Singapore-based DBS Bank has chosen software from DerivaTech to support its expanding options business.
The bank will deploy DerivaTech OTC to construct single and multi-leg structures in both vanilla and exotic flavours.
Conrad Kwok, head of FX options at DBS, explains: “With the expansion in our business, both in volume and sophistication, our existing legacy system became less effective."
Frank Wong, senior managing director and head of treasury & markets at DBS, adds: “We’ve found that DerivaTech’s Monte Carlo pricing for exotics, which uses the full volatility surface, gives really close-to-the-market results. It’s pretty fast and intuitive to use, with no training or major implementation effort required. We were up and running in a matter of days."