Numerix: Anticipating Change for Risk and Pricing Analytics

As an early pioneer of derivatives pricing analytics, Numerix has always anticipated market needs and evolved its software to help financial institutions comply with complex financial regulations.

Because it has never failed to adapt to new environments, Numerix has transformed from a pricing company, to a dynamic provider of pricing and risk management technology.

As a standalone desktop solution, enterprise-wide deploy mentor as a best-of-breed analytics component embedded inside of the world’s most widely used trading and risk systems, Numerix provides analytics consistency across the organization.

The expert team at Numerix is led by CEO, Steven O’Hanlon; a dedicated visionary who has inspired bold change as the company has grown and conquered new markets.

Numerix Cross Asset Analytics Platform
Its flagship solution, Numerix Cross Asset delivers desk to enterprise-level pricing, pre-trade analysis and real-time risk for the front office and risk departments, accounting for the full range of trading and pricing adjustments.

The Cross Asset product suite is designed to address the issues of flexibility, usability and scalability. The product suite is particularly targeted at firms with the need for highly scalable solutions and for greater consistency and transparency.

The Numerix Cross Asset Analytics platform is fully Azure enabled. Financial services firms can leverage Numerix technology to manage their portfolios and assess risk intra-day, and enterprise-wide by bursting pricing and risk calculations to the cloud.

Numerix has the most extensive and sophisticated library of cross-asset models and methods enabling it to price any conceivable derivative instrument. Its unique hybrid model framework supports the production of consistent scenarios among multiple risk factors, which is critical to producing robust pricing and risk valuation adjustments calculations.

Numerix Leading Hedge for Insurance
Additionally, Numerix is capable of addressing the world’s most complex derivatives structures and computationally demanding calculations in insurance – namely equity-based insurance guarantees such as annuity and index products.

Numerix Leading Hedge is a complete production platform for the economic risk management of variable annuity rider products. It can serve as a flexible workbench in Excel, or underpin calculations in a server/batch environment. This solution has quickly become the 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 and actuarial valuation of VA obligations.

This platform is also capable of modelling assets together with liabilities in a consistent manner. This enables a common foundation for pricing and risk management within a fully automated production environment.

Looking to the future
In today’s market the requirements for real-time and holistic risk management are driving the three core areas within banks —front office trading operations, middle office risk management and back office treasury operations – to streamline.Given Numerix’s front office history and scalable offerings, the company is uniquely positioned to excel in today’s marketplace.

The combination of being able to deliver the complex math along with the ability to provide on-demand real-time calculations, versus the batch processing has been a game-changer for Numerix.

As Numerix has conquered real-time risk in the front-office, today it seeks to deliver a merged view, or one view where the Chief Risk Officer is able to leverage the greatest levels of combined risk insight in the front and middle office to determine where risk will be on a moment-to-moment basis in the future.