Numerix tops ranking of structured products tech providers
New York-based Numerix took top spot in the Structured Products Technology Rankings 2012 report, followed by names such as Misys, Bloomberg, Fincad and Murex.
The history of structured products is one of responding to users’ requests for new solutions beyond those offered by standard instruments. Whether it be to tap into new sources of yield, to protect principal or to find more efficient ways of financing, the structured products market has been about pursuing innovation to meet the emerging needs of investors or to exploit new business opportunities. In essence, it is all about flexibility in the face of evolving requirements.
As a consequence, a key characteristic for any technology vendor wanting to serve the structured products industry is the ability to adapt to changing demands. This adaptability has again been tested over the past year as the needs of the market have continued to swing away from invention towards regulatory compliance, greater product and pricing transparency, and issuer and credit risk mitigation. Meanwhile, the increased use of hybrids means that quants still have work to do developing pricing and risk models.
Technology vendors have moved at different speeds when addressing the changes in the market over the past year, so it is no surprise to see considerable movement in the order of vendors across the various categories of this year’s Structured Products Technology Rankings. Readers have made clear and discriminating judgements as to who best rose to the challenges of the past year for each asset class and risk factor. Although there were no significant new entrants into the rankings – the barrier to entry into the structured products technology market remains extremely high – the pack has been well and truly shuffled across most categories this year.
The biggest winners in the rankings were Numerix, which snatched top position overall, Misys, which shot up from seventh place to third, Bloomberg, which made a similar four-place leap to sixth, and Fincad, which came from outside the top 10 to take eighth place overall. Slipping down the field were Murex, which slipped from first to fourth overall and Thomson Reuters (now Turaz), which dropped out the top 10 altogether.