SuperDerivatives has unveiled its state-of-the-art commodity option pricing platform, SD-CM.
The new product complements SuperDerivatives’ range of option pricing platforms, which already cover the foreign exchange, fixed income and equity asset classes. The systems are suitable for buy and sell side institutions.
SD-CM will provide real time accurate market prices on a wide range of commodities, including oil, gas, metals, agriculture, plastic and shipping.
Options classes covered include vanilla and all popular exotic options, as well as structured products. The system is fed with data from both the exchange-traded and over-the-counter (OTC) markets. Prices are generated by the same SuperDerivatives benchmark model used in all of the company’s products. SD-CM will also enable the pricing and risk management of commodity options in any base currency through a link to SD-FX, the foreign exchange option market’s benchmark pricing system.
SD-CM has been designed utilizing feedback from commodity market participants. The system has been beta tested for several months and has been found to be extremely accurate.
Lewis Ranieri, chairman of SuperDerivatives’ advisory board says, “The drastic changes in commodity prices have created a huge demand for proper hedging tools. While the commodity options markets have improved over the past few years, they still lack the transparency that they need to become mature markets. Transparency is the key missing ingredient which is preventing them from becoming efficient.”