High-Performance computing power of 64-bit Intel® Itanium® 2 processors helps reduce financial trading risks
Financial institutions need to accurately measure and manage financial risks in order to efficiently, and effectively trade with counterparties. However, risks modeling and calculations in today’s busy financial markets require high-performance computing platforms in order to deliver the accuracy and timeliness that is needed to effectively carry out profitable trading. Researchers from Australian developer, Credit Risk Systems (CRS) found that Itanium® 2-based servers running the company’s optimized version of BoundaryRider* application, could effectively deliver the results banks need to reduce financial trading risks.

Challenge

• Accurate and timely data is crucial. Rapid growth and complexity in the global derivatives industry has outpaced the ability of existing risk measurement systems to deliver timely, accurate data.
• Risk aversion is not optimal. Facing a choice between increased accuracy and timeliness, most financial institutions have chosen the latter and adopted an overly conservative risk position to compensate for lack of data.

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