Development of DDL of “FENICS Professional”, FX options technology and solution, and “Prélude Enterprise”, multi-asset trading and risk management solution
Fenics Software Limited
NTT Data Financial Solutions Corporation
Fenics Software Limited (Managing Director: Richard Brunt/Branch Head: Atsuo Kanazawa) (Fenics) and NTT Data Financial Solutions Corporation (Representative Director/President: Ken Tsuchihashi) (NDFS) had developed DLL functionality between “FENICS Professional”, which is FX options technology and solution, and “Prélude Enterprise”, which is integrated business management and will start providing this solution as of 1st August2015.
By utilizing this solution, financial institutions and corporation who trade FX options can connect “FENICS Professional” and “Prélude Enterprise” and integrate their systems in front (note 1), middle (note 2) and back offices (note 3) to enjoy total and real-time
solution. Both companies will offer this solution for our current and future customers who have need to trade FX options locally and globally.
[Background and purpose]
FENICS is an award winning provider of FX options technology and solutions and enjoys a well established and growing global client base including banks, buy side financial institutions and corporate treasuries.
On the other hand, NDFS is the Japanese provider of Prélude, which is the multi-asset trading and risk management solutions for funds exchange, derivatives and securities, and already has more than 30 customers of financial institutions with top share in the said field.
Both companies had agreed the business alliance about financial products on 27Oct2014, and had been discussing on our collaboration. After much discussion, we decided to develop new solution which integrated the capacities of “FENICS Professional” and “Prélude” to connect front, middle and back office operations under the assumption of increased needs for more precise pricing of FX options in the market and streamline processing.
[Summary]
When financial institutions, etc. use “FENICS Professional” for pricing FX options in front office, it is necessary to input various trading data generated in FENICS and other financial product data generated in “Prélude Enterprise” in middle and back offices to separate system.
By using newly developed integrated solution, with the connection of “FENICS Professional” and “Prélude Enterprise”, various traded data including FX options and market data can be input in real time as one source into “Prélude Enterprise”, and users can easily manage back office operation like risk analysis and settlement dates.
[Features]
1. Trading data of FX options generated in “FENICS Professional” and trading data of
various financial products generated in “Prélude Enterprise” can be analyze their risks
in real-time and integrated manner. It can realize the management sophistication in
portfolio level such as calculation of VaR (Value at Risk) (note 4), etc. in risk manage-
ment and P/L simulation.
2. Same as risk management, back office operations like management of settlement
dates, account and journal, can be managed the traded data of FX option generated
in “FENICS Professional” with functionality in “Prélude Enterprise”.
This solution can
provide to integrate FX option trading, which has been managed separately with other
trading, or needed to develop separate solution to connect.
3. Prélude users can take advantage of the industry standard pricing and analytics
platform, “FENICS Professional”, with its high-quality maths, user-friendly interface and
wide coverage of products, and enjoy various services through FENICS Gateway (note
5) by use of this new solution.
[Future Development]
NDFS has been preparing to corresponding globalization including English localization of Prélude to introduce services toward global financial institutions with affiliation of FENICS and targets to start its sales in Asia area in 2016.
FENICS and NDFS will continue to promote the value-added service development by this business alliance with combination of mutual feature benefits toward new needs in financial market like counter measure for strengthening regulation for margin requirements (note 6).
(note 1) Front office operations include negotiation with customers and financial institutions to conclude financial contracts.
(note 2) Middle office operations include checking of front office operation and manage risks.
(note 3) Back office operations include business management as management of settlement dates, fund payments, etc. regarding financial trading.
(note 4) VaR (Value at Risk) is an analytic method to measure risks for financial assets with forecasted loss amount in certain conditions.
(note 5) Regulation for margin requirements is a regulation to aim stabilization of financial system at financial crisis to require certain margining against non-centrally cleared derivative trading at the risk of default of counter party.
[Reference]
Overview of FENICS
(1) Name: FENICS® Software Limited
(2) Location: 1 Snowden Street, London EC2A 2DQ
(3) Representative: Richard Brunt – Managing Director
Atsuo Kanazawa – Head of Tokyo Branch
Overview of NDFS
(1) Name: NTT DATA Financial Solutions Corporation
(2) Location: 4th Floor Kandabashi Park Building, 1-19-1 Kanda Nishiki-cho,
Chiyoda-ku, Tokyo
(3) Establishment: 1 April 2008
(4) Representative: Ken Tsuchihashi – Representative Director, President
(5) Capital: ¥ 50 million (100% owned by NTT Data)
(6) Business: Computer software development and consulting
Inquiries for media organization:
FENICS Software Limited
Contact: Atsuo Kanazawa 03-3552-5111
NTT DATA Financial Solutions Corporation
Contact: Takuya Hara 03-6870-6205