Waters Rankings 2023: Best cloud-based application provider—Derivative Path

Overview

Derivative Path is a financial technology and advisory platform that provides its capital markets clients with a set of tools to manage their OTC interest rate and FX derivatives transactions. The firm provides a technology-led solution supported by a team of subject matter experts, sales, hedge accounting, technology, and compliance professionals to help users structure and manage their hedging solutions.

The solution

Derivative Path has purpose-built its solution to enable its clients to leverage the capabilities of the largest market participants, although as a packaged, cloud-based platform, it is suitable to their resources, personnel, and existing technology stacks. The company not only delivers the technology and front-to-back workflow capabilities capital markets firms need, but it can also act as an extension of their internal teams to help optimize their business and uncover new hedging opportunities.

Secret sauce

Derivative Path provides access to sophisticated tools previously only available to the largest market participants, in a cost-effective, intuitive-to-use way. The combination of the technology platform with advisory and execution services allows it to address a range of client needs and serve a larger market than either the technology or advisory aspects could do on a standalone basis. 

Recent milestones

• Partnered with Goldman Sachs to create an automated, digital-first cross-border payments platform to help financial institutions enhance their global payment capabilities. Using API-based, real-time payments technology, Derivative Path clients can now provide a more cohesive payment solution for their customers.
• Integrated with Q2 to enable clients to purchase real-time FX contracts and settle international payments via Q2’s digital banking platform.

Future objectives

Derivative Path’s roadmap includes the continued buildout of its OTC commodity derivatives module to complement its existing rates and FX functionality, providing a cross-asset platform. It is also focused on developing additional integration with digital banking providers and core wire platforms to further automate workflows in its FX international payments product.