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Derivation Software

Derivation Softwareasset managers


Facing the challenge of restoring investor confidence with a fully integrated risk practice, whilst still creatively generating wealth

Market turmoil has seen Asset Managers now balancing their own operational costs, while still needing to be innovative to attract client investors.

With investors more selective than ever, vigorous risk management systems offer the essential reassurance that their investments are safe and secure. This surety must be coupled with the creative use of derivatives alongside traditional products to maximise returns in this changing landscape.


risk, portfolio & order management integration

Managing cross-assets with derivatives and OTC products, Asset Managers now need the best of breed risk management systems, with extended portfolio management capabilities that integrates seamlessly with their order management system, be this a vendor or in-house solution.

Derivation can be either the single solution or the “glue” needed here, with:

  • Extensive trader, hedging & stress testing risk functionality
  • VaR reporting suite for investors
  • Powerful portfolio management system that can also be distilled into user-friendly reports for portfolio managers, risk managers and alike
  • Upstream or downstream integration with OMS / EMS systems

robust, scalable software platform

Derivation is engineered by computer scientists to be scalable to run in the largest investment companies in the world, with such key features as:

  • Dealing extremely high trade volumes, avoiding bottlenecks maintaining performance
  • Calculating 10,000s derivatives in real-time
  • Open systems architecture, allowing in-house model integration
  • Quick to implement with “out of the box” APIs for trades, analytics and all market data, capable of easily integrating with any in-house system.
  • Regularly deployed across multiple continents running multiple “end of days”

key features for Asset Managers


Risk management Portfolio management
  • Flexible scenario analysis & stress testing
  • Historic VaR risk reporting
  • Complete risk concentration and drill-down
  • Multi-level views, funds, books & strategies...
  • Excel feel, customisable display of 1000s columns
  • Display positions and entire markets of instruments
Benchmarks & attribution OMS / EMS integration
  • Loading benchmark constituents
  • Portfolio comparisons against benchmark
  • Identify attribution against various risks
  • STP integration with order/execution management systems via FIX
  • Order blotter functionality
Real time and historical P&L Analytics
  • Tick by tick P&L with alerts/colouring
  • View by any period: Daily, MTD, YTD, Lifetime
  • Backdated changes with full trade audit
  • Greeks: Delta, Gamma, Vega, Theta, Rho...
  • Implied: Volatility, Credit Spreads & Yield
  • Historic analytics and charting service
Views & search functions Market data feeds
  • Worksheets can be filtered, sorted and aggregated
  • Sophisticated search functions allow users to drill down to information quickly
  • User defined formulae can be used in any worksheet for complete customisation
  • Bloomberg and Reuters for real-time pricing
  • Automatically load terms data from Bloomberg, Reuters and MACE
  • Credit spread data from CMA
Copyright © 2009 Derivation Software Ltd