Default to Anvil - Anvil augments Denarius with Credit Default Swaps

May 9th, 2005: Anvil has added a credit default swap (CDS) module to its Denarius system. The new module further strengthens Denarius, which already offers real-time capture and straight through processing of fixed income, equities, money markets, repo, FX and derivatives trades.

"Adding the CDS module is another string to our bow," says James Dalby, London-based Director at Anvil. "There is a lot of interest in CDS at the moment, because organisations see real value in trading credit risk. The CDS module is a direct response to this."

Prior to the release of the new Denarius module, trading CDS was a complex, time-consuming process. Using the module, customers are able to automate much of this process, reducing the number of fields that have to be completed - from as many as sixty for a fully specified CDS trade to just two or three.

Using the pre-population features on Denarius, Dalby says customers will no longer have to endure the high level of broken trades which are part and parcel of trading this complex instrument. With the number of broken trades estimated to be as high as one in five by some, making the process simpler will quickly have a significant impact on the bottom line.

Denarius ensures straight through processing from front to back office by offering integrated trade execution, position tracking, internal order management, profit and loss accounting and reporting. The addition of CDS to the product roster deepens the potential improvements Anvil can bring right the way through an organisation.

"Like all the Denarius tools, the CDS module can be tuned to a customer’s individual needs and can be used on its own or in conjunction with other Denarius products," says Dalby. "We have ensured that the system is easy to use. If you know your business, you can begin using the module within 10 minutes of it going live, because it is designed to complement the way that traders work."

Dalby suggests that CDS is the right product at the right time. "The market is keen to benefit from the potential of CDS both to mitigate and to actively exploit credit risk, while regulators are looking to ensure that the operational risk inherent in complex manual trading activities is minimised," he concludes. "The market has outgrown spreadsheets. Anvil is already acknowledged as the supplier of expert trading technology and as a result of working closely with our clients we developed the CDS module. The market now has a powerful and effective CDS tool, and they can at last say goodbye to their spreadsheets."

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