Sell-Side Technology Awards 2025: Best cloud provider to the sell side—Derivative Path

Overview

DerivativeEDGE is a cloud-native trading and risk management platform designed to allow sell-side firms to efficiently manage derivatives trading, FX risk, and global payments. The platform automates front-to-back-office processes and integrates trade execution, risk analytics, hedge accounting, and regulatory reporting. By embedding real-time risk insights and capital markets functionality, DerivativeEDGE eliminates inefficiencies, allowing capital markets firms to scale their trading and risk operations while complying with regulatory standards/mandates.

Secret sauce  

DerivativeEDGE differentiates itself by embedding real-time risk intelligence, automated compliance workflows and global payments within a single platform. Unlike discrete, disparate applications, it provides integrated risk management analytics for firm-wide hedging positions, with direct connectivity to JPMorganChase, FNBO and Wells Fargo, and AI-driven data ingestion for risk modeling and regulatory reporting. This approach enables firms to execute trades, manage exposures, and automate post-trade operations efficiently, reducing operational friction while expanding revenue opportunities.

Recent milestones

• Expanded global payments and FX liquidity: enhanced cross-border payments integration with JPMorganChase, FNBO and Wells Fargo, offering real-time FX execution and risk management
• New risk dashboard: introduced risk management analytics, enabling sell-side firms to analyze and optimize firm-wide exposure versus hedge position
• Introduced AI-driven data ingestion: launched AI-powered data ingestion for trade, position and exposure, reducing manual intervention in reporting and risk assessments

Future objectives

Derivative Path will focus on the following:

• Advanced analytics enhancements: expanding its dashboard offering to include ALM and risk dashboards to include scenario modeling for cross-asset exposures
• API expansion for sell-side integration: strengthen API offerings for integration with third-party liquidity providers and trading platforms
• Scalable software-as-a-service (SaaS) deployment: enhance cloud-native architecture to provide greater scalability and performance for high-volume trading environments

Why they won

Derivative Path won two WatersTechnology awards back in 2023: best alliance or partnership―which it did in collaboration with Goldman Sachs in the Sell-Side Technology Awards―and best cloud-based application provider in that year’s Waters Rankings. And while Derivative Path isn’t technically a cloud provider in the way AWS, Google and Microsoft are, it does provide the sell side (and the buy side) with some genuinely impressive hedging, pricing and processing functionality to support their derivatives trading, FX risk management and global payments functions, courtesy of its cloud-based, flagship offering, DerivativeEDGE, which delivered the win for the Walnut Creek, California-based firm in this year’s Sell-Side Technology Awards. 

DerivativeEDGE is by no means the only hedging, pricing and regulatory reporting platform serving the sell side, but what it does offer its sell-side clients is a single, integrated platform that supports the extrapolation of sophisticated risk measures, while simultaneously automating compliance workflows and featuring AI-driven data ingestion, ensuing high levels of data accuracy, normalization and straight-through processing.

This is the second win on the bounce for Derivative Path in this category and given its track record of recent success across a variety of WatersTechnology awards, who would bet against the firm making the winners’ circle again next year?