Risk management and transparency are pervasive concerns in the financial and investing worlds, but cost-effective solutions have proved elusive. Thats what motivated OpenGamma to set up shop in 2009.
The founding team, led by Kirk Wylie (No. 50 last year), now executive chairman, brought open-source-software development into trading and risk analytics. The company attracted $23 million in venture capital from, among others, ICAP (see Michael Spencer, No. 14) and its Euclid Opportunities fund and in March 2013 handed the CEO reins to derivatives technology veteran Mas Nakachi. Were focusing on taking out costs, specifically from investment banks and users of derivatives products, by focusing on analytics that are standardized, says Nakachi, who joined London-based OpenGamma in 2012 after serving as director of business development for Calypso Technologys rates, fixed income and credit business.
Because its standardized, you work with the industry; you dont try to outsmart it, the 40-year-old explains. When you work in that collaborative fashion, you get buy-in, and its good for the whole industry because its transparent.
OpenGamma has positioned its open-architecture, real-time risk and margining capabilities to support new modes of derivatives clearing. In March, ICAPs ReMATCH risk mitigation service said it would use OpenGamma for on-demand analytics on single-name credit default swaps.