Financial institutions seeking higher returns and more diverse markets are to be offered a new platform for structured products trading from Misys, the global application software and services company.
A range of new structures have been integrated into Misys Opics Plus, a comprehensive treasury and capital markets solution for front-to-back office, cross-asset processing of a wide range of financial instruments, and will enable financial institutions to enhance portfolio diversification through the use of structured products.
In recent months, institutions have been looking to enhance returns, create exposure in new markets and expand client offerings through growth in the use exotic structures such as equity/index-linked products, early redemption products, convertible products and multi-asset class products. To help banks capitalise on market opportunities, the new Misys Opics Plus solution for Structured Products builds on existing support for retail structures to include 30 new complex instruments including CMS structures, Inflation structures and Range Accruals.
Along with giving organisations the ability to respond to changing market conditions and adapt to the most profitable structured products, the release also incorporates new pricing and valuation libraries available through Misys' alliance with NumeriX, the recognised leader in pricing and risk analytics. Misys Opics Plus uses NumeriX maths libraries for pricing and cash flow generation via multi-factor models, which delivers accurate pricing on structured trades and aids risk management.
Baron Canon, Structured Products Solutions Manager, Misys, comments: "Structured products are increasingly seen as the primary vehicle to match an investors return demands with their risk aversion. With investors seeking higher returns, capital guarantees and participation in diverse markets, we're enabling financial institutions to offer a variety of structures to achieve their goals. Robust systems that promote transparency, flexibility and risk management are imperative if institutions are to offer these structures with confidence."