OKB Extends its Use of SunGard’s Derivatives Pricing
June 21, 2004 –
SunGard Trading and Risk Systems, an operating group of SunGard (NYSE: SDS), today announced that Oesterreichische Kontrollbank Aktiengesellschaft (OKB), an Austrian specialized financial services provider for the export industry and the capital markets, is extending its use of SunGard’s Reech Automatic Derivatives Pricer (ADEP). ADEP is a proprietary language that can describe any OTC derivative, in plain English, from a simple vanilla swap or option to the most complex hybrid structure, and instantly provide the pricing and risk management parameters for the product.
The international finance department of OKB, headed by Waltraut Burghardt, senior director and Anton Ebner, director, has chosen Reech as a partner for complex derivatives pricing because of its quantitative background and expertise and ADEP’s ability to support complex structures such as PRDC notes. The nature of the products that OKB uses to hedge and to enhance the structure of its refinancing portfolio requires the flexible nature of the ADEP cash flow description language. With ADEP, new structures can be captured as derivatives instruments evolve. Using independent models is also very important in light of regulatory requirements for valuation.
Christophe Reech, president of SunGard’s Reech operating unit, said, “We are pleased to be working with OKB, a prestigious and sophisticated player in Austria, particularly as the expertise required and the regulatory issues are well defined. Reech ADEP provides independent pricing to satisfy regulators and the flexibility to quickly adapt to the dynamic derivatives market.”
The ADEP cash flow description language is linked to a range of multi-factor interest rate, equity, FX, credit and hybrid structures. The ADEP service is available over the Web as an ASP service or in XLL or DLL format for spreadsheet or system integration use.
OKB was founded in 1946 as a specialized banking institution, whose shareholders are domestic commercial banks. Exporters and the banking community benefit from OKB’s combined function of administering export guarantees on behalf of the Republic of Austria and efficient refinancing for export credits. As Austria’s export credit agency OKB is the second largest Austrian borrower in the international capital markets and its bonds are rated AAA/Aaa by Standard & Poor’s and Moody’s. In the Austrian capital market OKB plays a central role in the custody and administration of securities, acts as Paying Agent and agent for domestic bond issues and serves as notification office for the submission of prospectuses.
About SunGard Trading and Risk Systems
SunGard Trading and Risk Systems provides integrated, enterprise-wide solutions for financial and energy trading, risk management and operations, as well as asset liability management and financial planning and forecasting. Serving over 900 clients, it offers web-enabled solutions for achieving straight-through processing, and for managing market, credit and operational risk. Clients include financial institutions, energy companies, government agencies and corporations of every size, geographical reach and operational complexity. SunGard Trading and Risk Systems also offers systems integration, project management and consulting services.
SunGard is a global leader in integrated software and processing solutions, primarily for financial services. SunGard also helps information-dependent enterprises of all types to ensure the continuity of their business. SunGard serves more than 20,000 customers in more than 50 countries, including the world’s 50 largest financial services companies. SunGard (NYSE:SDS) is a member of the S&P 500 and has annual revenue of $3 billion.
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