Parameta Options, the information division of the TP ICAP, introduced its partnership with OTC analytics and derivatives pricing agency Numerix on Tuesday to develop a system for extra successfully valuing OTC derivatives.
The partnership between the 2 firms got here when the monetary providers business witnessed mounting regulatory necessities for strict accounting requirements, information reliability, and transparency. Additional, the introduction of FRTB mandated the necessity for the next high quality of information for precisely marking OTC positions.
The regulatory stress got here when the Financial institution for Worldwide Settlements (BIS) revealed final November that the notional worth of excellent OTC derivatives climbed to a report excessive of $632 billion. It showcases the excessive demand for correct information round OTC derivatives.
“Because the regulatory necessities for third-party outsourcing, transparency, and threat issue liquidity have elevated, the problem of acquiring correct and up-to-date valuation providers has turn out to be harder. Concurrently, technological adjustments are forcing monetary establishments to rethink their present structure and the information sources driving crucial functions,” mentioned Parameta Options’ Chief Product Officer, Ovie Koloko.
“By working along with Numerix, we consider that we are able to provide a very distinctive resolution to a problem that has solely turn out to be extra pronounced as monetary establishments make better use of OTC derivatives.”
A Strategic Partnership within the OTC Information Sector
The partnership is strategic, as Parameta is already a market chief in offering OTC information, and Numerix brings superior analytics capabilities.
Parameta Options generated £177 million in income in 2022, contributing about 8.4 p.c of TP ICAP’s income, which closed the yr with a pre-tax revenue of £113 million. TP ICAP reportedly thought of promoting the information division for about £1.5 billion however terminated talks final month.
TP ICAP rebranded its present pot-trade information and analytics division to launch Parameta Options in April 2021. On prime of that, the unit gained the authorization of the Monetary Conduct Authority within the UK to turn out to be a benchmark administrator.
“Transparency is a key issue within the progress of OTC markets. It’s important to have transparency in information, fashions, and their calibration to make sure confidence whereas buying and selling these merchandise,” added Steven O’Hanlon, the President and CEO of Numerix. “By combining Parameta’s in depth and various information with Numerix’s cutting-edge pricing fashions and superior analytics options, we are able to construct better belief on this section of the capital markets.”
Parameta Options, the information division of the TP ICAP, introduced its partnership with OTC analytics and derivatives pricing agency Numerix on Tuesday to develop a system for extra successfully valuing OTC derivatives.
The partnership between the 2 firms got here when the monetary providers business witnessed mounting regulatory necessities for strict accounting requirements, information reliability, and transparency. Additional, the introduction of FRTB mandated the necessity for the next high quality of information for precisely marking OTC positions.
The regulatory stress got here when the Financial institution for Worldwide Settlements (BIS) revealed final November that the notional worth of excellent OTC derivatives climbed to a report excessive of $632 billion. It showcases the excessive demand for correct information round OTC derivatives.
“Because the regulatory necessities for third-party outsourcing, transparency, and threat issue liquidity have elevated, the problem of acquiring correct and up-to-date valuation providers has turn out to be harder. Concurrently, technological adjustments are forcing monetary establishments to rethink their present structure and the information sources driving crucial functions,” mentioned Parameta Options’ Chief Product Officer, Ovie Koloko.
“By working along with Numerix, we consider that we are able to provide a very distinctive resolution to a problem that has solely turn out to be extra pronounced as monetary establishments make better use of OTC derivatives.”
A Strategic Partnership within the OTC Information Sector
The partnership is strategic, as Parameta is already a market chief in offering OTC information, and Numerix brings superior analytics capabilities.
Parameta Options generated £177 million in income in 2022, contributing about 8.4 p.c of TP ICAP’s income, which closed the yr with a pre-tax revenue of £113 million. TP ICAP reportedly thought of promoting the information division for about £1.5 billion however terminated talks final month.
TP ICAP rebranded its present pot-trade information and analytics division to launch Parameta Options in April 2021. On prime of that, the unit gained the authorization of the Monetary Conduct Authority within the UK to turn out to be a benchmark administrator.
“Transparency is a key issue within the progress of OTC markets. It’s important to have transparency in information, fashions, and their calibration to make sure confidence whereas buying and selling these merchandise,” added Steven O’Hanlon, the President and CEO of Numerix. “By combining Parameta’s in depth and various information with Numerix’s cutting-edge pricing fashions and superior analytics options, we are able to construct better belief on this section of the capital markets.”
