NumeriX, an independent provider of advanced analytics for the derivative and structured products market, and Paladyne Systems, a provider of alternative investment solutions, have announced a strategic partnership combining the NumeriX trading, pricing and analytical toolset with Paladyne's hosted front- to back-office hedge fund platform.
According to the two firms, Paladyne customers will in future be able to use NumeriX to analyse and price complex product types on a pre- or post-trade basis. The combined offering will be available in the coming months.
NumeriX offers a suite of enhanced industry standard model algorithms supporting more than 150 pre-defined instrument types across a wide range of asset classes. The NumeriX in Excel and NumeriX/Bloomberg product versions, which will both be integrated with the Paladyne front-to back-office suite of products, will support complex trading strategies such as credit risk, global macro, volatility shift and correlation trading.
The NumeriX system provides a flexible toolset for analysing new deals and product types as they are introduced to the market, which the firms say will give fund managers using both NumeriX and Paladyne first-mover advantage to value, price and capture these transactions.
The Paladyne product suite is a fully integrated suite of modules including order management, real-time P&L and portfolio management, portfolio accounting, reference data management, custom reporting and data warehousing, and pricing and valuation. With the integration of the NumeriX system into Paladyne, fund managers can value exotic derivatives and structured products in real time or as part of the end-of-day valuation process.
'The ability to properly analyse and value complex derivatives and structured products is a significant challenge facing hedge fund managers today,' says Paladyne Systems chief executive Sameer Shalaby. 'By integrating NumeriX into our suite of products, managers now have the tools and infrastructure to not only gain competitive trading advantages, but to satisfy the operational demands of regulators and institutional investors as well.'
Steven O'Hanlon, president and chief operating officer of NumeriX, says: 'The Paladyne partnership gives us the ability to offer our advanced analytics to a broader segment of the alternative asset manager community.
'The proliferation of exotic derivatives and structured products has created investment opportunities that most asset managers are unable to exploit. Finding alpha in today's market requires the sophisticated analytical tools and operational infrastructure offered through this partnership.'
Paladyne Systems, which develops and distributes technology designed to streamline hedge fund operations while providing business efficiency and cost savings throughout the organisation, was formed through a buyout of the technology platform from a US-based multistrategy hedge fund manager, reported to be Alexandra Investment Management.
NumeriX offers pricing and risk analytics for fixed income, credit, foreign exchange, hybrids, cross currency, commodities, inflation rate and equity derivatives, with more than 275 clients in 25 countries. Founded in 1996, the company is privately owned and has offices in New York, Chicago, Santa Fe, Toronto, London, Paris, Singapore and Tokyo.