Press Releases

FINCAD CEO Explains the Credit Crunch

Vancouver, BC, Canada, March 4, 2008 - Robert Park, the CEO of FINCAD, a leading global provider of software for working with derivative financial instruments, said today that he wanted to answer questions from people outside the financial industry about the current turmoil in the financial markets. He was explaining the background reasons for FINCAD releasing its first commentary on events in the financial markets.

Although the company counts more than 3000 firms that participate in the financial markets as clients, including hundreds of banks, hedge funds and other asset management firms, FINCAD is not a participant in the derivatives markets and normally does not comment on the financial markets publicly. “Our job is to provide enabling technology and expertise to market participants. Normally we don’t comment on the markets ourselves; that is what some of our clients do", he said.

However, over the past several weeks Park and members of his staff have been asked by a growing number of non-financial people to explain the underlying reasons for the current financial market turmoil. "Every time I go to a hi-tech industry event, executives from other software companies approach me and say, 'You’re in the derivatives business - what went wrong and how can it be fixed?'"

Although the recent crisis in US sub-prime mortgages and the resulting credit crunch have both been covered heavily in the press, there hasn’t been much written that explains the whole picture. “What non-financial people need is a simple, easy to understand, explanation of how the markets got to this point, together with an explanation of what can be done to help get them back on track, as well as preventing something like this from happening in the future," he said. “That is what we have tried to give them, so maybe now we can get back to work," he added.

Read the commentary, "Sub-Prime and the Credit Crunch, a FINCAD Viewpoint"

About FINCAD

FINCAD provides software and services that support the valuation and risk management of financial securities and derivatives that is essential for banks, hedge funds, corporate treasuries and asset management firms. FINCAD’s industry standard financial analytics are a key component in FINCAD solutions that are used by more than 25,000 professionals in over 70 countries.

Media Contact:

Armita Seyedalikhani
Direct: +1.604.957.1222
Email: a.seyedalikhani@fincad.com