Design the products for the future
Due to the fast and unpredictable market changes, diverse customer needs and stricter regulatory requirements, quantitative analysts structuring new products face more challenges than ever before. Under these circumstances, meeting customer needs while realizing an optimal risk-and-reward profile for your institution requires the models to be more accurate, more flexible, easier to maintain and speedier in timing-to-market.
Adding transparency and flexibility to the product design process
With our solution Theta Suite, quant structurers can structure and evaluate financial products faster and more accurate than ever before. Like designing airplanes using the Computer Aided Engineering software, our solutions support the structurers in a best possible way through dynamic model building and generic interfaces.
The coding language ThetaML optimally defines financial products, trading strategies and evaluation models (e.g. stochastic models). This high-level language is backed by a powerful simulation engine and a generic compiler that optimizes the code execution order at minimal memory consumption. ThetaML has a built-in function E() that optimally selects the early-exercise strategies of American-type options, and a built-in function Beta() that optimally obtains the hedging ratios for complete and incomplete markets. The ThetaML keyword “fork” virtually parallels multiple simulation tasks that project the future paths of assets in different classes. The ThetaML command “theta” passes model time and enables the quant structurers to define time step(s) of an arbitrary length.
In Theta Suite, the description of the product (payoff structure), the stochastic models and the numerical implementations are modularized. Each individual component is easier to understand than a numerical algorithm that incorporates all the three in one piece of low level code. And, since the product description is separated from the valuation model, a product can be linked with any stochastic models for price valuations.
Easy to understand product descriptions and evaluation models with full traceability during every step of the computation process – the transparency we contribute to your product design process.
Making quants life easier while reducing model risk
We provide tools that enable quant structurers to focus on developing and improving models instead of spending time in identifying input or coding errors. When modeling in ThetaML, quant structurers can make use of our interface structuring component to check the validity of inputs for immediate feedback at design time, or to check the feasibility of model outputs after the model run. Upon this, ThetaML has multiple levels to inspect models up to every single calculation such that the model is guaranteed to be correct. With minimal training, new employees are able to start working right away with existing models.
Aggregate know-how inhouse
Theta Suite doesn´t come with a set of pre-defined standard products or models. Theta Suite is the standard software that enables you to easily build your own model libraries and to focus on developing and improving models. Thanks to the optimized coding language ThetaML, the models are easily integrable and maintainable. With Theta Suite, you aggregate the know-how in-house.
The five pillars of efficiency
ThetaML is the programming language in Theta Suite. ThetaML has the following features:
- Expressiveness: All features of financial contracts can be represented in a precise and compact manner, owing to the power of the coding language ThetaML.
- Modularity: The product structure is separated from model stochastics and numerical details.
- Transparency: It is easily comprehensible and allows for concise communication and documentation of financial product details.
- Integrability and Maintainability: Easy integration of existing code allows to build upon previous work.
- Simplicity and ease of use: Little learning effort is required for a computer literate.