A team of sales, trading, risk management and technology experts formerly with Wells Fargo have launched Derivative Path, a financial services company that will provide a technology-led solution to assist financial institutions and commercial end users in executing and managing their over-the-counter (OTC) interest rate derivative transactions.
The sales and trading team, which is led by co-founders and chief executives Steve Hawk and Pradeep Bhatia (pictured), has an extensive background in derivative sales and execution for several major banks and has worked with capital markets and financial institutions in creating back-to-back hedging programmes for derivatives.
"In an increasingly complex regulatory environment, financial institutions and their commercial end users are finding it more cumbersome to execute risk-mitigating interest rate swaps and other derivatives," said Hawk. "We are making available a cost-effective, outsourced solution to help these institutions continue offering such products and remain compliant with the increased regulatory demands placed on the industry."
Derivative Path will offer a full suite of services in hedge structuring, trade execution, regulatory reporting as required by Dodd-Frank and record retention, as well as risk management, operational, legal and accounting support.
"We are fully committed to applying our collective experience in running successful derivative businesses and accessing other industry experts and resources as needed, to ensure our clients achieve their desired financial risk management programme goals," added Bhatia.
In addition, the team will offer assistance to clients in setting up hedging, credit and other related bank policies, as well as with banker training.
Over the coming months, the company plans to launch a secure technology platform capable of assisting its financial institution clients in tracking the client-hedging process from proposal to execution to ongoing trade lifecycle servicing.