Why open source can win the quant infrastructure war

Open-source analytics are reshaping quantitative finance, combining transparency, cloud-native scale, and AI-driven insights to power the next generation of risk management.

Quantitative finance infrastructure is entering a new era as transparent algorithms, cloud-native delivery, and AI-powered interfaces converge. This paper explores how open-source risk analytics can help financial institutions build more auditable, scalable, and accessible infrastructure, while preparing for evolving regulatory and business requirements.

Readers will gain insights into:

  • Why the proprietary “black box” model is losing ground, as regulatory requirements increase the need for transparent and explainable calculations.
  • How the Open-Source Risk Engine, ORE, builds on QuantLib to support exposure simulation, XVA, sensitivity analysis, historical simulation VaR, stress testing, FRTB, and SA-CCR calculations.
  • How Open Risk Analytics, ORA, combines open-source calculations with managed, cloud-based delivery, helping teams reduce the burden of maintaining bespoke infrastructure. 
  • How AI-powered conversational interfaces could make complex risk analytics more accessible, allowing users to interrogate calculations and understand results in plain language. 
  • Practical steps institutions can take today, including starting with focused use cases such as intraday CVA monitoring, SA-CCR capital optimisation, or FRTB sensitivity generation.

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