
“The availability of Post Trade Solutions’ risk analytics through MaaS enables access to key risk calculations for banks, hedge funds, asset managers, and corporate treasuries,” officials say. “The models cover major asset classes including interest rates, inflation, FX, equity, and commodities. They also support multiple calculations such as P&L Explain, stress testing, sensitivity analysis, cashflow, stressed cashflows, historical value at risk, potential future exposure, and credit valuation adjustment.”
The new models provide support for day-to-day risk workflows for risk, treasury, compliance, and portfolio teams, such as:
- Value at Risk: This is the key metric to understanding the risk in the full portfolio, with preconfigured historical data;
- Credit Valuation Adjustment: This is intended to help firms grasp their exposure to counterparties through the credit exposure and credit valuation adjustment;
- P&L Explain: This explains portfolio P&L via full revaluation and risk factor attribution to help teams separate market moves, carry and time effects, and residuals;
- Stress Testing: The aspect helps firms assess portfolio resilience by “fully revaluing positions under user-defined or historical shocked market scenarios.”
This deployment opens “access to LSEG Post Trade Solutions capabilities designed to standardize margin and collateral workflows across a community of more than 3,000 firms. It provides a single source of trade and agreement data, helps standardize portfolios on a central platform, and supports optimization of counterparty risk, margin, and capital requirements,” according to LSEG officials. “It also delivers risk and data tools to support compliance and provide a real-time view of trade exposures, helping clients manage the complexity of OTC [over-the-counter] derivatives workflows.”
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