A range of new structures have been integrated into Misys Opics Plus, a treasury and capital markets application for front-to-back office, cross-asset processing of a wide range of financial instruments, and will enable financial institutions to enhance portfolio diversification through the use of structured products.
In recent months, institutions have been looking to enhance returns, create exposure in new markets and expand client offerings through growth in the use exotic structures such as equity/index-linked products, early redemption products, convertible products and multi-asset class products. To help banks capitalise on market opportunities, the new Misys Opics Plus application for Structured Products builds on existing support for retail structures to include 30 new complex instruments including CMS structures, Inflation structures and Range Accruals.
Along with giving organisations the ability to respond to changing market conditions and adapt to the most profitable structured products, the release also incorporates new pricing and valuation libraries available through Misys alliance with NumeriX. Misys Opics Plus uses NumeriX maths libraries for pricing and cash flow generation via multi-factor models, which delivers accurate pricing on structured trades and aids risk management.
“Structured products are increasingly seen as the primary vehicle to match an investors return demands with their risk aversion. With investors seeking higher returns, capital guarantees and participation in diverse markets, were enabling financial institutions to offer a variety of structures to achieve their goals. Robust systems that promote transparency, flexibility and risk management are imperative if institutions are to offer these structures with confidence,” says Baron Canon, manager, Structured Products Solutions, Misys.