Toronto, July 2023 — Riskfuel, a leading technology company specializing in machine learning solutions for accelerated pricing and valuation of derivatives, announced today that it has received the category award for AI Innovation in Capital Markets at the 2023 Chartis STORM50 Awards.
Chartis Research is a leading provider of research and analysis on the global market for risk technology. Chartis analysts use a combination of sources to inform their decisions: user surveys, interviews with subject matter experts, customer reference checks, vendor briefing sessions, and other third-party sources.
Trading in over-the-counter (OTC) derivatives can be a challenging task due to the complexity of the computational models used to value and calculate the risk of portfolios. Traditional methods require significant computational resources and often result in a delay in receiving real-time risk metrics.
Riskfuel has revolutionized the industry by developing a deep neural network (DNN) that accurately approximates the quantitative models used by banks to price and calculate the risk of financial instruments. The DNN model is capable of providing real-time risk metrics, offering traders a significant advantage in their operations.
The DNN model has been trained using millions of data points generated by running the target models with various input combinations. This training process enables the model to accurately represent the numerical model, allowing traders to seamlessly integrate the accelerated models into their existing systems without the need for hardware or software upgrades.
Riskfuel has already demonstrated its capabilities by successfully accelerating the largest and most complex production models, including Scotiabank’s FX Barrier Option and Bank of Montreal’s Autocallable model. The company has continued to invest heavily in research and development and is at the forefront of innovation in the field of derivatives trading and risk management.
With its groundbreaking technology, Riskfuel is setting the standard for accelerated pricing and valuation of derivatives, providing traders with the real-time insights they need to make informed decisions.