Today’s markets and regulations are pushing exchanges to improve their technology, risk models and capital services. As such, Hong Kong Exchanges and Clearing has embarked on a major revamp of the clearing house’s platform, looking to upgrade its risk models and technology. Ryan Ingram, senior vice president, group regulatory analytics, risk policy and FMI strategy at Hong Kong Exchanges and Clearing, spoke with John Lothian News at the WFE IOMA Clearing and Derivatives Conference in Chicago in April about how the exchange is approaching this project and rolling it out over the next several years.
“What we are doing now is installing an entirely new risk engine – not only from the technology side, but also the quantitative risk mechanisms that go into that,” Ingram said. “What we are striving to end up with is a much more comprehensive risk model.”
Ingram said the project is complex as it is aims to meet global regulatory requirements but also address the risk needs of the Hong Kong market. The initiative includes HKEx’s four clearing houses, three on-exchange CCPs and one OTC clearing platform.
“Financial markets are getting more sophisticated by the day,” Ingram said. “In China, they have a country initiative to be more open with their capital markets. So for us, we’re thinking about how that may impact us and the other markets more broadly.”
Produced by Mike Forrester
Interview by Jim Kharouf