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Riskfuel: transforming the way derivatives traders do business – Invest Ontario

Toronto, March 2023 — A small Toronto fintech firm has solved a big problem banks worldwide have had for decades: how to accurately value and risk-manage their large and complicated derivatives portfolios.

Riskfuel is transforming how valuation adjustments are made.

Until now, valuation has been done using slow and expensive-to-run financial models, which deliver information that’s already old by the time it gets to the traders’ desks, and it gets older as the day progresses.

Using groundbreaking artificial intelligence (AI) technology, Riskfuel speeds up those models—conservatively by one million times—so that what once took all night can now be completed in mere seconds.

For banks, the advantages are obvious: greater accuracy, a significant reduction in operating costs—think one server running for minutes versus thousands running for hours, an appreciably smaller environmental footprint, and new business opportunities.

So, how has Riskfuel accomplished what no other company has been able to?

It all comes down to the right person at the right time—in the right place.