Xignite, the Silicon Valley-based market data and cloud services provider, has announced a collaboration with new Italian FinTech start-up Fairmat SRL, based in Verona.
The web-based service offers on-demand, pay-as-you-go analytics, financial models and risk assessments for several types of derivative instruments and will be powered by the US market data giant.
The Fairmat Cloud Solution provides assessments of over-the-counter (OTC) and structured products and is aimed at users requiring in-depth, instantaneous financial modelling, risk and pricing analysis, such as IFAs, financial managers (hedge funds and private equity groups), funds specialising in structured products and small family offices and consulting firms.
“OTC and structured product markets are viewed sceptically because it is often difficult to gain access to metrics (e.g. price and risk) for such products,” said Matteo Tesser, Fairmat's founder and chief executive. “Calculating those metrics requires the use of sophisticated mathematical models using assorted market data that must be calibrated.”
The company created templates for the underlying models that generate valuations on generic contract categories, such as interest rate swaps, bonds, vanilla options, exotics and structured products. Clients can obtain risk and pricing assessments using the templates or by querying the system’s built-in search engine to identify mapped public products.
Xignite market data will power the range of complex mathematical models that supports the analytics. The Fairmat Cloud Solution uses Xignite real-time and historical data related to currency exchange rates, equities, index values and interest rates. Looking forward, the company believes that this cloud solution will raise the awareness of structured products, ultimately benefiting advisers, their clients, and the market as a whole.
“We went through a long process contacting vendors in our attempt to secure the data needed to deliver the Fairmat Cloud solution,” said Tesser. “The company integrated the market data in hours, rather than days, weeks or longer. Analytics require data, so the partnership with Xignite is a synergy.”