As highlighted in its report, âPricing Solutions for OTC Derivatives and Structured Products,â disclosure and pricing / valuation methodologies are key starting points for restoring confidence in the derivatives and structured finance markets. Regulators, governments, investor groups and investors are driving for greater transparency and accountability in the derivatives markets with an emphasis that valuation methodologies are well-defined and repeatable. According to the report, âNumerix specifically has deepened their traditional strengths through a multi-asset class approach in complex hybrids and have built out industrial strength applications for position keeping and risk management based on their core analytics and in tandem with their Excel pricing productsâ¦ Numerix is strongest in going to market with a wide set of applications built using their analytic libraries, and in many instances developed in conjunction with partners in other parts of the order management, trading and risk management solutions chain.â
The report continues, âNumerix has not only expanded product functionality and services footprint into various parts of the structuring and OTC lifecycle but has also customized their product offering to cater for users within asset class groups. Since the credit crisis mid-2007, Numerix has been actively engaged in a higher degree of advisory-type services around alternative valuation techniques (e.g. distressed assets), implementation of its position-keeping application, and participation in industry dialogues with regards to pricing/valuation practices.â
The report also highlighted the importance of a firmâs scope of partnerships as integrated analytics in trade order management and risk systems is critical in developing âfront to backâ consistency in pricing and valuation. Called out as a strength and differentiator among others in the market was Numerix extensive partner ecosystem which allows clients a âbroad access points to tap into Numerix analytics pre-integrated.â Numerix analytics are utilized by over 45 partners including Trade and Order Management Systems such as Bloomberg, Calypso, GFI Fenics, Mysis Summit & OPICS, Thomson Reuters, Paladyne and Wall Street Systems. Bloomberg is also a strategic partner of Numerix offering custom derivative pricers on the Bloomberg Professional Service terminal utilizing Numerix analytics; the Numerix Bloomberg Edition -- an Excel based structuring solution for any exotic derivative; and NXDL â an STP solution for any exotic derivative over the Bloomberg Professional Service.
âIn this challenging market, we take great pride in working with our clients to provide the transparent analytics, valuation and risk solutions necessary to move forward,â said Steven R. OâHanlon, President and COO of Numerix. âWe are extremely pleased with Celentâs recognition of the work we have been providing to the market.â
The report, âPricing Solutions for OTC Derivatives and Structured Products â Evaluating the Vendor Market,â examines eight vendors that deliver pricing solutions that can underpin an organizationâs efforts for reform. Celentâs âABCD Vendor Viewâ is a quartile based ranking of âAdvanced Features & Technologyâ, âBreadth of Asset Class and Functionalityâ, âCustomer Baseâ and âDepth of Client Servicesâ.