Numerix
Anticipating Future Derivatives Risks Accurately

The banking sector is mired in a muddle of high costs, fragmented views of risk, and an overwhelming inadequacy to rapidly adapt to changing regulatory regimes and fragmented markets. To thrive and survive in today’s market financial institutions require real-time results for fast-trading and risk informed decision-making. The need for greater operational efficiency, and the integration of risk and capital analytics into trading decisions, is undoubtedly the need of the hour. However, existing systems lack the competence to conduct the econometric, multi-period stress tests regulators have proposed. The good news is—the industry is starting to shift towards adopting a more integrated approach for man¬aging risk, capital requirements, and assessing trade profitability. Over the past several months, Numerix a leading provider of risk analytics technology—has observed this shift and responded to client needs with a consistent, unified solution for assessing real-time XVA pricing adjustments, counter-party credit risk and market risk within a single platform.

“With the new enhancements introduced in Numerix CrossAsset Analytics Platform, Numerix is taking a ground-breaking approach with the introduction of Oneview—a unified analytics application platform for enterprise-level risk management,” begins Steve O’Hanlon, CEO, Numerix. Numerix Oneview is an innovative derivatives pricing and risk platform that supports the needs of front office pre-trade analysis as well as middle office. The Oneview platform is particularly targeted at firms that require a highly-scalable analytics solution that is also interoperable, flexible and transparent. “Furthermore, financial services firms can leverage our Azure enabled technology to manage their portfolios and assess risk enterprise-wide by bursting pricing and risk calculations to the cloud,” reveals O’Hanlon.

Equipped with an extensive and sophisticated library of cross-asset models and methods, the platform can price any conceivable derivative instrument.

Numerix Oneview provides a unified view of risk across an institution to provide real-time market risk measures and counterparty exposures that firms can utilize to make informed risk, profitability, collateral and capital allocation decisions

“Additionally, our unique hybrid-model framework supports the production of consistent scenarios among multiple risk factors; critical to producing robust pricing and risk valuation adjustments calculations.”

As a unified XVA pricing, counterparty credit risk management and market risk platform Numerix Oneview enables the rapid deployment of pricing and risk analytics including pre-trade decision sup-port, XVA pricing adjustments, market risk analytics such as VaR/Expected Shortfall and scenario analysis, Stressed VaR and back allocated VaR, PnL attribution/ explain report, real-time limits management as well as exposure measures for counterparty risk management.

An important theme in the coming years will be integrating insights from advanced analytics to gain better operational efficiency across the enterprise. “Numerix will continue to provide modeling consistency across the enterprise and make advanced analytics more accessible to key decision makers at both the desk level and within the C-suite. With Oneview we will put critical decision variables at the fingertips of senior management where they can respond to market change and anticipate future risks that might impact profitability,” O’Hanlon concludes.