Guotai Junan Securities has implemented a new risk management solution from IBM and Algorithmics

A Chinese securities firm is implementing a new portfolio and risk management solution, for security trading and fund management, from IBM and Algorithmics.

The company, Guotai Junan Securities, is one of the top five securities firms in China and the first in Mainland China to trade advanced financial products such as derivatives.

IBM and Algorithmics said the solution will assist Guotai Junan Securities in forecasting risks, as well as conducting stress and scenario testing.

According to Zuo Feng, chief compliance officer, Guotai Junan Securities: ‘Risk management, internal control and compliance will be some of the most important business developments in the Chinese securities industry in the years to come.’

“Risk management, internal control and compliance will be some of the most important business developments in the Chinese securities industry in the years to come.

Zuo Feng, chief compliance officer, Guotai Junan Securities

"In developing our risk management solution and its system, we have been preparing patiently and planning for a long march in decades to come. Guotai Junan Securities is looking forward to harvesting the added values provided by this joint project with IBM and Algorithmics.’

‘We believe the IBM and Algorithmics end-to-end solution and risk framework provides us with the essential tools to compete in the global securities markets.’

Dr Colin Lawrence, IBM’s China Risk Management Leader added: ‘This is our second landmark deal in China in the last few months, as the country’s leading financial institutions move towards adopting international risk management standards.’

‘With the equities market in China trading at dizzying heights, the new risk management system will assist Guotai Securities in making much better risk adjusted profits alongside its traditional brokerage businesses no matter which way the market heads.’