About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Numerix to Provide Lehman Brothers Holdings with Valuations for its Outstanding Derivatives Contracts

Subscribe to our newsletter

Over a year after the collapse of the investment bank, Lehman Brothers Holdings (LBHI) has selected Numerix to provide it with independent real-time valuations for its one million outstanding derivatives contracts. According to the valuations vendor, the deal is one of largest and most comprehensive valuations projects of its kind to date.

Steven O’Hanlon, president and chief operating officer of Numerix, says that the signing of the vendor is a critical step in unwinding LBHI’s derivatives book and the ultimate reconciliation of outstanding creditor claims. He calls the deal “the most unique and unquestionably the largest valuation deal in history” and explains that the vendor will be working with LBHI’s derivatives team on the mandate.

“Numerix brings the best capabilities and focus to providing LBHI with a single platform and the analytics necessary for the ultimate resolution of its intercompany accounts and the integration of existing legacy systems,” O’Hanlon claims.

Daniel Ehrmann, managing director of Alvarez & Marsal and co-head of LBHI’s Derivatives Asset Team, which will be working with the vendor, explains that it was selected after a full review of the available solutions on the market. “Lehman performed an extensive search to identify a partner that could provide the analytics and technology capable to value the depth and breadth of derivatives products that were transacted in the Lehman derivatives portfolios. It became clear that Numerix was best positioned not only to provide LBHI with the valuations we need to resolve derivatives claims, but also to flex the market inputs and transaction terms to ensure that those valuations are reasonable,” he elaborates.

LBHI selected Numerix to accelerate the resolution of intercompany accounts and systems and resolve derivative claims. The Numerix team of on site financial engineers sit side by side with LBHI traders and risk managers and provide ad hoc, real-time valuation services along with software support and project management. Numerix is actively aggregating existing trade information from all of LBHI’s legacy systems onto a single platform – Numerix Portfolio – and providing independent valuations on the entire LBHI book.

The selection of Numerix was approved by the US Bankruptcy Court, Southern District of New York (Manhattan) in April this year.

A lot of column inches have been devoted to the impact of Lehman’s failure on the market over the last 12 months but there has been very little detailed coverage of the unwinding process. This valuations deal is part and parcel of this process and it indicates the scale of the data management challenge that has resulted from the events of last year.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Are you making the most of the business-critical structured data stored in your mainframes?

Fewer than 30% of companies think that they can fully tap into their mainframe data even though complete, accurate and real-time data is key to business decision-making, compliance, modernisation and innovation. For many in financial markets, integrating data across the enterprise and making it available and actionable to everyone who needs it is extremely difficult....

BLOG

S&P’s Capital IQ Pro Flagship Offers Visible Alpha with View to Expansion

Behind every stock analyst’s financial forecast report is a detailed data model that tracks the company so that they can arrive at a view on that asset. Until about eight years ago it was difficult to prise open those reports to understand the thinking behind the headline numbers. Visible Alpha helped change that. Founded by...

EVENT

TradingTech Briefing New York

Our TradingTech Briefing in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...