The Misys Summit Equity Derivatives module provides a comprehensive solution for running an equity swap and options desk. The equity derivatives application can also be integrated with other modules to benefit from our multi-asset class coverage and integrated straight-through-processing architecture. The module can be customised if need be to meet specific business demands through the use of powerful, easy-to-use extension tools.
Misys Summit automatically handles all the operational processing capabilities for managing an equity derivatives book. Interest rates and equity prices are captured for automatic update to the equity swaps book on fixing dates. Variable notional balances and payment schedules are automatically adjusted to reflect current stock prices and interest rate fixings
Product coverage
Misys Summit handles a broad range of equity trades, including:
- Single equity stocks
- Exchange-traded options on indices & individual stocks
- Equity-index stocks
- OTC Options on individual stocks, indices and baskets
- Equity-to-equity swaps
- Single-barrier options
- Futures on equity indices
- Piecewise (digitals, caps, floors) options
- Equity basket stocks (with an unlimited number of constituent stocks)
- Single currency, cross currency, or multi-currency baskets
Key features
- Customisable quick trade entry
- Market data interfaces are provided to leading industry data suppliers including Reuters. APIs ensure that custom feeds are also accommodated
- Corporate actions – Misys Summit automatically handles corporate actions that arise from splits, mergers, and many other equity trading events
- Dividends – full handling of dividends, including dividends passed through equity swaps (dividend payments: on issuer pay date; swap payment date, etc.)
- Cashflow schedules are automatically adjusted
- Misys Summit calculates forward stock prices based on user-definable growth curves and future dividend assumptions
- Users can define and measure equity performance based on a number of criteria
- Risk management – Misys Summit includes comprehensive risk functionality for desk level risk and enterprise level risk, VaR, Monte Carlo VaR etc
- Position and "what-if" analyses are performed on portfolios via the system's extensive portfolio analytics functionality
- Threshold Warning Report alerts users of equity swaps whose "virtual" performance payoff at any point during a period exceeds a pre-specified threshold
- Real-time P&L decomposition gives the ability to slice and dice the P&L down to detailed trade level
- Misys Summit applications can be called from Excel and Excel from Misys Summit
Automatic post-trade STP
All post-trade operations including confirmations, payments and reporting can be performed automatically following definable business rules. With most transactions requiring no intervention, action is only required to the trades that produce exceptions.
