Independent Pricing and Verification - Performance, Auditability, Transparency

Regulation, legislation and a drive for greater visibility over potential risk exposures are simultaneously encouraging and forcing banks to be more systematic in their approach to valuing and revaluing instruments.

Investment banks' trading operations are increasingly likely to hold positions in long-term, exotic derivative products. Designed to suit the preferences of individual customers, their bespoke nature means that pricing and valuing them on an ongoing basis is not straightforward. This is normally a manual process carried out with excel spreadsheets.

Microgen Intelligent Pricing Manager (MIPM) is a unique market data, pricing and analytics integration framework. It provides the organisation with the ability to carry out price discovery, distribution and independent price verification from a single platform, offering consistency and control over the data sources and calculations used across the organisation.

Traditionally, the use of pricing libraries has been tied up within single applications or pricing/valuation spreadsheets. These are often owned within departments, therefore the opportunity to share intellectual capability is lost. MIPM addresses many of these issues by providing a controlled and auditable environment on a server based platform, allowing greater product control.

Benefits

Auditability and transparency
Ability to deal with high volumes of Vanilla trades
Flexibility for low volume exotics and structured trades
Business rules technology allows easy integration to existing external and back office feeds
Provides scalable exception management

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