NumeriX, an analytics provider for structuring, pricing and valuation of derivatives and structured products, has extended its integration partner agreement with Calypso Technology, with whom it has been working with since 2005. As a result of this expanded agreement, Calypso users will now have access to NumeriX’s pricing and risk analytics software.
As per the expanded integration partner agreement, Calypso says its users will be able to more accurately price and generate sensitivities for the most complex derivatives, including equity, interest rate, credit and hybrids. The vendor claims that the integration of these analytics within its trading system is designed to fully support the lifecycle of the most complex exotic or hybrid derivatives.
NumeriX president and chief operating officer, Steven O’Hanlon, says: “This extension of our integration partner agreement with Calypso Technology signifies the importance of full asset class coverage for the valuation of hybrids and exotics. As traders struggle to maintain profitability in a crowded market, it is vital to provide the necessary tools to accurately value and maintain risk exposure for complex derivatives.”
According to the vendors, the integration project is in response to increased market demand for greater automation and risk transparency as a result of the growing pressures from regulators and investors. Calypso indicates that it has integrated NumeriX analytics into its own QA process and provides full backward compatibility. The vendor also says it is committed to executing on a 12 to 18 month product roadmap in support of the endeavour of full spectrum instrument class coverage. Accordingly, it has instituted a version management system to support future updates to the integrated NumeriX analytics.
Gerard Rafie, vice president of marketing at Calypso Technology, says: “We’ve seen the results for our customers within one asset class and it was a natural progression to provide complete access to the NumeriX analytics suite.”