Future proof, adaptive credit derivatives architecture
Summit FT's credit derivatives module meets today's needs and addresses tomorrow's possibilities. It has been extended to address both the current high volumes in the CDS market and also to deliver an adaptive platform to handle more complex instruments such as synthetic CDOs, and CDS on different assets such as ABS. In addition, the ability to build hybrids meets the needs of the market to develop new product inventions in the future and for Misys Summit customers to keep a competitive edge.
Misys has leveraged its award winning Summit MUST technology to provide the flexible platform for its new credit derivatives module. In addition to effortlessly handling the very latest credit derivative innovations, it also adapts "on the fly" as the market evolves, enabling customers to easily create new instruments, selecting from a full range of asset classes, including bonds, FX, equity, interest rates and credit.
Read about Summit’s Credit Derivative Module in Wilmott Magazine September 06 edition. Download file (PDF).
Products supported
- Single name CDS, index
- CLN
- TRS
- Tranched index products/basket
- Synthetic CDO
- Nth to default basket
- ABS CDS
- CDS option
- Structured credit with Summit MUST module
The credit derivatives module can be combined with other asset classes to provide cross-asset coverage for TRS on baskets of bonds, loans or indices, cash trades involving bonds, repos, loans and asset swaps, and for structured credit trades.
Trading
Misys Summit FT efficiently captures trades, handles pricing, analytics, risk management and settlement in one cross-asset solution. Trades can also flow directly into Summit from online credit derivative trading services. Misys Summit FT applications can also be called from Excel and Excel from Summit FT enabling full integration with spreadsheet data.
Pricing models
Summit FT supports a variety of pricing models including Jarrow & Turnbull and the single factor Gaussion Copula model. In-house and bespoke models, as well as those from third party suppliers, can easily be incorporated.
Real-time risk
Summit FT offers fully integrated cross-asset risk functionality for consistent desk level and enterprise level risk: VaR, Monte Carlo VaR for credit derivatives, including hedging analyses and curve analysis.
Efficient operations and document processing
Misys Summit FT manages the full event lifecycle for each credit derivative trade including credit event management. From confirmation, settlement and collateral management through to accounting, it tracks the status of each trade including acknowledgements, terminations and assignments in a single STP environment. With real-time interfaces to services such as DTCC, SwapsWire and Markit, Misys Summit FT helps reduce risk and improve operational efficiency.
