United Bank Limited (UBL), a commercial bank in Pakistan, has licensed the Principia System for managing its growing portfolio of fixed income and derivatives. The bank is the first one in the country to adopt derivatives in its trading and risk-management systems, says Principia. UBL will leverage the full front-to-back-office capabilities of the system for managing a wide range of assets. The bank will also value its structured loan portfolio using the systems modeling and pricing functionality. Plans are to install the system in the bank's treasury division at its head office in Karachi. "We selected Principia on the basis of its flexible platform, which provides us with significant competitive advantages that will enable us to rapidly grow our business and bring new products to market," states Risha Mohyeddin, global head of treasury and capital markets at UBL in the release.
CDC IXIX Asset Management, an asset management company in France with $322 billion in assets under management, will use LatentZero's Sentinel for pre-and post-trade real-time compliance-management. In deploying Sentinel, CDS IXIS AM has found a solution to check for client guidelines and regulatory rules, in real time and provide information for portfolio managers and risk managers. Sentinel's open architecture will integrate with the firm's existing trading and order-management systems, according to LatentZero. "We view compliance as an essential part of our operational risk management. We wanted to put robust risk-management controls in place to deal with the growing number of demanding regulations and increasingly complex client-mandates," states Pierre Olivier-Salnot, risk manager at CDC IXIS AM in the release. The asset-management firm reviewed three vendors during a series of week- long on-site trials, using its own data before deciding on LatentZero, OliverSalnot further states in the release.
John Coady, formerly a partner in RBC Capital Partners venture capital group, is joining Algorithmics Inc., the Toronto-based enterprise-risk-management software-company as chief financial officer. "The company achieved solid performance in 2003 and has recently secured long-term refinancing. Algorithmics reputation as market leader in the risk management marketplace, coupled with business opportunities brought on by rapidly evolving regulatory changes, suggest that it has strong potential," states Coady in the release. Royal Bank of Canada was among the list of existing investors that recently granted long-term refinancing to Algorithmics. The others include: Morgan Stanley, Commerzbank, American International Group, CIBC Capital Partners, and Vengrowth Investment Fund. Prior to his role at RBC, Coady was CFO of Select, an Internet Protocol billing software developer. Coady, who is a chartered accountant, also previously held financial and business development positions at Architel Systems and IMAX Systems Corporation.
Summit Systems released phase two of MUST " Multi-Underlying Structure Trade " tool that helps traders create, process and analyze complex products and structured trades. Originally announced in May 2003, Summit says it invested research and development dollars and partnered with a major Tier One bank to add functionality that positions MUST as a best-of-breed tool for both sell-side and buy-side firms. "Complex derivatives are a constantly evolving and are a highly profitable area for banks," states Emmanuel Fruchard, director of front office and risk management at Summit, in the release. "As new structured products are innovated, Summit will keep abreast of these market changes through customer partnerships and MUST will continue to evolve," he adds. The tool can be integrated with Summit's treasury and capital-markets solutions. It processes and manages complex structured deals including those whose underlying instruments span multiple asset-classes, (for example, interest rates, foreign exchange and equities) such as power-reverse dual currency swaps, multi-callable dual-currency-range-accrual swaps and multi-currency equity-best-of performance-linked notes. Phase two includes complete front-to-back office integration; a structuring tool that allows quantitative analysts to create structured products with a reduction in IT support; intra-day cash-flow netting for integrated accounting and payments generation and choice of pricing models or in-house developed model. In addition, phase two has full security that can distinguish specific groups of users and levels of user-defined access.