SuperDerivatives

Subject of my article is...SuperDerivatives

Overview

Founded in 2000 by Dr. David Gershon, SuperDerivatives is the global leader for cloud-based real-time market data, derivatives technology and valuation services for the financial and commodity markets. [1]

With eight global offices across Europe, APAC and Americas, the company specialises in providing world-leading market data, independent pricing and risk management services to thousands of customers in over 60 countries, including banks, corporates, fund managers, auditors and central banks. Its range of products includes a real-time market data, news and commentary service, front-end platforms, risk management systems, revaluation services and online execution utilities. [http://www.sdgm.com/en/AboutUs.aspx [2]

At the core of SuperDerivatives’ offering is its live market data, available both in real-time and as a set of end-of-day independent market rates. It is this market data that fuels its solutions, and resulted in the company being voted ‘Best Data Provider for Derivatives’ for the third time in 2012. [http://www.sdgm.com/en/AboutUs.aspx [3]

Since the company’s inception its mission has always been to bring transparency to the OTC derivatives markets in a cost efficient and innovative manner. As one of the first to realise the benefits of adopting cloud-based technology, SuperDerivatives ensures that its products can be deployed as a standalone solution within minutes or be fully integrated into the core architecture of a business, with fast implementation, minimum cost and on-going support and upgrades. In addition, all of its data centres are secure and are SAS70 level II compliant. In 2012, founder and CEO Dr. David Gershon was inducted into the exclusive Inside Market Data Hall of Fame, joining an elite group of individuals such as Michael Bloomberg, Joseph E. Kasputys and Clare Hart. [FX-MM interview with David Gershon, September 2012. Article Title: A Real-Time Market Data Revolution.] [4] [5] [6]

History

Prior to starting SuperDerivatives, Dr. Gershon was Global Head of FX Exotic Options for Barclays Capital, based in the bank’s London headquarters. Earlier in his career he had traded at BZW New York (later to become Barclays Capital), covering emerging markets during their most volatile periods, and at Deutsche Bank in New York. Dr. Gershon’s career on Wall Street began in 1994 in NationsBank’s mortgage department. [7]

It was while he was in his role at BarCap that he realised that many people didn’t really know how to price options and it was this which led him to start SuperDerivatives in 2000. Since then, the company has expanded rapidly to build a strong global presence across key markets and is today recognised as the benchmark for option pricing and a market leader in real-time market data and derivatives technology and valuation services. [FX-MM interview with David Gershon, September 2012. Article Title: A Real-Time Market Data Revolution.] [8]

Dr. Gershon’s vision to bring transparency to the world of options has materialised with a significant part of derivatives professionals all over the world, who utilise SuperDerivatives platforms for their day-to-day activities. Furthermore, many industry observers credit SuperDerivatives for the sizable growth in the number of options users over the past couple of years and the dramatic increase in liquidity. [9]

SuperDerivatives’ multi-asset front office technology is designed to be modular and extendable. Based on its core pricing and analytics product SDX, the market benchmark for options, functionality can be extended to include a position viewer, risk management, corporate exposure analysis and connectivity to live SEF compliant market venues. Its independent valuation services are supported by a technology platform that allows users to conduct full pricing investigations. [10]

Products

SuperDerivatives’ range of derivatives solutions are used by traders, structurers, corporate treasurers, asset managers and salespeople.

SDX – Cross-Asset Derivatives Pricing and Analytics

SDX is a real-time front office system that covers all cash and derivatives products across a wide range of asset classes, including currencies, interest rates, equities, credit, energy and commodities.

Supported by SuperDerivatives’ live derivative market data service, it is quipped with rich functionality, including pre-trade analysis, product structuring, event alerts, client management, trade suggestion wizard, trade execution, risk analysis and many other tools designed to boost profitability.

SDX is used in over 60 countries by top tier to small banks, hedge funds, asset managers, corporations, central banks and auditors. Its bid/ask prices for OTC options reflect the interbank broker market and are considered the benchmark prices for options. [11]

RMX – Advanced Real-Time Risk and Position Management

RMX is a real-time risk management system that offers rich analytics, including SuperDerivatives’ benchmark model for options pricing, advanced risk and operational tools.

Its calculation engine enhances derivatives risk management by offering exceptionally accurate pricing and analytics capabilities for cross-asset post trade position management for a range of option types, structures and hybrids.

RMX also provides an all-inclusive set of risk analysis tools including risk matrices, sensitivity analysis, transaction event management and reporting. The system is scalable to handle fast calculations of large portfolios and is delivered as a cost effective Software as a Service solution. [12]

CorporeX – Corporate Risk Management and Hedge Accounting

CorporeX is a corporate exposure management and risk compliance system and is designed specifically for corporations to provide a risk analysis solution, combining exposure and hedging of currencies, interest rates, commodities and energy in all cash and derivative products.

