Pricing Partners, an independent provider of financial library, announced that CM-CIC Asset Management (CM-CIC AM) has selected its pricing-tool specifically designed to value OTC derivative products: Price-it® Excel. The department of Quantitative Research will rely on that pricing engine to manage complex optional structures related the creation of Structured Funds and to analyse the integral risks associated with such products.
Over the past few years, we have seen an unprecedented growth of the derivatives industry, which results in a considerable increase of the transaction volumes, notoriously complex strategies and drastic changes in the regulatory environment. To analyse and measure the risks involved by this intensification of trade, research teams must develop more realistic quantitative market models, in ever-shorter deadlines. In this field, Pricing Partners stands out from the competition by offering software solutions that precisely meet the operational and regulatory obligations. The flexibility of the tool provides a Pricer in real-time for each new structured product and to efficiently calculate new risks parameters.
CM-CIC Asset Management which wanted to strengthen its expertise in the field of research and quantitative modelling, has acquired the Price-it® Excel library. “We were looking for a fast and reliable solution for assessing and measuring the risks of hard to value OTC products that we negotiate within the framework of our activity on Structured Funds. We found out in Price-it a product that offers similarly market models to those developed by our Research teams and which, in addition, perfectly met our specific needs in terms of flexibility for setting up products and for the validation of our prices”, assure MM. Patard and Devant, co-heads of Quantitative Management at CM-CIC Asset Management.
Launched in 2006, the Price-it® financial library covers a wide scope of products from Interest Rates to Stocks, through Equity, Credit, FX, Commodities and Hybrids products. Through the Excel interface, Price-it® answers a two-pronged need: Risk Management and validation of OTC products. “With the identical recovery capabilities to those of large investment banks and particularly due to the possibility of setting up the most complicated payoffs with a specific language, Price-it® has proved to be the most suited solution to go with the pricing and sensibilities controls on our OTC products” confirms MM. Patard and Devant.
CM-CIC Asset Management has chosen Price-it® Excel after a rigorous assessment of the multiple benefits of the library. “The decision of CM-CIC Asset Management, which has a proven expertise in the management of structured products, is a strong sign of credibility for Pricing Partners. This demonstrates our ability to offer tailored services to the needs of each sector. The software responds to a real demand from the market in terms of independent valuation on a wide range of derivatives products”, said Eric Benhamou, president of Pricing Partners. “As we continue our international development, we are very pleased to have such an important client as CM-CIC AM which allows us to grow on the Asset Management sector.”