If the link tells you that you need to log in to read, try googling for "razor risk" and sorting for past week - the first result seemed to let me bypass the login.
Probably the part of most interest is this:
Razor is not alone in its focus on CVA, however, as a number of its direct competitors such as Algorithmics and Fincad have added similar functionality to their portfolios. This is proof positive that the risk technology arena has become a much more competitive environment over the last 12 months, combined with the entry of so many new vendors to the market.
However, Bennett reckons these new entrants may face a tough time in proving their wares in comparison to some of the more established players in the market. For its own part, Razor purports to provide customers with high performance computing capabilities for risk calculations and a metadata driven data aggregation engine that is quickly able to take on new data feeds. Bennett indicates that the vendor has seen a 40% increase in revenue over the last year as a result of the increased market appetite for its solution. The two biggest public client wins for the vendor over 2009 were the central counterparty (CCP) for the Indonesian Stock Exchange, PT Kliring Penjaminan Efek Indonesia (KPEI) in April (see here) and US-based clearing house International Derivatives Clearing Group (IDCG) in May (see here).
Bennett is hopeful that 2010 will see similar wins for the vendor and notes there is a ?broad spectrum of deals with different financial institutions in the pipeline?, ranging from large clearers to banks and brokers. These customer groups vary greatly in their requirements, he adds: ?The volumes dealt with by clearing counterparties can be immense, whereas brokers can have relatively smaller volumes. Methodologies can also range from straightforward VaR calculations to CVA.?
Though I think the 40% revenue increase is old news, being the increase in FY09 over FY08 - the revenue increase in 1H10 was only around 10% on pcp (and below 2H09 level), so seems unlikely they'd be seeing another 40% increase this year!
RZR Price at posting:
2.7¢ Sentiment: Hold Disclosure: Held
