Numerix, the leading provider of cross-asset analytics for derivatives valuations and risk management, and xQuant, a leading financial technology vendor in mainland China with particular focus on providing quantitative financial solutions for the greater China region, today announced the details of a new partnership agreement.
Through the partnership Numerix CrossAsset analytics will be embedded inside of xEQ, xQuant’s front-to-back solution for equity derivatives serving securities companies in China. The solution supports all equity derivatives business processes including pricing, risk analysis, trade execution, portfolio management, risk management and performance evaluation and is used by traders, risk managers, quantitative researchers and financial managers at all levels to manage the entire equity derivatives portfolio.
By leveraging Numerix’s innovative CrossAsset Integration Layer included as part of the Numerix SDK, xQuant is able to extend its powerful cross-asset analytics platform with custom interfaces, new models and sophisticated business logic. Through this integration, xQuant can now leverage Numerix calculations to create fully customized, robust financial applications for equity derivatives pricing, modeling and analyzing complex equity derivatives. The Numerix CrossAsset library provides access to the industry’s most comprehensive collection of models and methods. Calendars, market conventions and fixing history are also provided via Numerix, enabling faster, more efficient model creation and analysis.
“With Numerix analytics embedded inside of xEQ we’re able to support xQuant as the pricing engine underpinning its equity derivatives business management platform which supports all aspects of the equity securities business including structuring, distribution, hedging and arbitrage,” said Steven R. O’Hanlon, Chief Executive Officer & President of Numerix. “Leveraging our analytics xQuant is ensuring transparent, accurate analytics for the customization of trading strategies and real-time monitoring and risk management.”
Dr. Hang Xu, Chairman of xQuant, added: “As securities companies in China are eager to expand their businesses by introducing more equity derivatives into the market, this joint solution enables them to expand their businesses more efficiently and effectively. In integrating Numerix market-tested models and methods into the full trading and risk lifecycle of our xEQ platform our users are able to better manage their equity derivatives portfolio with more precision and transparency, and achieve equity derivatives trading risk management of the whole process.”