Numerix wins best overall taking top honors in the risk management & pricing categories
New York – March 8, 2012 – Numerix, the leading provider of cross-asset analytics for derivatives valuations and risk management, announced today that the firm was voted best overall in Structured Products Magazine’s Technology Rankings 2012 taking the No. 1 spot in Risk Management (market and credit) and Pricing and Analytics (credit, cross-asset and forex pricing).
Numerix finished first among the top ten technology vendors listed in the survey, moving up from last year’s second place position. Numerix dominated the Pricing and Analytics section of the survey ranking among the top three in all six possible Pricing and Analytics categories and taking the number one spot for credit, cross-asset and forex pricing. Numerix also received significant recognition for Risk Management being voted the best solution for market and credit risk.
The editors highlighted Numerix’s success in helping its structured products clients respond to the emerging regulatory requirements of Basel III, which demands that CVA (Credit Value Adjustment) be both mark-to-market and actively hedged. Numerix delivered a highly robust CVA solution to the market which leverages its industry-leading CrossAsset model library to deliver a highly flexible, real time solution for CVA and potential future exposure (PFE).
Numerix also introduced an approach to help clients manage the valuing of collateralized derivatives using overnight indexed swap (OIS) curves, a shift that has created significant challenges in the fundamentals of modeling. Numerix outlined which instruments, pricers and functionalities need to be augmented in order to successfully implement a dual curve approach.
Numerix also brought to market new Inflation Market Models (IMM) to help manage the emerging popularity of inflation related issuance. The last few years have seen a deepening of liquidity in the inflation derivative markets in terms of longer maturities being traded and non-at-the-money strikes becoming far more liquid, and as a result modeling and capturing the stochastic nature of volatility has become critically important.
“Over the past year our structured products clients have faced a number of challenges including those imposed by regulatory uncertainty and ongoing market volatility. However these challenges have also presented opportunities for Numerix to innovate and reflect the changing approaches in the industry,” said Steven R. O’Hanlon, President and COO of Numerix. “Being recognized as the best overall product solution for structured products is an incredible honor and a testament to our strategic goal to becoming the world’s most influential independent analytics provider.”
Respondents were asked to nominate the firms that provide the best product offers across different markets including: pricing, analytics, trading systems and risk management.