Misys Banking Systems, a global leader in banking software and solutions, today announces the launch of a new platform for its credit derivatives module for Misys Summit FT. The original credit derivatives module for Misys Summit was launched in 1998 and the market has since seen huge changes in both volume (a 27-fold increase since 2001 ) and complexity. Instruments that were then thought of as exotic are now vanilla and the market continues to innovate. The new module has been designed to meet todayâs needs and address tomorrowâs possibilities. It has been extended to address both the current high volumes in the CDS market and also to deliver an adaptive platform to handle more complex instruments such as synthetic CDOs and ABS CDS. In addition, the ability to build hybrids meets the needs of the market to develop new product inventions in the future and for Misys Summit customers to keep a competitive edge.
Misys has leveraged its award winning Summit MUST technology to provide the flexible platform for its new credit derivatives module. In addition to effortlessly handling the very latest credit derivative innovations, it also adapts âon the flyâ as the market evolves, enabling customers to create structured hybrid products, selecting from a full range of asset classes, including bonds, FX, equity, interest rates and credit.
Currently being rolled out to a number of clients, the new module provides Misys Summit customers with a strategic platform to gain a competitive advantage in this dynamic and profitable market. Misys Banking Systems announced its integration with DTCC in July 2006 and with its new platform it will enable integration with Markitâs Reference Entity Database (RED) the industry standard for reference entity and reference obligation identifiers used throughout the CDS market, and its independent, benchmark pricing for the credit derivatives market.
Dan Cohen, product manager for Misys Summit, explains further, âWeâve tracked the development of the credit sector closely from the early days in the mid- to late-1990s; supplying solutions for trade processing that by todayâs standards seem like very simple structures, such as total return swaps and CDS. We now see a range of more complex synthetic CDOs, CDS on ABS or any other loan, hybrid structures with credit as an underlying, combined with bonds and other instrument classes. With our new architecture for credit derivatives, we are providing the means to handle all these products within one integrated solution. This gives our customers the means to control their risk exposure fully across asset classes and automatically interact with the likes of DTCC, SwapWire and Markit within a single STP environment, thereby improving operational efficiency.â