Lombard Risk Management plc (LON:LRM) and TMX Market Insights are to partner up to provide calculation and margin analytics.
The collaboration solidifies a long-term relationship between the two companies and focuses on the integration of Lombard Risk's cross-asset collateral management software, COLLINE, with Razor's leading-edge margin calculation technology.
The new software, known as COLLINE Calcs, will be available in the first quarter of 2017.
Lombard’s Helen Nicol said: "The ability to obtain real-time initial and variation margin calculations for the validation of external or counterparty/broker/CCP marks will radically change the way our clients operate, providing greater analytics and perspectives for a competitive advantage.
"We believe the partnership between Lombard Risk and Razor Risk provides an industry leading solution that gives greater accuracy and certainty in managing collateral margins and calculating solvency ratios."
The technology helps banks, COLLINE’s primary user base, to “make risk assessments and to make sure that the products that they have and that they are trading fall within the organisation’s risk parameters,” says finnCap’s Scott Mathieson.
Mathieson adds that it’s best to think of COLLINE Calcs as a “bolt-on” to Lombard’s current offering that makes the whole package “even more useful for clients”.
Mathieson’s colleague, equity analyst Lorne Daniel, says although the collaboration doesn’t change forecasts at this stage, it does “keep COLLINE at the leading edge of industry solutions”.
Daniel adds that the new technology should help users to gain a “competitive advantage” by providing greater analytics.
Shares were down 0.25p, or 3%, to 7.75p.
--Updates for analyst comment and share price--