Waters Rankings 2015: Best Credit Risk Solution Provider ─ Numerix

The Numerix XVA stack’s development—incorporating a range of valuation adjustment calculations in addition to credit valuation adjustment (CVA)—has been well heralded for its heavy-duty computational power and design, and remains the bedrock upon which other new tools are being built, including the firm’s Economic Scenario Generator, a stochastic simulation framework, and other new wrinkles to Numerix’s mainstay CrossAsset platform.

This year, those wrinkles often involved a turn eastward, as several projects showcased the provider’s geographic reach into the Asia-Pacific region and its ability to customize products. For one, Singapore-based DBS Bank needed to upgrade its equity derivatives structuring and trading operations to better respond to request-for-quote queries. Numerix produced a solution that uses CrossAsset’s orchestration engine and enterprise analytics to respond automatically to requests around equity-linked notes.

This work moved forward as the provider linked up with DBS, Avaloq and Leonteq Securities on a separate, much larger project: to create an Asia-targeted, multi-issuer investment products distribution system for equity derivatives structured products. After an official memorandum of understanding signed in March, it is in development.

Further north, Numerix also partnered with China-based xQuant, a mainland vendor focused on equity derivatives pricing. And across the Taiwan Strait, Cathay United Bank signed the provider to enhance its treasury marketing unit (TMU) with greater workflow processing and transparency capabilities for derivatives pricing and valuation, including calculation of mark-to-market values and the Greeks.

Perhaps that is what O’Hanlon really means when he cites change—not bouncing between extremes, so much as simply tackling new problems in new global markets where most providers would rather not venture. It’s this intrepid approach, combined with Numerix’s historical strength in quantitative research, that once again makes all the difference.

Perhaps that is what O’Hanlon really means when he cites change—not bouncing between extremes, so much as simply tackling new problems in new global markets where most providers would rather not venture. It’s this intrepid approach, combined with Numerix’s historical strength in quantitative research, that once again makes all the difference.