Industrial Bank of Korea (IBK) has implemented the Summit FT system for trading and risk management, covering interest rate derivatives, equity and FX options.
The bank has also installed Summit System's Must tool for structuring and processing exotic products. The tool has been combined with Summit's Brace-Gatarek-Musiela (BGM) pricing model to enable the bank to take advantage of the growing exotics market in South Korea.
The Summit technology replaces an existing system consisting of a front office trading application and Excel spreadsheets. The vendor worked with local distributor, Tong Yong Systems, to deliver the system.
Mr D Ko, head of the derivatives desk at IBK, comments: "Summit provides us with the ability to manage any kind of multi-asset class exotic product and will provide us with significant efficiencies and risk reduction compared to our previous front office system."