The Next Generation of Valuation and Risk
We are in the midst of exciting times here at FINCAD. Last week we announced the latest release of F3, our advanced valuation and risk solution. One of the key enhancements was the introduction of F3 WorkStation, a powerful portfolio analytics and risk application enabling portfolio managers, traders, and risk managers to quickly leverage F3’s leading analytics for improved trading, hedging and risk management decisions.
Today’s challenging market conditions such as low yields and negative interest rates are making it difficult for portfolio managers and traders to achieve their desired level of returns. They are therefore seeking to improve returns with more sophisticated strategies, which require new asset classes and derivatives. Unfortunately, at many firms, legacy systems are straining to adapt to these changes, precisely when they are needed to handle the new asset classes, currencies, and instrument types.
Not only is under-performing legacy technology impeding firms’ path to growth, but it is also becoming increasingly expensive to maintain. In fact, a recent study conducted by Tabb Group found that technological problems are costing buy-side firms up to 50% of their revenues. Often front-office staff are so immersed in putting out daily technological fires, they have significantly less time available for work that helps generate alpha.
To be successful in the current environment, firms need flexible systems that are affordable, easy-to-use and allow them to implement new investment strategies. This was our focus as we built the latest improvements to F3, and the results are the next generation valuation and risk solution. F3 provides flexibility and control for quantitative teams, speed and accuracy for portfolio managers and traders, and reliability and comprehensive reporting for risk managers.
This adds up to better portfolio and risk management decisions and improved returns, and it also eliminates the high costs associated with maintaining legacy technology and reconciliations between the front and middle office.
F3 offers a compelling solution to the common question – should I build my valuation and risk system internally or turn to a vendor with off-the-shelf products? F3 offers the best of both worlds, with the ease of use and affordability of off-the-shelf software, combined with the flexibility and customization that you get with in-house systems.