Sell-Side Technology Awards 2025: Best alliance or partnership—Numerix and PiP Mexico

Overview

Numerix and Proveedor Integral de Precios (PiP Mexico), a Mexico City-based provider of pricing and valuations services for local and international markets, teamed up with the view to transforming derivatives valuations in Latin America through the use of the Numerix Analytics Service (NAS). The partnership intends to tackle the challenges of xVA adoption in the region, including underdeveloped xVA functions, outdated systems, and operational inefficiencies. NAS addresses these issues by delivering accurate pricing, enhanced hedging strategies, and risk management support. This collaboration provides financial institutions with the technology required to boost profitability and competitiveness.

The solution  

NAS is the platform that enables PiP Mexico to deliver valuation services and address xVA challenges across Latin America. Leveraging market-standard models and analytics, it optimizes derivatives pricing and valuations and provides precise assessments of xVA risk measures, including credit valuation adjustment (CVA), debt valuation adjustment (DVA) and funding valuation adjustment (FVA). NAS ensures that its sell-side users are able to comply with strict regulatory requirements, aligning with both Basel Committee on Banking Supervision (BCBS) and regional standards. Combined with PiP Mexico’s regional expertise, this offering enhances compliance, bolsters risk management practices, and helps firms achieve greater operational efficiency.

Secret sauce  

NAS features cloud-native technology, offering high performance and scalability to deliver sophisticated xVA measures. Underpinned by Numerix’s analytics, it ensures accuracy and supports a range of over-the-counter (OTC) derivatives and structured products. The platform provides accurate valuations, advanced xVA computations, and robust risk management tools, enabling sell-side firms to navigate complex regulatory requirements with confidence and accuracy/efficiency.

Recent milestones

• Transitioned from on-premises/desktop tools to a cloud-based API, enhancing accessibility and integration
• Leveraged cloud-native technology to deliver high performance and scalability, including pre-trade insights
• Delivered near-real-time performance with cloud-native calculations, scaling for large, complex portfolios

Future objectives

Numerix will:

• Enhance analytics and cloud-based technology to provide high-quality solutions and maintain excellence for existing clients
• Strengthen its client support frameworks, ensuring seamless service and optimal satisfaction for users
• Expand its client base by onboarding new banks and institutions, driving growth and adoption across the Latin American financial marketplace

Why they won

It’s been a few years since Numerix was last in the winners’ circle of these awards, but what an outstanding alliance to make a return with. The New York-based risk and analytics specialist’s partnership with PiP Mexico is an outstanding example of why alliances are so crucial to the financial services industry, in that they tend to provide clients—PiP Mexico in this case—with the types of sophisticated functionality they simply wouldn’t be able to develop internally for any number of reasons. 

The result is that everyone’s a winner: PiP Mexico gets the wherewithal to provide accurate and transparent derivatives valuations services to its clients across the region; the market is generally better off due to increased levels of oversight, operational robustness and transparency; and Numerix gets to extend its range of products and services across a relatively new market for with its reputation enhanced. Congratulations to both organizations on an outstanding partnership.