In response to global demand from financial markets for accessible, comprehensive and transparent pricing capabilities, derivatives pricing specialist SuperDerivatives and Standard & Poor´s have announced an alliance that will create the world´s largest independent revaluation service in the combined cash and derivatives market place.
SuperDerivatives provides options pricing for major banks, hedge funds and other financial institutions around the world. David Gershon, SuperDerivatives CEO, commented that the venture will enable customers from developed and emerging markets "to effectively value the widest range of products in a single offering."
"Whether they are from the buy– or sell–side, our customers will benefit from a ´one stop shop´ experience with the objective of delivering the most accurate and reliable valuation service with significant economy of scale advantages," Gershon added. "I believe that this alliance will form a new global standard for independent valuation services."
The last decade has seen a massive rise in demand for ever more complex derivatives, as profit margins on simple vanilla and first generation exotics have started to shrink.
In response to this, SuperDerivatives this week launched its Next Generation FX trading platform, which, the company says, will enable market professionals to trade high–margin, exotic structures, including those featuring fourth generation exotics, as easily and efficiently as vanilla FX options.
"The FX derivatives market has evolved rapidly, while vanilla and first generation exotics have been commoditised and standardised, with corresponding shrinking margins. This year alone, over 10 new exotic structures were added to the market and have become popular," said David Gershon, CEO of SuperDerivatives.
"FX professionals are now looking for the ability to offer their clients the next generation of exotic FX options. We believe that our FX next generation functionality will further increase the volume of derivatives traded and contribute to the evolution of the market, acting as a catalyst for sustained growth."
The web–based platform operates in real–time and can be easily integrated into any information and trading architecture, connecting various trading and sales desks, interfacing with middle and back office systems and linking banks to their clients, thereby reducing operational risk and facilitating faster trading.
The platform´s enhancements apply to over 150 FX instruments – coverage spans more than 150 instrument types on over 100 currency pairs.