Numerix, the leading provider of cross-asset analytics for derivatives valuations and risk management, has been recognized by Structured Products Magazine for leading Technology Innovation in Asia 2010. This is the third consecutive year that Numerix has been recognized by the magazine for technology innovation for the Asian market.
According to the magazine editors, Numerix wins this yearâs technology award for its continued expansion into the Asia markets, most notably China and South Korea, from its established presence in Japan, while the company has also strengthened its product offerings to give improved functionality. âWe entered the Asia market in 1998 in Japan, and today we have relationships with all the main financial institutions there. We then started to move out into other parts of Asia in 2001,â says Steven OâHanlon, Numerixâs New Yorkbased president and chief operating officer.
"We are honored to have won this award," said O'Hanlon. "The fact that we have maintained our standing and recognition in the region for the third consecutive year is testament to Numerixâs continued success delivering the industry's most sophisticated analytics and solutions for pricing, management and valuation."
Over the past year, Numerix has signed up 33 new clients across Asia. These include major South Korean investment bank Hana Daetoo Securities, which uses Numerixâs CrossAsset XL product, an Excel-based solution for modelling derivatives and structured products. It also uses the Numerix Portfolio product for managing derivatives portfolios.
The Nomura Research Institute, a large Japanese IT consulting firm has signed up as a client. The deal for the Nomura Research Institute is to provide valuation services to the firmâs clients via Numerix Portfolio. âBy moving out into new territories weâve been able to grow our Asia revenue significantly, from around 20% of our total revenue in 2006 to a third of our revenue at the end of last year,â says OâHanlon.
The Structure Products article mentions Numerix has certainly been making waves in Asia, as noted by its clients, who seem particularly impressed with the technologyâs ability to handle complex derivatives products. One large Japanese securities outfit, for instance, says it uses Numerixâs products to value exotic rates products, exotic FX options, FX and interest rate hybrid products such as power reverse dual currency notes, and exotic equity structures. âNumerix provides modelling flexibility and the architecture provides a powerful method for building our own pricer,â says a Tokyo-based manager at a securities house. âIt would take a lot of money for us to develop a multi-factor model by ourselves.â
Another Japanese client says the firm can âevaluate a valid price on complex exotic derivatives more rapidly than its competitors, and we think the calculation speed of its Monte Carlo method is faster than its competitors.â
Meanwhile, a Taipei-based client says it values the fact the Numerix systems let it validate models and perform risk analysis quickly. âIt covers financial products widely for pricing and risk analytics, and it can deal with most of the complex exotic or structured products,â says the client, which has financial operations spread throughout Asia.
Numerix has added a commodities module to its CrossAsset offering, giving clients a much broader range of products and pay-offs they can price. Numerix has also updated its âone-stepâ Monte Carlo value-at-risk reporting and scenario generation functionality on its Numerix Portfolio offering to make running simulations and the creation of credit valuation adjustment numbers faster.
The award was presented to Numerix at the fifth annual Structured Products Asia conference at the Island Shangri-la Hotel, Hong Kong on September 20th and follows Numerix being named Technology Provider of the Year in the Americaâs for the fourth straight year by Structured Products Magazine in May 2010. This most recent award follows the May 2009 Celent Report which identified Numerix 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.