Numerix, the leading provider of cross-asset analytics for derivatives valuations and risk management, today announced it was named Technology Innovation Provider of the Year for the Americas by Structured Products Magazine. This is the fourth consecutive year
that Numerix has won the award, demonstrating the companyâs continued success at delivering timely and important innovations for the modeling, pricing, valuation and risk management of structured products.
A key component to Numerixâs winning strategy was the companyâs ability to build on its leadership position in the US market, while successfully expanding its products and services into new markets such as the Caribbean and Latin America. Numerix signed 25 new clients across all regionsâfrom North America (including Canada and the US/Alaska) to the Caribbean and Latin America (including Mexico City). The new clients represent a solid cross section of the financial services industry and bring the total Numerix
client count to over 400 direct clients, with 200+ clients accessing Numerix analytics through its partner network which includes the largest trading and risk platforms.
Numerix was keen to identify and provide clients with the product enhancements, independent pricing /valuations and risk management tools needed in these turbulent times. In late December 2009, Numerix introduced its suite of Numerix Trader workbook applications â Numerix FX Trader, Numerix Rates Trader, Numerix Credit Trader and most recently Numerix Bond Trader â with all four comprising the new suite of Numerix Trader workbook applications. Client adoption of the new trading functionality has been immediate and swift across the Americaâs regionâwith a specialized Interdealer firm active in Mexican foreign exchange and interest rates markets launching its own Volatility Desk for Mexican Interest Rates Options Powered by Numerix in February 2010. In addition, a large US- based insurance company became an early adopter of the Numerix Credit Trader application and has since expanded its usage firm wide to include structured products.
On the modeling side, Numerix has also put a lot of effort into updating its equity model over the past year, and is one of the few companies to have implemented the âBates modelâ, which provides stochastic volatility modeling with jump-diffusion built in. The Bates model builds on the Heston stochastic volatility model and adds a jump process, which allows users to reproduce volatility smile for very short dated options and use those options as calibration instruments. This is the standard model for pricing Cliquet
options which have frequent resets. The Bates model is also supported as an equity component in the Numerix hybrid framework.
âThat we have received this prestigious award for the fourth consecutive year certainly speaks to the talented individuals that make up the Numerix organization. Weâve really been focused on providing enhancements over the past year to accommodate higher volatility, new data types and analytic capabilities,â said Steven R. OâHanlon, President and Chief Operating Officer at Numerix. âWe are thrilled
to be recognized again by Structured Products Magazine and this award is testament to our leadership position in the marketplace. What is perhaps most satisfying of all was Numerixâs ability over the past year to respond quickly, bringing products and partner solutions to market that met the specific needs of clients across the Americaâs region, and being recognized for that achievement.â
Another key to success in the Americaâs region has been the continued expansion of Numerixâs âpartnership solutionsâ offering to specifically include integrated pricing and risk management solutions for structured products. In the independent valuations services space, Numerix continued to raise the bar well above the reach of the competition across the Americas and successfully expanded its services beyond traditional buyside / sellside clients to include insurance, banking trust and fund administration entities.
According to Structured Productsâ editors, as financial institutions re-think the fundamentals of their businesses, systems providers have to upgrade and re-think their offerings. In this respect, Numerix has been quick off the mark, showing itself yet again to be a leading provider of structured products pricing and risk management technology. In addition to improving its modeling of exotic equity components of structured products, Numerix has upgraded its systems in a number of other ways, including adding new cash dividend conventions for American options. Such upgrades will keep the companyâs existing clients happy. Numerix has also been winning new business over the past year, despite the financially constrained times.
The award, which was announced in the May issue of Structured Products Magazine, was presented to Numerix at Structured Product Americas on May 6th in Coral Gables, Florida. Numerix President and Chief Operating Officer, Steven R. OâHanlon, accepted the award on Numerixâs behalf. The repeat category win caps a strong 2009 for Numerix, including Numerix being named best buy-side pricing / valuations service by Buy-side Technology Magazine in November 2009. Earlier in 2009, Numerix was also named Technology Company of the Year in Asia for the second straight year by Structured Products Magazine. In the May 2009 Celent Report Numerix was identified as the leader among its peers- providing advanced technology and functionality for pricing derivatives products, breath of cross asset coverage and depth of client services.