Helping a global asset manager better control its investments in equity derivatives

A European asset management firm is considering to increase the amount of structured and equity-linked exotic products in its book.

Wanted: precise, reliable and timely pricing information

Asset managers lack software tools to analyze the products they buy from sell-side investment banks and to evaluate their margin. Re-developing a state of the art in-house capability would be uselessly both time-consuming and subject to flaws.
On the other hand risk managers want access to current and detailed information to control profits and losses of the products in the books to comply with regulatory constraints. If not provided with reliable pricing, they would not a allow their trading colleagues to buy such products.
Users want a system that offers extensive risk analysis and a user-friendly framework to describe new products quickly.

A dedicated structuration solution

Finoptech lists the end-user requests and designs a customized interface integrating advanced features for risk management and structuration. Based on Finoptech-p1, the solution provides detailed risk analysis reports and allows to enter in a few clicks the definition of all the products the asset managers have in their books.

The users can easily modify the products parameters without complex programming task and check the effect on the price. This flexibility reduces their risks of possible mispricings and strengthens their negotiation value when dealing with the structurers.

Save time, make money

Thanks to a customized interface and the easiness of integrating new products, the company gives up the idea to hire a quant expert to program dedicated pricing routines.

Finoptech-p1 brings a competitive advantage to the company by providing a cost-effective structuration solution freeing the asset managers from low-level analytic developments and giving them a clear view on the products they deal.