The re-architected module delivers a highly adaptable solution to address volume CDS and structured credit markets
Misys Banking Systems, a global leader in banking software and solutions, announces the launch of a new platform for its credit derivatives module for Misys Summit FT. The original credit derivatives module for Misys Summit was launched in 1998 and the market has since seen huge changes in both volume (a 27-fold increase since 2001 [1][1]) and complexity. Instruments that were then thought of as exotic are now vanilla and the market continues to innovate. The new module has been designed to meet today’s needs and address tomorrow’s possibilities. It has been extended to address both the current high volumes in the CDS market and also to deliver an adaptive platform to handle more complex instruments such as synthetic CDOs and ABS CDS. In addition, the ability to build hybrids meets the needs of the market to develop new product inventions in the future and for Misys Summit customers to keep a competitive edge.
Misys has leveraged its award winning[2][2] Summit MUST technology to provide the flexible platform for its new credit derivatives module. In addition to effortlessly handling the very latest credit derivative innovations, it also adapts “on the fly” as the market evolves, enabling customers to create structured hybrid products, selecting from a full range of asset classes, including bonds, FX, equity, interest rates and credit.
Currently being rolled out to a number of clients, the new module provides Misys Summit customers with a strategic platform to gain a competitive advantage in this dynamic and profitable market. Misys Banking Systems announced its integration with DTCC in July 2006 and with its new platform it will enable integration with Markit’s Reference Entity Database (RED) the industry standard for reference entity and reference obligation identifiers used throughout the CDS market, and its independent, benchmark pricing for the credit derivatives market.
Dan Cohen, product manager for Misys Summit, explains further, “We’ve tracked the development of the credit sector closely from the early days in the mid- to late-1990s; supplying solutions for trade processing that by today’s standards seem like very simple structures, such as total return swaps and CDS. We now see a range of more complex synthetic CDOs, CDS on ABS or any other loan, hybrid structures with credit as an underlying, combined with bonds and other instrument classes. With our new architecture for credit derivatives, we are providing the means to handle all these products within one integrated solution. This gives our customers the means to control their risk exposure fully across asset classes and automatically interact with the likes of DTCC, SwapWire and Markit within a single STP environment, thereby improving operational efficiency.”
About Misys Banking Systems
Misys Banking Systems supplies over 1,200 customers in over 120 countries, among them 49 of the world's top 50 banks, with software and solutions for retail banking, wholesale banking, treasury and capital markets and risk management. It has 2,500 people around the world, over 70% of whom are outside of the United Kingdom, and sales, implementation and customer support teams in over 28 countries. Misys Banking Systems is part of Misys plc.
About Misys plc
Misys plc (FTSE: MSY.L), the global software company, is one of the world’s largest and longest-established providers of industry-specific software. Founded in 1979, Misys serves the international banking and healthcare industries, combining technological expertise with in-depth understanding of customers’ markets and operational needs. In banking Misys is a market leader with over 1,200 customers, including 49 of the world’s top 50 banks. In healthcare Misys is also a market leader, serving more than 110,000 physicians in 18,000 practice locations, 1,200 hospitals and 600 home care providers. Through Sesame, a wholly-owned subsidiary, the company is also a leading provider of support services to financial advisers in the UK. Misys employs around 6,000 people who serve customers in more than 120 countries. For more information, visit www.misys.com.
[1][1] 27-fold increase – according to ISDA, credit derivative outstandings were $631bn in 2001 and have now risen to $17,300bn by the end of 2005.
[2][2] Summit MUST was voted Innovative product of the year by Wilmott Magazine and Structured Products Magazine in 2005 and achieved the top position in the structured products category of Risk Magazine’s annual vendor technology survey.