Reech Capital PLC is to provide Credit Agricole Indosuez with its proprietary derivatives script, ADEP, and its web-based user interface for their fixed-income exotic derivatives business.
Reech describes the transaction as a “global deal, that will see the bank `talking’ ADEP worldwide.” In other words, Credit Agricole Indosuez will integrate the language with its own models, giving it greater flexibility when creating new products and facilitating the development of a “straight through processing” platform for their risk, middle and back office, especially in their fixed-income business.
“The adoption and integration of Reech’s generic language throughout the firm will free our highly skilled quantitative research team to concentrate solely on the quality of our models and add real value to our growing business,” explains Andrew Kellner of Credit Agricole Indosuez.
Christophe Reech, chief executive of Reech Capital, added: “Credit Agricole Indosuez will be the first bank to revolutionise its derivatives business by adopting a unique derivatives language throughout its entire operation. We are looking forward to working with one of the largest European institutions at the forefront of the fixed-income and credit derivatives business.”
Adep (Automatic Derivatives Pricer) is a pricing system that understands and analyses the description in plain English of any financial product, from a plain vanilla swap or option to complex hybrid structures, and provides value and risk management parameters. Reech says the description can be understood by any pricing model and numerical method, and can therefore be simply used in conjunction with market data and a pricing methodology to evaluate structures and/or trades. Adep has been approved as an IBM ASP Prime Application.