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Nasdaq (NDAQ) Introduces Enhanced Cloud-Based Risk Platform

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Nasdaq, Inc. (NDAQ - Free Report) introduced an advanced version of its cloud-based risk platform, Nasdaq Risk Platform for banks, brokers, and clearing firms. Sucden Financial is the first to adopt the system.

Nasdaq Risk Platform provides comprehensive risk management infrastructure tools to help minimize risks in increasingly regulated, latency-sensitive, high-volume and global trading environments. It has an open and flexible risk aggregation framework, which enables integration of market data sources and risk models.

This in turn assist clients to consolidate multiple asset specific point solutions for risk management into one single multi-asset solution, thus improving capital and liquidity monitoring across firms.

The Nasdaq Risk Platform is a real-time single point of access for sell-side and clearing broker firms that supports cross-asset risk management and exchange margin funding calculations through a SaaS-delivery model.

The cloud-based risk platform offers 24/7 multi-asset coverage across equities, derivatives and commodities venues globally, real-time Exchange Margin replication, real-time and historical market data services, real-time position, exposure, and profit & loss calculations, real-time Value-at-risk (VaR), stress testing as well as scenario analysis for market risk.

Foreign exchange broker and liquidity provider Sucden Financial is the first client to adopt the new cloud-based risk platform to power its new multi-asset risk management system.

Nasdaq’s Market Technology segment focuses on the development of new technology solutions to protect capital markets from the risks associated with market volatility. Hence, the new Risk Platform is built with the intent of further improving the business.

The Market Technology business of Nasdaq is a leading global technology solutions provider and partner to exchanges, clearing organizations, central securities depositories, regulators, banks, brokers, buy-side firms and corporate businesses. It provides technology solutions for trading, clearing, settlement, surveillance and information dissemination to markets with wide-ranging requirements, from the leading markets in the United States, Europe and Asia to emerging markets in the Middle East, Latin America, and Africa.

Therefore, the launch of the Nasdaq Risk Platform will boost the Market Technology business of Nasdaq. Growth in SaaS surveillance revenues enhance the performance of this segment.

This Zacks Rank #2 (Buy) stock has rallied 31.3% in the past year, outperforming the industry’s increase of 10.7%. Solid fundamentals should help the stock retain the momentum.

Other Stocks to Consider

Some other top-ranked stocks from the finance sector include Intercontinental Exchange Inc. (ICE - Free Report) , MarketAxess Holdings Inc. (MKTX - Free Report) and OTC Markets Group Inc. (OTCM - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Intercontinental Exchange surpassed estimates in each of the last four quarters, with the average earnings surprise being 2.75%.

MarketAxess surpassed estimates in each of the last four quarters, with the average earnings surprise being 2.71%.

OTC Markets surpassed estimates in three of the last four quarters, with the average earnings surprise being 11.96%.

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