SuperDerivatives, an options and derivatives solution provider for option pricing, independent revaluation, trading and risk management systems, has announced that it has partnered with Microsoft for its integrated MiFID solution suite for OTC Options.
“Many institutions in the capital markets area still see best execution as the most contentious section of the MiFID regulation,” notes Ian Warford, industry director for securities and capital markets, Financial Services, Microsoft EMEA. “Trying to achieve best execution for flow products which may be traded on a variety of different exchanges, multilateral trading facilities and systematic internalisers can be a difficult process particularly for OTC derivatives. Microsoft believes that with the help of SuperDerivatives’ pricing platform we will be able to help financial organisations comply with best execution requirements. SuperDerivatives technology is entirely in alignment with Microsoft’s strategy for MiFID; it is easy to integrate, cost effective and ready for use today,” he adds.
Part of the SuperDerivatives integrated solution suite for MiFID, the new Trade Price Auditor is a web service that tracks in real time any executed trade in the dealing room and compares it with its current fair market price, according to the firm. It provides online alerts to cell phones or PDAs, as well as end-of-day audit trail reports. The service thus allows managers, controllers and regulators to identify and take corrective action regarding pricing inaccuracies due to errors or fraud.
“We are very happy to partner with Microsoft in serving financial institutions across Europe, all pressed to comply with MiFID, particularly for complex OTC options and structures,” says David Gershon, CEO, SuperDerivatives. “Our many users have told us that we provide them with a unique service allowing them both to comply with MiFID and drastically reduce risk and prevent losses. Our Trade Price Auditor service is a prime example of the extreme efficiencies provided through the combination of advanced Microsoft web technologies in conjunction with the SuperDerivatives benchmark option pricing model and accurate real-time market data,” he adds.