SCIENCE

Numerix announced that the firm has taken top honors for Risk Management (market risk and credit risk); placed second in the overall top ten among vendors and was also ranked among the top five in all six possible Pricing and Analytics categories, in Structured Products Magazine’s survey and ranking of technology vendors for 2011.

Numerix dominated the Risk Management section of the survey, taking top honors in the market risk and credit risk categories. Overall, Numerix finished in second place among the top ten technology vendors listed in the Structured Products Survey, moving up from last year’s position. Numerix also received solid recognition in the Pricing and Analytics section of the survey, taking top five honors in the commodities, credit, cross-asset, equities, foreign exchange and rates categories.

The editors highlighted how Numerix has been adapting its code to take advantage of new parallel processing environments, as well as extending its support for distributed grid computing and Microsoft's High Performance Computing Server 2008 environment. This Numerix high-performance computing (HPC) solution that is based on Numerix CrossAsset XL, Numerix Portfolio and Windows HPC Server 2008 R2 with Windows HPC Services for Excel lets traders, risk managers, and actuarial professionals access the most powerful grid computing capabilities available to the financial industry today —to more efficiently manage their portfolios and assess risk on an interactive and day-to-day basis.

In addition to the activity around Credit Value Adjustment (CVA) where Numerix has launched a new risk module, Numerix has also been active in supporting clients in the commodities and inflation markets, where there has been a surge of innovation in structured products. Numerix also enables managers to proactively manage counterparty exposure using PFE and CVA calculations that are based on the same models used to price the assets — once again, ensuring consistent valuations for both the hedge and the asset.

The Insurance market for variable annuities is another sector where the Numerix hybrid model framework is serving the company well. Insurers require consistent valuation and analytical capabilities not only for pricing and structuring variable annuity products, but also for measuring value-at-risk (VaR) and other risk factors. These were all cited as important contributors to Numerix’s high ranking in the survey.

“We could not be happier with the outcome of the 2011 Structured Products survey,” said Steven R. O’Hanlon, President and COO of Numerix. “The survey results and our overall ranking serve to validate our strategic objective to provide our customers and partners with access to the tools and independent pricing models they demand to create a sound and transparent risk management process for all types of OTC derivatives instruments.”