New York and London, May 12 2004 - Wall Street Systems Inc., a leading provider of global treasury and capital markets solutions, today announced the launch of its Credit Derivatives module and Structured Products Framework for creating, tailoring and auditing structured products. These two new products offer a major advance in the ability to manage complex products and their inherent risk.
The new Credit Derivatives module - available either as a stand-alone solution, or as an integral part of The Wall Street SystemÂ® treasury and capital markets solution - supports diverse credit derivatives, including total return swaps, credit linked notes and credit default swaps with support for both single names or baskets. Traders using the new Credit Derivatives module are equipped with pricing, deal capture, trade structuring, trade valuation and risk management capabilities, as well as the tools to tailor products to meet client needs.
The Credit Derivatives module also provides a comprehensive suite of risk management functionality, hedging analytics and scenario analysis. Risk analyses are available in real-time on any subset of the trading portfolio, with a full audit trail maintained for all trades. By being fully integrated
with The Wall Street System treasury & capital markets solution, banks will
be able to manage all asset classes on one platform and one database. Complete risk, data and process consistency from front to back ensure extensive management control, regulatory compliance and legislative reporting in response to Sarbanes-Oxley and Basel II as well as Fed, FSA and SEC requirements.
The new Structured Products Framework (SPF) from Wall Street Systems, which
brings together support for Interest Rate and Credit Derivatives, will enable banks to create, price, process and risk manage new deal structures using their own models and software with total confidence and complete independence from Wall Street Systems. The Structured Product Framework delivers extensive support for all capital markets instruments, including fixed income, collateral management, repo, FX & MM, and futures products, in all major currencies and most emerging markets. Firms can continue to create new products and models, even from external sources such as Excel spreadsheets. The Wall Street SystemÂ® treasury and capital markets solution allows financial organizations to capture all results directly from these sources into a global risk and trading management platform for complete audit and hedging capability enterprise-wide.
Patrick Treanor, director for derivatives and structured products, at Wall Street Systems states, "We set out to create a risk framework that was scalable and flexible; that could be implemented either as a stand-alone solution or deployed as a transaction processing framework alongside other solutions such as in-house and third party calculation libraries and models. This enables us to appeal to all levels of the market from major to minor players. The Structured Products Framework delivers consistent, comprehensive cross-product, market, credit and operational risk management capabilities in a single system. It also delivers cohesive, timely and complete accessible data, complete trade lifecycle processing, full P&L attribution and extensive calculation libraries and models for pricing decision support and market risk management controls."
As financial products become progressively more complex, they also become
essentially interconnected. Global supervision of risk, and the ability to hedge risk across all asset classes, is key to managing capital market exposure for all financial firms. With global risk transparency now a regulatory requirement, The Wall Street SystemÂ® treasury and capital markets solution can offer complete compliance control. Another key feature is the ability to perform clear P&L attribution that will enable traders and risk managers to better analyze and manage their derivative books.
Banks can achieve lower transaction costs, improved productivity and true exception-based processing by using the Credit Derivatives module in conjunction with The Wall Street SystemÂ® back office solutions. This enables
full automation of payments and confirmations as well as the generation of
accounting entries for these highly structured and complex derivative instruments.
Mike Thrower, director of marketing at Wall Street Systems states, "With the
derivatives market growing at a phenomenal pace, the need to provide robust STP solutions that handle all activities from pricing to settlement becomes imperative. The Credit Derivatives module and Structured Products Framework together offer a breakthrough in managing complex products and their inherent risk, with extensibility unrivaled by any alternative in the market today."