case-study
SimCorp: Partnering with FINCAD for Advanced Pricing

HIGHLIGHTS

Client: SimCorp 

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Business Objectives

Expand derivatives coverage while leveraging existing infrastructure 

Requirements

  • Comprehensive analytics solution 
  • Integration with existing generic trade representation 

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Background

Since 1971, SimCorp has provided investment and portfolio risk management software and services to the world's leading investment managers, asset managers, fund managers, fund administrators, pension funds, insurance funds, and wealth managers. SimCorp's software, SimCorp Dimension, is the most advanced front-to-back seamless processing system for this industry.

Challenge 

SimCorp was challenged by how to effectively expand the derivatives coverage of its system without negatively impacting its existing infrastructure or affecting customers adversely. Specifically, SimCorp was looking for: 

  1. An analytics library that would meet its financial and technical requirements, both now and in the future.
  2. Technology that would work with the generic trade representation language that was already in use. 
  3. A trustworthy technology partner, with an excellent reputation for supplying accurate, reliable derivatives analytics.

Solution 

FINCAD's reputation for accurate, reliable, industry standard analytics made it the clearly preferred choice. The result was a three-part solution:

  1. FINCAD analytics were incorporated into SimCorp Dimension to expand its derivatives functionality.
  2. FINCAD's team built a connector between the generic trade representation language used by SimCorp Dimension and FINCAD.
  3. A long-term development partnership was formed to both solve SimCorp's current needs and respond to future business requirements.

Results

By integrating FINCAD into SimCorp Dimension, the company could expand its derivatives coverage quickly in order to meet the changing needs of its customers. Results include: 

Fast Time to Market: FINCAD's flexibility made integrating the analytics easier and allowed the derivatives offering in SimCorp Dimension to include valuation and risk measurements for sophisticated derivatives faster than would developing this functionality in-house or using other solutions.

Business Focus: Using FINCAD meant that SimCorp had more time to focus on its core business.

Improved Performance and Scalability: FINCAD's object-oriented architecture and ability to support multithreaded and grid processing enabled SimCorp to deliver high performance and scalability to its customers.

Customer Satisfaction: Using FINCAD's technology and analytics provided SimCorp customers with seamless access to timely, accurate and proven pricing for credit and other more complex derivatives. 

Looking Forward 

As SimCorp's customers demand more complex derivatives coverage, using FINCAD will help the company expand to meet those needs without any further changes to the integration that exists between the two products.