Ian Warford, industry director for securities and capital markets at Microsoft EMEA, Financial Services, says: âMany institutions in the capital markets area still see best execution as the most contentious section of the MiFID regulation. Trying to achieve best execution for flow products which may be traded on a variety of different exchanges, multilateral trading facilities and systematic internalisers can be a difficult process particularly for OTC derivatives. Microsoft believes that with the help of SuperDerivativesâ pricing platform we will be able to help financial organizations comply with best execution requirements. SuperDerivatives technology is entirely in alignment with Microsoftâs strategy for MiFID; it is easy to integrate, cost effective and ready for use today.â
Part of the SuperDerivatives integrated solution suite for MiFID, the new Trade Price Auditor TM is a web service that tracks in real time any executed trade in the dealing room and compares it with its current fair market price. It provides online alerts to cell phones or PDAs, as well as end-of-day audit trail reports. The service thus allows managers, controllers and regulators to quickly identify and take corrective action regarding pricing inaccuracies due to errors or fraud.
David Gershon, Chief Executive Officer of SuperDerivatives says âWe are very happy to partner with Microsoft in serving financial institutions across Europe, all pressed to comply with MiFID, particularly for complex OTC options and structures. Our many users have told us that we provide them with a unique service allowing them both to comply with MiFID and drastically reduce risk and prevent losses. Our Trade Price Auditor TM service is a prime example of the extreme efficiencies provided through the combination of advanced Microsoft web technologies in conjunction with the SuperDerivatives benchmark option pricing model and accurate real-time market data.â
The SuperDerivatives integrated solution suite for MiFID covers all vanilla and exotic options in any asset class or market, and is readily available for immediate use with no need for installation. It includes offerings such as:
Ã Interactive real-time pricing and analytics web applications for pre-trade bid and ask price assertion as well as online quoting and trading.
Ã Programmatic web services (API) such as the Trade Price Auditor TM
Ã Automated end-of-day valuation and analytics (VaR, Capital Adequacy etc.) reports, using current rates or retroactively for any given date and time in the past.
Ã Volatility surfaces and correlation tables for use in pricing and as reference data.
SuperDerivativesâ products, including real-time pricing and analytics systems, risk management systems, portfolio revaluation services, options market data portal and online trading capabilities, are used by numerous companies from both the buy and sell side. Its pricing platforms are used by almost all the banks around the world that are active in options, as well as by numerous corporations, asset managers, hedge funds, auditors and central banks.