Murex, a prominent fintech startup, is now conducting tests on the superchip architecture within its trading and risk platform.
VNIDIA is world’s most reputed company in Graphics Manufacturing Chips. Pierre Spatz predicted that banks will prioritize cost reduction in computing expenses in response to the 2008 financial crisis and the subsequent implementation of stricter risk-management requirements. Spatz, the head of quantitative research at Murex, a Paris-based trading and risk management software company, implemented NVIDIA’s CUDA and GPU-accelerated computing technologies to achieve optimal performance and energy efficiency.
The company’s quantitative analysis team is currently conducting trials on the NVIDIA Grace Hopper Superchip, since they are always in pursuit of the most cutting-edge technologies. The primary objective is to assist customers in effectively determining the value and overseeing the credit and market risks associated with derivatives contracts.
The Murex MX.3 platform is relied upon by over 60,000 users on a daily basis throughout 65 nations. MX.3 provides support to banks, asset managers, pension funds, and other financial organizations in managing their trading, risk, and operations for many types of assets.
Utilizing MX.3 technology powered by Grace Hopper to effectively handle risk management.
Financial institutions require a high-performance computing infrastructure to execute risk models on large volumes of data for pricing and risk calculations, as well as to provide real-time decision-making capabilities.
MX.3 provides comprehensive coverage of credit and market risk, as well as adherence to BASEL capital rules. It also contains features such as the fundamental analysis of the trading book and x-valuation adjustment (XVA). XVA is employed to calculate several valuation adjustments associated with derivative contracts, including the credit value adjustment (CVA), the margin value adjustment, and the funding valuation adjustment.
Murex is conducting tests on the MX.3 platform to assess Grace Hopper’s performance in XVA calculations, market risk calibration, pricing evaluation, sensitivity analysis, and profit and loss calculations across several asset classes.
Grace Hopper provides enhanced computational speed and energy efficiency to the Murex platform.
“Grace Hopper is an ideal choice for handling counterparty credit risk workloads, specifically in areas like CVA. It utilizes a diverse architecture that combines CPU and GPU computations,” stated Spatz. “Grace excels in risk calculations, being not only the most efficient processor in terms of speed, but also significantly more energy-efficient. This makes it possible to implement environmentally friendly IT practices in the trading industry.”
During the execution of XVA workloads in MX.3, the Murex research and development lab has observed that Grace Hopper can provide a fourfold decrease in energy usage and a sevenfold enhancement in performance when compared to systems that rely on CPUs.
