A provider of cross asset analytics for derivatives valuations and also risk management, Numerix on today announced that a leading bank in the Central & Eastern European countries, OTP Bank has decided to use the Numerix CrossAsset analytics platform for supporting the derivatives analytics capabilities, hence extending the expertise across the bank. Incidentally, Numerix CrossAsset gives the users unprecedented flexibility for pricing, structuring and managing any instrument type including structured products and complex derivatives.
The platform has been selected for the independent library of the market tested pricing models and also the comprehensive instrument coverage. OTP Bank is therefore expected to leverage on the flexible and transparent analytics architecture supported by CrossAsset for proper model validation. OTP Bank will also be able to price complex derivatives and drill down to the comprehensive pre and post trade risk analysis such as Greeks, stress testing and scenarios.
According to the Head of Middle Office of the OTP Bank, Krisztian Kovacs, Numerix CrossAsset is pretty flexible as a tool and it will provide the bank with complete model coverage in all the relevant asset classes. Not only that, but CrossAsset also gives insight into the risk of the structured products and also improves the bank’s ability to provide more reliable mark to market prices for the various instruments. Kovacs added that with help of Numerix CrossAsset, it will also be possible for the bank to assess model risk properly and also reduce the operative risks in the complex financial products. Kovacs commented further that therefore the bank can now validate prices on structures and thereby help to improve the profitability of the same and also produce completely transparent reporting.
According to the Chief Executive Officer and President of Numerix, Steven R. O’Hanlon, OTP Bank is undoubtedly a leading bank in the Central and Eastern Europe and it can be proud of itself for the dynamic growth and market leadership. Steven added that the collaboration with Numerix will help OTP to become a leader when it comes to innovation and people will regard it as a sophisticated user of the exotics, thereby helping it to improve the overall value proposition in the future. Steven continued further that as OTP operates a pretty diverge rank of banking operations, it is an honor for Numerix to collaborate with them. This marks an important win for Numerix in the region.