London – May 30 2006 Point Nine Financial Technologies announced today that it’s flagship system, FinanceBelt now supports clients transactions traded under standard as well as customized master legal agreements within the ISDA framework. All credit instruments are supported including CDS, bespoke CDO’s, Nth to default, Index Swaps and index tranches.
FinanceBelt stores all standard market conventions relating to credit transactions and applies them as appropriate to each trade by default and amendments can be made to each and every field. In addition, counterparties to a trade can also customize any part of the ISDA agreement. This allows the traders, compliance and risk managers to identify immediately any differences between apparently offsetting CDS positions which otherwise would appear to be hedged. The hidden risk as a result of differences in the legal terms of a CDS can sometimes be significant.
“Generating the full ISDA documentation is part of our overall commitment to offering the ultimate credit risk management system to the industry. Legal risk is generally an overlooked area in this industry and our philosophy is that full risk management requires the storage and identification of all factors which affect the portfolio’s risk. Prime brokers often have hedged CDS positions under differing customized agreements as part of their intermediation service and managing the legal risk from those differences can be time consuming. Institutions cannot afford to make mistakes. With FinanceBelt they can quantify and manage that risk.” Comments Len Fricker, Sales Director of Point Nine.