Numerix, the leading provider of cross-asset analytics for derivatives valuations and risk management today announced that Banque Internationale à Luxembourg (BIL), a pioneer in the Luxembourg financial industry has selected the Numerix CrossAsset analytics platform to support its model validation and model comparison processes.
With Numerix's highly flexible, fully transparent analytics architecture, BIL can conduct rigorous model analysis to independently validate pricing and risk sensitivity outputs, as well as make comparisons between different models to analyze how the outputs vary under different assumptions.
"One of the objectives of our activity is validating the accuracy and the completeness of the models used in particular for pricing financial products. Numerix will be very helpful in achieving this objective and will allow us to improve our reactivity and efficiency," said Cecile Lapointe, Head of Model Validation at BIL.
Numerix Model Validation: Ensuring Financial Correctness
Numerix Model Validation gives financial services firms the ability to validate underlying mathematics against market behavior to see whether the model being used has realistic performance, when correctly implemented. The validation process also plays a critical role in detecting the breakdown of model assumptions; explaining how a particular model is used or the way the model or results are interpreted. A key differentiator for Numerix is also the quality of the documentation that supports its models. BIL is utilizing Numerix models for Interest Rates, Equity, and Foreign Exchange.
"With Numerix CrossAsset Model Validation our independent models can be utilized alongside the internal validation and audit processes at any bank to mitigate model risk and determine expected performance, giving clients the ability to question any model performance or behavior," said Steven R. O'Hanlon, President and Chief Operating Officer at Numerix. "World renowned for its sophisticated role in today's international finance community, we're pleased to be continuing our expansion in Luxembourg, further meeting the banking industry's unique modeling and risk management needs throughout the region."