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December 8, 2008

Brass Gets Game with Options

By James Ramage

SunGard wants to give brokerages options. To help them compete better for the buyside's business, the sellside order management system provider now offers options functionality on Brass.

As brokerages' costs grow, they need to increase revenues by diversifying their offerings, according to Raj Mahajan, president of SunGard's Brass business unit. It's no longer enough to just offer the buyside U.S. cash equities capabilities.

"If sales traders want to continue to compete for share, then they're going to need to have the capability of offering multi-asset strategies that include cash equities, options and international," he said.

Buyside firms are getting more sophisticated, Mahajan added, and are interested in multi-asset strategies, such as strategies that involve selling the option and buying the stock.

SunGard's options capabilities now include DMA options order routing to all seven U.S. options markets through its Brass OMS. And SunGard has also integrated Microhedge, its options analytics tool for hedge funds and buyside firms, as well as sales and floor traders, into Brass.

Microhedge prices options at various strikes, provides implied volatilities and makes sure traders have all the necessary market data to understand their various positions at any point in time when trading cash and options.

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