SIX, the Swiss financial data vendor, joins forces with Prometeia, a global provider of advanced analytics, software solutions and consulting services, to offer a risk indicator that aims at complementing existing regulatory risk ratings for all asset classes.
Prometeia and SIX have entered into a long-term collaboration that involves Prometeia providing SIX the calculation capabilities for a product risk indicator (PRI) for securities that do not fall into the scope of PRIIPs (Packaged Retail and Insurance-based Investment Products) regulation, according to a media release.
The PRI is a summary risk indicator that combines market and credit risk in a unique 1-to-7 scale number (1 is minimum risk, 7 is maximum risk) and is complementary and comparable to the Summary Risk Indicator (SRI) required by the PRIIPs Regulation for products currently in scope and UCITS funds in a very near future.
Enriched Risk Metric
«The collaboration will benefit and support the customers of SIX with the provision of an enriched risk metric, covering their current and future risk needs,» Michele Leoncelli, Senior Partner and Head of Data & Analytics in the Wealth & Asset Management area at Prometeia, said.
With the SRI, wealth managers and financial advisors can already compare investment funds, structured products, warrants and complex debts. With the PRI, based on the same methodology prescribed by the PRIIPs Regulation, it is now possible to add equities, non-complex debts, futures and options to the list.
Long International Experience
The PRI integrates and complements the provisioning and redistribution by SIX of risk metrics to its final Clients, enabling enhanced advisory and suitability assessments. It is a fully industrialized process, that leverages Prometeia's long international experience and expertise in risk modeling and wealth management.
«With our PRI, our clients in the advisory sphere can now compare instruments that were initially not comparable and therefore support their own clients in making really informed investment decisions,» Ralf Rühling, Senior Product Manager, Financial Information, SIX, added.
