Risk Analytics of OTC and Structured Products Relies on Xignite Market Data Cloud
Xignite, Inc., the premier market data cloud services provider, today announced that Fairmat SRL, of Verona, Italy, is powering its web-based financial risk service with Xignite market data. The web-based service provides on-demand, pay-as you-go analytics for users lacking financial modeling skills, as well as those requiring infrequent risk and pricing analysis.
The recently introduced Fairmat Cloud service offers assessments of OTC and structured products for independent financial advisors, financial managers (e.g., hedge funds and private equity groups), funds specializing in structured products, and small-office audit and consulting practices.
The company created templates for the underlying models that generate valuations on generic contract categories, such as interest rate swaps, bonds, vanilla options, exotics and structured products. Clients can obtain risk and pricing assessments utilizing the templates or by querying the system's built-in search engine to identify mapped public products.
"OTC and structured product markets are viewed skeptically because it is often difficult to gain access to metrics (e.g., price and risk) for such products,” says Matteo Tesser, Ph.D., founder and CEO, Fairmat. “Calculating those metrics requires the use of sophisticated mathematical models using assorted market data that must be calibrated."
Xignite market data powers the array of sophisticated mathematical models that underpins the analytics. The Fairmat web-service utilizes Xignite real-time and historical quotes for currency exchange rates (FX), equities, index values and interbank interest rates. Looking forward, the company believes that this cloud solution will raise the awareness of structured products, ultimately benefiting advisors, their clients, and the market as a whole.
“We went through a long process contacting vendors in our attempt to secure the data needed to deliver the Fairmat Cloud solution,” says Tesser. “The company integrated the market data in hours, rather than days, weeks or longer. Analytics require data, so the partnership with Xignite is a synergy.”