Interview with Lee Campbell about the CubeLogic success story
Interviewed by Comtech Affiliate Analyst – Dr. Irina Reitgruber.
Recently, I had the pleasure of interviewing Lee Campbell, whom I’ve known since our time together at OpenLink about 10–15 years ago. Back then, I was responsible for product management, particularly within IRM, and was involved in the planning of CubeLogic’s integration with other OpenLink products. Around 2015–2016, CubeLogic underwent a management buyout, marking its separation from OpenLink. Reconnecting with Lee provided a unique opportunity to explore the company’s progress and the evolution of its risk platform, now known as RiskCubed.
I remember that when OpenLink acquired CubeLogic, there was significant enthusiasm about utilizing it as a risk reporting engine and credit risk solution across OpenLink’s suite of products, including Endur, IRM, and RightAngle. Credit risk capabilities were always a standout strength, and even then, there was ambition to leverage the solution as a broader, more flexible risk reporting tool.
ComTech Advisory The first question to Lee is centered on the company’s journey since those early days. What has changed, and where are you now with the product?
Lee Campbell: CubeLogic was founded in 2009 with a primary focus on credit risk. However, integration capabilities were always a key strength, enabling us to connect with multiple ETRM/CTRMs and manage data across these platforms for the credit risk calculations. After the management buyout, we relaunched and rebranded the product as RiskCubed, emphasizing its role as a comprehensive risk platform.
Our vision was to evolve into a multi-faceted platform supporting diverse risk and regulatory reporting needs across various customer segments. This strategy has proven successful. During the OpenLink era, we had a small client base; now, we serve 60–70 clients, including major energy companies, commodity traders and credit insurers across geographies like the US, Europe, Asia, and beyond.
In line with this vision, we acquired Ferdec in 2019. At the time, Ferdec offered robust MAR regulation solutions but was an on-premises system with legacy architecture and a limited customer base. We modernized it into a cloud-based SaaS offering, significantly enhanced its connectivity via standard adapters for exchanges and marketplaces. This solution has since become the cornerstone of our regulatory reporting suite, which also covers REMIT II and Dodd-Frank position limits reporting. Today, regulatory compliance stands alongside credit and market risk as one of the three main pillars of our risk platform RiskCubed.
ComTech Advisory And what about the technical advancements? What steps have you taken to transition to the cloud and SaaS? Is RiskCubed fully cloud-native?
Lee Campbell: When we started in 2009, the technological landscape was very different, so transitioning to the cloud has required extensive effort. While significant parts of the product are now cloud-native, some legacy components remain. We’re continuously modernizing, looking to adopt technologies like data lakes and Kafka streaming.
As with many vendors, we’re evaluating the eventual end-of-life for on-premises solutions. Staying at the forefront of technology is critical, and we’re committed to this journey.
ComTech Advisory The next question is about current market demand for your solutions. Which of the three main components—credit risk, market risk, or compliance—is currently most in demand?
Lee Campbell: In 2023, credit risk had a record-breaking year, but in 2024, regulatory compliance has taken the lead in terms of deal volume. That said, credit risk deals are typically larger in size. Our compliance solution is a clear market leader in Europe, while credit risk solution dominates in both the US and Europe.
As regulations continue to evolve, we’re confident that compliance will remain a significant growth driver. Credit solution, with its deep functionality, needs only ongoing technological updates to maintain leadership.
ComTech Advisory Given CubeLogic’s reputation for credit and compliance, what is your strategy for the market risk solution?
Lee Campbell: Our approach to market risk has been customer driven. We focus on managing vast amounts of data in real-time and delivering key metrics such as P&L and VaR. This also includes curve management, stress testing, and deal pricing.
For example, one of our clients, a renewable power company, generates enormous volumes of data. Their priority isn’t sophisticated models but scalable, real-time calculation for fundamental risk indicators. This is where we excel in market risk.
Looking ahead, we’re considering whether to develop advanced valuation models in-house or partner with specialists. Enhancing brand recognition and refining our go-to-market strategy are also priorities in this area. However, market risk is only one of many possible investment areas we are considering.
ComTech Advisory This leads us to the question about the platform’s future direction. Where do you see the best ROI for RiskCubed?
Lee Campbell: This is an ongoing discussion. We see opportunities in extending our liquidity risk support, whether through internal development or partnerships. Additional market risk functionality, like Monte Carlo VaR, is another possibility. From a technological perspective, continuous improvement is our clear priority. We also see significant potential in supporting MiFID II for European clients.
Another opportunity to grow business is geographical expansion. Currently, our customer base is approximately 40% in Europe, 40% in the US, 10% in Asia, with the rest scattered globally. We’re exploring whether to focus on emerging markets like the Middle East, where trading companies are rapidly growing, or, for example, to expand in Japan.
These are exciting decisions to navigate—a great problem to have!
About Lee Campbell, Co-Founder and CEO, CubeLogic
Recognised in the industry with over twenty years of experience in the architecture, development, sales and project management of software systems for the front and middle office. Lee has a strong background in the finance and energy sectors and a proven track-record of technology innovation. Lee co-founded CubeLogic in 2009.
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