One of the key attributes of Analytic Space is the comprehensive and robust multi-model support provided through its customizable pricing and risk management framework. Most financial organizations have implemented monolithic trading and risk system applications that lack a unified approach for dealing with the variety and complexity of pricing analytics. Typically pricing models the pricing models are disorderly, non-generic, opaque and tailored for specific tasks and input data structure (i.e., hardwired to specific systems).
Analytic Space provides a centralized repository of configurable, in-memory, persistent mathematical and statistical models of varied complexity accessible via an MS Excel front-end or a Web Services compliant client. By amalgamating market data, pricing models and risk analysis into a centralized service, Analytic Space provides a flexible and robust risk management framework for assessing alternative pricing models with combinations of different market data sets.
Analytic Space provides a robust, broadly accessible, multi-model framework that provides numerous front and middle office benefits including:
- Comprehensive trading book analysis and multi-model comparison/assessment
- Ability to test model performance against both model and market perturbed hedges
- Effective and transparent model calibration
- Model validation
- Detailed P&L attribution and rapid resolution of all discrepancies in P&L and Risk
- "WHAT IF" analysis for both valuations and risk management.
- Ability to price and calculate risk of portfolios using multiple models simultaneously
- Infrastructure cost savings
- Unified approach to model development and deployment allows for skills importability
- A holistic view of cost of capital
- "Un-warehousing" of the risk
- Facilitates effective communication and positive idea flow between front & middle office and financial control teams