Improves modeling, pricing and risk management of OTC derivatives and structured products
Misys plc (FTSE: MSY.L), the global application software and services company and Numerix, the leading provider of cross-asset analytics for derivatives valuations and risk management, today announced the expansion of their global partnership and distribution agreement.
The two companies have been working closely together as partners since 2001 with more than 50 shared customers as a result. The extended agreement enables financial and insurance institutions to create derivatives and structured products for their clients much more flexibly and across a broader range of asset classes.
With Misys owning a significant percentage of the system solution market and Numerix being the dominant independent analytics provider, Financial and Insurance institutions are able to address the significant challenges of regulations, operational risks, and uniformity of pricing and valuations for all derivatives and structured products, regardless of the complexity. Misys is now a Numerix platinum partner – representing the highest level achievable in the Numerix Partner Program – with the most tightly coupled and integrated pricing and analytic solutions for Misys Summit and Opics users in the Financial and Insurance markets.
The expanded agreement provides new and existing Misys customers with unique ways of accessing and using Numerix pricing, analytics and risk management solutions for their OTC derivative and structured product needs. Customers will now be able to purchase the integrated solutions directly from Misys, further streamlining vendor and system complexity.
“It is vital for financial institutions to have fast and efficient access to the best market analytics and pricing models available,” states Larry Mitchell, vp Solutions Management, Misys Treasury & Capital Markets. “Through partnering with Numerix, we can now further expand the range of models and instruments available to clients and provide real value to the derivatives and structured products industry. It gives our customers the ability to address the significant demands to be fully transparent, increase workflow and provide more flexibility while still allowing them to retain control and reduce costs and operational risk.”
“This expansion of our relationship with Misys to include the direct sale of additional Numerix products and services was a natural evolution for us given the success of our original partnership,“ adds Steven R. O’Hanlon, president and coo of Numerix. “Now, all participants in a firm may access the same analytics, from pre-trade through life cycle management on a unified analytics platform. Together, Misys and Numerix are addressing both valuation requirements across all asset classes, in addition to addressing the internal and external compliance and operational risk needs of our customers. Having Misys onboard as a Platinum level partner adds tremendous value for our joint clients and we look forward to a long and successful working relationship.”
Front-office professionals and users of Summit FT can use Numerix Portfolio and Numerix CrossAsset XL for pre-trade analysis, trade capture, pricing and risk management of any OTC derivative and structured product. Together, these solutions now provide an extensive range of risk management and reporting capabilities, including MTM, P&L and risk metrics, including all the Greeks, MC VaR, scenario analysis, model validation/convergence and custom risk reports. Numerix CrossAsset suite is available either with full support for all major asset classes or through modules targeted to individual asset classes.
Shared customers can now also leverage the ability of Misys systems powered by Numerix to communicate using Numerix’s revolutionary “deal standard” XML capabilities. Summit FT users can export deal definitions and pricing inputs for any trade into a Numerix XML file that is both machine – and human – readable. The deal can then be easily archived or imported into other Misys – Numerix powered solutions, improving workflow efficiency and reducing operational risk.
Summit FT’s seamless integration to Numerix models and risk functionality has been developed jointly and is already in production with customers globally. This agreement greatly expands the ready-to use interface to handle Numerix risk functionality, advanced modeling and expanded OTC derivative and structured products deal coverage through the Summit FT award-winning structured products module – Summit MUST.
Misys Opics Plus supports more asset classes and sophisticated structures through the partnership, providing users with further flexibility. The enhanced Numerix-powered independent pricing and risk information for structured products and exotic OTC derivatives will improve front-to-back integration across both solutions, enabling users to quickly and accurately calculate prices for popular structured products across a wide variety of asset classes. In addition, Opics Plus users may opt for leveraging Numerix Portfolio for trade capture and risk management.
