Tamesis, a supplier of risk management and trading solutions to investment banks, has created a new pricing and risk management product aimed at institutions trading lower volumes of credit derivatives.
Tamesis Credit Trader aims to provide investment banks and hedge funds with a complete trading and risk management solution for credit derivatives trading. Credit Trader delivers trade capture, comprehensive pricing from NumeriX, aggregated risk and P&L and flexible scenario analysis for the whole range of credit derivatives instruments, from single name CDS trades to more complex CDO structures. Equally attractive, the system is priced on a ‘per user’ basis with no up front licensing costs and will provide a cost-effective and easy to deploy solution for this growing market of traders.
Previously, these trades have often been managed on a combination of spreadsheets and by entering those into systems not equipped to deal with the specific nuances of complex credit derivatives. Tamesis Credit Trader provides a comprehensive trading and risk management capability specifically focused on credit derivative trading.
“We believe that the lower volume traders of credit derivatives are collectively playing an increasingly important role in providing much needed liquidity to this growing market,” says James Tomlin, Tamesis CEO. “With Credit Trader, we want to bring our solution to clients needing power and flexibility with a product that is quick to deploy and does not require a major investment in systems infrastructure. Credit Trader is ideal for institutions that have outgrown complete reliance on spreadsheets and want a cost-effective trading and risk management solution.”
Tamesis Credit Trader offers full deal input, pricing, scenario analysis & risk management capabilities. It provides a real-time, scalable platform for integrating interest rate and credit products. Users can configure views of aggregated positions that reflect the simultaneous impact of market and credit risk events. Associated hedges covering the delta and default risks may be combined and monitored intra-day to determine the potential unwind value.
Credit risk sensitivity is reported in terms of credit spread deltas and default swap equivalent positions. These aggregated risk measures can be displayed together for multiple curves, enabling the immediate comparison of underlying exposures. Credit Trader supports detailed online and scheduled what-if type scenarios, comprising pre-trade as well as stressing input data and simulating credit events. Users may run composite scenarios which simulate, for example, the combined impact on a portfolio of a name defaulting and spreads widening.
Tamesis Credit Trader will be delivered with market leading analytics from NumeriX. NumeriX is the global standard for structured products pricing and their analytics offer unprecedented accuracy, speed and power. “Imbedding our pricing analytics within 3rd party solutions is a natural extension of our channel marketing strategy. We are pleased to partner up with Tamesis on their Credit Trader launch” said, Steve O’Hanlon, President of NumeriX.
Nick Haining, Managing Director, NumeriX EMEA, says that “combining NumeriX analytics with Tamesis trading and risk workflow solutions makes for a powerful combination. This combined offering leverages our core competency of bringing to market battle tested market standard implementations for the most complex credit derivatives being traded today.
Chris Horril, Tamesis CTO, explains that “Credit Trader has been built using our experience in designing and delivering global credit solutions to some of the worlds largest Investment Banks. Many of these organizations require the same level of sophistication as their larger counterparts but are limited by the technology they have at their disposal. Tamesis Credit Trader allows these organizations to benefit from years of product development and market leading analytics in one easy to manage system.”
Tamesis Credit Trader is built using Tamesis’ component-based Java technology. Tamesis software is already in production at many sites around the world.