Firms can obtain an accurate overall view of valuation and risk on an intraday basis, for regulatory compliance and competitive advantage
FINCAD, the leading provider of OTC derivatives pricing and risk management solutions, today announced the availability of its F3 Platform, designed for enterprise valuation and risk analytics solutions. Overcoming the silos of information that plague the financial industry, F3 Platform provides enterprise-wide views of risk, margin, and collateral requirements. With this advanced platform, organizations can effectively manage risk and comply with new regulations, while optimizing trading venues and capitalizing on investment opportunities.
Bob Park, President and CEO of FINCAD, explained, “Regulatory frameworks such as Dodd-Frank and EMIR, which have been gradually rolled out in the aftermath of the 2008 financial crisis, have transformed the financial industry. A history of fragmented technology implementations has created information silos, making it virtually impossible to get a firm-wide view of asset values and risk exposures. This approach may have been workable in the past, but it is no longer tenable. Complying with regulations requires a holistic view of risk; and remaining competitive means having accurate analytics on an intraday basis. F3 Platform delivers aggregated views of both valuation and risk with industry-leading performance to meet the challenge of on-demand reporting.”
Cubillas Ding, Research Director, Securities and Investments Group, Celent Research said, “The efficient management of financial resources, capital, and risk at a firm-wide level is becoming a competitive necessity as firms face the new sustained realities of a capital-constrained environment.”
F3 Platform can model any trade type and performs valuation and risk calculations in a consistent manner—creating a centralized, shareable, auditable, and trustworthy source of financial analytics. Organizations can rely on F3 Platform for comprehensive information about their exposures, for example, to make better decisions on how best to optimize margin and collateral requirements. F3 Platform helps them to efficiently comply with regulatory requirements without needing to resort to crude aggregation methods, which are inaccurate, error-prone, and laborious. “Once you see what F3 Platform can do, much of traditional trading decision-making looks like flying blind,” said Park.
In addition, instead of the rip-and-replace approach that other solutions require, F3 Platform is designed for seamless integration with existing systems and for incremental implementation. “By and large, organizations know they need to deploy solutions that provide firm-wide analytics, but are stuck with a very large question of when and how to do it,” says Park.
The Moscow Exchange (MOEX) was one of the first organizations to deploy F3 Platform. Roman Sulzhyk, Managing Director of MOEX explained, “To compete in the world’s top exchanges in the business of clearing and trading OTC derivatives, we needed an analytics platform that was not only accurate, but also fully transparent. FINCAD’s F3 Platform is a world-leading solution with proven accuracy, and it is entirely transparent. We have quants and risk managers using the software, and everyone finds it easy to deploy and easy to use.”
Patented URT™ for Unmatched Performance
F3 Platform’s analytics rely on Universal Risk Technology™ (URT), for which a patent was awarded to FINCAD in March 2014. URT guarantees fast analytic exposure calculations for all valuations, from vanilla to exotic, single-trade to portfolio, under all models and valuation methodologies. This is possible thanks to its unique generic architecture, which replaces traditional model or trade-specific approaches. According to Amrish Ganatra, Founding Partner of Cerebra, testing showed that URT’s speed was 2,000 times faster than bumping, while “the results were practically identical.”
More importantly, this kind of processing speed is maintained even in risk calculations of large or complex portfolios, or computationally intensive analytics, such as Credit Value Adjustment. As a result, calculations are easily delivered on an intraday and real-time basis, enabling users to make trading and investment decisions based on accurate information.
Built on FINCAD’s industry-leading financial analytics library, F3 Platform supports the widest possible range of instruments and asset classes, including portfolios and hybrid instruments. Industry-standard pricing models, market conventions, static data, and risk models make it possible to analyze virtually any type of instrument. In addition, FINCAD’s sophisticated hybrid modeling engine enables the capture of all risk exposures on one platform. Integrating analytics across asset classes, desks, and portfolios, F3 Platform enables organizations to comply with regulatory requirements for firm-wide analytics without the heavy overhead that many firms are currently paying.