The new market technology agreement will allow Nasdaq to deliver matching engine technology via the Nasdaq Financial Framework architecture. The platform will be targeted at institutional investors that want to diversify their portfolios outside of conventional asset classes like stocks and fixed income. They will now be able to trade assets linked to insurance liabilities that cover disasters including hurricanes, floods, and cyber attacks. The platform is due to launch in summer 2018.
Extraordinary Re will deploy this technology through its patented Liquid Insurance Contract risk allocation platform. Extraordinary Re will also operate its system on a private cloud and leverage blockchain technology to transmit flow-through information to its participants. The go-live is targeted for summer 2018.
“The agreement with Nasdaq is an important milestone in our go-to-market plan,” said Will Dove, Chairman & Chief Executive Officer, Extraordinary Re. “Our innovative structure and technology will deliver new classes of risk to investors through a platform powered by Nasdaq’s market-leading technology.”
Extraordinary Re’s platform is embedded within a reinsurance entity. This allows Extraordinary Re to access a broad range of insurance liabilities to make them available for allocation among institutional investors. Extraordinary Re is creating a new pathway for insurers, reinsurers and managing general agencies around the world to access capacity from the Insurance Linked Securities (ILS) market. Extraordinary Re will enable its participants to reallocate insurance risks among themselves in a familiar format, powered by tested Nasdaq technology. By leveraging blockchain technology, Extraordinary Re will deliver granular and real-time data to its participants and expects to deploy other applications using this technology in the future.
“Extraordinary Re is helping bring a new way of thinking for institutional investors to the global reinsurance market and we are excited to work with them in bringing this vision alive through our technology,” said Paul McKeown, Senior Vice President, Market Technology, Nasdaq. “With the agility of the Nasdaq Financial Framework, we are able to provide a platform that can flexibly support new assets and new types of innovative markets, like Extraordinary Re. We look forward to expanding our relationship as they grow in this space.”
Nasdaq’s market infrastructure technologies, including trading, real-time risk, index, clearing, CSD and market surveillance systems are operated in more than 100 marketplaces, regulators, clearinghouses and central securities depositories across the Americas, Europe, Asia, Australia, Africa, the Middle East and the Caribbean.