Verona, Italy-based financial technology company Fairmat recently released Fairmat Cloud, a web-based financial risk service offering assessments of OTC and structured products.
The platform is geared toward independent financial advisors, financial managers, funds specialized in structured products and audit companies looking for service with a flexible pricing scheme.
"Our current customers manifested the need of outsourcing any technical or financial modelling issue, but wanted the capability to operate on a platform," says Matteo Tesser, CEO of Fairmat. "This gave us the input to propose a solution which is offered in a hybrid way between a product and a service."
Tesser says having market data included in the service was the most common request among current customers. Fairmat chose to partner with Xignite.
"First, their offer is essentially designed to help a company like us to build products on top of market data, making a clear separation between the redistribution and the application businesses, thus making possible a partnership without conflict of interests," Tesser says. "Second, we share the principle of flexibility, and Xignite made the effort of adapting their offer to our needs.
The Fairmat Cloud was based on the foundation of other Fairmat products and took a year to develop. The biggest hurdle, according to Tesser, was redesigning its pricing system in order to scale with demand, something that was solved through using new cloud technologies. A lot of time was also spent on designing every component of the valuation process to be smart, robust and able to adapt automatically to different scenarios.
Tesser has plans to continue to offer more services on the Fairmat Cloud.
"Currently the goal of the platform is to provide tools that allow investors to compare different products using a common and unbiased scheme for any product," Tesser says. "In the next iterations, we will release portfolio-wise analytics, allowing users to obtain joint risk measures (such as VaR) on their entire asset allocation."
Source: Waters Technology