Summit Derivatives

Summit’s pedigree as the market-leading derivatives vendor reflects our success in developing and supporting solutions to meet the exacting needs of this highly sophisticated and profitable market. The system supports virtually any type of deal structure from the simplest to the most highly structured trades.

Product Coverage

Credit Derivatives:

Default driven trades: nth to default and basket CDS and credit-linked notes

Total Return Swaps on baskets of bonds, loans or indices

Credit Spread Options

Collateralized Debt Obligations (CDOs)

Cash trades: corporate and emerging market bonds, repos, loans, asset swaps

CDS features can be easily embedded into IRS and other instruments to create more exotic structures

Interest Rate Derivatives:

Interest-rate swaps – fixed-floating, basis, compounding/averaging, zero coupon, CMS/CMT, inverse and range floaters, index amortizers, dual index swaps and many other variations

Cross currency swaps

Range accrual notes

Swaptions – European, American and Bermudan

Caps and floors – vanilla, averaging, digital, periodic, ratchet

Captions and floortions/floptions

FRAs

Listed interest-rate futures and options

Exotic – multi-legged asset

Equity Derivatives:

Single equity stocks

Exchange-traded options on indices & individual stocks

Equity-index stocks

OTC Options on individual stocks, indices and baskets

Equity-to-equity swaps

Single-barrier options

Futures on equity indices

Piecewise (digitals, caps, floors) options

Equity basket stocks (with an unlimited number of constituent stocks)

Single currency, cross currency or multi-currency baskets

FX Options:

Vanilla OTC options

Exotic OTC options including:

Single or double barrier

Digital double knock-ins/knock-outs

A range of touch options

European barrier

Asian/average rate

Exchange-traded futures include exchange-traded options on FX futures and physicals

Structured Products

Summit MUST makes structuring and processing exotic trades as easy as handling the most vanilla of deals, with the same workflow, documentation and risk routines. It easily manages complex structured deals with multiple cross- asset underlyings including power reverse dual currency (PRDC) swaps, multi-callable dual currency range accrual swaps and multi-currency equity best-of performance linked notes. It also handles more conventional exotics such as TARNs and ratchet caps. Even complex new structures, with hereto unseen features, can be fully integrated into the system without the need for any custom programming.

Real-time position viewers and blotters

The real-time position application shows bonds and asset swaps alongside the associated derivative positions, giving the complete position and P&L picture. The system also provides automatic asset swap pricing and generation, trade drill down, built in calculators and customized reporting. Summit provides extendibility tools so that virtually any aspect of the system can be customised.

Automatic post-trade STP

All post-trade operations including confirmations, payments and reporting are performed automatically following definable business rules. With most transactions requiring no intervention, action is only required to process exceptions.

Key features