Landmark Bank will use Derivative Path’s cloud-based OTC trading platform, DerivativeEDGETM, to manage trade execution, sales, operations and Dodd-Frank compliance of its interest rate derivatives activity.
Derivative Path, a financial technology firm offering both a state of the art derivative trading platform and last-mile trade execution support, and Sandler O’Neill + Partners, a full-service investment banking firm specialising in financial services companies, are pleased to announce through their strategic partnership that Landmark Bank has selected Derivative Path to develop client hedging capabilities.
Landmark Bank, N.A., with $2.5 billion in assets, operating in 28 communities across Missouri, Oklahoma, and Texas, is one of a number of Sandler O’Neill clients to recently engage Derivative Path to assist in establishing interest rate hedging capabilities for both commercial borrowers and balance sheet hedging activities.
“Sandler O’Neill’s partnership with Derivative Path was timely as we were contemplating ways to accommodate requests for long-term, fixed rate financing from our commercial borrowers. We were hesitant to offer our clients products with extended terms in the current rate environment but wanted to be able to meet our clients’ needs. By enlisting Derivative Path’s expertise and its cutting-edge technology platform, we’ve been able to launch a customer hedging program extremely quickly,” said Steve Guthrie, Chief Financial Officer at Landmark.
As part of its engagement, Derivative Path helped incorporate interest rate product procedures into Landmark’s credit and compliance policies to adhere to Dodd-Frank regulations, will be training its relationship managers, and provide unlimited access to its technology platform. The team will also assist the bank with all pre- and post-trade events.
“We knew Sandler O’Neill had great relationships given their status as one of the leading financial services investment banking firms, and we’ve been extremely impressed with the quality of the discussions we’ve been able to have with their clients. The partnership created between Sandler O’Neill and Derivative Path can now deliver a powerful set of advisory and technology solutions to Landmark Bank,” said Steve Hawk, Co-Founder and Co-CEO of Derivative Path.
“One of the most interesting parts of my job is traveling around the country to meet with bank management teams and finding solutions to meet their needs,” said Scott Hildenbrand, Principal and Chief Balance Sheet Strategist at Sandler O’Neill. “Through these discussions, it became apparent that our clients need assistance with all aspects of hedging – including pre-trade compliance, regulatory support, and post-trade operations support – especially for the customer back-to-back program. Our partnership with Derivative Path complements our core competencies and has allowed us to provide an expanded level of service that is unmatched.”
