Broker-dealers face intense competition to capture derivative deal flow and to retain and grow their client base. In order to capture deal flow, firms must have fast but accurate pricing while understanding the risk of the trades to themselves or to clients. Moreover, they must understand the initial margin and collateral ramifications of trades to ensure collateral usage is optimized. To keep clients happy, broker-dealers must provide outstanding service and fast quotes, plus provide value-added reports and services in order to differentiate themselves from competitors.
Numerix provides broker-dealers with the real-time pricing and risk analytics they need to trade profitably for their own account and to successfully advise clients on their derivatives trades. Numerix also offers the tactical quantitative services necessary to supplement a broker-dealer’s own quantitative staff and free them to work on strategic projects.
|•||Perform real-time pricing and risk calculations for any derivative type (from vanillas to exotics) across all asset classes||•||Value, calculate P&L and understand the risk of derivative portfolios of any size, from hundreds to millions of trades|
|•||Validate counterparty prices and initial margin/collateral charges during trade negotiations and afterwards, to obtain the best terms possible, to reduce post-trade disputes, and to optimize collateral usage||•||Produce advanced market risk and counterparty risk analysis to support risk management activities and to create high-value client reporting|
|•||Quickly structure and price new structured products and exotics, to increase time-to-market for trading the new instruments|