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The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

FINCAD Responds to Customer Needs for Greater Risk Management and Transparency

With the recent US Senate approved bill that means sweeping overhaul of financial regulation and calls for more transparency and prudent risk management, FINCAD, the industry standard for financial analytics, announced the launch of F3 Excel Edition.

In a recent FINCAD survey, financial professionals revealed a greater need for detailed risk management models and better transparency for OTC derivatives pricing solutions. Responding to customer demands, the newest product in the F3 line, F3 Excel Edition, is an extremely flexible solution that provides finance professionals in banks, hedge funds and asset management firms with the ability to respond to the market in real time and rapidly model virtually any complex trade that is not currently in their existing system. In addition, F3 Excel Edition also provides these users with comprehensive risk reports for their complex trades and portfolios to better manage risks faced by their organisations.

“We’ve designed F3 Excel Edition to report detailed risk information at a time where better risk management is vital to the finance industry,” said Bob Park, president and CEO of FINCAD. “The reports not only identify where the greatest exposure exists in a portfolio, but also provide finance professionals with the notional amount required to hedge that risk. This is powerful information that every firm can use. And like all FINCAD products, F3 Excel Edition provides complete transparency into the numbers.”

“The inherent difficulty in modelling complex structures has led to a lack of transparency in understanding how these instruments are valued. As the spotlight on derivatives continues to increase and regulatory pressures mount, analytics libraries need to meet this heightened scrutiny,” said Mayiz Habbal, senior vice president, Celent. “Black-box solutions are not satisfactory anymore and traceability using such functionality as audit logs is a necessity to give the appropriate background information for internal compliance officers and regulators to understand how these financial instruments were valued.”

“During the two months I participated in the F3 Excel Edition beta program, I’ve been impressed with its flexibility to price the complex structures,” said Orlando Calvo, treasury risk analyst, Global Bank Corporation. ”Since I am able to work with the granular components of the trade, I can re-use the building blocks across multiple trades. My spreadsheets are significantly smaller and workbook management is much easier than before. I also like the fact that F3 Excel Edition provides the performance I need to run calculations for large portfolios quickly.”

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