The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Goldman Sachs Selects Derivix for Real-time Options Pricing and Analytics

Goldman Sachs has selected Derivix as the exclusive provider for advanced real-time options pricing and analytics within its Goldman Sachs Electronic Trading (GSET) Signature Programme. According to the vendor, the selection was driven by client demand for fast, accurate and efficient analytics.

As a signature partner in the programme, Derivix’s options pricing, analytics and risk visualisation capabilities have been integrated into the GSET REDIPlus multi-broker execution management platform. The vendor claims that this allows REDIPlus clients to benefit from Derivix’s analytics front end, while Derivix clients benefit from GSET’s advanced options algorithmic offerings and the breadth of the REDIPlus platform.

Using the joint solution, clients can access GSET’s options algorithms from within the Derivix trade ticket that features real-time risk visualisation directly built in, says the vendor. Traders can run real-time simulations and pre-trade analyses leveraging the Derivix’s proprietary ‘volatility time’ options pricing model and then route orders to GSET.

Derivix’s rationale behind its solution is that real-time analytics and execution will enable traders to keep pace with the speed of change in the market. Michael Barrett Stern, co-founder and chief strategy officer of Derivix, explains: “Without modern, high performance solutions, options traders would be challenged to fully capitalise on the market volatility and tremendous change we are witnessing in the options industry today. To address these needs, Derivix provides options traders with the speed, analytic accuracy and flexibility they need to visualise and execute winning trades ahead of their competition.”

Kevin McPartland, senior analyst at Tabb Group, highlights the predicted increase over the next few years: “The snowball effect of electronic options trading is just beginning. Based on our conversations with leading options market participants, by 2010 two thirds of all buy side options trading will be conducted electronically.”

Related content

WEBINAR

Upcoming Webinar: Evolution of data management for the buy-side 2021

Date: 27 May 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes The buy-side faced a barrage of regulation in 2020 and is now under pressure to make post-Brexit adjustments and complete LIBOR transition by the end of 2021. To ensure compliance and ease the burden of in-house data management, many...

BLOG

HUB Cloud Platform Aims to Transform Asset Management Operating Model

The HUB technology company set up by PIMCO, Man Group, IHS Markit, State Street, Microsoft and McKinsey & Company promises a utility style cloud-based platform designed to transform asset managers’ middle and back office operating processes, and accelerate them towards a digital operating model. This should reduce cost and mitigate risks, and leave asset managers...

EVENT

RegTech Summit London

Now in its 5th year, the RegTech Summit in London explores how the European financial services industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Evaluated Pricing

Valuations and pricing teams are facing a much higher degree of scrutiny from both the regulatory community and the investor community in the glare of the post-crisis data transparency spotlight. Fair value price transparency requirements and the gradual move towards a more harmonised accounting standards environment is set within the context of the whole debate...