Shanghai-based Wind Info, which provides financial data and software, is integrating IBM’s cloud-based risk analytics software into its trading terminals in China to provide new tools for managing financial risks.
Wind Info serves more than 90 percent of China’s financial industry, including securities, fund management firms, insurance companies, banks and investment firms, and its technology is present in virtually every bank and asset manager in the country. Wind’s Trading Terminals are used by traders across the country to buy and sell stocks, bonds and make other financial transactions.
This partnership, therefore, represents an enormous amount of trust in IBM at a time when many Chinese firms and government agencies have been trying to distance themselves from foreign technology suppliers.
With IBM risk analytics software integrated into Wind Trading Terminals in China, Wind Info has an integrated risk framework for risk analytics that helps customers meet regulatory requirements. It can also provide investors portfolio analytics for better investment decisions, and help make financial markets safer overall, which is something Chinese regulatory authorities have been trying to build into the financial system for some time.
Specifically, Wind Info will incorporate IBM’s cloud-based risk management software, IBM Algo Risk Service on Cloud, and the locally installed IBM Algo One Risk Aggregator directly into its Trading Terminals. This hybrid solution conducts sophisticated risk data processing in the cloud while keeping all client position data protected and confidential within the boundaries of China, which is required by Chinese law.
In an interview with Reuters, Andrew Aziz, who is in charge of risk analytics for IBM, said its services are provided through “an innovative deployment model in that IBM never receives client information,” which complies with local regulations including data privacy.
After secret surveillance initiatives by the US were revealed last year by NSA contractor Edward Snowden, the Chinese government has been especially cautious about using US technology and services which could potentially be used to spy on China. Earlier this month, for instance, China banned antivirus firms Symantec and Kaspersky Labs from the list of approved security software vendors for government agencies.
IBM’s risk analytics solution is expected to be rolled out across Wind Trading Terminals later this year.