NEW YORK--()--Celent, the leading independent research firm and an Oliver Wyman company, has recognized Numerix as the leading provider of cross-asset analytics for derivatives valuations and risk management driving today’s charge in the “Derivatives Market Industrial Evolution.”
“Derivatives Pricing and Risk Analytics – Industrializing Derivatives Markets”
In the new report, “Derivatives Pricing and Risk Analytics – Industrializing Derivatives Markets,” Cubillas Ding, Research Director at Celent, focuses on the challenges ahead for many market participants in the management of their derivatives portfolios. The report highlights five key challenges;
- Dynamic pricing of counterparty credit risk in front office workflows
- Move to “market standard” OIS/CSA Discounting practices in the valuation of OTC derivatives
- Industrialization of derivatives pricing infrastructures and operations
- Growing need to equip the frontline for accurate and timely delivery of pricing, risk and profitability measures
- Drive to optimize complex linkages between the financial “lifeblood” elements of a firm around funding costs, buffer capital and productive capital
Ding reported, “In order to optimize the consumption of capital at a firm wide level, one needs to be smart in optimizing in the front, and one dimension will involve getting desk-level pricing and risk infrastructures aligned with enterprise middle office risk, collateral, and capital management applications.”
As pricing and risk analytics are the lynchpin to success in meeting the aforementioned challenges, the report highlights Numerix as the clear leader in Advanced Technology, Breadth of Functionality, Customer Base and Depth of Client Service.
“We are very pleased with Celent’s analysis of our market and our offerings,” said Steven R. O’Hanlon, Chief Executive Officer & President of Numerix. “Having been positioned as the leading firm by Celent in 2009, the organization has been transformed in terms of depth and breadth of functionality of our offering to rise to the real-time requirements and required risk measures necessary for derivatives operations. While it is nice to have our hard work recognized, the real winners are our clients.”
Numerix Notables from the Report
Advanced Technology & Features – “Numerix specifically has deepened their traditional strengths through a multi-asset class approach to broaden coverage for fixed income, corporate bonds, and loans through its LiquidAsset products. In tandem with its industrial strength applications for position-keeping, risk measurement, scenario analysis, and exposure aggregation, they have achieved significant momentum in insurance sector (e.g., insurance-specific product support for Variable Annuities, hedging and economic scenario generator (ESG) offerings), which are consistent with its core pricing and risk analytics framework.”
Breadth of Functionality – “In this category, Numerix stands out as having functional breadth and asset coverage. Numerix has taken both a broad and deep multi-asset class approach to complement its product scope (beyond traditional pricing libraries into risk analytics and risk applications). It has also optimized product versions to improve usability and support pricing and risk management workflows for specific industry segments, functions, and roles (e.g., for the insurance sector). It is also strong in going to market with a wide set of partners and applications built using their analytics libraries, and in many instances developed in conjunction with partners in other parts of the order management, trading, and risk management solution chain.”
Depth of Client Services – “In this dimension, Numerix has not only expanded product functionality and services footprint into various parts of the structuring and OTC lifecycle but also customized their product offerings to cater to users within asset class groups. Numerix has been actively engaged in consulting-type services around alternative valuation techniques, model validation, and implementation of its risk and position-keeping applications.”
Numerix is the award winning, leading independent analytics institution providing cross-asset solutions for structuring, pre-trade price discovery, trade capture, valuation and portfolio management of derivatives and structured products. Since its inception in 1996, over 700 clients and 75 partners across more than 25 countries have come to rely on Numerix analytics for speed and accuracy in valuing and managing the most sophisticated financial instruments. With offices in New York, London, Paris, Frankfurt, Milan, Stockholm, Tokyo, Hong Kong, Singapore, Dubai, South Korea, India and Australia, Numerix brings together unparalleled expertise across all asset classes and engineering disciplines. For more information please visit www.numerix.com.