Numerix: Cross-Asset Analytics Platform to Support Real-Time Risk

Steven O’Hanlon, CEO and President
Capital markets work within the realms of regulatory changes which impacts financial institutions—both in terms of its employees, and its ability to remain profitable. These regulatory changes can shrink their ability to be effective and innovative. Manpower, especially developers are shifting to non-financial companies, because of their innovative environment, due to which financial institutions find it difficult to create a competitive advantage. Observing this landscape, “Our analytics platform provides a flexible and transparent framework across all assets to support real-time risk to meet regulatory capital requirements,” says Steven O’Hanlon, CEO and President, Numerix.

Numerix experts help clients solve their most complex quantitative, business and compliance issues. Services span capital markets and insurance offerings— from model validation, risk advisory and curve construction to regulatory reporting. As an analytics platform Numerix provides pricing and risk solutions for OTC structured products and derivatives—across all assets: fixed income, equity, FX, credit, commodities, inflation, volatility and hybrids.

“We are consumed inside of Excel by quants, or in such a way where our analytics are embedded inside of trading system platforms and products and we are then used inside of their workflow,” mentions O’Hanlon.

Building on top of this is Numerix’s risk capabilities. With pricing being the cornerstone of being able to manage risks, Numerix’s single Numerix CrossAsset Platform is able to provide the full range of counterparty exposure measures such as PFE, EE, EPE & ENE, as well as XVA pricing adjustments – CVA, DVA and FVA. This also includes market risk capabilities, stress testing and scenario generation.

Additionally, Numerix is also capable of addressing the world’s most complex derivatives structures and computationally demanding calculations—namely equity-based insurance guarantees such as variable annuities and fixed indexed annuities. Numerix’s Leading Hedge is a complete production platform for the economic risk management of variable annuity rider products.


Our platform provides rich pricing and risk analytics across every single asset class


It can serve as a flexible workbench in Excel, or underpin calculations in a server/batch environment.

This solution has quickly become a leading provider of sophisticated analytics for the risk management of complex path dependent products. Leading Hedge provides functionality for scenario generation, valuation and risk profiling enabling it to be used in applications including hedging, pricing, product design, enterprise risk management of VA obligations. Numerix also offers model validation services which is driven in queue by regulatory changes. To hit deadlines set forth by regulators firms are requiring more sophisticated personnel with specialized skill sets.

At the foundation of Numerix ’ s architecture is the industry’s largest and most sophisticated library of cross-asset models and methods that have been developed and integrated by Numerix’s quantitative research team. Numerix offers the ability to model any type of OTC instrument using a comprehensive mathematical library and transparent pricing and risk framework providing a unified platform for consistent valuations across all positions and asset classes— underpinning a powerful risk calculation process.
In a specific customer engagement, together with Numerix, DBS Bank in Singapore has revolutionized the way its Equity Derivatives Structuring & Trading desk conducts business. This successful implementation of Numerix’s CrossAsset platform has scaled up the bank’s ability to respond to quote requests for structured notes from prime brokers and asset managers in real-time, making the RFQ process high touch and customer centric. This has been incredible achievement for the bank.

“I am passionate about our company’s continued ability to redefine the derivatives market through innovative and cutting edge technologies,” says O’Hanlon. “Moving ahead, the company will continue to oversee the global expansion of Numerix pricing and risk solutions into business new segments.”

Company
Numerix

Headquarters
New York City, NY

Management
Steven O’Hanlon, CEO and President

Description
Provides cross-asset solutions for risk management, structuring, pre-trade price discovery, trade capture, valuation and portfolio management of derivatives and structured products.