New York and Moscow-based Egar Technology and partner company IVolatility have launched a new ASP (application service provider) offering for the equity and equity options markets.
Egar ASP will combine Egar’s customised analytical solutions and pre-built systems with the IVolatility database to make available sophisticated equity analytic tools to all financial institutions. Traditionally, such tools have been available to only very large banks and hedge funds that have invested millions of dollars building databases and the models.
The first application to be launched as part of the offering is Egar Dispersion, a volatility dispersion strategy analyser that will link directly to IVolatility’s proprietary database to retrieve relevant historical and analytical data. The system provides several statistical measures of the stock components of an index, such as equivalent index volatility, contribution to index volatility along with measures on the index itself – all of which help dispersion traders pick the components of their portfolio as well as time the trade better.
The solution is available in a “lite” version with just the analytical screens or a full version with portfolio risk analysis. The system can easily be integrated into Egar’s own equity options trading system, third party vendor or in-house systems, say the companies.
Traders who have their own measures of the market and methods of analysing and looking at the data can opt for a custom built service which incorporates IVolataity data and Egar's analytic models.
Futher applets are in the pipeline, covering implied volatility analysis, correlation, and vega risk.