Latest versions of
Trader and Fund released
20 April 2010
London, New York, April 2010 – Derivation Software, a provider
of integrated trading solutions for the capital markets industry, today announced
the release of v210 of their products, Derivation Trader and Derivation Fund. These
releases contain significant developments that provide greater product coverage,
enhanced risk management, more extensive analytics and increased automation.
Derivation Trader is a real–time portfolio and risk management system used
by trading desks, hedge funds and other investment management firms. The system
is designed to provide users with a powerful and flexible tool with the ability
to monitor real time risk, analytics, pricing, P&L and positions across all asset
classes. Derivation Fund is a portfolio management system that is designed to be
the core system within an investment management firm’s operation. The system provides
trade lifecycle and position management, cash management and integration with key
third parties.
"These releases take the Derivation products into the next generation and offer
users a cost effective but functionally rich system that is extremely flexible and
easy to manage. We have always been a client focused company and these releases
are aimed at benefiting end users to help address key industry issues such as risk
management and operational efficiency" says Kevin Lenehan, CEO of Derivation
Software.
The new features within Derivation Fund and Derivation Trader aid real–time
decision support and provide users with the key information they need when they
demand it. Cost savings and efficiencies are achieved through automated processes
and workflows, as well as integration with upstream or downstream systems.
Specific enhancements include:
- Advanced Convertible Bond features: Derivation has long been at the forefront of
convertible bond trading and has improved the offering further by adding gamma hedging
and house price dollar nuking calculators. A new quote sheet and new issue pricing
calculator has also been added as well as a new MACE data interface
- Increased risk shocking and simulation capabilities: The Derivation risk simulation
module has been extended by adding flexible credit and yield curve manipulation,
the ability to configure customised risk shocks and FX rate shocks
- Historic VaR: Derivation has extended its risk management capabilities by adding
historic VaR calculations across multiple products
- FIX interface: Derivation has developed an interface to enable receipt of FIX "drop
copies" from other trading systems for increased straight through processing
- Improved FX processing: Derivation has incorporated improved handling of FX products
and how they can be viewed and aggregated by the end user
- Multi–level aggregation and drill down: All views within Derivation can now
be aggregated by a number of different attributes including fund, strategy, sector,
issuer, country and currency etc. The book structure and filtering has also been
extended, which now provides ultimate flexibility for end users
- Volatility surface calculator and graphs: Derivation has added more volatility functionality
and can now produce volatility curve smoothing, volatility smile and surface generation
- Multi–option calculator: Complex "what–if" trading strategies
can now be simulated within Derivation’s multi–option calculator
- Equity and Index options: New functionality for these asset types include; calculation
of the dividend yield on an index from underlying dividends, implied dividend yield
and discrete dividends and the ability to forecast discrete dividends for an index
from an underlying
- Performance measures and Time–weighted returns (TWR): Performance measures
such as Sharpe ratio, M–Squared return, standard deviation of returns etc.
have been incorporated into Derivation. Time series GAV and time weighted returns
by fund and book are automatically calculated and can be charted
- Middle/Back office features: Derivation has extended its middle/back office offering
by further developing its cash management capabilities, particularly for swaps and
rates. More accounting columns have been added for increased transparency and a
reconciliation tool has also been incorporated into the system.
About Derivation
Derivation is a provider of integrated trading solutions for the capital markets
industry. The company was founded in 1996 by derivative IT specialists with many
years of investment banking technology experience. Derivation originated as a convertible
bond trading system, used by a trading desk within a large German investment bank.
It spun out in early 2000’s and was developed into an integrated, cross asset portfolio
and risk management platform. Derivation has clients in the UK, Europe, U.S. and
Asia and is focused on providing quality and cost effective solutions for companies
of all size and complexity.