CorporeX is fully integrated with SDX, SuperDerivatives multi asset real-time front office platform, and is powered by its OTC implied market data. [13]

DCX – Multi-Bank Trading Platform for OTC Currency Options

DCX is a multi-bank trading platform for bespoke OTC derivatives. Developed in partnership with FXCM, it is an anonymous exchange for OTC products. In its first phase it offers bespoke FX options in major and emerging markets currency pairs.

DCX aims to transform the way people trade FX options and is an active multi-sourced anonymous swaps execution facility (SEF) compliant platform. The platform promises traders a wider market place, efficient price discovery, faster price comparisons, best execution, multi-participant request-for-quote/request-for-stream (RFQ/RFS) trading sessions and no brokerage fees.

DCX allows users to execute multi leg structures in one click with straight through processing (STP) to a risk system. It also provides an innovative electronic exercise/expire tool that can also be used for trades done outside DCX. [14]

eValueX – Multi-Asset Independent Valuation Services

eValueX is an independent portfolio valuation service covering a wide variety of assets and derivative products. Powered by SuperDerivatives’ market data and analytics, eValueX has its own dedicated quantitative analysis team that can price and then automate any bespoke complex structures in the portfolio, including rare highly bespoke structures.

eValueX provides end of day valuation any hour of the day using snapshots of real-time data. Its accuracy stems from both the high quality of market data and the SuperDerivatives pricing models that reflect the interbank market prices. [15]

DGX – Real-Time Market Data, News and Commentary Service

Launched in December 2012, DGX is a revolutionary cloud-based real-time market data, news, chat and analysis platform, delivering cash and derivatives market data direct to desktops, iPads or mobile devices through a modern, user-friendly interface.

Developed over two years in direct response to market need, DGX provides data coverage for both cash and derivatives in all asset classes, including bonds (sovereigns, agencies and supra-nationals, corporates, euro bonds, MBS, ABS), stocks, indices and ETFs, CDS curves, energy products (power and gas, oil, oil products, emission), metals, agriculture products, wet and dry freight, interest rates (all yield curves including OIS, implied correlations, basis spreads, inflation, BMA) and currencies of every country - major and all emerging markets.

DGX is delivered through a remarkably intuitive platform, removing the high costs associated with installed data services. With no expensive terminals or complicated codes, DGX is entirely free text based and uses new technology to enhance trading operations while cutting data spend. [16]

Awards

Since its inception, SuperDerivatives has won a number of accolades in recognition of its work from numerous industry publications. This includes:

Inside Market Data 2012 – Founder and CEO Dr. David Gershon inducted into the exclusive Inside Market Data Hall of Fame

2012 – Best Data Provider for Derivatives

2012 – Best New Data Product (DataX Feed)

2011 – Best Data Provider for Derivatives

2007 – Best Data Provider for Derivatives

FX Week Best Bank Awards 2012 – Best risk management and options pricing provider

2008 – Best Vendor for Risk Management and Options Pricing Software award for fifth consecutive year

Risk Technology Rankings 2011 – Best Pricing and Analytics in Forex

Futures and Options World Awards 2011 – Best innovation in risk management [17]

References

• http://www.sdgm.com/NewsAndEvents/SDAwards.aspx
• http://www.sdgm.com/Products/Real_Time_Market_Data_DGX.aspx
• http://www.sdgm.com/Products/RevaluationServices-eValueX.aspx
• http://www.sdgm.com/Products/Trading-DCX.aspx
• http://www.sdgm.com/Products/CorporeX.aspx
• http://www.sdgm.com/Products/RiskManagement-RMX.aspx
• http://www.sdgm.com/Products/FrontOffice-SDX.aspx
• http://www.sdgm.com/NewsAndEvents/News/2012/FX%20Week%20Award.aspx
• http://www.sdgm.com/AboutUs/Management.aspx
• http://www.sdgm.com/AboutUs/Management.aspx
• FX-MM interview with David Gershon, September 2012. Article Title: A Real-Time Market Data Revolution.]
• http://www.sdgm.com/AboutUs/Management.aspx
• http://www.sdgm.com/en/NewsAndEvents/News/2012/IMD%20Awards.aspx
• http://www.sdgm.com/en/AboutUs.aspx
• http://www.waterstechnology.com/inside-market-data/special/2180044/inside-market-hall-fame-david-gershon-physicist
• FX-MM interview with David Gershon, September 2012. Article Title: A Real-Time Market Data Revolution.
• http://www.sdgm.com/en/NewsAndEvents/News/2012/IMD%20Awards.aspx
• http://www.sdgm.com/en/AboutUs.aspx
• http://www.sdgm.com/AboutUs/Management.aspx
• http://www.sdgm.com/en/AboutUs.aspx
• http://www.sdgm.com/en/AboutUs.aspx