FINCAD and CITIC are moving into the Far East trading markets. The goal – promote more efficient derivatives trading there.
FINCAD, a provider of Over The Counter (OTC) derivatives pricing and risk management solutions, announced today that CITIC Securities Company Limited (CITIC) has implemented its F3 analytics solution to support the growth of its equity derivatives business in Asia.
“We use F3 to analyze risk for our entire options portfolio, including vanilla and exotic products,” said Xu Xing Hai, director of equity derivatives business at CITIC. FINCAD provides near instantaneous analytical sensitivities for even the most complex structures.”
CITIC is one of China’s leading investment banks as measured by total assets under management, revenue, net profits and assets. CITIC has A and H shares listed on the Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited respectively.
The valuation and risk solution based on FINCAD’s F3 technology provides pricing and risk management capabilities including key risk sensitivities for vanilla and complex trades or portfolios enabling critical trading and risk management decisions. The first-order risk sensitivities are produced, using FINCAD’s patented Universal Risk Technology, in a fraction of the time it takes traditional curve bumping methods.
The F3 analytics solution also distributes calculations and optimizes resources to make intra-day risk and valuation easier. These efficiencies considerably improved time to market for CITIC as they began trading more complex products.
CITIC has plans to use FINCAD’s F3 analytics solution to support trading in both Hong Kong and mainland China. This will require implementation of both Chinese market data and industry-standard global market data.
