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Learning from the Past, Looking Forward
By Mark D’Arcy | December 22, 2020

To say 2020 has been a year like no other is an understatement. This year has tested human resolve on a scale many of us have never seen. The coronavirus has directly and indirectly impacted every human on earth. I wish to extend my heartfelt condolences to those who have lost a friend or family member and strength to those who are fighting it.  

Despite the strong coronavirus headwinds this year, our focus has been on our customers and strengthening our capabilities and offerings to better serve their business needs and the industry’s in 2021 and beyond. 

Preparing for the End of Libor

Libor is on track for being sunsetted in 2021 and concerns remain over the potential business impacts, including changes in cash flow and hedging. Through more sophisticated technology, firms with Libor-linked instruments on their books are seeking greater confidence in navigating these changes, preserving risk positions and identifying opportunities to create value.

With FINCAD’s extensive experience and coverage of every ARR and RFR such as SOFR, SONIA, €STR, TONAR, SARON, FINCAD is uniquely positioned to provide sophisticated decision support to its clients, navigating these changes with confidence. FINCAD makes it easy to define instruments that require new benchmark rates and prepare Libor transition with our transparent pricing and intuitive valuation using the new curves. Check out our summary of a recent webinar we hosted on how FINCAD helps firms navigate the Libor transition, or download our technical white paper featuring the latest research on this topic.

On Demand Speed & Capacity

Cloud platforms and services have become the dominant force in the technology industry. Advantages of cloud in a pricing and risk management setting are vast, and typically include faster calculations and/or processing times, the ability to scale usage elastically, greater handling capacity and resource savings.

Backtesting trading strategies, stress testing and scenario analysis are no longer one-off activities, rather they are recurring and continuous.  

For many years, FINCAD has embraced cloud platforms and used them to develop, test, and host our products. We are only increasing our focus and investment in cloud native computing and services as we move forward into 2021. 

FINCAD was recently selected by a leading bank in Japan, for our hosted cloud native Credit Valuation Adjustments (CVA) service. Presently, CVA is a large area of focus for Japan-based financial firms, as new accounting requirements go into effect in April 2021, requiring institutions to start calculating CVA. Our cloud native CVA offering is a perfect fit, as CVA can be computationally intensive particularly with exotics common in Asia. To read some of FINCAD's high-level observations regarding the cloud, view our blog, Top Cloud Trends in the Financial Industry

Looking Forward 

At FINCAD, we are continually looking for ways to help our clients stay ahead of the curve. After all, we have been pioneering market-leading derivatives analytics software for the capital markets since 1990. And, as many of you know, our people are what truly sets FINCAD apart. They are dedicated, knowledgeable and always willing to go the extra mile to help clients.

While 2020 has been challenging, we have taken the opportunity to progress some exciting improvements designed to address business problems and emerging trends. We are enhancing and streamlining the way FINCAD analytics are deployed to continue leveraging Python programming, in addition to the cloud, and integrated communications platforms. Recently, we have also given the FINCAD website a new look and feel designed to offer visitors a streamlined user experience.

Stay tuned for some exciting news regarding FINCAD products and services in early 2021. Wishing all of you the happiest of holidays. And hear, hear for nothing but the best in the new year! 

For more information or if you'd like to speak to a FINCAD financial engineer, please contact us.

About the author
Mark D'Arcy
Mark D’Arcy
President and CEO | FINCAD

A former systems engineer, Mark has more than 20 years of experience building and leading global risk functions within financial institutions, driving change in complex and ambiguous situations, and spearheading innovation. Mark is a graduate from the University of California, San Diego, and holds an MBA from New York University’s Leonard N. Stern School of Business.