Capital markets have always been accustomed to ups and downs concerning pricing fluctuations and regulatory pressures. However, the fall of 2008 witnessed one of the most horrific events in the history of U.S. financial market with major markets losing more than 30 percent of their value. Digging deeper, market analysts believe that credit derivatives largely contributed to the market collapse. The credit derivatives were designed to be a method of hedging against a company’s creditworthiness, similar to insurance. But unlike the insurance market, the derivates market was unregulated—there was no requirement that the issuers of derivatives contracts maintain a certain amount of money in reserve to pay out under a worst-case scenario. In such a tumultuous situation where most companies involved in the capital markets succumbed to unprecedented financial disruption, Numerix—a provider of inventive risk analytics technology for the financial services industry—stood abreast with a different view of the complete scenario. Having served the market since 1996, the company has been a seasoned wizard to turn the market challenges to their advantage. “We seized the opportunity by realizing that the new form of structured products market would be the risk measures,” says Steve O’Hanlon, CEO of Numerix. As the market changed with new regulations, the company started focusing on creating risk functions to work with their established pricing capabilities. “This is where Numerix has been at its best, because we looked at all the changes that needed to be made, leveraging our analytic pricing and risk measures to go after regulatory change.”

Numerix has been shaping the capital markets industry in the area of risks by combining pricing with models that are the de facto standard in the industry. Creating the underlying prices that are critical to a risk system and then having the risk measures built from the ground up to serve today’s needs. “Numerix is taking a ground-breaking approach with the introduction of Oneview—a unified analytics application platform for enterprise-level risk management,” says O’Hanlon. As the cutting edge pricing, risk, analysis, and trade management platform, Numerix Oneview Enterprise Platform is designed for the next evolution of the capital markets. Numerix Oneview is an innovative derivatives pricing and risk platform that supports the needs of front office pre-trade analysis as well as the middle office. The Oneview platform is particularly targeted at firms that require a highly-scalable, interoperable, flexible, and transparent analytics solution. “With Oneview we have put critical decision variables at the fingertips of senior management where they can respond to market changes and anticipate future risks that might impact profitability.”

As a unified X-Value Adjustment (XVA) pricing, counterparty credit risk management and market risk platform, Numerix Oneview enables the rapid deployment of pricing and risk analytics.