Numerix, the leading provider of cross-asset analytics for derivatives valuations and risk management, today announced the availability of the CrossAsset Integration Layer or CAIL, a new technology that enables the management, standardization and distribution of all aspects of derivatives pricing.
From curves, valuation methodology and models to the data required for those calculations across all instrument types including exchange traded derivatives, bespoke exotics and structured products; CAIL enables clients and partners to extend CrossAsset, Numerix's flagship analytics platform, through custom interfaces.
Numerix CrossAsset Integration Layer is a data driven API into a set of pre-defined templates of validated models, curves and financial instrument definitions. To extend deal coverage across asset classes, custom templates can be easily and independently defined with the new Class Definitions mechanism. Through the rapid integration of new financial instrument types or models and reuse of definitions across various technology platforms, CAIL enables improved control over model risk management and Product Control functions by allowing only certain individuals to edit and publish models.
Built upon the Numerix library of market-tested models and methods, Numerix CrossAsset can be quickly integrated into proprietary or partner trading and risk systems via CAIL, and SDK in C#, C++, and Java. CAIL scales to meet the unique requirements of users whether deployed in proprietary trading infrastructure or accessed via Numerix's extensive partner network on a single desktop, across different trading desks, or enterprise-wide.
"As models and methodologies can vary across Front Office desks, the ability to derive consistent and correct valuations across an entire enterprise remains a challenge, especially from a model validation standpoint. With CAIL the goal is to package complexity and present simplicity, and through standardization enable prudent model risk management across all trading operations," said Steven R. O'Hanlon, President & Chief Operating Officer of Numerix. "A single valuation framework will not only accelerate integration but greatly improve the overall value proposition for clients and partners ultimately leading to better profitability and more consistent risk analysis and financial reporting across the enterprise."
"As the markets continue to evolve we've had to rethink the fundamentals of integration. In separating trade interface definitions from the details of modeling each individual trade users can go from a concept that's been developed, prototyped and vetted in an Excel spreadsheet to being deployed in a fully implemented production system within a very short time frame," said Satyam Kancharla, SVP of Client Solutions at Numerix. "With CAIL, Numerix partners and clients can empower Product Control or Risk teams to rapidly create financial instruments, models or curve definitions and publish them into their technology platforms without writing a single new line of code - combining efficient time to market with model consistency and auditability."