CITIC Expands Derivatives Business with FINCAD’s F3 Analytics Solutions
Vancouver, BC, July 22, 2014 - FINCAD, the leading provider of OTC derivatives pricing and risk management solutions, today announced that CITIC Securities Company Limited (CITIC) has implemented FINCAD’s F3 analytics solution to support the growth of its equity derivatives business in Asia.
CITIC is one of the leading investment banks in China by total assets, revenue, net profits and assets under management. The valuation and risk solution based on FINCAD’s F3 technology provides robust pricing and risk management capabilities including key risk sensitivities for vanilla and complex trades or portfolios enabling critical trading and risk management decisions. The first-order risk sensitivities are produced, using FINCAD’s patented Universal Algorithmic Differentiation™, in a fraction of the time it takes traditional curve bumping methods. The F3 analytics solution also distributes calculations and optimizes resources to make intra-day risk and valuation easier. These efficiencies considerably improved time to market for CITIC as they began trading more complex products.
Mr. Xu Xing Hai, Director of Equity Derivatives Business of CITIC said, “We use F3 to analyze risk for our entire options portfolio, including vanilla and exotic products. FINCAD provides near instantaneous analytical sensitivities for even the most complex structures.”
“CITIC is one of the leading investment banks in China and we are very pleased to support their growing derivative business in Asia with our F3 solution,” said Amar Budhiraja, FINCAD’s Director of Strategic Business Development. “We appreciate the trust CITIC have placed in our technology and are committed to meeting China’s growing demand for world-class financial analytics solutions with FINCAD’s experts from our Beijing office as well as our offices in other global financial centers.”
CITIC has plans to use FINCAD’s F3 analytics solution to support trading in both Hong Kong and mainland China. This will require implementation of both Chinese market data and industry-standard global market data. “The FINCAD Professional Services team was very helpful in seamlessly implementing the F3 analytics solution,” added Mr. Xu. “Between the training we received and how easily their solution fit into our current systems, we were operational in just a few months. This was instrumental in enabling us to get our new business off the ground as quickly as planned.”
For more information about CITIC’s implementation, please see the case study.
About CITIC Securities Company Limited
CITIC Securities is a leading full service investment bank in China, whose A and H shares are listed on the Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited respectively. CITIC maintains top rankings in China’s capital markets across its principal business areas of securities brokerage, investment banking and asset management.
CITIC is one of the constituents stocks of both SSE 50 and MSCI China Index, as well as one of the top five constituents stocks in FTSE/Xinhua A50 China Index. It is also a constituent stock of the Hang Seng China H-Financials Index, Hang Seng China AH Index Series, Hang Seng Global Composite Index, Hang Seng Composite Index, Hang Seng Composite Industry Index - Finance, and the Hang Seng Composite MidCap index.
For more information about CITIC, please visit its website at www.cs.ecitic.com.
FINCAD is a world-leading provider of valuation and risk management solutions, with thousands of users worldwide. In addition, 80 of the leading software providers embed FINCAD technology into their solutions. The company is committed to providing comprehensive, clear, accurate and timely information to assist financial decision-makers in a wide range of institutions. FINCAD has offices in New York, London, Beijing, Dublin, and Vancouver.