Algorithmics Incorporated, the recognized leader in enterprise risk management (ERM) solutions and NumeriX LLC, the independent leader in multi-platform, cross-asset derivatives pricing software, today announced that NumeriX will be the founding partner in Algorithmics' Open Mark-to-Future (MtF) Partner Program.
Under the agreement, NumeriX will integrate its high performance architecture and advanced pricing models within Algorithmics' suite of enterprise risk products enhancing users ability to price structured finance and structured products within a sophisticated ERM environment.
NumeriX's analytics provide traders the ability to quickly price structured products or create new ones in just hours instead of weeks. In combination with Algorithmics' suite of enterprise risk management solutions, the combined solution provides both the middle and back office with a consistent set of vetted analytics.
"When it comes to real-time risk management, whether in the dealing room or in other parts of the organization, achieving the required performance end users expect has been elusive," explains Vall Herard Senior Vice President, Product Marketing at NumeriX. "By combining NumeriX's high performance computing architecture and advanced structuring analytics with Algorithmics' flexible open MtF framework we address this need."
At the core of Algo Suite, Algorithmics' suite of risk management solutions, Mark-to-Future is an asset class agnostic and extensible simulation framework for managing financial risk. Mark-to-Future enables financial institutions to integrate their market and credit risk by incorporating the passage of time, the evolution of risk scenarios, and the dynamics of multiple portfolio holdings. The Mark-to-Future API, to be available in Algo Suite 4.5.2 in January 2006, will enable Algorithmics' clients to easily include both internally-built and partner-provided financial instrument pricing engines along side Algorithmics' simulation engines within Algo Suite. The ability to incorporate external simulation engines will allow clients to better leverage existing systems and to fit best-of-breed alternatives into an overall risk architecture provided and supported by Algorithmics.
"NumeriX is an excellent example of the type of innovative partners we are targeting for involvement within this program," said Michael Zerbs, President and Chief Operating Officer at Algorithmics. "Open MtF consolidates heterogeneous simulation engines in a consistent manner into Algo Suite. This provides our clients rapid front-office innovation and reduces both integration and ownership costs."
The Algorithmics Open MtF Partner Program has been established for companies who specialize in pricing models and desire to sell their models to Algorithmics' international client base. Companies joining the partner program receive a tool kit, training and support, and participate in joint marketing initiatives. Through this founding partnership, Algorithmics and NumeriX will enable real-time risk management for exotic structured products.
Yaacov Mutnikas, Chief Technology Officer at Algorithmics, said, "The Mark-to-Future framework is all about making our existing risk architecture more open and scalable. The flexible nature and ease of integration of NumeriX's pricing models fits very well with this strategy. This, combined with NumeriX's expertise in pricing complex structured products, will help make this program a success and provide real value to our clients."
The Algorithmics partnership represents the first enterprise risk management solution to provide transparent integration of NumeriX independent analytics across the enterprise.
Steven O'Hanlon, President and Chief Operating Officer at NumeriX, said, "We are always looking for ways to better serve our clients and believe that the Mark-to-Future framework offers us this opportunity. As a leader in enterprise risk management, Algorithmics will offer its clients greater flexibility and choice through this program. We are proud to have been selected as the founding partner."