F3 Toolbox for use with MATLAB® provides F3 architecture, valuation, risk analytics, and calculation offloading in the MATLAB® environment for powerful, generic, and convenient desktop valuation and risk modeling of any portfolio or trade. You can leverage the power of F3 in the MATLAB® environment to significantly reduce development time, simplify integration within your enterprise system, and create operational alpha through improved process efficiency.
F3 architecture gives you the ability to expand your business from desktop deployments to enterprise implementations with highly efficient and scalable line-of-business APIs. As your organization grows and your needs become more complex, F3 Toolbox for use with MATLAB® can scale alongside F3 Excel Edition and any user-developed application with F3 Platform for enterprise-wide deployments.
Call logging enables seamless transfer of MATLAB® calculations into Excel and C#, C++, and Java-based systems. F3 delivers seamless integration among a variety of industry-standard tools, making F3 Toolbox for use with MATLAB® an enterprise-ready solution.
Like other F3 products, F3 Toolbox for use with MATLAB® is completely transparent, generic, and flexible; and it exposes modeling assumptions for inspection and compliance. It is highly flexible and future proof, thanks to the generic F3 architecture which decouples the concepts of a product and the model describing the evolution of its value.
Generic trade and modeling representation (and separation of these concepts) is at the core of modern enterprise valuation and risk platform technology. This design addresses the complexity posed by modern pricing and risk challenges. By remaining completely generic, new trade structures are inherently accommodated without writing new code, delivering a future-proof solution.
Generic trade representation
F3 facilitates construction of both simple and complex products from a set of fundamental, modular, and generic building blocks. By describing all trades in terms of their fundamental obligations and rights, trades, hybrids, and multi-asset and multi-currency portfolios can be represented completely generically. New structures can be engineered quickly and effectively without writing new code, delivering a future-proof solution.
This modularity also plays a role in FINCAD’s stable and mature implementation of algorithmic differentiation, Universal Algorithmic Differentiation™, enabling almost instantaneous calculation of Greeks and basis point sensitivities for accurate hedging.
Separation of concepts
In F3, separating the concepts of a product, the market data model, and the numerical method of valuation produces a large degree of flexibility. This abstraction of concepts enables users to describe any structure and value it quickly and effectively.
Because there is a definitive line between a model (set of modeling assumptions and market data) and the product (payoff) being valued, the same model can be reused to value a variety of different products and a given product can be reused for a variety of different models, saving time and resources.