TFG Financial Systems, a provider of real time risk monitoring solutions to investment managers, secured five new mandates in the third quarter from a Tier 1 bank, a mini-prime broker and three hedge funds globally.
TFG believes the demand for real-time, multi-asset risk management is being driven by a number of different factors, foremost among these being the need to reduce costs and reduce data duplication.
In parallel with this, both investors and regulators have increasingly high expectations which require a significant improvement in capabilities.
“Banks and hedge funds have been facing significant challenges since 2008,” says Barry Fenwick, CEO of TFG Financial Systems. “Regulators, investors and counterparties are demanding a much more real-time, flexible and granular degree of risk monitoring across organisations. The enterprise risk model where risk is statically reported the following day primarily for capital allocation is being seriously challenged in terms of its effectiveness and adequacy.
“We are seeing increased interest in risk solutions that can deliver new and sophisticated measures of risk instantaneously to the users.”
TFG’s flagship product is TFG Complete, which also features an on demand risk capability alongside its real time analytics. This provides insights like effective shortfall and portfolio ageing, which are required by the upcoming Basel Committee FRTB regulations.
TFG’s focus on intra-day rather than end of day reporting has made it popular with market participants revising their risk management infrastructure.
TFG Complete covers multiple asset classes, including fixed income, equities, commodities, inflation, credit and FX.
