News: New Patent on Risk Monitoring : An Issue for CCPs and FinTech Vendors?

02 November 2018 | Bill Hodgson

Other sites have already copied and pasted the press release from Cinnober about the granting of a patent, covering an invention to monitor the risk in multiple accounts CCP in real-time. Firstly here is the press release but later are my thoughts on why this matters, and whether this could have an impact on other firms. And finally feedback from Cinnober themselves on the purpose for the patent.

Cinnober, a global independent provider of exchange and clearing technology, announce today that the U.S. Patent and Trademark Office has granted the company the patent Risk Assessment US 9,959,574 originally filed in 2011.

The invention comprises real-time risk assessments in a clearing system, including the calculation of margin requirements on accounts or groups of accounts triggered by events that affect the accounts as they occur, such as new trades or changes to market data. It also comprises netting of positions held in a group of accounts when calculating risk and carrying out several risk calculations in parallel using multiple risk algorithms, such as Value at Risk (VaR) and SPAN® to compare the outcome.


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