Synthetic Finance

The Finace module «Synthetic Finance» currently supports “Total Rate of Return Swaps” and “OTC Calls/Puts”. Future releases will also support Contract For Differences («CFD») and structured certificates such as warrants.

   

 


The main features of the module are:

  • Trade entry for outright purchase and sale of securities;
  • Trade entry for OTC calls and puts;
  • Trade entry for Total Rate of Return Swaps (single security or baskets);
  • Easy entry of securities borrowing and lending strategies enables their conversion into multiple synthetic trades and positions (e.g. rather than booking an outright purchase and a synthetic transaction, a loan and borrow transaction alone may be booked);
  • Maintenance of option premiums;
  • Exercise of options;
  • Management of swap resets and subsequent margin calls;
  • Life-cycle management of total return swaps (increase, decrease, premature closing);
  • Calculation of P&L;
  • calculation of counterparty risk taking into account replacement values and risk add-ons for the different freely definable risk buckets;
  • Seamless integration into the OTC derivatives collateral management module for ISDA Credit support Annexes;
  • Intergrated workflow management for alerts and pending items.