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MiFID
| A viable benchmark model that exactly fulfills the best execution criteria defined in MiFID’s Best Execution Requirements exists for derivatives. The SuperDerivatives benchmark pricing model is simple and economical to use and maintain. It provides real time market-realistic pricing that mirrors the inter-bank market consensus price for virtually any structure of option -- including the most exotic ones. The model is readily accessible for any buy-side or sell-side market participant as well as regulators and auditors. With the SuperDerivatives model, any market participant can obtain un-biased, accurate mid-market prices as well as the exact bid – offer spread. The model is currently used both for pre-trade market price testing, as well as for post-trade price verification, portfolio revaluation, risk management reporting and compliance. The SuperDerivatives model, which has repeatedly won awards from leading market authorities, has been openly available and market-tested for over six years, and is used globally by active professional traders. Since it is based on deep coherent mathematical and economic principles, it accurately calculates market-prices of illiquid custom trades, developing those prices by using the input of “reference prices” of other, highly liquid instruments. The model has been proven highly adaptive and can accurately price newly emerging products as they are introduced by dealers. It has been successfully tested and proved very accurate for exotic derivative asset classes in many global emerging markets. Price calculations are constantly checked for accuracy vs. the over-the-counter dealer market. In addition to its real-time pre-trade capabilities, it can also retroactively generate accurate historical prices true to market conditions at any given hour of a past trading day. SuperDerivatives pricing are available via secure interactive web-based applications as well as via programmatic web services (API). |
  The SuperDerivatives model, which has repeatedly won awards from leading market authorities, has been openly available and market-tested for over six years, and is used globally by active professional traders.
Relative to other pricing and revaluation methods for risk control and accounting compliance, “…MiFID establishes a new standard, which aims to protect investors, enhance market efficiency and improve price formation… It also requires firms to have arrangements for obtaining the best possible results, to monitor those results, and to provide information to clients…” (as per the FSA). These goals have been furthered by the wide market acceptance of SuperDerivatives’ systems into the exotic derivatives market. The SuperDerivatives option-pricing model has already become the recognized global standard for independent and accurate real-time pricing of exotic derivatives in currencies, interest rates, equities, commodities and energy used by the vast majority of option-trading banks, big 4 auditors, central banks, asset managers, hedge funds, custodians, and corporations globally. The model is used by market professionals all over the world who count on it for making trading and investment decisions. |