Cathay hires Numerix to cope with increasing demand in Taiwan

Cathay United Bank has opted for Numerix Treasurer to respond to increasing demand in the local structured products market. Cathay United Bank was the most active provider of structured products in Taiwan in 2014, with a 27% market share and a sales volume of TWD7bn (US$6.2m). The bank has marketed 45 deposit-based products since the beginning of 2014, and is the most active provider year to date with 10 products, followed by Shin Kong Bank and Taishin Bank (each with four products).

Numerix Treasurer automatically generates mark to market (MTM) and Greeks allowing sales to analyse trade details and perform pre-trade scenario analysis. While it used to take half, or even an entire day to obtain inquiry quotes from counterparties, but now a reference price is available in one click, said Tony Kao, senior vice-president of financial marketing at Cathay United Bank, in a statement.

The Treasurer allows sales to conduct scenario analysis from the portfolio view and provide customised suggestions, and provides a wide range of reports which can be sorted by customer, product category and currency pair helping banks to meet current regulatory requirements for detailed PnL reporting.

Numerix’s activities in the Asia-Pacific structured products market have increased in 2015, following the launch in March of an integrated multi-issuer investment products distribution system in collaboration with the Leonteq, DBS and Avaloq.