Pricing Partnersâ multi-asset pricing engine, Price-itÂ®, will be integrated with Misysâ flagship solution for cross-asset derivatives trading and structured products â Misys Summit FT. The new integrated solution will take unique deal representations from both solutions and create a single payoff description for trades. By providing access to all Price-itÂ® capabilities directly from the Summit solution, firms will be able to manage complex derivatives positions more efficiently by automatically valuing the latest innovative products including inflation, interest rate, equity, credit, commodities and FX derivatives, as well as hybrid products.
Dan Cohen, Misys Summit Product Manager comments: âAcross the sell side and buy side, firms face mounting pressure from investors, regulatory authorities and accounting standards bodies to obtain valuation of financial products independently of those offered by the trading floors of large investment banks. This agreement strengthens our customersâ ability to gain accurate and independent pricing and valuation for a greater variety of financial instruments, and fits with our strategy to create more value to our customers through winning partnerships.â
Misys has an exclusive right to promote and resell the integrated solution as well as the Excel version (stand alone) of Price-itÂ® in US and Asia. As part of an exclusive agreement, Pricing Partners has committed to not work with any competitor of Misys which would allow a competitor to resell, licence or offer Pricing Partners Products either as a standalone or integrated solution.
Eric Benhamou, CEO Pricing Partners says: âMisys is a leading technology firm in terms of innovation and experience in todayâs market, and we believe that joining our derivatives pricing functionality with Misys Summitâs optimised portfolio analytics and front-to-back STP creates a powerful solution that increases clientsâ ability to obtain independent valuation and time to market with regard to financial product innovations. This agreement will also allow us to leverage their significant global footprint as we target more treasury and capital market participants, particularly in Asia and the Americas as well as the UK market.â
Cubillas Ding, Senior Analyst at Celent comments: âWith a heightened scrutiny on valuation practices from investors, regulators and ratings agencies, institutions are looking for more rapid options to go-to-market with derivatives pricing. There is a need for greater coordination between deal and portfolio risk management activitiesâwhich includes, at the bare minimum, alignment and linkages between deal pricing and portfolio re-valuation.â
The fully integrated solution will be available to the market in Q2 2008.
Misys Treasury & Capital Markets is a business unit of Misys PLC. It creates integrated, comprehensive solutions for financial institutions and corporate treasury departments across the globe, enabling them to manage their capital market activities across multiple asset classes.