Derivix, a financial services software company that provides institutional-strength options pricing, risk visualization and analytics solutions, today announced the launch of its new real-time Portfolio Risk system.
This product enables buy- and sell-side firms to visualize real-time options market dynamics and underlying risk exposures to manage and successfully navigate today's highly volatile markets. Available to select customers today, the product will be generally available in the first quarter of 2009.
Derivix's new Portfolio Risk system allows financial services firms to compare portfolio performance in live markets side-by-side with limitless simulations, enabling the real-time visualization of current exposures, profit and loss (P&L) and firm-wide risk. Leveraging the power of cloud computing, which utilizes virtual servers and resources delivered via the Internet as a service, this new solution provides powerful technology and remarkable scalability without the large up front capital expense of a traditional high-performance infrastructure.
In today's volatile environment, the winners are those who can visualize both opportunities and risks and make better trading decisions - faster. Financial services firms have realized that managing risk is one of the most critical aspects of trading needed to remain afloat. Without a comprehensive solution to manage and visualize risk from all angles over a full portfolio in real-time, options traders leave themselves vulnerable and even blind to how the rapidly changing markets affect their holdings.
"Without a solution to manage firm-wide risk across options portfolios, trading firms are playing with fire," said Jonathan Weedon, CEO and co-founder of Derivix. "Given today's market volatility, the likes of which we've never seen, greater transparency into risk, especially in real-time is not only essential to stay ahead, it's necessary to survive."
Cloud computing allows Derivix to deliver risk visualization over any size portfolio in real time without the compute-intensive desktop calculations typical of today's market offerings. Traders, head traders and risk managers can model changges in market prices, volatility, time decay, interest rates and more over full portfolios or by individual sectors, accounts or arbitrary groups of their choosing. This flexibility gives options traders a powerful tool to visualize risk just as they see fit. The cloud computing architecture enables Derivix to deliver all this power at a competitively low price and with remarkably low total cost of ownership.
"The Portfolio Risk solution is a seamless extension of our core competency of providing leading institutional-strength real-time options pricing and analytics solutions," said Michael Barrett Stern, chief strategy officer and co-founder of Derivix. "This new product is a game changer for the market, allowing trading firms of all sizes to leverage Internet-based resources to manage risk and visualize rapidly changing markets without worrying about the limitations or costs of computing infrastructure."
Derivix's new Portfolio Risk module integrates directly into the company's real-time options pricing and analytics suite. The combined solution furthers Derivix's mission to provide the speed and analytic accuracy options traders need to maintain a competitive edge in the electronic marketplace. This module rounds out a complete solution for seamlessly integrated real-time pricing, real-time risk and broker-neutral execution. This formidable combination enables traders to visualize both pre- and post-trade risk and immediately execute their trading strategies out to their choice of executing broker or algorithm provider.