Numerix, the leading provider of cross-asset analytics for derivatives valuations and risk management, announced its expansion into the Latin American market, including a new sales office to open in Sao Paulo, Brazil. The purpose of the new office is twofold: to better serve Numerix’s expanding client base in Brazil and to empower local financial services companies with innovative analytics solutions that support them in recognizing, and taking advantage of new opportunities amid ongoing regulatory change.
Market participants across Brazil are operating under new derivative regulations impacting how portfolios of fixed income, money market, and derivative instruments are fundamentally priced and risk managed. Compliance with minimum standards for fair value calculations, new approaches to measuring Market Risk and the calculation of Credit Valuation Adjustment (CVA) under Basel III present new and complex valuation challenges. However, the introduction and growth of Brazilian structured note issuance also presents an opportunity to enter and potentially benefit from a new market.
Consistent Pricing and Risk across Operations
Broad coverage of Brazilian financial instruments and local market expertise are the core strengths Numerix brings to the region. To help Brazilian capital market institutions achieve accurate, transparent valuations, Numerix offers a single cross-asset analytics platform for the pricing and risk management of a wide range of Brazilian derivative instruments. Consistent pricing and risk across operations enables greater visibility for decision makers in terms of derivative trading profitability, PnL impact and anticipating previously unforeseen risks.
“Today’s market is not only about compliance, but being able to recognize imbedded opportunity in regulatory changes while minimizing operational and outsourcing costs,” said Steven R. O’Hanlon, Chief Executive Officer & President of Numerix. “As the appetite for more diverse derivatives products grow, and firms seek to expand into the Brazilian COE [structured note] market, Numerix’s cross-asset analytics platform provides the advanced pricing capabilities needed to produce market consistent valuations with better risk management and faster time to market.”