case-study
Moscow Exchange: Implementing Integrated Derivatives Analytics with FINCAD

HIGHLIGHTS

Client: Moscow Exchange 

Moscow_Exchange_logo

 

Business Objectives

Deploy OTC derivatives trading and clearing 

Requirements

  • Support for a wide range of OTC trades
  • Integration with post-trade platform 

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"In terms of coverage, functionality and technology, FINCAD ticked all the right boxes."

Roman Sulzhyk Managing Director of MOEX

 


Background 

Moscow Exchange (MOEX) is one of the world’s top 20 exchanges, and one of the few on-exchange venues for FX trading globally.

Challenge 

Roman Sulzhyk, Managing Director of MOEX, was responsible for this project, having clear priorities from the outset. "I knew that if we were to compete with the world’s top exchanges in the business of clearing and trading of OTC derivatives, we needed an analytics platform that was completely accurate and fully transparent," stated Roman. 

Solution

MOEX chose to work with SoftWell and FINCAD. SoftWell’s Navigator post-trade platform, has been customized for MOEX. It also integrates the FINCAD platform for derivative analytics.

Using the FINCAD platform and working with an Excel® interface, MOEX financial analysts were able to prototype each and every type of OTC trade they wanted to support. In a short period of time, they were also able to test their models and validate the results.

Setup 

When they were satisfied with the analytics solution, the modeling assumptions/trade parameters were shared with SoftWell. SoftWell software engineers were easily able to integrate FINCAD with the Navigator infrastructure using the API they exported through the SDK interface.

"It is very easy for us to use the FINCAD API. We were under tight time constraints and are very happy that we were able to meet them," said Anatoly Karpov, CEO of SoftWell. 

Results

Staying Competitive: FINCAD provided MOEX the derivatives analytics capabilities they needed to support highly competitive services for their members to analyze, trade and clear OTC derivatives. 

Improved Business Decisions: FINCAD risk computations give MOEX risk analysis, which makes it possible for members to make informed business decisions without having to perform lengthy risk computations.

Expanded Coverage: MOEX is now supporting swaps and the exchange is planning to introduce services for foreign exchange options, followed by equity options.

Increased Confidence: "The combined FINCAD/Softwell solution has saved us money. The cooperation has been very effective between the three companies. As a manager, FINCAD's computations are the least of my worries. I am very pleased we selected FINCAD," said Roman. 


 

"We have quants, risk managers and software developers using the software, and everyone finds it easy to deploy and easy to use."

Roman Sulzhyk Managing Director of MOEX