Head office: St. Clements House, 26-27 Clements Lane, London, EC4N 7AE, UK Tel: +44 20 7870 2299 Email: razor.americas@razor-risk.com Other offices: London, Sydney, Dubai and New York Website: www.tmxtechsolutions.com Twitter: @TMXGroup Contact: Shane Quinn, manager, communications and public affairs (shane.quinn@tmx.com) Founded: Razor Risk was formed in 1999 as IT&e. Toronto Stock Exchange was set up in 1852 Ownership: Subsidiary of exchange group, TMX


Evolution


IT&e/Razor Risk Technologies was an Australia-based risk specialist. Its flagship solution, Razor, stemmed from a development at Commonwealth Bank of Australia (CBA). Razor’s chairman, Ellis Bugg, was the former general manager for risk management, financial markets, at CBA. IT&e, then Razor Risk Technologies, made good progress


and forged a number of partnerships, including with the likes of Microsoft and Numerix. The Numerix partnership meant that, for clients with highly complex derivatives, Razor Risk Technologies was able to provide additional support by integrating Numerix analytics. TMX still has a partnership with Numerix. A historic partnership was forged with Misys in 2004, with IT&e’s Razor forerunner, PTX, positioned alongside Misys’ corporate banking system, Midas. Razor takers included HSBC in the UK, ANZ across multiple sites (linked to 70+ systems), International Derivatives Clearing Group in the US and Royal Bank of Canada. In late 2011, Canada-based multi-asset class exchange


group, TMX Group, which had failed to merge with the London Stock Exchange (LSE) Group earlier in the year, emerged as a potential acquirer of Razor Risk Technologies. The group was using the software in Montreal, within its Canadian Derivatives Clearing Corporation. The system was also being used by this time at the Australian Stock Exchange, PT KliringPenjaminanEfek Indonesia (the Central Clearing Counterparty of the Indonesian Stock Exchange), and LCH.


Products The Razor-derived risk suite still carries the Razor brand. It


is a risk framework that supports advanced risk measurement and management, and enables users to view their total exposure to individual entities on a consolidated platform. The framework allows for portfolios that change over time and under differing scenarios. Razor is touted as a framework and not a risk measure, so practitioners can incorporate new


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Clearnet in London. The two parties announced the takeover bid, which was


for TMX to purchase all issued shares of Razor. The offer was in the form of a cash payment of 3.49 cents per share, amounting to an enterprise value of AU$10 million (approximately US$10 million). Razor’s major shareholder had a 15 per cent stake, with another 25 per cent owned by the individual directors. Bugg was quoted as saying that the board deemed the TMX proposal as ‘compelling and complete’, as it ‘has the attraction of offering shareholders certainty in cash proceeds in an uncertain global economic environment’. As such, Razor’s board unanimously recommended it, ‘in the absence of a superior proposal’, and the deal went through in February 2012.


The acquired business formed a new division within the Canadian exchange group, TMX Technology Solutions. The subsidiary is intended to have a market facing side to its operations, taking to market not only the Razor solution but also two exchange-derived offerings. These are a proprietary platform for trading and settling cash equities, TMX Quantum (used by the Toronto Stock Exchange and TSX Venture Exchange) and SOLA, a derivatives and fixed income platform from the Montréal Exchange. The subsidiary also runs all of the technology and infrastructure for the parent group. In January 2017, TMX Group offloaded its risk management


business Razor Risk to UK based Parabellum Limited. The company’s strategy to focus on its core business was the primary reason behind the sale.


sources of risk and accommodate innovations in supervision and risk management best practice. The system has a distributed client-server architecture and runs on standard Windows/Intel hardware. It is written in C++ at the core and uses Microsoft SQL for the database. It could run on Linux and Oracle but there have not been any takers. It has a GUI front-end although TMX is working on a web-based user interface. Razor’s modules can be used as standalone solutions, or


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company details


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