Numerix has teamed up with CameronTec to deliver OTC structured products pricing including real-time response to quote requests. The solution was developed to meet the needs of a bank in Singapore, but is expected to gain traction further afield as banks trade increasingly sophisticated derivatives products.
The Singapore bank wanted to scale its structured products business, but was hampered by a manual request for quotes process. It was already a user of the Numerix CrossAsset analytics framework and asked the company to provide an automated pricing capability.
To achieve this, Numerix partnered CameronTec, integrating its CrossAsset analytics platform with CameronTec’s Catalys FIX Protocol Enabler, which acts as a FIX Hub for quote requests from customers. When a request is received, the Numerix engine translates the message and dynamically builds complex models to price the structured product. The price is then delivered to the trader and converted into a Quote FIX message for ongoing transmission to the customer.
Steven O’Hanlon, CEO and president of Numerix, explains: “In this first deployment of the solution, the transparent model and pricing architecture of Numerix CrossAsset is being used in conjunction with CameronTec FIX technology to satisfy the real-time demands of a fast paced front-office trading environment. Built on enterprise server technology for future scalability, dynamic model building across the institution’s entire system is now achievable in less than 10 seconds.”
This is Numerix’ first initiative with CameronTec, but it expects the partnership to develop as customers seek innovative solutions and the company presses on with its move from being a tool supplier to a solution and application provider offering not only solutions built using elements of its CrossAsset analytics and pricing framework, but also solutions integrating technology from about 90 partners in its global partnership programme.