Minium Signs Marex Spectron as First Client

The two companies are understood to have been engaged in conversations for a while and waited to finalize the agreement before making the announcement at the International Derivatives Expo 2018 Summit, held in London on June 5.

“They embraced our vision for delivering a risk solution based on cloud technology,” says Patrick Tessier, chief operating officer at Minium. “It’s a global delivery. We are taking care of three different locations for them.” 

Although Spectron already has a sophisticated system for risk management, Richard Reid, the firm’s chief risk officer, says it was looking for ways to improve. “Minium reaching out to us in order to partner with us to develop a new system ultimately seemed like a good idea,” he tells WatersTechnology. “I think their parent company, Cinnober, certainly have a good history of developing risk systems for central counterparties (CCPs), [and] because we are a London Metal Exchange member, I am quite familiar with that…I saw their pedigree, understand their pedigree.”

The cloud-based platform will allow Spectron, a global broker of financial instruments in the commodities sector, to monitor counterparty risk in real-time across multiple asset classes via an exception-based smart dashboard.

“Obviously it is a great timing with the show today. We have people come to us to talk about this announcement or want to know more,” Tessier says.Spectron will leverage Minium’s real-time risk management solution to consolidate a number of systems it currently uses into a single platform with additional key features such as initial margin and valuation replication over 24 global CCPs, real-time value at risk (VaR), stress VaR computations, treasury liquidity monitoring, regulatory capital calculations and what-if simulations.