Derivatech wins first options risk software deal in China

"As the market-maker in China, not only do we need the best FX options pricing, analytics and risk management capabilities, we need the system used by the best banks in the world," said Qianyong Lai, Bank of China’s head of foreign exchange options. "We chose Derivatech since it is the international standard in FX options solutions."

He added that the software, called dt Compass, is also able to handle a large number of exotics and is flexible in terms of generating reports, which were two other key selling points.

"This is the first deal of its kind in the fastest growing market in the world," said Nicholas Hatzopoulos, New York-based chief executive of Derivatech. "Derivatech’s functionality and risk analytics will help Bank of China with its desired initiatives of growing the business with effective risk management practices in place."

Risk management tools are particularly important for options deals in China because there is uncertainty over which firms are authorised to trade in this growing market, said one foreign exchange options head at a European bank. "You have to be very careful about the capacity of a counterparty to engage in a transaction."

Bank of China is the first government-approved bank to offer forex options in China. But there is also a growing offshore renminbi options market that hedges for corporates based in Taiwan and elsewhere in the region.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Next-generation technologies and the future of trading

At a webinar in association with capital markets technology provider Numerix, panellists discuss the potential for increased adoption of the public cloud to boost investment performance, its impact on risk management and overcoming barriers to…

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here