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DerivaTech buoyed by $7m in new financing

Chicago-based currency derivatives pricing, analytics, transactions processing and risk management system provider, DerivaTech, has secured $7 million in new financing from US venture capital firm Trident Capital.

DerivaTech will use some of the new cash to develop derivatives pricing and risk management systems for non-FX asset classes, said DerivaTech chief executive Nicholas Hatzopoulos in a statement issued today. The remainder is earmarked for a sales and marketing push.

In the same statement, Trident managing director Venetia Kontogouris was bullish on the future of risk management systems providers. “The recent volatility in the financial markets has created increased demand for products that can assess and manage risk in all types of financial transactions,” he said.

DerivaTech’s core competency lies in pricing and risk managing both vanilla and exotic option structures. It uses volatility surface modelling to generate what it terms consistent and accurate derivatives pricing and risk measures.

Trident, which manages about $1.4 billion in assets, has offices in Palo Alto, Westport, Chicago and Los Angeles.

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