NumeriX, which provides cross-asset derivatives pricing and valuation, and IT&e have partnered to enhance IT&e’s Razor pricing model system by using NumeriX’s analytics for pricing exotic derivatives not currently supported by Razor.
“The partnership follows an increasing demand from institutional banks for more exotic products,” said Steven R. O’Hanlon, president and chief operating officer. “Adding NumeriX analytics to Razor will offer institutional investors a more complete solution when managing market and credit risk.”
In addition, IT&e will now also be able to reduce the amount of development work when implementing Razor. Prior to the partnership, these gaps were addressed either by the client providing in-house pricing models via Razor’s C++ API, or by enhancing Razor to expand product coverage.
As a result existing clients will now be able to broaden their product coverage. In addition, banks will also have the ability to create any new complex instruments within days rather than months due to the shortened development and testing time.